Cryptocurrencies are influenced by market conditions of supply and demand and thus their value varies over time when placed against the dollar.
This is where investors like you and me come in to make money through buying and selling.
In Kenya, if you want to buy Bitcoins;
Register on Local Bitcoins
Register an account on localbitcoins.com for free.
Look for a seller on the seller option and pick out the most affordable seller
The seller also has to meet your quantity demand. Different sellers sell to buyers with different budgets and so it’s important that you pick one that matches yours. You can buy Bitcoins worth as low as 500/-, these will be in denominations called Satoshis which are like cents in the Bitcoin sense. The reason for this lower denominations is because the price of one Bitcoin as of today stands at about 640,000/- thus it’s better to buy in small quantities due to capital constraints.
Once you’ve identified a seller, initiate a chat with them and agree on the mode of payment. The site system will be triggered to pick the number of Bitcoins you require from the seller’s wallet and they will be held in an online safe. Once you have made the payment and the seller has confirmed the same and you have too, the Bitcoins will be sent to your Bitcoin wallet.
Reselling the coins
Once you have the Bitcoins in hand and you want to resell after the price has gone up, you will post a sale ad on the localbitcoins platform which will make you a seller and you will now have to wait for a bid from willing buyers.
Exchanging Bitcoins with other cryptos
Other cryptos, especially the upcoming ones do not have a buying and selling platform that can be accessed from Kenya and so that means you can’t buy them that easily. In this case, you will need to first have Bitcoins and look for mutual exchange platforms that accept bitcoins in exchange for other cryptos. The platforms will more often than not be similar to localbitcoins only that the price will this time be quoted in terms of bitcoins.
The smaller cryptos change prices rapidly and this is where most investors make money. You buy say bitcoins and hold them, then in your analysis, you anticipate that Stellar which is another crypto will rise in price say 30% this month and so you want to make a kill on that. You, therefore, look for a mutual exchange platform and change your Bitcoins for Stellar, you wait and your prediction goes through. So you have a 30% increase in your capital. You then go back to the mutual exchange platform and exchange the stellar for bitcoins again. With the bitcoins now in hand, you sell them on localbitcoins and realize your profit. You will, however, incur some transactional cost as you exchange the cryptos on the mutual exchange platform.
This can be done as a full-fledged business but always keep in mind that you need to do proper analysis of the market before risking your capital.
Thank you for reading, please leave a comment down below and don’t forget to subscribe to our mailing list for updates on our latest posts.