In recent years, Bitcoin and Cryptocurrency have become buzzwords and many Kenyans want to make money from crypto or at least learn how it works. While the road to understanding cryptocurrencies is not smooth, for the curious folks, it’s rather an exciting journey. This article tries to explain this new world and how one can buy and sell Bitcoin and Altcoins in Kenya.
What is a Cryptocurrency
In simple Language, A Cryptocurrency (Crypto), is a digital currency that is secured by cryptography. The currency is typically used as a medium of exchange by people within a peer-to-peer (P2P) digital ecosystem. Cryptography ensures that transactions using digital currencies are protected from fraud and counterfeiting.
Most cryptocurrency systems work through a decentralized framework that is collectively maintained by a distributed network of computers. They don’t rely on a centralized point of authority.
What is Bitcoin
Bitcoin is a digital asset and currency (a digital form of cash). It was the first digital asset (cryptocurrency) to be ever created. The currency was introduced by Satoshi Nakamoto (pseudonymous developer) in 2009. Satoshi’s goal was to create an electronic payment system that would allow digital financial transactions between users without the need for intermediaries, such as banks or governmental institutions. Bitcoin is decentralized, secure, censorship-resistant, and borderless.
Over the years Bitcoin has become a valuable asset in the World and Kenyans haven’t been left behind. The cryptocurrency has many uses, which include trading and storing. Cryptocurrency investors expect Bitcoin prices to go up over time and in the process sell at a profit.
In Kenya, you can buy, hold or sell Bitcoin for US dollars or Kenya Shillings. All you need is a cryptocurrency exchange like Binance and a Payment option (Mpesa or Bank Account). You can also buy and store your Coins in a Crypto wallet like Meta Mask or Trust Wallet.
What are Altcoins
Besides Bitcoin, there are other Cryptocurrencies like Ether, Terra, and Solana. These alternative digital assets are referred to as Altcoins. They are considered “alternate” or “alternative” coins as Bitcoin was the original Coin.
Today, altcoins also include tokens like BNB by Binance Coin, ADA by Cardano, and LUNA by Terra. “Tokens, generally speaking, are non-mineable digital units of value that exist as registry entries in blockchains.”
Is Bitcoin Legal in Kenya
Unlike in other nations which have imposed a total ban on the use, holding, and trading of digital assets, Bitcoin is still in use in Kenya. However, according to a Public Notice issued by CBK in December 2015, digital currencies such as Bitcoin are not legal tender in Kenya. In the notice, CBK made it clear that “Bitcoin and similar products are not legal tender nor are they regulated in Kenya. The public should therefore desist from transacting in Bitcoin and similar products.”
What are Cryptocurrency Exchanges
To buy and sell bitcoin in Kenya, you need a Crypto Exchange. This is a platform that allows customers to trade digital assets online. There are many Cryptocurrency Exchanges in the world but the following are the ones that are more reliable for Kenyans.
Binance is the world’s leading cryptocurrency exchange. It gives traders an easy-to-use digital platform. With Binance P2P, Kenyans can buy Bitcoin and other Cryptocurrencies using Mpesa. It is also easy to sell, hold on and send crypto to a wallet from the exchange. Besides trading, there are many other ways to make money on Binance like Saving, Futures, and Staking.
Coinbase is easy to use and secure online platform for trading, transferring, and holding cryptocurrency. It has been around since the early days of Bitcoin. Also, the platform has guides, resources, and features that make it easy to get into crypto.
LocalBitcoins P2P is another Digital Currency Exchange (DCE) where Kenyans can Trade bitcoins in an easy, fast, and secure way.
Yellow Card is also one of the most trusted crypto exchanges in Kenya. The Platform offers multiple payment options to buy and sell bitcoin in Kenya including Mpesa and bank transfers.
LocalCryptos claims to be “the largest non-custodial peer-to-peer Bitcoin marketplace.” Kenya is the largest African country by trade volume on their platform.
Paxful helps you buy and sell Bitcoins digital currencies in three easy steps.
a) Create an Account on Paxful and get verified.
b) Select a payment method and amount to use (Kshs).
c) Buy or Sell Bitcoin
How to Buy and Sell Bitcoin in Kenya?
1. Decide which Cryptocurrency to Trade.
2. Choose your preferred Cryptocurrency Exchange
3. Create an Account with a Crypto Exchange
4. Start Trading
To buy or sell Bitcoin in Kenya, simply create an account with your preferred exchange. After verification is complete, make payment with any of the available options, including M-PESA!
Crypto Exchanges also allow you to sell your Bitcoins and other Altcoins with ease. Once the sale is complete, you receive payment through Mpesa or your preferred Bank account.
This article is just but a basic introduction to how to buy and sell Bitcoin in Kenya using Mpesa or a Bank account. If you would like to have in-depth information on Crypto and Blockchain, there are many learning materials online like Binance Academy.