Bitcoin is the first decentralized digital currency that was introduced in 2009. However, due to mysteries surrounding cryptocurrencies, Kenyans have been held back from taking part in its trade. However, in the recent past, the number of Kenyans trading in Bitcoin has significantly increased. In Africa, Kenya is among the leading countries to trade in Bitcoin.
Cryptocurrencies have the following features
- They are decentralized. Cryptocurrencies are not regulated from a specific location; instead, they are community owned.
- Peer to peer. They are easy to exchange ownership between people from different parts of the world.
- They are cheap. You can exchange Bitcoins at the cost of a few cents.
- They are fast to transact. Transferring Bitcoins takes just a few seconds, unlike bank transfers that can take days.
How to Buy Bitcoin in Kenya
From Kenya you can purchase Bitcoin from many cryptocurrency marketplace. You can buy Bitcoin in Kenya using local payment methods such as PayPal, TransferWise, M-Pesa and bank transfers. Some of the currencies that you can use to purchase Bitcoins include ZAR, EUR, GBP, AUD and others.
You need the following to get started to trade in Bitcoins.
Bitcoins are digital currencies that have value. You don’t need a lot of money to buy a Bitcoin. You only need some dollars and you check the prices which keep on changing. To get started, you need to exchange cash for Bitcoins. You can always check for the prices of Bitcoins in different marketplaces. Since trade in cryptos is a risky business, make sure you trade with what you can afford to lose. It is an investment just like any other which can have profits or loses.
You need to have a digital place where you can store the cryptos. The wallet has an option to send and receive funds and also backup. In Kenya, you can use M-Pesa to trade in Bitcoins. To receive funds, you need to provide the sender with the wallet address such as a bank account or M-Peas mobile number. Ensure that you backup your key to the wallet in safe place and not in an online platform.
These are online platforms where buyers and sellers can exchange Bitcoins for cash. They do not need to meet each other to trade. In Kenya, there are many exchange platforms which one can use. Some of them include the following.
- Merchant exchanges
- Trading exchanges
They are the common areas where one can buy cryptocurrencies using M-Pesa. Some of the merchant exchanges include.
- Paxful. This is one of the main platforms that Kenyans use to purchase Bitcoin. It is easy to sign up, buy, sell and trade in Bitcoin by use of M-pesa. The platform has customer support and also a community of people from various countries in Africa.
- Localbitcoins. This exchange only deals in the trade of Bitcoin. All you need to do is to sign up and then activate your account. A link will be sent to your email once you sign up which you can use to activate your account. Then you are ready to look for a merchant who can trade in Bitcoin. Make sure that you check the profile of the seller before you can trade.
You will notice that merchants can sell or buy Bitcoin at higher prices than the market price and also, sell or buy Bitcoin in the price below the market price.
How to Sell Bitcoin
It is possible to sell a fiat currency in the cryptocurrency market. Options on how to trade Bitcoin depend on the country one is in. Some of the ways you can sell Bitcoin is by choosing the vendor who offers the best offer. You can sell to vendors within your country or sell the Bitcoins in the international markets. It is also possible to trade Bitcoins using other digital currencies found in the cryptocurrency exchange.
Some of the other places where Kenyans can trade in Bitcoin include the following:
- KuBitX. This was the first African exchange carried out by Africans.
- PesaMill. This platform is aiming to list African coins.
Vincent is an experienced journalist from Kenya as well as a statistician. He has a degree in Applied Statistics with computing from the University of Eldoret.