Connect with us

Features

Where to Purchase Bitcoin in Africa: P2P Marketplaces vs Centralised Exchanges

Published

on

Where to Purchase Bitcoin in Africa

When you decide to buy bitcoin, you will probably ask yourself: “Where do I purchase bitcoin in Africa?” The simple answer is an exchange. But, as you will learn from this guide, you cannot just buy bitcoin from any exchange.

Where to Purchase Bitcoin in Africa

You will have to consider several factors before choosing an exchange. For instance, you need to use an exchange that is available in your country and one that supports local payment methods. However, you also need to think about the type of platform to use.

Crypto exchanges come majorly in three forms: centralised, decentralised, and peer-to-peer (P2P). In this guide, we will discuss centralised and peer-to-peer exchanges.

Centralised exchanges act as intermediaries, just like banks. When you buy bitcoin from a centralised exchange, you are trusting that it will safely complete the transaction for you. Moreover, the exchange will store your digital assets on your behalf. As a result, trust is significant for centralised exchanges to succeed.

On the other hand, peer-to-peer exchanges give control to the people. Rather than buying bitcoin from the exchange, you will buy BTC from individuals that have listed their offers on the platform. Additionally, P2P exchanges do not have a third party. Instead, they use software to enable peers to trade with each other.

Purchasing Bitcoin on Centralised Exchanges

buy bitcoin on centralised exchanges

Both P2P and centralised exchanges have their demerits. However, events that have taken place in the past indicate that your assets are not as safe on a centralised exchange as you would hope.

For example, exchanges like Bitfinex and Mt.Gox got hacked, and people lost their money. That is why you will often hear experts say that you should never leave your funds on an exchange. The Bitfinex hackers moved 416 bitcoin on June 11, 2020, to an unknown address and probably sold it to unsuspecting buyers.

Moreover, some centralised exchanges could have limitations to the amount of money that you can withdraw, while others could make it completely impossible to withdraw funds.

As is the case with banks, centralised exchanges can collapse overnight, leaving behind frustrated and shocked customers. The disruption of trade, loss of funds, and lack of access to portfolios can make it difficult for users to move to another exchange and continue trading.

Another problem with centralised exchanges is that you have to deposit fiat money to buy bitcoin. Since you will have to enter your debit or credit card details, you will be giving up your privacy in the process.

Why Choose P2P Marketplaces?

P2P marketplaces are a popular choice for Africans. Also, P2P exchanges are more available on the continent than centralised exchanges. Therefore, you are more likely to find them easily accessible. For instance, P2P marketplaces – like Paxful and Localbitcoins – are available in many African countries.

Some P2P marketplaces have released more accessible versions of their platforms through mobile apps. For example, Paxful has an Android and iOS app that enables users to buy and sell cryptocurrencies straight from their mobile phones.

Unlike centralised exchanges, P2P marketplaces give you control over your funds, and you can transfer your digital assets to an external wallet at any time. Some P2P exchanges also offer non-custodial wallets that give users access to their private keys, giving them more control over their fund’s security.

P2P marketplaces make it easy for users to carry out fiat to crypto transactions and vice versa. That means that you can sell bitcoin and receive payment in your local currency. Paxful, for instance, offers flexibility to both buyers and sellers. Buyers can purchase bitcoin in their local currency, and sellers can sell bitcoin and cash-out in their local currency.

Payment Methods

PaxfulP2P marketplaces like Paxful support a wide range of payment methods, making trading convenient for users. For example, Paxful has over 300 payment methods, including mobile money, bank transfer, PayPal, and Western Union.

You will find that most centralised exchanges are rigid with the payment methods they support. Most times, they will only accept bank transfers. So, it is a breath of fresh air that some P2P marketplaces accept a variety of payment methods.

Another convenience that P2P exchanges offer is privacy. To buy bitcoin on Paxful, you do not have to deposit money to your account. Instead, you will send money directly to the seller’s preferred account of collecting payment.

Source of Income

  • P2P exchanges enable users to make an income through trading and affiliate programs. Since users have the option to make sale offers above the market price, they could create a steady flow of income. You can start a crypto trading business by registering as a vendor on Paxful.
  • You can also earn an income by joining the affiliate programs on P2P marketplaces. For example, you can earn a percentage of the escrow fees on Paxful once your affiliates purchase bitcoin on the platform.
  • Lastly, if a P2P exchange shuts down, traders can move to another marketplace and continue trading. Therefore, the level of disruption to users here is lower.

From the above comparisons, it is clear that P2P marketplaces are the better platforms to purchase bitcoin in Africa. Nonetheless, caution is crucial despite the type of exchange you choose. Always remember to move your funds to an external wallet, preferably, a cold one. Also, implement the security measures that the platform you are using recommends.

Read this guide to learn how to buy your first bitcoin on Paxful.

Features

The First African Art Collection Powered by NFTs is Here

Published

on

By

African Art
Photo credits: Kureng Dapel/Rich Allela

Picha Images – a digital media company powered by Artificial intelligence and Big Data – is launching the first crypto art non-fungible tokens (NFTs) in Africa. The upcoming auction will feature African art from the Kenyan-based Multiple Award-Winning Photographer and Filmmaker Rich Allela and will be held from April 26 to May 3, 2021.

The NFT auction and artwork will be hosted on OpenSea, one of the biggest non-fungible token digital marketplaces, founded in 2018.

Why is Picha Images Going Crypto?

Picha Images has a track record of being highly innovative and has been recognised as a disruptor in the Kenyan and African creative industries.

Covid Art Gallery

The Virtual Africa COVID exhibition held by Picha Images in conjunction with the World Health Organisation (WHO) and Create2030

The company embraces Artificial intelligence and utilises Big Data analytics to produce high-quality photo and video productions.

Furthermore, Picha Images develops products and services in Business to Business (B2B) photography; digitises hardcopy images; facilitates cloud storage of images for companies, and carries out videography. The company has in the past been credited with holding one-of-a-kind Augmented and Virtual Reality exhibitions, even during tough times. 

Pre-COVID exhibition

Bringing still images to life using Artificial Intelligence in Rich Allela’s exhibition “30 under 30”, held in 2019 (Pre-COVID)

As a company that values technological advancements, Picha Images’ approach of having NFTs for artists such as Rich Allela makes technological and financial sense. The company is currently placing the wellbeing of their creative artists first by exposing them to a way to secure their work, maintain the copyrights to their creations and earn royalties in perpetuity.

For a customer of Picha Images, purchasing these NFTs will mean that you will have hacker-resistant proof of ownership of a digital piece of art.

Why Rich Allela?

Afro-renaissance

Photo credits: Rich Allela

Rich Allela is a multidisciplinary artist whose work focuses on culture and heritage in Africa. He has an interest in documenting cultures that are at the threat of disappearing due to modernisation.

Allela’s works are famously described as “Afro-renaissance” because they herald the rebirth of the African culture through the creation of a new generation of art aimed at rewriting the African narrative.

These unique art pieces have won numerous awards including the Africa PicFair photo awards and Kenya Photo Awards and have been used by companies such as Canon Global to launch products such as new cameras. As an influential artist, Rich Allela’s story has been featured on CNN, BBC, and other news outlets around the world.

Speaking to BitcoinAfrica.io, Rich Allela said;

“For ages, artists have been getting a raw deal when it comes to secondary sales of their work. By launching the Rich Allela’s Afro-renaissance collection on NFT, Picha Images aims to empower artists to maintain the copyright of their work and earn from secondary sales. Through this auction, the public will place their bids where the highest bidder will walk away with a piece of digital art and send a message to the world on the value of art as an investment worth making.”

Would You Like to Participate in the NFT Auction?

The auction will go live on April 26 and can be accessed via https://opensea.io/accounts/Rich_Allela.

To learn more about Rich Allela’s works, visit his Instagram account @Richallela or reach out to Picha Images by visiting their website.

Continue Reading

Features

How to Buy Tether (USDT): A Step-by-Step Guide for 2021

Published

on

how to buy tether

Tether is a stablecoin backed 1:1 by the US dollar. As a result, it does not experience the same volatility as other cryptocurrencies. In this guide, you will learn how to buy tether on Africa’s leading peer-to-peer exchange, Paxful.

How to Buy Tether (USDT)

To buy USDT, you will need a cryptocurrency wallet and an account with an exchange. Here are the steps you should take:

  • Download a mobile, desktop, or hardware crypto wallet to store the USDT you will purchase.
  • Next, create an account with an exchange or a P2P marketplace that supports Tether USD. For instance, you can create an account on  Paxful. If you already have an account, log in.
  • After registering an account, verify the required credentials. Paxful requires users to verify details like phone numbers, home addresses, email addresses, and ID numbers.

How to Buy Tether from a Peer-to-Peer Marketplace

Buy Tether on Paxful

If you created an account on Paxful, you can buy tether by using these steps.

  • Visit the website.
  • Click “Buy” and select tether.
  • Choose your preferred payment method and currency. For example, Paxful offers over 350 payment methods such as PayPal, mobile money, gift cards, crypto, and debit cards. Also, enter the amount you wish to purchase and select your country.
  • Click “Search Offers.”
  • The platform will display a list of offers based on the criteria you chose. Browse through this list paying close attention to the buy limits, prices, offer terms, and time limits.
  • Read the reviews of the sellers that catch your attention. Before choosing a seller, ensure that they are fully verified and active on the platform.
  • Once you find a suitable seller, click “Buy.” Note that you should read the seller’s terms first before starting the transaction.
  • If the platform offers a live chat feature, you and the seller can discuss the transaction details. For instance, the seller will send you the payment details through this chat feature.
  • Make the payment and follow any other instructions the seller has provided. Additional instructions that sellers might require you to undertake include sending a photo of your ID. The seller could use this document to verify that the payment sender matches the name on the ID.
  • Once you complete the payment, confirm on the website that you have paid.
  • The seller will then verify the payment and release your USDT.
  • After a few minutes, your USDT balance should reflect in your account. If you desire, transfer the crypto to another wallet.

Purchase Tether in Person

If you prefer to make a one-on-one transaction, look for local tether sellers on reputable Facebook or Telegram groups, or choose the “in-person” purchase option on a peer-to-peer exchange.

  • Contact the seller and schedule a meeting at a public place. Tell them how much you wish to buy so that they can prepare themselves in advance. They should also tell you how much it will cost.
  • Once you meet with the seller, show them the money as a sign of trust. But do not hand it over just yet. The seller should send you the USDT first.
  • Wait until the new USDT balance reflects in your wallet before paying the seller.

Buying tether is straightforward and flexible. You can use your local currency or another digital currency to acquire this stablecoin. Moreover, using a platform like Paxful gives you more than 350 methods of buying USDT, thereby providing convenience.

To buy Tether USDT in Africa, access Paxful here.

*This article was written in cooperation with Paxful, Africa’s leading peer-to-peer bitcoin exchange.

Continue Reading

Features

Weekly Roundup: Bitcoin Hits over $60,000, Luno Launches ETH & USDC Interest Accounts

Published

on

Bitcoin

Bitcoin broke past the $60,000 mark on March 13, 2021, to surpass Facebook in total market value. To learn more about this and other stories, keep reading this article.

Bitcoin Hits Over $60,000 and Surpasses Facebook in Value

Bitcoin AcceptedOn March 13, 2021, bitcoin recorded a high of $61,683.86. This is yet another milestone that the cryptocurrency has achieved after recording a series of several all-time highs in the past three months.

Institutional investors continue to boost bitcoin’s price with Chinese firm Meitu being the latest company to purchase crypto. The firm bought $22.1 million in ether and $17.9 million in bitcoin.

“Beeple’s $69 million [non-fungible token] record demonstrates the true power of crypto, adding curiosity and fuel to the retail fire. Expect volatility but a landing of $100K levels by Q3,” said Jehan Chu, Managing Partner of trading firm Kenetic.

Furthermore, bitcoin’s market cap has risen to the eighth position, surpassing Facebook. Currently, bitcoin has a market capitalization of about $1.07 trillion while Facebook has a market cap of $808.76 billion.

Luno Users Can Now Earn Interest on Ether and USDC Savings

Luno users can now add ETH and USD coin (USDC) to their savings wallet where they can earn 4 percent and 7.6 percent APR, respectively. The exchange introduced the savings wallet five months ago allowing users to earn up to four percent on their bitcoin savings.

Luno Earn

“The addition of two new cryptocurrencies to the savings wallet gives customers even greater flexibility and potential to earn interest as they grow their crypto savings. A high percentage of Africans who own cryptocurrency do so for speculative investment purposes, with the majority holding their crypto for the long term. If your crypto investment strategy is holding your crypto long-term, the savings wallet earns you additional interest for what you were already doing,” said Marius Reitz, the General Manager for Africa, at Luno.

According to a Luno 2020 survey, more than a third of the respondents (35 percent) were not earning interest on their traditional cash savings. On the other hand, 54 percent were not earning interest on their current bank accounts. As a result, Luno wants to change these statistics with its crypto savings wallet.

The savings feature pays out interest monthly and users can access their savings 24/7. Moreover, 250,000 people are using the savings wallet since its launch.

South African Company Invests in Bitcoin

It is not large companies alone that are investing in bitcoin. According to an article on Tech Central, open-source software firm LSD Information Technology has purchased R2 million in bitcoin (about $135,570.70).

The company’s board agreed to invest in the digital asset on January 4, 2021. In the initial purchase, it bought R1 million in bitcoin then bought the other R1 million over the next two weeks. The firm used the crypto exchange BitFund to buy and hold the BTC.

“Our vision is to make the world more open, and bitcoin supports our philosophy on how we believe the world works best. Working in the open-source space seems to attract many crypto enthusiasts for whom the decentralised open nature of cryptocurrencies appeals,” said LSD founder and CEO Stefan Lesicnik.

The firm participates in running and maintaining bitcoin full nodes.

To learn more about Bitcoin, download the Bitcoin Beginner’s Handbook for free.

Bitcoin Beginner's Handbook

Continue Reading

Popular Posts