Bitcoin has taken its stance to dominate the cryptocurrency market in popularity and value. As such, many people became aware of how one can buy and its impact on the financial stability of an individual and a nation.
Kenya is one of Africa’s early adopters of Bitcoin and other cryptocurrencies, and it is evident how much impact this has had on the country’s economy. But how does one buy Bitcoin? One way is through mobile money, in this regard, M-Pesa.
Let us look at how to buy Bitcoin in Kenya using M-Pesa.
The Adoption of M-Pesa in Crypto
Peer-to-peer (P2P) crypto trading platforms are now driving expansion in Africa. Consequently, outpacing other parts of the world on the grass-root acceptance of virtual currencies. Kenya sets the standard for peer-to-peer crypto trading in Africa. Part of this adoption is attributed to the widespread use of mobile money.
M-Pesa, a widely used mobile money transfer service in Kenya, has grown in popularity throughout Africa. As such, M-Pesa is listed as a viable payment option on practically every African crypto market.
The buying and selling of Bitcoin can happen through various platforms, which are known as brokers. Some of the most common brokers in Kenya include Binance, Yellow Card, and Coinbase.
However, the two that mainly take M-Pesa payments are Yellow Card and Binance. Additionally, they have many characteristics that a good exchange should have, with a massive populace of users across Africa.
Kenya ranks as the continent’s market leader regarding investment in Bitcoin. The main factor behind this is mainly due to access to information and the advanced financial market.
What the Adoption of M-Pesa Brings to Crypto in Kenya
In the past, cryptocurrency services in Africa were expensive as there were higher transaction fees associated with the trade. After integrating the M-Pesa payment option, trading cryptocurrencies and making deposits has become more efficient, safe, and secure due to the shift. As a result, M-Pesa is a significant assisting hand for business people who face difficulties transferring their money.
Binance offers this as an option, with its adoption happening in 2020. The platform guarantees its users of dependability, affordability, and quick accessibility to a wide variety of payment methods.
As such, integrating M-Pesa into Binance offers additional reassurance to the dedication to providing excellent customer service. With such an option, Kenyan traders no longer need to go to banks and pay heavy taxes as they can now make payments remotely using their mobile devices.
Besides, Binance is the largest cryptocurrency trading platform both in the country and globally, making it a top choice for Kenyans.
Therefore, we look at buying Bitcoin on Binance in Kenya using M-Pesa.
Step 1: Log in to the Binance Portal and Create an Account
If you have an account, log in using your username and password, verify and start using your account.
However, you will have to create an account if you have none. This process needs your name, email address, phone number, and physical address. You are also supposed to upload your national identity card images.
This process can be through the web or a Binance mobile app already accessible through various application stores.
Step 2: Account Verification
After opening an account, Binance reviews it and activates your account if the process is satisfactory. At this stage, you are ready to start buying and selling crypto, including Bitcoin.
On the Binance platform, there are many ways you can buy Bitcoin. However, let us focus on the M-Pesa method.
Step 3: Visit the P2P Menu
The menu is practically a marketplace where buyers and sellers make crypto transactions. P2P transactions enable you to transact in your local currency and payment methods.
As such, you should transact using the Kenyan shilling currency for a Kenyan. Select the buy option, which will automatically populate a list of sellers willing to take Bitcoin payments using M-Pesa. You can buy by sending funds to the seller’s mobile or paybill number.
Additionally, all sales in the P2P platform happen through Tether (USDT). Tether is a stable cryptocurrency with a value pegged to the US Dollar. As such, it has become the most used stablecoin on the platform. It is also the largest stablecoin in the market. As such, making a purchase, you will get your crypto in the form of Tether.
While purchasing, you will notice that many market sellers each quoted their price. Focus on buying from the lowest seller, which gives you more coins.
Also, make sure you select a seller with the amount you wish to buy.
You are dealing with people, and your seller choice should be based on how reliable a seller is. As such, a seller’s completion rate is something to consider. The completion rate is when a seller successfully sells and transfers crypto coins. The higher the rate, the more reliable a seller is. Avoid those sellers with low completion rates. In our case Jaden has the highest completion rate.
Select buy USDT.
Take note of the amount you want to spend and the amount remaining on the seller’s account. Then select buy.
The next option is to send the money on the user’s provided number.
After sending the money from your M-Pesa, confirm with the name the seller provides of their details.
The transaction happens through an escrow account to ensure that the process is free from fraud. Therefore, after payment, the coins are released to your wallet upon the seller’s confirmation.
Step 4: Convert to Bitcoin
You have USDT in your wallet now. The next step is converting them to Bitcoin. This process is straightforward and real-time. As the coins are in your wallet account, you need to go to your wallet and select convert
You only need to indicate the number of coins you want to convert and the amount. Based on the rate, you will see the number of Bitcoins from the conversion. If you are satisfied, select convert and complete the process.
Risks of Buying Bitcoin in Kenya
- Price Fluctuations- Lack of stability remains a crucial challenge in the crypto market. As such, it increases the risks of investing in Bitcoin, as you can end up losing your investment if prices keep falling
- Regulation- There are currently no legal standards set in Kenya that protect investments in assets such as Bitcoin. Therefore, the lack of regulations makes it a significant risk for investors. If, for example, there is fraud, it is almost impossible to seek legal remedies.
However, this could change as the government, through the Central Bank of Kenya, seems to embark on regulating the industry.
Final Thoughts
Kenya’s adoption rate of crypto is still growing higher than that of leading economies. As such, it is clear that crypto can transform Kenya’s economy in many ways.
As we have seen in this article, buying Bitcoin in Kenya can be easy, as exchanges like Binance make it available at the best prices at no additional cost.
If you intend to invest, this is an opportunity for you.
