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How to Buy Bitcoin in Kenya

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Buy Bitcoin in Kenya

Since the beginning of 2017, the price of bitcoin has surged to new all-time highs after rallying by over 350 percent. This has boded well for bitcoin adoption in Kenya as more people come to recognise it as an alternative currency and as a potentially lucrative investment. If you are based in Kenya and want to purchase bitcoin but are not quite sure how to go about it, then this guide is for you. In this article, you will find the five best exchanges you can use to buy bitcoin in Kenya using Kenyan Shillings.

Remitano

RemitanoRemitano is a peer-to-peer bitcoin exchange where you can buy and sell bitcoin securely through an escrow service. The company has recently entered the Kenyan market to provide a bitcoin exchange and a bitcoin-based remittance service.

To buy bitcoin on Remitano’s platform you must first sign up using your email address. The login credentials for your new Remitano account will then be sent to your email. Upon account verification, you can access a list of local buyers and sellers and place an order immediately. To ensure transactional security Remitano acts as an escrow until both parties confirm the transaction. Once the transaction is complete, the bitcoins will appear on your wallet on the Remitano platform.

Belfrics Kenya

Belfrics bitcoin exchangeBelfrics is a new bitcoin exchange and payment gateway for merchants that recently entered the Kenyan market. Belfrics charges a 5 percent fee on transactions and has no minimum limits on bitcoin purchases.

To buy bitcoin you must first set up an account by creating a username and password. Your account will double up as your bitcoin wallet. The next step would be to top up your account using a bank transfer, which is required in order to receive payments and for account verification. With these steps completed, you can start trading by proceeding to the exchanges’ drop down menu clicking on the ‘Trade’ option. Once you have put in the amount you want to buy and have executed the order, your purchased bitcoin will appear in your wallet on Belfrics once the order has been filled.

BitPesa

BitPesaBitPesa provides a bitcoin cross-border payments platform that also provides a bitcoin marketplace for buyers and sellers. BitPesa is the most established and most funded bitcoin startup in Africa.

To buy bitcoin using BitPesa you first need to register for an account on the platform by inputting your details and verifying your account through a confirmation email. You will need to upload a picture of your ID which is necessary as per international laws and regulations.

To buy bitcoin log in and click on the ‘new transaction’ field and ensure you put the KES you have and the BTC you want. You can enter yourself, a different person or a contact you’ve used before. Add the bitcoin address of the recipient and confirm the transaction then follow the payment instructions. The recipient will receive the bitcoin amount within an hour.

Unfortunately, BitPesa announced on September 1, 2017, that it has introduced a minimum transaction limit of $25,000 for Kenyan customers and no longer verifies new Kenyan customers due to the difficult regulatory environment in Kenya, which has been hindering the company in making KES payments. Hence, only existing Kenyan high net worth indivduals and businesses can use BitPesa to exchange bitcoin.

LocalBitcoins

LocalBitcoinsConvert Bitcoin Into Local Currency is the world’s leading peer-to-peer cryptocurrency exchange that facilitates over the counter bitcoin trades.

To buy bitcoin, you first need to sign up for an account on the platform. Once that’s done, you need to input the bitcoin amount you want to buy in KES before proceeding to choose your preferred payment page. The platform ranks sellers based on transactional history and users are advised to go for sellers with high reputational scores. Upon clicking on the ‘buy’ field you will be provided with transaction details. You execute the trade by typing the amount of bitcoin you want in KES together with a personal message and click on ‘send trade request’ field. Once the payment is made click the ‘I have paid’ tab. The bitcoin will be released from an escrow into your wallet once the seller confirms receipt of the payment.

Paxful

PaxfulPaxful is a peer-to-peer bitcoin exchange that connects buyers and sellers in one convenient location.

Buying bitcoin using KES on the platform is simple and straightforward. The initial step is to log onto the site and click on the ‘buy bitcoin’ on the menu bar. Once you have input the bitcoin amount you require in the buy dialogue box, select your desired mode of payment for the transaction. Then, select a seller willing to sell you the amount you requested and agree on the payment method from the list of sellers. Similar to LocalBitcoins, the reputations of sellers are rated and it is important to choose buyers with high ratings. If you are satisfied with the conditions the next step to execute the trade by clicking on the ‘buy now‘ tab and you will then receive your bitcoin in your wallet once the transaction has been completed.

If you want to buy bitcoin using KES, you can try any of the above-mentioned bitcoin exchanges. Also, remember to transfer your purchased bitcoin to your own personal bitcoin wallet and do not leave them lying on an exchange as there they can be subject to cyber theft should the exchange get hacked.

Bitcoin

South African Online Payments Processor PayFast Drops Bitcoin

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PayFast Drops Bitcoin

South African online payment gateway PayFast will cease supporting bitcoin payments from July 20, 2019, due to high transaction fees and long confirmation times. The company expressed its frustrations through an announcement on its website.

Bitcoin’s Current Limitations

PayFastAlthough digital currency is meant to make online transactions cheaper, faster, and convenient, PayFast observed that bitcoin’s current limitations have made it difficult for the company to offer it as an alternative to traditional payment methods.

“Unfortunately, there are a number of limitations and design flaws unique to Bitcoin that make it an impractical substitute for cash, including high transaction fees and long confirmation times for buyers. We have tried various ways to mitigate these problems, but unfortunately, these issues are fundamental. The resultant poor user experience has led us to re-evaluate Bitcoin as a payment method on our platform and a decision has been taken to discontinue support for Bitcoin from midnight 20 July 2019,” PayFast explained.

The PayFast platform has a ten-minute window for the confirmation of bitcoin payments. However, the Bitcoin network has failed, in most cases, to confirm payments within this time period resulting in unsuccessful transactions. The Bitcoin network can currently not handle the volume of transactions it gets at a faster speed, PayFast noted.

Luno has been enabling bitcoin payments on the PayFast platform by acting as an intermediary. “To eliminate any risk posed by bitcoin’s price volatility, Luno locked the bitcoin to ZAR exchange rate for a ten-minute window. If the transaction was not sufficiently confirmed within ten minutes, the payment was unsuccessful and a refund would be due,” PayFast said.

The Bitcoin network can only handle seven transactions per second compared to VISA’s 24,000. This limits bitcoin’s usefulness as a means of exchange and an asset. Moreover, users making payments using bitcoin risk incurring non-refundable processing fees when the transaction fails.

Despite these challenges, the Lightning Network promises to improve bitcoin transactions by making them instant, low-cost, scalable, and acceptable across different platforms.

Ending Bitcoin Support

PayFast hopes that as this space continues to grow, cryptocurrencies will be able to handle faster payments.

“We are eagerly following the developments of cryptocurrencies and the supporting technologies that are aiming to enable faster payments. As soon as these become workable alternatives, we look forward to supporting cryptocurrencies as a payment method in the future,” the South African company stated. 

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Is Egypt Finally Warming Up to Bitcoin?

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Egypt Warming Up to Bitcoin

A new banking law has given the Central Bank of Egypt (CBE) the right to ban the establishment, promotion or operation of platforms issuing or trading cryptocurrencies without acquiring the required licenses. However, this move suggests that the country is softening its stance on bitcoin as it enables crypto startups to operate under an official license.

The New Banking Law

Best Cryptocurrency to Invest inAccording to an unnamed official source that spoke to MENA news agency, CBE’s Board of Directors has the right to regulate cryptocurrencies and demand for multiple licenses under the new draft bill. The draft bill acknowledges the importance of financial technology, keeping pace with global banking changes, and leveraging modern technology to provide financial and banking services.

“The new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders as well as for the electronic settlement of checks and the issuance and circulation of electronic checks and electronic discount orders provided that Board of Directors of CBE issue rules and procedures regulating all the aforementioned actions,” the source said.

Furthermore, these electronic means will have the same authenticity as original papers as long as they meet the set technical criteria, the source stated.

The new draft bill is not yet available for public reading.

Is Egypt Warming Up to Crypto?

In 2018, Egypt’s Grand Mufti Shawki Allam banned cryptocurrencies based on Islamic law that declared these currencies as potential threats to the current financial system and risky due to scams and extreme price fluctuations. Moreover, he disregarded cryptocurrencies, such as bitcoin, because they can be issued and used without the control of any governing authority.

The new law could be a sign that the country is warming up to cryptocurrencies as crypto firms continue to penetrate the North African market and as the CBE considers issuing a digital currency.

How easy or difficult it will be for crypto startups to register for licenses remains to be seen. However, it does signal a willingness by Egyptian authorities to talk with the industry as opposed to outright ban it as has been the case previously.

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Crypto.com Introduces Crypto Earn and Crypto Credit

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Crypto.com

Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

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