In Kenya, most people have little or no information about Bitcoin. The few who know its existence have no information about how it works. Many believe that it is a form of digital currency scam. This article will explore the finance, technology, and reasoning behind Bitcoin. Hopefully, once you have a basic understanding of Bitcoin and cryptocurrency in Kenya, you will realize that it is not a complex scam, but rather a window into the future. So, whether you want to learn how to invest in Bitcoin in Kenya or are simply curious, this guide will be useful.
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Table of Contents
What is Bitcoin?
Bitcoin is the most important form of digital currency in the world. It is a peer-to-peer payment system that allows money to be transferred without the use of intermediaries such as banks, organizations, companies, or government systems. Bitcoin was created in 2009 by an unknown individual and is widely regarded as the first cryptocurrency and decentralized digital currency. Bitcoin, unlike Kenya shillings or US dollars, is completely paperless.
What is Blockchain?
Understanding blockchain technology is essential for understanding how to invest in Bitcoin in Kenya. Blockchain is a centralized ledger system that enables Bitcoin and other cryptocurrencies to operate autonomously. Blockchain technology lowers transaction and processing fees. Other cryptocurrencies, besides Bitcoin, have their own blockchain and distributed ledger systems.
How can I invest in Bitcoin in Kenya?
Unlike other investment methods, Bitcoin allows you to earn massive returns in a short period of time with minimal effort. To invest in Bitcoin in Kenya, you must first purchase Bitcoin. Bitcoins can be purchased from Bitcoin selling platforms known as cryptocurrency exchanges. Here are four simple steps to take.
Step 1. Choose where to buy
Bitcoins can be purchased and sold on cryptocurrency exchange websites. These websites function similarly to stock trading platforms. Fees, security, payment methods, and features, on the other hand, differ between cryptocurrency exchange websites. With so many fraudulent BTC trading platforms on the market, you must be cautious to trade on a legitimate site. Deriv.com is an award-winning BTC trading platform that has been trusted for over 20 years. As one of the largest online brokers in the world, millions of registered users worldwide can trade CFDs and other derivatives on forex, indices, cryptocurrencies, commodities, and synthetics on the platform.
Step 2: Create a Deriv account
Online trading can be perplexing, especially for newcomers. An online trading demo account will assist you in learning the fundamentals of online trading in a risk-free environment by allowing you to become acquainted with various trading platforms and practice trading skills and strategies with virtual funds. Here’s a step-by-step guide to setting up a demo account on Deriv’s trading platforms, including cryptocurrency trading.
To create a Demo account:
- Go to the website Deriv.com.
- On the registration page, click the “Create free demo account” button or sign up using a social network.
- Enter your email address, check the box, and then click the “Create demo account” button.
- You will receive an email with a confirmation link.
- You will be taken to a new screen to create a new demo account, enter your country, create a password for your account, and click “Start trading”
- Congratulations! Your Demo account registration is complete!
- You will receive a free virtual 10,000 USD for Trading with Demo Account.
To create a Real account
- Open your Demo account, then click “Real Account,” then “Add.”
- Select your currency and then click “Next.”
- Enter your Personal Information, then click “Next.”
- Enter your Address Information, then click “Next.”
- Read the Deriv Terms of Service, check the box, and then click the “Add account” button.
- Your Real Account registration is complete.
Alternatively, you can create a Deriv account using your Facebook, Google, and Apple account in just a few steps.
Step 3: Make a deposit
You can buy Bitcoin (BTC) by depositing funds into your exchange account or linking a credit or debit card. The most convenient way to buy Bitcoin to fund your Deriv BTC account is to use a Payment agent. However, you can also fund your Deriv Btc wallet directly from any Bitcoin wallet. Follow the following procedure:
- Log in to your Deriv account and click on Cashier
- Select Deposit and copy your BTC wallet address.
- Head over to your to your Bitcoin wallet and select the amount of Bitcoin you wish to deposit into your Deriv BTC wallet
- Paste the BTC wallet address you copied from Deriv into your Bitcoin wallet and click proceed
- Your funds will be available in your Deriv account as soon as the transaction is confirmed.
- Once completed, you can view the successful deposit in your Deriv account statement, then transfer it to your Meta trader
- You can now start trading commodities and other markets with your Bitcoin.
Step 4: Withdraw Funds
- Log in to your Deriv BTC account and click on Cashier
- Select Withdrawal and click on Request authentication email.
- You will receive a verification email for the withdrawal request. Click on Yes, it’s me!
- You will be redirected to the Deriv cashier. Enter your BTC wallet address and the amount you wish to withdraw, and click on Withdraw.
- Copy your BTC wallet address from your blockchain wallet and click Done.
- You will then see the transaction as pending. Processing is subject to internal checks. Once successful, your funds will be reflected in your blockchain wallet.
- You can view the successful withdrawal in your Deriv account statement.
How to automatically trade Bitcoin easily
If you don’t have the time or knowledge to trade Bitcoin, you can rely on a crypto trading bot to do it for you. Each trading bot trades using a different set of signals. But it is vital that you invest in understanding the market, because the more you understand the market, the more you can be profitable. Trading Bitcoin is risky, you can lose all your capital, if you don’t understand the market, please use the demo account to practice until you are comfortable to trade with your real account.
Read: The Complete Guide to Price Action Trading Strategies
You can also trade your Bitcoin using Binance:
Create a Binance account
- Go to Binance.com or get the Binance Desktop Client. Download the Binance app from the Google Play store for iOS or Android.
- Enter your information correctly, beginning with your name and email address.
- Check your identification and address. This is part of the Know Your Customer (KYC) process, which is required by law for most transactions in Kenya. A photo ID and a copy of a recent bank statement or utility bill with your address on it are required to successfully verify your identity address.
- KYC will approve your details immediately, but your account may not be verified for a few days.
- After your account has been approved, select a payment method to deposit funds into your account before making any purchases.
Fund your Binance account
You can buy Bitcoin (BTC) by depositing funds into your exchange account or linking a credit or debit card. The cheapest way to buy Bitcoin is to deposit funds from your bank account. However, depending on the bank and the exchange, the funds could take several days to arrive. The most convenient way to buy Bitcoin is with a credit card. However, for starters, transaction fees are typically higher than the cost of depositing funds via bank transfer. Using a debit card to purchase Bitcoin is similar to using a credit card, but with significantly lower fees. To deposit KES in your wallet, follow the following procedure:
- Select “Wallets” from the website’s menu.
- Select “Deposit.” Then click “Deposit Fiat.”
- Choose KES from the currency drop-down menu.
- Decide whether you want to use a debit card or a bank transfer.
- Click Continue and enter the deposit amount.
- Click continue and enter the amount you want to deposit
- Click on ‘Pay’ or ‘Submit’ if using a bank deposit.
- To pay by credit card, enter your card information and click Pay.
- Once completed, the funds will be transferred to your Binance account.
Depositing KES in your wallet via P2P
- Select “P2P Trading” You will be taken to the next page.
- In the fiat box, select “Buy,” then “KES,” which is an abbreviation for Kenya shillings.
- A warning prompt will appear, alerting you to the danger. Click the “Accept” button.
- You will be presented with various offers. Choose your favorite, ideally one with a high completion rate.
- Enter the amount of Kenya shillings (KES) to deposit.
- To view the trader’s account number, proceed to the completion page.
- Use a bank transfer to make the payment to the account number.
- Click on “Transferred next.”
- The money will be deposited into the account once the trader confirms the payment.
- You can reach the trader by dialing his phone number. Binance also freezes the trader’s account until the trade is completed for your protection.
Buy Bitcoins with Binance
- Once your wallet is funded, go to the menu and select “Wallet,” then “Fiat and Spot.”
- Select “Buy” next to Bitcoin.
- Enter the amount of money you want to spend. For instance, enter KES 5000. • Alternatively, you can switch to “amount to buy” using the double arrows to the right of that field if you’re going to buy KES 5,000 worth of BTC. In this case, you can simply type the amount of BTC you wish to purchase. For instance, if you want to buy 0.8 BTC, enter 0.8 in that field.
- Confirm all of the details before clicking “Buy.”
- To see if you’ve been credited, go to the menu and select ‘Wallets.’
How to sell Bitcoin with Kenya shillings (KES)
Binance P2P provides the best Bitcoin trading opportunities because you can choose from multiple buyers. It also has no withdrawal limit. Here are three simple steps to successfully selling your BTC.
Step 1: Specify the search criteria.
- Launch the Binance App and select “P2P Trading.”
- Select the Sell tab and the BTC cryptocurrency. Then, in the top-right corner of your screen, click the filter icon.
- To sell the cryptocurrency, select the Bank payment method and the currency (KES), then tap Confirm currency. You can also use M-PESA as a payment method.
Step 2: Start trading.
- Select your preferred offer and click on “Buy.”
- Enter the amount you want to sell, choose a payment method, and then click “Sell BTC.”
- You will be paid in KES to your bank account. You can communicate with the buyer via the chatbox.
Step 3: Receive your Kenyan shilling.
- Once you’ve received payment from the buyer, tap Release BTC.
- Click Confirm to transfer the cryptocurrency to the buyer’s account
- Congratulations, you’ve made money with Bitcoin
Is Bitcoin Legal in Kenya?
The Kenyan Central Bank discourages people from trading in Bitcoin. Cryptocurrencies, on the other hand, are not outright illegal in Kenya because there is no law prohibiting them.
Conclusion
Kenya’s cryptocurrency popularity is growing, with more profitable purchasing options becoming available to buyers on a daily basis. Bitcoin has provided several financial benefits, and every trader should switch to Bitcoin trading. Before making any decisions, it is critical to learn how to invest responsibly in Bitcoin. To protect yourself from market volatility, make sure you diversify your investment portfolio. Bitcoin is currently experience a great dip, it good to monitor the Bitcoin price and buy at a comfortable price, hold, invest and trade with it.