Bitcoins and cryptocurrencies are the future of finance, especially in the growing digital space. If you looking to start with Bitcoins and Cryptocurrencies in Kenya read along for more insights.
What is a Bitcoin
A bitcoin or cryptocurrency is a decentralized digital currency, also called
cryptocurrency. It works like cash or gold that can be transferred on the internet across the globe. Read more here.
Oftentimes described as a virtual currency or a digital currency.
There is no individual or group that controls Bitcoin. The system is designed independently of states, banks, and companies.
How the bitcoin works
Bitcoins works as a computer file which is stored in a ‘digital wallet’ called a bitcoin wallet.
The wallet acts as a software program where Bitcoins are stored. The wallet consists of a unique private key for each individual to send and receive bitcoins.
Once you have it, the wallet will allow you to send Bitcoins to your digital wallet, and you can send Bitcoins to other people.
Every single transaction is recorded in a public list called the blockchain.
This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.
Why you should invest in bitcoins
- Bitcoins are independent because no state, bank or institution can control or manipulate it.
- It is a global currency, almost everyone can send and receive money from anywhere.
- Bitcoins are public. All transactions are stored in a common ledger.
- Bitcoin is anonymous users do not need to identify themselves when transacting with cryptocurrency. When a transaction request is submitted, the decentralized network will check the transaction and verify it and record it on the blockchain accordingly.
How to get started with bitcoins and cryptocurrencies in Kenya
Create an account
Once you understand bitcoins the next step to do is to set up your bitcoin account or online wallet that is similar to a bank account.
2. Verify your email and sign in
The next step after opening your wallet is to Secure your account by noting down your wallet ID and using the security centre to verify your email. By verifying you complete your profile.
3. Make a deposit
To make deposits, click on your wallet account and select the deposit amount and payment method.
In Kenya, you can buy the coins through the Blockchain Association of Kenya and digital assets online using brokers.
You will send them money via your credit card or bank transfer and they will send you bitcoins in exchange.
Most of the other options sell bitcoin above its market value, and others that accept Kenyans require much document verification.
You will need a MasterCard/Visa card and a Skill account to start. To perform bitcoin trading locally in Kenya.
Benefits of bitcoins and cryptocurrencies
1. Irreversible & Immutable (cannot be undone)
Cryptocurrency transactions are irreversible and immutable. The irreversible and immutable features of cryptocurrency mean that it is impossible for anyone but the owner of the respective private key to move their digital assets and that transactions cannot be changed once it is recorded on the blockchain.
2. Limited Supply & Scarcity
Central banks often manipulate the value of the countries’ currencies as part of their economic policies.
The inflationary nature of currencies would mean a decrease in the value of the currency over time.
cryptocurrencies have a limited and pre-determined supply which is coded into its underlying algorithm when created. They often create scarcity to prevent currency manipulation and the decrease of value over time.
3. No third parties needed
The good thing with bitcoins is that there is no intermediary that can deny your transaction or demand expensive fees.
Bitcoin is secure because it is based on cryptography and mathematics. The two parties can decide together over the network and its rules.
6. No inflation
They protect you against inflation because there is no facility that controls its trading.
7. You can become a digital broker and trader
With bitcoins, you can become a digital asset dealer, broker or agent. You can work remotely from the comfort of your home.
How to get started with bitcoins and cryptocurrencies: Conclusion
The coins have a supply of 21 million and once the supply limit is reached, no new Bitcoin will be added. Thus the existing Bitcoin in circulation gets more attractive and valuable as an asset.
However, there have been serious warnings concerning the selling of bitcoins in Kenya. Earlier, the central bank CEO warned Kenyans of it being a pyramid scheme that people should consider staying away.
Thirdly, while considering to work with brokers, some are fraudsters who may still from you your hard-earned money.
Finally, investment is good. Investing in bitcoins and cryptocurrencies has double chances of failing and working but that shouldn’t distract you if you are focused on it.
This can also be one useful link to help you buy and sell bitcoins in Kenya https://localbitcoins.com/