A Guide To Investing In Bitcoin In Zimbabwe

Investing in Bitcoin in Zimbabwe is a straightforward process. The first step is to register with a platform, app, or exchange that is available in Zimbabwe, such as Kraken, Coinmama, or Changelly, and complete a Know Your Customer (KYC) process. This involves providing a form of photo ID, such as a passport, national identity card, or driver's license. Once registered, users can deposit funds into their account using a bank account, card payment, or e-wallet, and then use those funds to purchase Bitcoin. It is important to note that users do not need to buy a full Bitcoin, as most exchanges allow users to purchase fractions of a Bitcoin. Finally, users can choose to store their Bitcoin in a personal crypto wallet for added security.

Choosing a crypto exchange

There are hundreds of cryptocurrency exchanges available to investors and traders, so it can be challenging to choose the right one. Here are some factors to consider when selecting a crypto exchange:

• Authenticity and security: Research the exchange to ensure it is legitimate and secure. Check its reputation and the security protocols it has in place to protect your data and funds.
• Payment methods: Different platforms support different payment methods, such as bank transfers, PayPal, credit cards, and debit cards. Choose an exchange that accepts your preferred payment method. If you are new to crypto and don't have any coins yet, select a platform that accepts fiat currency to make it easier to enter the market.
• Supported coins and tokens: While most exchanges support Bitcoin and Ethereum, the number of supported cryptocurrencies varies. If you want to invest in coins beyond the most popular ones, check the list of supported assets before choosing an exchange. Binance, for example, offers access to a wide range of altcoins.
• Transaction fees: Understand the fee structure of the exchange, as fees can vary significantly. Look for an exchange with competitive and transparent fees, and avoid those with hidden transaction costs. Some platforms offer flat transaction rates, while others have a more flexible structure.
• User interface and experience: Choose an exchange with an intuitive interface and good user experience, making it easier to trade cryptocurrencies. Also, consider the customer service and other customer-related functionalities offered by the platform.
• Binance: Considered the most powerful crypto exchange globally, with a daily trading volume of over $13 billion. It offers access to hundreds of coins and tokens and provides various services such as staking and derivative trading. Binance is available in over 100 countries.
• Coinbase: One of the most widely used digital currency exchanges, especially in the United States. It is a publicly listed company offering services to both retail and institutional traders. Coinbase provides insured custodial wallets and supports over 2 billion dollars in daily trading volume.
• Kraken: One of the oldest crypto exchanges, Kraken has been around for many years and is admired by many traders. It provides access to hundreds of cryptocurrencies, allows funding accounts using fiat currencies and cryptocurrencies, and offers other trading services.
• CEX.io: Known for its excellent user interface, making it a good choice for beginners. CEX.io offers access to a wide range of cryptos, including Bitcoin, Ethereum, and Litecoin, and has highly rated customer support.

Setting up an account

• Choose a crypto exchange: Select a cryptocurrency exchange platform that operates in Zimbabwe, such as Kraken, Coinmama, Changelly, Bitmama, or Pursa Exchange. These platforms offer different features, fees, security measures, and payment methods, so it is important to compare them and choose the one that best suits your needs.
• Register and create an account: Visit the website of your chosen crypto exchange and sign up by providing your personal details, such as your name and email address. Some platforms may also require you to create a password and set up two-factor authentication for added security.
• Complete the Know Your Customer (KYC) verification process: To comply with regulatory requirements, most Zimbabwean crypto exchanges will ask for identity verification. Have your photo ID (passport, national identity card, or driver's license) ready to take pictures of both the front and back sides of the document. This step may take up to 1-2 days for approval.
• Link a payment method: To buy Bitcoin, you will need to link a payment method to your account. Different exchanges offer different options, including bank accounts, credit or debit cards, and e-wallets like PayPal. Choose the payment method that suits you best and follow the platform's instructions to link it to your account.
• Make your first deposit: Once your payment method is linked, you can deposit funds into your account. The time it takes for the funds to arrive depends on the payment method chosen.
• Buy Bitcoin: Now that your account is set up and funded, you can start purchasing Bitcoin. Remember that you don't need to buy a full Bitcoin; most exchanges allow you to buy a fraction of a Bitcoin, so you can invest as little or as much as you want.

It is important to note that while some platforms may allow you to keep your Bitcoin in your exchange account, it is generally recommended to transfer your Bitcoin to a secure personal crypto wallet for better security and peace of mind.

Depositing funds

To deposit funds into your account, you will need to link a bank account or credit card to your chosen exchange. The payment methods available will depend on the exchange you choose.

Kraken, for example, accepts deposits in USD, EUR, CAD, GBP, JPY, and CHF. It also offers free EUR SEPA deposits for EEA countries and free CAD wire deposits. However, there is a fee for USD bank wire deposits and withdrawals.

Coinmama allows you to buy and sell Bitcoin with five forms of payment, including credit and debit cards, and bank transfers. It accepts all currencies, particularly USD, EUR, GBP, CAD, AUD, and JPY.

Changelly accepts USD, EUR, and GBP for buying cryptocurrency and offers two-factor authentication and an HTTPS security protocol for user protection.

Other exchanges, such as LocalBitcoins, Crypto.com, and Bitsquare, also offer various payment methods, including multiple fiat currencies.

It is important to note that some exchanges may have higher fees for certain payment methods, such as credit and debit card purchases, and there may be delays in processing times. Additionally, some banks may restrict spending on crypto purchases or deposits to cryptocurrency exchanges.

Buying Bitcoin

There are several ways to buy Bitcoin in Zimbabwe. Firstly, you can use a cryptocurrency exchange. These include Kraken, Coinmama, Changelly, and Binance, which is the world's largest exchange with over 15 million users. Exchanges allow you to buy and sell Bitcoin and other cryptocurrencies, and they offer varying fees, security measures, payment methods, and features. You can also buy Bitcoin directly from other users through a peer-to-peer marketplace, such as the one offered by Binance.

To get started with an exchange, you will first need to create an account and complete a Know Your Customer (KYC) verification process. This usually involves providing a photo ID and proof of address. After that, you can link a bank account or credit card to the exchange and deposit money. Then you're ready to buy Bitcoin or other cryptocurrencies. It's important to note that you don't need to buy a whole Bitcoin—most exchanges allow you to buy just a few dollars' worth.

Another option for buying Bitcoin is to use a Bitcoin ATM. As of 2020, there was one Bitcoin ATM in Zimbabwe, located in the city of Harare. These ATMs allow you to buy Bitcoin instantly with cash and typically have minimal requirements for KYC.

If you're looking for a more direct, person-to-person trading experience, you can use a platform like LocalBitcoins, which connects buyers and sellers. This platform supports many payment methods and allows vendors to create offers in all currencies. However, both buyers and sellers have a chance of being scammed, so extra caution is advised.

Finally, you can use a service like Paxful, which is a peer-to-peer Bitcoin marketplace connecting buyers and sellers. Paxful offers over 450 payment methods, including gift cards, Skrill, and Western Union, and it doesn't require you to have a bank account.

Transferring Bitcoin to a personal wallet

Firstly, you'll need to choose a Bitcoin wallet. There are several types of Bitcoin wallets, including mobile wallets, web wallets, desktop wallets, hardware wallets, and paper wallets. Each type has its own advantages and disadvantages in terms of security, convenience, and accessibility. For example, mobile wallets are convenient for everyday use, but they are more susceptible to malware and hacking. On the other hand, hardware wallets are considered one of the most secure ways to store Bitcoin, but they require a more substantial upfront investment.

Once you've selected your wallet, you can proceed with transferring your Bitcoin. The exact procedure will depend on the type of wallet you're using, but the key information you need is the 'address' of the recipient. This address is where you will send your Bitcoin.

• In the Sending Account, go to the BTC Wallet section.
• Select the "Send" option.
• Input the recipient's BTC address.
• Specify the amount you want to send (in USD or BTC).
• Review the transaction details and confirm the transfer.

It's important to note that transferring Bitcoin may incur fees, and these fees can vary depending on the platform and the amount being transferred. Additionally, always ensure that you are using a secure and trusted platform to protect your funds.

By following these steps and staying informed about the latest security measures, you can safely transfer Bitcoin to your personal wallet.

Frequently asked questions