Over the last several years Bitcoin has become increasingly popular. To better understand its true value,it helps to take a look at the cryptocurrency’s recent movements. In the last one year, Bitcoin’s valuation has increased more than 763%, easily outpacing traditional gains in the stock market. More people are buying into the idea of Bitcoin as a decentralized, global currency.
So, what exactly is Bitcoin, and how can Kenyans invest and earn from it?
What is Bitcoin?
Bitcoin is often referred to as a virtual or digital currency and one of the popular cryptocurrencies in the world. In some parts of the world, you can use it to pay for products and services. There used to be a lot of mystery and trust-related issues surrounding bitcoin but it’s been twelve years since the cryptocurrency emerged in 2009 and it is no longer a fad.
Bitcoin works just like your traditional Kenyan shilling. It serves as a store of value, it can be given in exchange for goods and services. However, bitcoin is not regulated by any government, hence the term decentralized currency. It is completely digital and is tied to your wallet ID rather than your personal information. One major reason people are drawn to bitcoin is that it isn’t controlled by a single entity thereby taking out the middleman and reducing the cost of transactions.
What is an investment?
An investment is an asset or item acquired with the goal of generating income or appreciation. In simpler terms, making an investment means to put money to use as opposed to just storing in the hopes that it makes a positive return at a later day. Take this for an example, Adamu has 30,000 shillings he made off a business deal last month. He can do a number of things with this money; he can take all of it and deposit it in a bank as a way of saving this money or he can put it into another business which is what investing is.
But even businesses can be stressful and the return duration can be pretty long depending on what venture you are into. That’s what makes bitcoin so interesting. If Adamu chooses, he can also use those 30,000 shillings to buy bitcoin and the best part is that he doesn’t have to do much. We’ll get to this in a minute, keep reading.
Getting started investing with bitcoin
The internet has made just about everything simpler and that also includes being able to buy, sell, store and invest in bitcoin. To get started investing in bitcoin you’ll need a bitcoin wallet. Oftentimes you can get a standalone wallet for your bitcoin but you could also get started with crypto apps which make the process much simpler.
Yellow Card is one of such apps in Kenya. With the Yellow Card app, you can store, send, and receive bitcoin and other digital assets. It is the easiest way to buy and sell bitcoin, instantly and at the best rates.
Start by downloading and installing the Yellow Card app, it’s available on both the Google Play Store and the App store so it works with most mobile phones. Alternatively, you could get started with the web app if you are an avid user of desktop. Next, sign up for an account with all the necessary details. It’s nothing over the top, just some personal details and identification and that’s it.
When you’re done filling in all your personal information, you can fund your account. Choose your preferred payment method (bank transfer, mobile money, or cash) to deposit money into your account. Then you can start buying, selling, trading and overall investing in bitcoin.
Manage Your Bitcoin
After you’ve purchased bitcoin, you can:
- Use your coins to make online transactions.
- your coins for a long period in the hopes it’ll appreciate.
- Perform day trading with your coins- that is, buying and selling coins with other Bitcoin owners
You should also know that the Blockchain Association of Kenya strongly recommends only transacting with trusted brokers with stellar reputations because fraud and scams are a big challenge in acquiring, trading, or investing in bitcoin.
Investing in bitcoin and cryptocurrencies in general is up to you. There’s never a thing as too much research and it is important that you get as much information as you can on your chosen asset and also that you are aware of your risk appetite so you can be able to acknowledge your limits while and avoid as much risk as you can while investing.