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How to Buy Bitcoin with Gift Cards

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Buy Bitcoin with Gift Cards

In this guide, you will learn how to buy bitcoin with gift cards on Africa’s leading bitcoin peer-to-peer marketplace Paxful.

How to Buy Bitcoin with Gift Cards

If you have a gift card that is unused or with a balance, you can trade it for bitcoin. Leading bitcoin exchange Paxful is making it easy for people across the globe to trade gift cards for crypto.

According to a recent report by Arcane Research, gift cards are the most popular payment method on Paxful. One of the reasons for this is that immigrants use gift cards to send remittances home.

The steps below will show you how to buy bitcoin with gift cards.

how to buy bitcoin with gift cards

  • First, ensure that the gift card you want to sell has a balance. Also, take a photo of the receipt you received after buying your gift card. If you did not buy it, ask the person that did to send you a picture of the receipt. Bear in mind that some buyers might only accept a gift card purchased with cash.
  • Visit the Paxful website.
  • Next, create an account. If you already have an account, log in.
  • Carry out all the KYC requirements. On Paxful, that includes providing proof of your identity and address, email address verification, and phone number verification.
  • After completing the KYC process, click “Buy” then select ‘Bitcoin.’
  • Choose gift cards as the payment method. Also, enter the amount you wish to spend in your preferred currency. When inserting the amount, consider the gift card balance. Note that you cannot sell a fraction of the card’s value.
  • Click “Search Offers.” The platform will display a list of all traders that fit the terms you entered.
  • Look for traders that are accepting the gift card you are selling. For instance, if you have an iTunes gift card, look for traders that are accepting this card.
  • Examine their buying limits, prices, and terms. Also, review the trust rating of the seller, the feedback they have received, and if they have verified all their details. Trading with a fully-verified person reduces the risk of trading with a false trader. You will also want to trade with an active trader.
  • Once you find the right trader, click “Buy.”

buy bitcoin gift cards

Final Trading Steps

  • Read the terms of the seller.
  • Kick start a chat if the platform offers this feature. On Paxful, you can have a live chat with the seller. Here, you shall send a photo of the gift card and proof of ownership in the form of a receipt. Since sellers could offer invalid cards, Paxful requires them to upload a security deposit of 0.1BTC. The security deposit protects buyers from fraud.
  • Once you have provided the bitcoin seller with all the necessary card details, click “Paid.”
  • The seller will confirm payment after they have verified the card’s balance. Most retailers allow gift cardholders to view the balance online.
  • After the bitcoin seller has confirmed the payment, you will receive your bitcoin. The BTC balance should reflect after a few minutes.

Creating An Offer

buy bitcoin with amazon gift cardAlternatively, you can set up a buy bitcoin offer.

Here is how to go about it:

  • Log into your account.
  • Select bitcoin as the cryptocurrency you want to buy.
  • Choose gift cards as the payment method.
  • Select the currency of your choice.
  • Pick a bitcoin rate. You can choose the market or fixed price.
  • Select the price margin. This is the percentage of your offer, above or below the market price.
  • Enter the trade and time limits.
  • Next, write the trade terms and instructions. You can also choose the verification requirements for potential bitcoin sellers.
  • Once you are satisfied, create your offer and wait. The platform will display the offer to traders that are selling bitcoin in exchange for gift cards. If a trader likes your terms, then they will initiate a trade with you.

Purchasing bitcoin with gift cards is a straightforward process. To start buying bitcoin with gift cards, sign up to Paxful today.

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

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Weekly Roundup: Swahili Blockchain Book Now Available, Binance P2P Volumes Hit $280 Million in Africa

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blockchain book

After experiencing raging swings this year, Bitcoin hit a new all-time high this week. On Monday, bitcoin recorded a price of $19,850, breaking the 2017 record. In other news, the Swahili blockchain book is now available for purchase, and Binance P2P trading in Africa is flourishing.

Read these and other stories in our news roundup this week.

Swahili Blockchain Book Now Available

Swahili Blockchain BookThe Swahili blockchain book is now available for purchase. The goal of this book, Jielimishe Kuhusu Blockchain, is to educate Swahili readers about blockchain technology. As a result, readers can contribute to regulatory conversations in their countries to help policymakers make the best decisions.

The Governor of the Central Bank of Tanzania (BoT), Professor Florens Luoga, is one of the first people to read the book. Sandra Chogo, the author, handed him the blockchain book during a conference held in the country.

According to Chogo, the Governor’s interest in the book could indicate that the regulator is warming up to the blockchain and cryptocurrencies. The book has already received a positive reception from the Tanzanian government.

Binance P2P Volumes Hit $280 Million in Africa

Binance P2P trading in Africa has grown significantly because the exchange is supporting six local currencies. So far, the exchange has processed a total volume of $280 million P2P trades in Africa.

In March 2020, Binance started supporting the Nigerian naira. Currently, African users can use Binance P2P to buy and sell BTC, USDT, DAI, BNB, ETH, and BUSD using the Kenyan shilling, the South African rand, the Nigerian naira, the Moroccan dirham, the Ghanaian cedi, and the Egyptian pound.

According to Binance, P2P traders on the platform are making an income between $30 and $350 each day.

“I solely rely on P2P trading as the main source of my income. With P2P trading, I can sufficiently meet my needs and bills. The best thing is that I can trade at my own time and any place,” said Robacoin, a P2P merchant.

P2P trading on the continent could continue the upward trend as more and more Africans turn to crypto to make an income and to remit money.

Nigeria Could Develop a Crypto and Blockchain Framework

Nigerian SEC to Regulate CryptoThe Securities and Exchange Commission in Nigeria classified digital assets as securities a few months ago. Now, the regulator and the Ministry of Finance are discussing the creation of a crypto and blockchain framework.

According to recent news, the two bodies want to create a regulatory environment for blockchain. Also, the Nigeria SEC is keen to facilitate the adoption of the technology.

“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market,” the SEC Nigeria stated.

Furthermore, the country is hoping to obtain $10 billion in revenue from blockchain technology by 2030.

Sarafu Network Beneficiaries Soar 40,000

One of Africa’s community currencies project, Sarafu Network, now has 40,000 beneficiaries. The Grassroots Economics initiative is helping communities in rural Kenya to access basic needs like food. To date, users have traded more than 100 million community tokens. In October 2020, for instance, the beneficiaries traded more than 8 million Sarafu tokens for food. During a global pandemic and a declining economy, the Sarafu Network is helping the needy to stay afloat.

Grassroots Economics uses the power of the blockchain to create community inclusion currencies (CICs).

“In a typical community dependent on injections of the national currency – trade will often slow to a crawl and stop due to lack of a national currency as commodity prices increase. As we have seen in Kenya where Sarafu has been distributed to over 40,000 people, in communities with a Community Inclusion Currency trade can continue,” Grassroots Economics Founder Will Ruddick says.

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

Bitcoin Beginner's Handbook

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RESIST! How Activists Can Use Bitcoin

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Activists Can Use Bitcoin

As social justice movements leverage social media platforms like Twitter to make their voices heard, many have discovered a new tool: Bitcoin. The internet is the epicentre of social change, and it only makes sense that activists are now adding bitcoin to their arsenal. During the recent #EndSARS Nigerian campaign, young feminists raised $55,000 in cash and bitcoin donations, which is an example of how activists can use bitcoin to raise funds.

So, can cryptocurrencies provide the same level of impact on activism as social media platforms? This article explores how activists can use bitcoin.

The Financial Challenges of Activism

Activism

Any activist willing to protest against injustice should know how to raise money. Protesters need banners, water, food, and medical care in case they get hurt. These requirements come at a cost, necessitating movements to search for funds.

Activists can raise money out of pocket or they can reach out to well-wishers for donations. The former option is unreliable, which means that social justice movements have to fully rely on donations. Unfortunately, government censorship can make it hard for such movements to receive donations through banks and other conventional financial institutions. Moreover, they could punish the donors that support social justice campaigns.

The #EndSARS campaign, for instance, has faced challenges with receiving donations because the Flutterwave links were down for some time. According to Tweets on the Feminist Coalition account, the Central Bank of Nigeria could have been behind the Flutterwave payment issues. However, it is unclear. Flutterwave is a payment solution in Nigeria, while the Feminist Coalition is one of the organisations that has been active in raising donations for the campaign.

Furthermore, donors outside the country where a campaign is taking place will find it challenging to send donations due to the high cost of sending money. Also, online payment platforms like PayPal are not available in every country. That prevents people in these countries from making donations to campaigns happening in other parts of the world.

Speed is also important when collecting donations. Activists will often need funds immediately to keep a campaign going long enough to make an impact. Therefore, if they are not receiving cash directly, they might have to visit a bank to withdraw large amounts of money. That could waste a lot of precious time.

Can Activists Use Bitcoin to Solve Financial Problems?

BLM

Yes, they can.

Bitcoin is censorship-resistant, which means that governments cannot prevent activists from receiving donations in bitcoin. That provides the convenience that activists need to fund their campaigns when they are still “hot” enough to make a difference.

To solve the challenge of receiving donations through Flutterwave, the Feminist Coalition is now accepting bitcoin donations only.

Bitcoin is pseudonymous, which means that governments cannot easily trace bitcoin transactions to the real-world identities of the senders and recipients. That offers a sense of security to both donors and activists, especially in countries where protesting can mean beatings, jail time, or death.

It is even better when social justice movements are decentralised because there are no public leaders that law enforcement can pursue. For instance, much of the #EndSARS and #BlackLivesMatter campaigns grew organically online.

Therefore, activists can use bitcoin to receive pseudonymous and censorship-resistant donations.

Moreover, they can receive donations from anywhere at any time. That is because bitcoin is accessible 24/7 to anyone with a smartphone or computer and an internet connection. As a result, more people can financially support causes they believe in, even though they live on another continent.

Also, bitcoin transactions do not involve third parties, thereby cutting down the cost and increasing transaction speeds. Once a donor sends BTC, the activist will receive it in minutes and fund their campaign immediately.

Furthermore, buying supplies for a protest becomes easier when local businesses start accepting crypto payments. For instance, several local businesses started accepting cryptocurrencies in 2019 in support of the Hong Kong protests against Chinese influence.

Bridging the Wealth Gap

BLM activistFighting deep-rooted social injustices require bridging the wealth gap between the oppressors and the oppressed.

In a world where the wealthy influence political decisions in their favour, amassing wealth could be a possible solution that marginalised communities can adopt to fight discrimination.

Here is where bitcoin can come in.

Since marginalised communities suffer discrimination from traditional financial institutions, bitcoin becomes an attractive alternative. The censorship-resistant and easy accessibility of bitcoin means that marginalised communities can use it to create wealth and acquire financial freedom and the power to fight prejudices.

By way of illustration, activists can direct part of the bitcoin donations they receive to fund small businesses in the community. As a result, financially stronger businesses can create jobs and increase the purchasing power of other community members.

Other methods that communities can use to create wealth include buying and holding bitcoin and accessing business loans in crypto.

Money can help fight police brutality better than protesting on the streets. That is what Bitcoin and Black America author, Isaiah Jackson, believes.

“Without economic strength, you have cops coming from outside of the community […], and they do not value it [or the people]. They do not see you as a person, and that is an issue,” he told Cointelegraph.

Moreover, marginalised communities can create their tokens or community currencies to improve their financial positions.

Social media has made the world aware of the social injustices that take place in various parts of the world. Now, bitcoin and other cryptocurrencies are giving the world a chance to support social justice movements financially. Together, both tools are creating a world where no one has to fight injustices alone.

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Is Bitcoin “Digital Gold”?

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digital gold bitcoin

When Satoshi Nakamoto created bitcoin, he envisioned a peer-to-peer digital currency that would allow people to send money without the need for financial institutions. However, bitcoin’s use as a store of value overshadowed its original goal, and people started referring to it as “digital gold.”

But is it?

Bitcoin as Digital Gold

As you think of bitcoin as digital gold, the first thing you notice is the golden colour circling its symbol. If you go back in history in the times before bitcoin, developers were keen to create a currency that would be the digital version of gold. For instance, the inefficiencies of conventional financial systems and the use of gold as currency inspired Nick Szabo to create Bit Gold.

So, that could have been the thinking of the time: marrying the pros of digital currencies with the benefits of precious metals. That could explain why a yellowish-orangey colour circles the bitcoin symbol.  Also, bitcoin is often illustrated as a golden coin.

Nevertheless, the association between bitcoin and gold does not end with the logo.

Digital Gold vs. Physical Gold

Bitcoin and gold have several similarities.

  • They both have a limited supply, which boosts their value.
  • You can divide both assets into smaller units and they will not lose per unit value. The smallest unit of bitcoin is the satoshi. 100 million satoshis make one bitcoin.
  • Gold is stable, and so is bitcoin. Although the latter is volatile in terms of price, bitcoin’s underlying technology, the blockchain, gives it stability.
  • They are both easily recognisable.

Bitcoin is more superior to gold because you can move it to any place of the world in minutes, it is impossible to counterfeit, and it facilitates online payments.

PaxfulFurthermore, bitcoin is more accessible and easy to hoard. Exchanges and peer-to-peer marketplaces like Paxful are making it easier for people across the globe to own cryptocurrencies. For instance, with a smartphone and an internet connection, anyone in the world can buy bitcoin.

Therefore, saying bitcoin is digital gold is an oversimplification. Bitcoin is superior than gold in terms of features and potential impact on economies. However, viewing bitcoin as digital gold is a strategy beginners can use to easily understand the cryptocurrency.

Bitcoin as a Store of Value

digital goldAfter Satoshi released bitcoin to the world, the response was probably better than the unknown creator could have hoped. The cryptocurrency attracted a loyal community that started using bitcoin as a store of value because of its scarcity, safe-haven characteristics, and the fact that it is impossible to counterfeit. As a result, many people are holding bitcoin as a long-term investment because they believe in its long-term value. Moreover, the population of bitcoin supporters is continuously growing.

The debate on whether bitcoin is a store of value or not has been raging for years. While bitcoin “HODLers” believe that bitcoin will one day make them wealthy and shield them from a financial crisis, others believe that bitcoin, which is also partially money, cannot be a store of value as well.

That said, bitcoin has made several people into billionaires, proving that it is a practical store of value. Gold is a store of value as well, and it offers financial freedom and protection during economically tough times. However, governments could deny citizens from owning gold. On the other hand, governments would have a more difficult time blocking citizens from owning bitcoin.

Where Does Bitcoin Get Its Value?

The answer to this question is simple. The decentralised nature of bitcoin gives it a lot of value. As the first digital currency that is not under the control of any government or organization, bitcoin is extremely valuable. Therefore, anyone that is against conventional financial systems will find bitcoin very attractive.

Gold is also a decentralised asset. However, the fact that it is not easy to move or hoard, makes bitcoin arguably the more valuable asset.

The Money of the Internet

Although bitcoin as money was overshadowed for some time by its store of value feature, this is changing. The introduction of the lightning network and its continuous growth is facilitating bitcoin as the money of the internet.

The Lightning Network (LN) is a payment protocol that uses smart contracts to facilitate fast bitcoin transactions. LN is built on top of the Bitcoin blockchain as a second-layer application. LN is supposed to solve Bitcoin’s inability to process more transactions per second. The network promises to handle millions to billions of transactions per second compared to bitcoin’s seven. Currently, you can enjoy the speed of LN by getting wallets like Zap, Breez, and Eclair. However, these wallets are still in development and could have bugs.

LN is taking time to grow, and it has not come through on its promise yet. Also, researchers observe that LN is becoming more centralised and, therefore, more prone to attacks.

Scalability issues aside, bitcoin has the potential to change the payments sector. Major companies like Microsoft, AT&T, and Namecheap are accepting bitcoin as payment. Additionally, platforms like Paxful are enabling businesses to accept payments from anyone in the world through bitcoin.

As such companies set the stage for bitcoin as the money of the internet, it will take time for the world to uniformly accept bitcoin as a payment method. That means that its money functionality will remain underutilised for the time being.

It is clear by now that bitcoin provides more benefits than gold. Therefore, referring to it as digital gold is an understatement. Bitcoin has a lot to offer, and with time, it could become a widely accepted payment method.

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