How To Buy Cryptocurrency In Africa
How to buy cryptocurrency in Africa
Even though the first digital token, Bitcoin, was founded in 2009, cryptocurrency has recently become one of the most commonly used words.
There is no way to avoid the crypto universe, whether you are a curious observer or a potential investor.
Market analysts attribute the recent rise in cryptocurrency popularity to the record high market gains in 2020/2021, fueled by speculation and the virtual currency's future potential.
Unlike fiat currencies (like the US Dollar), cryptocurrencies are issued and backed by a network of computers rather than a central authority. These assets use blockchain technology to secure all transactions.
Coins like Bitcoin, the world's oldest cryptocurrency; Ethereum, the only one capable of challenging Bitcoin's dominance; Cardano, KOIN, etc.
Due to cryptocurrency's extreme volatility, market analysts advise investors to exercise caution when investing.
Investing in cryptocurrency can seem complicated at first, but it is much simpler when broken down into steps. Here is a basic guide to buying Bitcoin in Africa and globally.
Choose a cryptocurrency broker
Choosing a platform to buy cryptocurrency is the first step for a potential investor. An investor can choose between a traditional broker and a crypto-exchange.
Brokers are investment advisors who help people buy and sell cryptocurrency. These platforms tend to be cheaper but lack crypto features.
However, cryptocurrency exchanges are dedicated to buying and selling cryptocurrency. Exchanges have more complex interfaces with multiple trade types and advanced performance charts, and often have lower fees. Coinbase, Gemini, and Binance are well-known cryptocurrency exchanges.
In addition to easy purchase options, some of the companies' standard trading interfaces may overwhelm newbies.
Sign up
The next step is to open an account with a cryptocurrency broker or exchange. Account verification may be required depending on the platform and the amount invested.
Brokers and cryptocurrency exchanges say the move is necessary to prevent fraud and comply with federal regulations.
A copy of a driver's license or passport may be required to successfully verify an account, as well as a selfie to verify a match to the documents submitted.
Set up a crypto-buying
To buy cryptocurrency, an account holder must first fund their account. The funds can be transferred from one crypto account to another via wire transfer or debit or credit card.
Order cryptocurrency
After funding an account, the investor can place their first cryptocurrency order. An investor can buy a fractional share of cryptocurrency, ranging from popular names like Bitcoin and Ethereum to obscure cryptos like Theta Fuel or Holo.
Keep assets
After purchasing a cryptocurrency, it must be stored securely to avoid hacking or theft.
A cryptocurrency wallet is required now. It is a physical device or online software that allows investors to safely store their cryptocurrency private keys.
Some exchanges also include built-in wallet services, making it easier for investors to store funds. But not all exchanges or brokers offer wallets.
