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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.

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Virtual Crypto to Make Accessing Cryptocurrency Easier in Africa

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Virtual Crypto

A distribution agreement was reached between Virtual Crypto and a South Africa-based third-party company to commence the sales of Virtual Crypto’s products in Africa.

According to the Exclusive Distribution Agreement distribution signed by Virtual Crypto Technologies, Inc. and South Africa-based Virtual Crypto SA Ltd., Virtual Crypto will start to sell its software and hardware products for the purchase and sale of cryptocurrencies via point-of-sales systems, ATMs, tablets, PCs and mobile devices in Southern Africa.

Territories in the Distribution Agreement cover sixteen African countries, including South Africa, Namibia, and Botswana, according to a company press release.

Virtual Crypto’s Push into Africa

virtual crypto“Cryptocurrency is increasingly popular in the Southern African Region, which is a strong emerging market. Cryptocurrency provides investors and businesses with an opportunity to diversify their portfolio. In addition, Virtual Crypto’s solutions offer businesses and consumers a secure payment alternative with real-time availability and broad accessibility,” Alon Dayan, CEO of Virtual Crypto said.

The main goal of Virtual Crypto is to make cryptocurrency day-to-day transactions easier and more common by providing easy access to cryptocurrencies through its array of currency-agnostic solutions.

“We felt that by creating a solution that was both platform and cryptocurrency agnostic, the masses can employ the advantages of utilizing cryptocurrency for all of their needs. While we’ve already demonstrated success in our solutions in other markets, we believe the advantages will be even greater in locations, such as the developing countries within Southern Africa, where local economies experience volatility,” added.

What Does This Mean for Local Investors?

Virtual Crypto’s products such as point-of-sale systems, ATMs, tablets, PCs and mobile devices will be available for integration by various SMEs to accept payment for goods and services provided. 

Not only could this move potentially boost Virtual Crypto’s stock price, but if all goes according to plan, Africans will find it easier to purchase cryptocurrencies and reap the benefits of being able to easily access decentralised digital currencies. 

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A Blessing and a Curse: Cryptocurrency Opens Doors to Both Investments and Scams in SA

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Investments and Scams in SA

Over the past year or so, cryptocurrencies have certainly made their mark across the globe. From the spread of information to the introduction of various rules and regulations, country after country appear to be building up their own ideas on just how to handle the cryptocurrencies gracing the world today. South Africa is certainly no exception. More and more businesses within the region are starting to accept cryptocurrencies and as mass adoption seems to become more and more likely, crypto enthusiasts are starting to rejoice at the thought that SA could soon be a region ready to utilise these currencies to their fullest.

However, with all good things come the bad and for cryptocurrencies, that means scams. Here, we’re taking a look just what cryptocurrency adoption could mean for South Africa.

Cryptocurrency Capital

For those living in South Africa, the cryptocurrency revolution has certainly been leaving its mark. Most surprisingly, perhaps, is the simple fact that it isn’t just financial experts that are taking an interest in these coins here. In fact, everyday use of these digital assets has been rife.

South Africa has been following cryptocurrency adoption for quite some time now and as a result, more and more businesses are beginning to boom with improved access to funds that might otherwise not have been available in fiat form. A huge variety of businesses have been picking up on this trend. Online banking, trading, gambling, sports betting and even physical stores are capitalising on these trends. In fact, sportsbooks were some of the very first companies to start to accept bitcoin, some opting for even bitcoin-exclusive payment options, and even schools are now accepting crypto to help the fulfillment of education gaps. With tourism and South African trade also benefiting from the spread of crypto, South Africa has truly been capitalising on cryptocurrencies in a way that no other country in the world has dared try.

For this reason, it’s clear that the interest in cryptocurrency use goes far beyond the experts and instead, often emanates from the residents. As a result, the South African Treasury introduced taxation on cryptocurrency funds as a new, yet traditional form of bringing in capital for the country. From April 2018, it was made clear that any profits made by cryptocurrencies for companies and businesses operating in South Africa would have to come under taxable law and the South African Revenue Service (SARS) had even offered to provide support and advice to those who weren’t clear on what this would entail.

In July 2018, however, amendments were proposed via the Taxation Laws Amendment Bill (TLAB) that would change the definition that digital assets were taxable financial instruments. They would become a financial instrument by the Income Tax Act standards and a financial service by the VAT Act standards, meaning that all crypto trades would then be exempt from VAT. These proposals, should they be successful, could encourage more and more businesses to pick up cryptocurrencies as a form of payment and further integrate these digital coins into everyday life in SA.

South African Scams

south africaHowever, while things seem to be going well, for the most part, there are of course negatives to take into consideration and unfortunately, those negatives are manifesting themselves in scams. The introduction of SAFCOIN – a cryptocurrency designed entirely to bring more and more South African’s safely into the world of crypto – has led to a high volume of investors and spenders entering the markets which, for hackers and scammers, is a new found gold mine.

One of the most recent and perhaps more terrifying scams for a low of Africans is the Nigerian Bitcoin Scam in April 2018. This scam saw thousands of people lose their entire life savings in some cases after a bitcoin trading company disappeared with practically billions of Naira. With both offices in Kenya and Nigeria both seemingly disappearing overnight, people were left confused, poor and scammed. March also saw a cryptocurrency scam, with around 28,000 virtual currency investors falling victim to BTC Global’s theft of over $80 million worth of cryptocurrencies.

These scams have opened up SA’s eyes to the potential risks associated with cryptocurrencies, though the debate is still rife as to whether this will actually make a difference as to how quickly and how eagerly they are adopting virtual currencies within the region. With further education and awareness, this could potentially become much safer but only time will truly tell.

What Do The Experts Think?

While Africa isn’t often thought to be at the forefront of any technological innovations, cryptocurrencies could be the market to change that – at least according to Rakesh Sharma, a business and technology journalist. Claiming that Africa could be the next leading frontier for cryptocurrencies, he said that SA “may be set to steal a march over other markets” namely due to the fact that Africa is suffering from such high inflation of their usual fiat currency. With an unstable economy, more and more people are likely to reach for a decentralised alternative to ensure that their funds are kept safe from the potential of corruption or disaster from central banks.

CEO of Liquid Crypto-Money, an SA cryptocurrency consulting firm, also predicted that Africa is likely to have government-issued cryptocurrencies in the near future. As a potential solution for governments seeking an answer to catastrophic inflation rates, cryptocurrencies aren’t to be ignored but with debate still suggesting that cryptocurrencies in Africa are dependent on speculation and an uncontrollable volatility, it’s difficult to determine just where things could go in the future.

As with most cryptocurrency markets, it’s undeniably complicated to determine whether or not South Africa could really be the country to adopt cryptocurrencies on a mass and stable scale. The potential they could hold, however, is promising enough for most and with government support and treasury regulation, the potential risks could, in time, be reduced.

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Almost a Quarter of High-Tech Consumers in South Africa Now Own Cryptocurrency

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High-Tech Consumers in South Africa

A new study titled “Digital Lifestyle Measure report” conducted by MBIT found that 23 percent of high-tech consumers in South Africa own at least one cryptocurrency, with bitcoin being the most common holding. 

New Report Shows High-Tech Consumers Hold Crypto

In the”Digital Lifestyle Measure report” report, each level of tech consumer (high, medium, and low) was grouped according to DM segmentation. A high-tech consumer is identified and tagged as a “DLM5 consumer”, and for the low-tech consumers, a “DLM1 consumer” was used. 

To place each of the participants in the right groups, the survey made use of a question and answer (Q&A) method. Each person was categorised according to how well they were able to answer the provided questions. The questions mostly focused on their private digital lifestyle and technological gadgets they own and can operate well.

The result of this survey shows that only six percent of the low-tech consumers (DLM 1) own crypto, while 23 percent of high tech consumers own cryptocurrencies. The remaining percentage was then shared in the order: DLM 2: seven percent, DLM 3: twelve percent, and DLM 4: eight percent.

cryptoThe report also stated that of the DML5 population, about 42 perfect of them are of the notion that cryptocurrencies are here to stay. Same goes for 30 percent of the DLM 4 consumers group.

Conversely, 41 percent of the low-tech consumers (DLM1 consumers) did not know what cryptocurrencies are all about, according to IOL

From the DLM 3 consumer group, about 34 percent of them cannot say what the future looks like for cryptocurrencies but 26 percent of them claimed cryptocurrencies to be the “future of financial transacting.”

The report has further shown that high tech consumers who are continually paying for something electronically, are more likely to buy crypto in the long run.

Based on the google trends data, South Africa currently has the highest levels of interest in bitcoin across the world. Hence, it should come as no surprise that tech-savvy South Africans are the ones investing in digital currencies and tokens. 

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