How Do I Trade with Bitcoin in Kenya?
This is going to be a complete guide to how to trade Bitcoin. It remains to be the number one universally accepted cryptocurrency out of the possibly hundreds of cryptocurrencies in existence. This has been fueled mostly by the increasing acceptance of Bitcoin as payment methods for services rendered and goods bought. In Africa, we have seen bitcoin ATMs popping up in countries like South Africa, giving us the impression that it’s not long until the same arrives here in Kenya.
If you are new to the world of cryptocurrencies, you probably should know that Bitcoin was invented in 2008 by a person or a group of people who identify themselves as Satoshi Nakamoto. The name remains a mystery as the person has never identified themselves. However, the cryptocurrency was introduced to the public in 2009, and by the time, it cost only $0. It was completely free for anyone who desired it.
Since then, Bitcoin has grown to over $39,000, equivalent to over 3.9 million Kenyan shillings. The cryptocurrency was formed using blockchain technology which gives it a very high number of uses compared to the Fiat currency and many more benefits.
For example, Bitcoins are not owned by any individual or organization, or government and are therefore not subjected to them. Similarly, Bitcoins are a digital currency and are therefore accessible or used at any given time of the day or night. They are compatible with mobile payment systems, and they have very low transactional costs involved with them, even for international payments. They are also a decentralized currency system that allows peer-to-peer transactions, making them very secure, and an autonomous currency system offering discretion to those using it. Bitcoin would be considered as the money we know and see, but untouchable and much better.
If you are wondering how you can get Bitcoins, then you have one of two ways. First, you can either buy Bitcoins from local cryptocurrency selling platforms in Kenya like LocalBitcoins. On such platforms, you create your account, and then you can link with hundreds of customers selling their Bitcoins at different rates. You get the chance to choose the best seller for you to buy Bitcoins from them.
Secondly, you can mine and be rewarded with Bitcoins. This is the best way to earn bitcoins without having to pay for them. The mining process refers to the work done of verifying ledgers to make sure that transactions carried out have not been replicated and are as legit as they should be. After completing a block, a certain number of transactions, the person mining is rewarded with a certain number of Bitcoin units. It’s a long and tiresome process that is costly than its expensive machines and the high electricity bill you should expect every few days or so.
While you wonder how you can trade with bitcoins in Kenya, you must understand what Bitcoin is and how you can get it before trading it. You have already understood what Bitcoin is, so we are about to look at how you can get Bitcoin through buying.
How to Get Bitcoins by Buying?
In Kenya alone, the value of already bought Bitcoins is at $200 billion and is still rising. Bitcoin is traded on several platforms, but to buy and own it, you need several things. This includes a blockchain wallet. Just as Bitcoin is a digital currency, you will also need a digital wallet to store your cryptos safely. They come as apps that you to send and receive cryptos any time of the day.
Now that you have the wallet secured and ready to receive, you need to find the possible platform with the payment method you need to buy your Bitcoins. These include LocalBitcoins, Coinmama, Kraken, and, Paxful among others. Some of these services will allow for to buy your Bitcoins via M-Pesa, and some will only accept other method payments.
On these platforms, you will be linked with buyers who will be selling. You will be required to create an account with them before talking or buying from the sellers. After creating an account, you can go through the list of buyers present in the platform and look for the one who best fits your rates and buy from them. You will be required to send your address, a long line of characters in uppercases, lowercases, and numbers to the seller. You will be required to receive the incoming digital currencies to your digital wallet before they can reflect. As easy as that is, that’s just how it easy to buy Bitcoin or any other cryptocurrency.
Bitcoins being a digital currency, can only exist on the internet unless it’s changed to fiat currency. This means that you can only buy or sell the Bitcoins you so deserve through online platforms, as mentioned above.
How to Trade Bitcoins in Kenya?
Trading bitcoins in Kenya is not a hard process as long as you know the right platform for you to use. In this guide, we will look at three of these available platforms that allow you to trade with Bitcoin in Kenya. Good examples of the platforms that exist where you can trade your Bitcoins are Paxful, LocalBitcoin, Binance, Coinbase, Kraken, Ethereum, and much more. But for the exercise, the wide will have a deep dive into Paxful, LocalBitcoins, and Binance platforms.
|Paxful||- Free digital wallet |
- A range of payment options eg Skrill & PayPal
- Beginner friendly
- Fast deposit and withdrawals
- Active support forum
|- Doesn't allow M-Pesa payments|
- 1% transaction fee on every transaction
- No cryptocurrency other than Bitcoin
- Many accusations of fraud on the platform
|Binance||- Multiple cryptocurrencies available to trade|
- Fast, with up to 1.4 million transactions per second
- Prizes to be won from time to time
- They have their own cryptocurrency
- It's possible to pay using M-Pesa
|- You can't deposit money with traditional methods|
- Not ideal for beginners
- Don't have phone call customer service
- Relatively new to the market
|Local Bitcoin||- A wide range of trading options|
- Easy to use
- Top-notch security
- You can pay through M-Pesa
- Low trading fees
- Ever-present customer care
|- Doesn't support some cryptocurrencies such as Altcoins|
- High spread offers
How to Buy and Sell Bitcoins Paxful
Paxful is a great option for any person, beginner or pro, to trade with Bitcoins. As a global firm, they have over 350 ways to sell and buy Bitcoins with different payment methods. They are a platform that has been proven to be secure and safe to trade on. They have great reviews from some of the most recognized magazines in finance. They allow for their users to trade their Bitcoins on Escrow and it comes with a digital wallet
Steps to Opening a Paxful Account
Opening a Paxful account is a straightforward step. All you will need is an email address. To open, follow these simple steps:
- Using your browser go to the link paxful.com and you will instantly be directed to their homepage
- Click on the Create Account on the top right corner of the page.
- You will be redirected to another page. Here you will find a couple of fields that need to be filled. Fill the fields, then finish.
- You will receive an email where you will be able to verify your account and Voila! You have a Paxful account.
Advantages of Paxful
As much as there is a great platform for both beginners and any professional, it has lists of benefits that make it unique. As stated earlier, the platform offers a digital wallet for free. You don’t have to create a different account of this which means that you can easily trade. Paxful has several payment methods that will have you covered. They do not allow M-Pesa transactions, but they have other major paying methods such as Skrill, Paypal, credit and debit cards, and bank and wire transfers, among others. The platform is beginner-friendly with its easy-to-use web design, which makes it easy to use. No matter where you are on this earth, as long as you have internet access, you can access Paxful. Finally, the platform is fast when it comes to processing funding and withdrawals, and it contains an active forum for support where people can ask questions and get answers.
Disadvantages of Paxful
The biggest downtime when it comes to Paxful is that they charge every seller a 1% fee charged on any trade carried out. This, in turn, makes the Bitcoin prices higher than on any exchanges. They provide great anonymity, which might be a problem for trading Bitcoins in Kenya on a face-to-face basis. You have no idea who you are meeting and whether they are legit people with no ulterior motives. They also do not deal with any other cryptocurrency other than Bitcoin. This limits the users from diversifying their portfolios. It allows people to buy and sell Bitcoins, but it’s a platform that doesn’t support trading. Another disadvantage that is hard to dismiss is that even with the great reviews from magazines, the users have accused the platform of fraud, and it is still not discussed on many online forums.
How to Buy and Sell Bitcoins on Binance
This is another buying and Bitcoin selling platform that links buyers and sellers from around the world. It was launched in San Francisco in 2019 and has remained to be an American firm. They are known for accepting many payment methods, and their system can support different cryptocurrencies. It has been called the world’s largest cryptocurrency exchange, judged by trading volume in several reviews. This operates as a second option given that it has a parent application which is only better than Binance because it has a larger number of selections, over 50. The trading fees are much lower than that of its competitors, making it all the more desirable. This platform won’t disappoint when it comes to peer-to-peer trading, crypto to crypto trading, and cryptocurrency trading.
How to Trade with Binance
Trading Bitcoin with Binance is sure to leave a smile on your face because of the huge number of sellers and buyers available on the platform. Even better, getting to use Binance is as straightforward as can be:
- Go to the Binance web page at binance.com, and you will see a login/register button on the top right corner.
- Click on the login/Register, and you will be redirected to a page where you are supposed to enter all your details.
- Read the users’ agreement on the Terms and Conditions that the firm offers.
- Do the reCAPTCHA challenge to prove that you are not a robot and then finish it.
- You will receive an email from Binance requiring verification.
- Click on the email and then on the available link, and that’s it.
Binance offers two kinds of accounts, namely beginners and advanced accounts. During trading, it is highly advised that g beginners should trade using basic mode. It uses an easy-to-use and understands design that doesn’t take long for people to get acquainted. The advanced trading mode provides access to the data that a trader needs, including the market data and charts, making the layout seem complex. To start trading:
- Log in to your Binance account.
- On the taskbar, you will find the option of Exchange. Click on it, then select basic.
- You will be given a list of trading pairs that you can choose from. Pick the choice Bitcoin.
- You then choose one of the three trades offered by Binance. For example, limit orders allow for the trader to choose the maximum and minimum amount they are willing to pay for and the machine chooses for them, while Market orders allow traders to trade with the current price of Bitcoins in the market. The Stop-limit orders will allow buyers and sellers to trade when the price reaches a stated limit.
- Choose the amount you want to trade with and also the mode.
- Trade with the Binance Crypto app.
Binance is known for supporting more than one cryptocurrency allowing for the users to diversify their portfolio. They are a fast platform that can perform up to 1.4 million transactions in a second, and they provide a very small amount of fees to trades that occur. Binance is a great platform where people can win different kinds of prizes from time to time. They have their cryptocurrency, which shows just how good, safe, and secure the company is. Their burndown policy is also unique, burning down 20% of the profits they make to reduce the total supply. It’s both a local and international marketplace, given the wide range of traders present on the platform. Similarly, they have different payment methods, including M-Pesa for East African nationalists.
They do not allow people to deposit money to their platform using traditional ways. The platform is relatively new to the market as compared to its competitors, which limits its reach. They lack a phone call customer care service system. Binance is not as simple to use others and, therefore, not ideal for beginners.
How to Buy and Sell Bitcoins on Local Bitcoin
This platform has grown tremendously in recent years, and it’s all for good reasons. It serves as a peer-to-peer market place providing a trading platform that buyers and sellers can communicate with each other to trade Bitcoins. It allows for traders to communicate with each other directly, unlike many other present Bitcoin trading platforms. They have a wide range of payment options that bitcoin opts for as a definite plan B for a person who cannot use any other Bitcoin trading account.
How to Trade with Local Bitcoin
This has been reviewed as the easiest platform to be used by everyone and also among the safest. To trade, you need to:
- Create an account with the platform. They do not have a lot of requirements, and verification is super easy.
- On the homepage, you will find a list of sellers that you can choose depending on their selling their Bitcoins and click when you choose.
- Fill in the amount you want to spend and the method of payment that you are most comfortable with and wait for the response from the seller.
- You will be required to pay for the Bitcoins you are buying, or the customer will pay up for it before completing the process.
LocalBitcoin links to a global marketplace where traders can access different buyers and sellers, providing a wide range of options to choose from. It deals with more than just Bitcoin, and its processing speed is fast. The layout design it has is very easy to use, and the security level of the platform is top-notch. For Kenyan traders, LocalBitcoins accept payment via M-Pesa, which makes the whole process easier for all those involved. They have an ever-present customer care support that is easy to reach. Their trading fees are also low.
As a trader, the marketplace already has a lot of other traders, and therefore you need to be as vigilant as the need is. It doesn’t support other extra cryptocurrencies like Altcoins, and the spread offers can go higher when there are no liquid markets.
What is the Minimum to Invest in Bitcoin?
Bitcoin as an individual cryptocurrency has no limit to how many of it you can buy at once. Neither is there a maximum limit. The limits arise depending on your payment methods and the limits set by the trading platforms.
Is Bitcoin Trading Legal in Kenya?
The case of bitcoin trading in Kenya is a complicated one. The Central Bank of Kenya does not support Bitcoin trading or any other cryptocurrency trading, but still, the government has not declared bitcoin trading as an illegal activity.
Which is the Best Bitcoin Wallet in Kenya?
No Bitcoin wallet is only restricted in Kenya. With that said, Blockchain is among the best Bitcoin wallets in Kenya because of its amazing features. It has an easy-to-use design with a two-factor authentification model and a ShapeShifting feature which allows for change of the cryptic currencies between each other, like from Bitcoin to Ethereum.