In this post, I’ll show you how to make money online with bitcoin in Kenya. To help you get started with becoming a part of the bitcoin community or, at the very least, earn a bit of extra money by leveraging everyone’s favorite crypto-currency.
If you are reading this post for the first time and wish to get started on Bitcoins I strongly suggest you read the introduction to Bitcoins in Kenya guide.
How to Make Money Online with Bitcoin In Kenya
If you who enjoy playing games or simply don’t mind looking at a few ads, you can visit bitcoin faucet websites. These websites generate revenue from ads placed on their pages and pay out a small amount of the ad revenue to its users.
All you need to do is sign up with your bitcoin address and start earning a few cents worth of bitcoin every day. See also: how to earn free Bitcoins in Kenya.
While it is a very slow way to earn bitcoins, these sites allow anyone new to bitcoin to get obtain bits of the crypto-currency for free.
Buying and Holding Bitcoins
If you want to start earning bitcoin you first need to obtain a bitcoin wallet, which is used to send, receive and store your bitcoins. You can obtain one from an online based service such as Coinbase or Blockchain.info.
These are two of the most used bitcoin wallet and come with an online and a mobile version. Having said that, the safest way to store your bitcoins would be offline. For that, you could use a so-called “cold wallet” such as Trezor.
Once you have a wallet service, you can establish multiple bitcoin addresses, which allow you to receive bitcoins from others. No real-life addresses are necessary, just your bitcoin address will suffice for any digital currency transfers.
All transaction can then be viewed on the block-chain at Blockchain.info. This is why bitcoin is considered as a semi-anonymous digital currency as transactions are linked to bitcoin addresses but who is behind those addresses is unknown.
Mining bitcoins can be quite complex and is usually not recommended for beginners. The process entails the use of sophisticated machines that are expensive and consume quite a lot of electricity to solve mathematical algorithms in exchange for bitcoins.
Bitcoin miners enable bitcoin transactions by sharing their processing power. In exchange for enabling the bitcoin network to function, they are rewarding with new bitcoins. This is what “mining” refers to.
Having said that, it is no longer considered lucrative for individuals to mine at home using mining equipment and the shift is being made towards more large-scale operations.
If you do want to engage in bitcoin mining and are willing to invest in expensive mining hardware, it is strongly advisable to join a mining pool.
In a mining pool, miners pool their resources together and share their hashing power with the aim of solving a block and dividing the reward equally, depending on the number of shares contributed by each person. It is an effective way to motivate small-scale miners to continue their involvement in mining activities. Some popular mining pools include Antpool and BTCC
Earn Bitcoins through Completing Microtasks for Bitcoin
You can also earn bitcoins by completing micro-tasks on the following platforms:
Bituro is a smartphone app that pays you in bitcoins for small tasks, such as watching promotional videos, filling out surveys and testing apps.
Bitcoin Reward enables you to earn for watching videos, downloading and testing apps, filling out market research surveys and other minor tasks.
Coinbucks is a smartphone app that allows you to earn bitcoins for playing mobile games, downloading smartphone apps and completing online promotional offers.
Becoming a Market Marker on Localbitcoins.com
Localbitcoins.com allows you to trade Bitcoins for fiat currencies through individual trades, sometimes referred to as over the counter trading or OTC. Most people are comfortable selling bitcoins over the counter as the transactions are fast and they offer diverse methods of payment.
Hundreds of bitcoin traders from around the globe are making profits on Localbitcoins by becoming market makers (buying and selling in Localbitcoins). To get you started, here is a brief guide on how to sell bitcoins on LocalBitcoins.com.
- First, you sign up to LocalBitcoins.com
- Then create an online sell advertisement for bitcoins. When designing an advertisement;
- Select a payment method
- Set you pricing limits
- Outline your terms of trade as a free-form message.
- Next, you need to replenish your wallet with bitcoin, for you to order customers to be able to access trade requests from your advertisements.
- Once a buyer opens a trade with you, the full bitcoin amount is automatically transferred from your wallet to escrow.
- When the buyer has made the payment and pressed the “Mark payment complete” button you will receive an SMS alert or a notification via email informing you that payment of the trade has been done.
- Upon confirmation of the payment, the bitcoins are released to the buyer from the escrow to his Localbitcoins wallet.
- The last step is to leave feedback for the buyer so as to gain reputation and make some trades.
Depending on the country, bid/offer prices vary greatly. If you are making markets in less saturated bitcoin markets, you can make easy money as a market maker on LocalBitcoins.