Bitcoin is the oldest and best-known of the modern crop of digital currencies. It is a cryptocurrency, or digital currency, not backed by any government. It comes with unique risks that could make Bitcoin a good or bad investment, depending on your unique investment goals.
Bitcoin is a digital currency that exists only on the Internet. But if you think about it, much of the money you have today only exists on the Internet. If you’ve paid with direct deposit, you may have money coming in and out of your accounts without ever touching a physical dollar bill.
How To Invest In Bitcoin In Kenya
For starters, you need to try out paper trading before going deep into the investment. Then you will need what is called a blockchain wallet, an app that lets you store, send, and receive digital assets. There are dozens of options to choose from online, on android and apple stores for example blockchain, mycelium and coinomi.
Once you download and install one, the next step is to secure your wallet in case you forget your password or lose your phone. Some people who have ignored backups as a safety precaution have fallen prey to sophisticated hacks. Add a strong PIN and back up your 12-word phrase to help you recover your bitcoin in the worst of scenarios.
Your wallet now needs something to put in it, otherwise, what is it good for? So you need to find yourself some bitcoins to add to your wallet. Buying bitcoins in Kenya is not easy, there aren’t many services that cater to Kenyans. You have two options when considering where to buy or sell bitcoin for Kenya shillings.
How to sell Bitcoin
Step 1: Choose where to sell Bitcoin
Step 2: Create an account
Once you have chosen a cryptocurrency exchange to sell your Bitcoin, you will need to create an account. Find the sign-up or register button on the homepage then do the following:
- Enter an email address or phone number
- Create a password
- Verify the email or phone number provided by entering the verification code sent to it
- Agree to terms and conditions
- Click sign up or register
You will then have to go through the KYC process to verify your identity. We’ve outlined the basic steps below, but more in-depth instructions can be found in our KYC guide.
- Enter personal information
- Name, country of residence and ID. This step may require you to upload a scan of your chosen ID or simply enter your ID number.
- Upload documents
- A clear photo or scan of your ID with no glare or obstructed view is necessary. You will also need to upload a copy of a utility bill or bank statement that matches the address and name on the ID provided.
- Upload a selfie
- This involves taking a photo of yourself with a full view of your face. You must be holding a piece of paper that has your name is written on it and the current date. Some sites will provide a unique code that you need to write on a piece of paper.
- Activate 2FA
- This is an optional step but it is recommended. Some exchanges require it regardless. Activating 2-factor authentication adds an extra layer of security to your account.
Step 3: Deposit Bitcoin
Step 4: Sell Bitcoin
Now that your Bitcoin is in your exchange account, you can sell it. There are a few different ways to sell BTC through an exchange: instant sell, market order and a limit order. It is important to remember that you can sell Bitcoin for fiat or for other crypto coins and tokens.
Instant sell
In order to do an instant sell, you will have to have previously connected a bank account or withdrawal destination. Instant sales tend to have the highest fees and are made at market price. Overall, you net less than using the spot market. With instant sale options, you are paying for convenience and speed. Generally, you choose how much to sell and where to deposit. You will get a preview of the transaction so you can check the details. Once you’ve confirmed the details, you can finalize the sale.
Market/limit orders
In order to access the market and limit orders on a crypto exchange, you will need to navigate to either “spot trading”, “trade” or “markets”. How the trading interface is labelled varies by exchange. While there are often more trading options than just market and limit orders, they are the most common. When selling Bitcoin through spot trading, you can sell it for fiat-pegged stablecoins or other digital assets.
Withdrawing local currency
When trying to sell Bitcoin through a platform that permits fiat currency withdrawals, check to see what withdrawal methods are supported. Options could include the following:
- Bank transfer
- Credit/debit card
- PayPal
- Skrill
- SEPA
- SWIFT/ACH