A Beginner's Guide: Investing In Bitcoin In Kenya

Bitcoin and cryptocurrencies are no longer a passing fad, and Kenyans are increasingly adopting them as a revolutionary source of making money swiftly and effectively. With over $200 billion in value created, it is just the beginning of an open alternative financial system. In Kenya, you can buy, trade, exchange, hold, and store cryptocurrencies as long as you do not break any existing laws. To get started, you need to try paper trading and then set up a blockchain wallet, which is a digital app that allows you to store, send, and receive digital assets. You can then purchase bitcoins through various platforms such as Paxful, Binance P2P, Coinbase, and Bitpal, which offer different payment methods and varying levels of security and convenience.

Using a blockchain wallet

A blockchain wallet is a digital app that allows you to store, send, and receive digital assets. It is a safe and widely used method for buying Bitcoin in Kenya, which can be done simply by using your phone at any time and anywhere.

To get started, you will need to download a blockchain wallet app. Examples include Bitpal, Blockchain, Mycelium, and Coinomi. Once you have downloaded and installed the app, you will need to register with your details and create an account.

It is important to secure your wallet by adding a strong PIN and backing up your seed phrase. This will help you recover your Bitcoin if you forget your password or lose your phone.

After setting up your wallet, you can start buying Bitcoin. You have two main options for buying or selling Bitcoin for Kenya shillings:

• Members of the Blockchain Association of Kenya who broker Bitcoin and digital assets locally.
• Online peer-to-peer marketplaces such as Localbitcoins.com, which connect buyers and sellers locally.

Once you have purchased Bitcoin, you can send it to your blockchain wallet. To do this, you will need to provide the sender with your Bitcoin wallet address, which is a long hexadecimal string.

Remember to only transact with trusted brokers with a stellar reputation, as fraud and scams are common in the blockchain asset space.

Finally, you can use your Bitcoin in various ways, such as making online and cross-border payments or becoming a digital commodity broker and trader.

Exchanging bitcoin for Kenyan Shilling

Another option is to use an online peer-to-peer marketplace, such as Localbitcoins.com, which connects buyers and sellers locally. You can then settle the transaction with the broker using your preferred method, such as cash, bank transfer, mobile money, or airtime.

Additionally, there are platforms like Paxful, which allow you to buy bitcoin with zero transaction fees and offer over 450 payment methods, including bank transfers, M-Pesa, Chipper Cash, and PayPal. You can also use Paxful to sell your bitcoin to other users for Kenyan Shillings.

Lastly, you can use a bitcoin trading exchange, which offers effective and quick transitions from bitcoin to Kenyan Shillings and vice versa. It is recommended to choose a protected exchange with high trading volumes and global recognition to ensure the safety of your funds.

Using a bitcoin trading exchange

A bitcoin trading exchange is a platform where you can buy and sell bitcoin and other cryptocurrencies. It is a marketplace where buyers and sellers come together to trade digital currencies. There are several bitcoin trading exchanges available in Kenya, each offering its own unique features and benefits. Here are the steps to get started with a bitcoin trading exchange:

• Choose a reputable exchange: It is important to select a well-known and trusted exchange that has a good track record and offers high security. Examples include Binance, Paxful, and Coinbase.
• Create an account: Sign up on the chosen exchange by providing your personal details and creating a secure password. You may also need to verify your identity by providing additional information, such as a government-issued ID or proof of address.
• Fund your account: Most exchanges will require you to deposit funds into your account before you can start trading. You can typically fund your account using various methods, such as bank transfers, mobile money, or other cryptocurrencies.
• Place a buy order: Once your account is funded, you can place a buy order for Bitcoin. Specify the amount of Bitcoin you want to purchase, and the exchange will match you with a seller.
• Store your Bitcoin securely: After purchasing Bitcoin, it is essential to store it safely in a digital wallet. You can choose a hot wallet, which is an online wallet offered by most exchanges, or a cold wallet, which is an offline storage option, such as a hardware wallet or paper wallet.
• Monitor the market: Keep an eye on Bitcoin's price movements and market trends to make informed decisions about when to buy or sell. You can use various tools and indicators available on the exchange to analyse the market and identify potential trading opportunities.
• Consider trading strategies: Depending on your risk appetite and investment goals, you can explore different trading strategies, such as day trading, swing trading, or long-term investing. It is crucial to understand the risks involved and do your own research before implementing any strategy.
• Withdraw your profits: When you are ready to realise your profits, you can sell your Bitcoin on the exchange and withdraw your funds. Most exchanges offer multiple withdrawal options, and you may need to provide additional information for security purposes.

Remember to always do your own research, start with small investments, and never invest more than you can afford to lose. The cryptocurrency market is highly volatile, and there are risks associated with trading, so it is important to be cautious and informed.

Using a bitcoin trading platform like Binance

Step 1: Create an Account on Binance

Before you can start buying Bitcoin on Binance, you need to create an account. You can do this by downloading the Binance app or visiting the Binance website and registering with your email and mobile number.

Step 2: Verify Your Identification

Binance is a centralized exchange, which means you need to verify your identification before using the platform. This process may include providing personal information and uploading documents for verification.

Step 3: Choose Your Payment Method

Binance offers various payment methods to buy Bitcoin, including debit/credit card, Google Pay, Apple Pay, and third-party payment channels. The available options may vary depending on your region.

Step 4: Buy Bitcoin

Once your account is set up and verified, you can proceed to buy Bitcoin. Go to the "Buy Crypto" section on the Binance website or app, select Bitcoin as the cryptocurrency you want to purchase, and choose your preferred payment method. Follow the instructions to complete the purchase.

Step 5: Store Your Bitcoin

After buying Bitcoin, you can choose to store it in your Binance account or transfer it to a personal crypto wallet. Binance offers a secure and trusted platform for storing your crypto assets.

Step 6: Trade or Stake Your Bitcoin

With your Bitcoin in your Binance account, you can choose to trade it for other cryptocurrencies or stake it on Binance Earn to generate passive income. Binance provides advanced trading tools and charts to help you make informed decisions.

By following these steps, you can easily invest in Bitcoin using the Binance platform, taking advantage of its security, low fees, and wide range of features.

Using a bitcoin wallet app

A blockchain wallet is a digital app that allows you to store, send, and receive digital currencies. You can download a Bitcoin wallet app on your phone from Google Play Store or Apple Store. Examples of Bitcoin wallet apps include blockchain, mycelium, and coinomi. After downloading the app, you should secure your wallet by adding a strong PIN and backing up your 12-word phrase, which will help you recover your Bitcoin if you lose your phone or forget your password.

Once you have set up your wallet, you can start buying Bitcoins in Kenya. However, buying Bitcoins in Kenya is not easy, as there are not many services that cater to Kenyans. One option is to use the services of members of the Blockchain Association of Kenya, who broker Bitcoin and digital assets locally. Another option is to use an online peer-to-peer marketplace such as Localbitcoins.com, which connects buyers and sellers locally.

After you have purchased your Bitcoins, you can send them to your wallet. To receive Bitcoins, go to your wallet, click on "receive," and copy your Bitcoin wallet address, which is a long hexadecimal string. You can then give this address to the broker or seller, who can deposit the Bitcoins into your wallet.

It is important to only transact with trusted brokers with a stellar reputation, as fraud and scams are common in the blockchain asset industry. Additionally, it is recommended to withdraw your Bitcoins from the exchange to your own non-custodial wallet for security, privacy, and full control over your Bitcoins.

Frequently asked questions