Bitcoin continues to dominate the cryptocurrency market both in popularity and market value. As the oldest cryptocurrency, investment in the currency is now gaining demand among Kenyans. Let’s look at how to buy bitcoin on Binance in Kenya using M-Pesa.
What is Cryptocurrency?
A cryptocurrency is a form of virtual money. It exists in digital form and works just like the normal money we use. Most investors use it for transactions and investments.
The recent popularity of these virtual currencies is due to the gain in value that has happened in the last few years. As an example, Bitcoin was trading at 100,000 shillings in 2017, however, it is currently trading at 2,500,000 shillings. At its peak, Bitcoin was trading for over 7 million shillings.
Bitcoin was launched in 2009 by Satoshi Nakamoto. The founder remains anonymous to date. This launch was made possible due to the use of a new technology known as the blockchain. Initially, not many people paid attention until such a time when that market started rising.
Currently, there are thousands of cryptocurrencies operating in the market. Some of these include Ethereum, Dogecoin, and Tether.
How to buy Bitcoin in Kenya
Kenya is a market leader in the continent when it comes to investment in Bitcoin. This is mainly due to access to information and the advanced financial market. To make it easier, most brokers allow buying and selling Bitcoin through M-PESA. The most common payment channel in the country.
Binance is the largest cryptocurrency trading platform not only in the country but also globally making it a top choice for Kenyans. Hence let’s look at the process of how to buy bitcoin on Binance in Kenya using M-pesa.
Step 1: Log in to the Binance portal and create an account.
This process requires various details such as name, email address, phone number, and physical address. You are also supposed to take upload your national identity card images.
You can either do this on the web or through a Binance mobile app that is readily accessible through various application stores.
Step 2: Account verification.
After completing the account opening process, Binance reviews it and if compliant, activates your account. This means you are now ready to start buying and selling cryptocurrencies such as Bitcoin. The are many ways to buy bitcoin on the platform, however, let’s focus on the M-PESA method.
The P2P also means person to person. This is the marketplace where buyers and sellers make bitcoin transactions. P2P transactions enable you to transact in your local currency and payment methods.
Hence, you should select to transact using the Kenya shilling currency. This will automatically populate a list of sellers willing to take bitcoin payments using M-PESA. You can either buy by sending funds to the seller’s mobile number or a paybill number.
Due to the nature of these transactions, I would recommend you send a paybill number. This way it is easier to follow up in case there is a dispute.
All sales in the P2P Platform happen through Tether (USDT). Tether is a stable cryptocurrency whose value is pegged to the United States Dollar. This makes it among the most used stablecoin on the platform. It is also the largest stablecoin in the market.
Hence, when you make a purchase, you will get your bitcoin in form of Tether.
Now that you know about tether, let’s look at the purchase process. There are always many sellers in the market each quoting their price. Hence, focus to buy from the lowest seller as this will give you more coins.
Another element to check from the seller is the completion rate. It is the number of times a seller has successfully sold and transferred the coins. The higher the completion rate, the more reliable a seller is. Avoid those sellers with low completion rates.
The transaction happens through an escrow account to minimize fraud. Hence, after payment, the coins are released to your wallet upon the seller’s confirmation.
Step 4: Convert to Bitcoin
After purchasing the Tether stablecoin, the next step is converting them to Bitcoin. The process is simple and real-time. After buying, the coins are normally stored in your wallet account. Hence, to convert them, you should go to the wallet and select convert.
The only details needed in this process in the number of coins you want to convert and the amount. Based on the rate, you will see the number of Bitcoins to get from the conversion. If okay, select convert and complete the process.
Benefits of Buying Bitcoin in Kenya
1. Gain in value– This is the most common reason why most Kenyans buy bitcoin. The goal is to hold the coin and wait for it to rise in price then dispose of it at a profit. Thousands of people have already made profits using this approach. It is also known as speculation
2. Transaction– Although this is yet to gain market acceptance, you can use bitcoin to make transactions just like using traditional money. As virtual money, it gives the convenience of paperless transactions such as safety and convenience.
3. It is a deflation currency– With a fixed supply limit of 21 million coins, Bitcoin has become a top choice for investors seeking to hedge their money against rampant inflation. The aim is to protect your money from losing value over time. This is the same role that traditional assets such as gold play.
Challenges of buying bitcoin in Kenya
1. Price fluctuations- Lack of price stability remains a key challenge in the cryptocurrency market. This increases the risks of investing in Bitcoin because you could end up losing your investment if prices keep falling.
2. Regulation- There are currently no legal instruments in Kenya that protect investments in assets such as bitcoin. lack of regulations makes it a big risk for investors. In case there are issues such as fraud, it is almost impossible to seek legal remedies. However, this could change as the government through the central bank of Kenya seems to embark on the journey of regulating the industry.
The above process simply describes how to buy bitcoin on Binance in Kenya using M-PESA. If you are a risk taker, this is an opportunity for you.