Chainalysis’ 2021 crypto adoption report ranked Africa as one of the regions with the fastest crypto adoption. The report noted that Africa’s crypto market grew by more than 1200% by value received in 2021. African nations like Nigeria, South Africa, Kenya, and Tanzania also experienced some of the highest grassroots adoptions in the world.
These countries made it to the top 20 nations in the Global Crypto Adoption Index. Africa also had the largest retail-size transfers compared to other regions. Interestingly, the Central Republic of Africa became one of the first nations to accept Bitcoin as legal tender.
Bitcoin is such a huge deal in Africa. There are 3 main reasons for this.
- P2P Transfer
We published an article last year on crypto adoption in Africa. Check out that piece for a clearer background on crypto in Africa. However, a lot has happened in the African crypto market that has made the crypto community on the continent stronger and even more determined.
Nigeria’s CBDCs Policy and Increase in Bitcoin Demand
In 2021, the Central Bank of Nigeria (CBN) rolled out the e-naira, which is the country’s digital currency, or CBDC. While that was seen as huge progress, Nigerians did little to adopt the e-naira.
According to statistics, one in every 200 Nigerians uses e-Naira. This equates to less than 0.5% of the population. In addition, only 700,000 users created e-naira wallets within the first eight months of the e-naira’s launch.
Since the gov wants adoption of the eNaira #cbdc so bad, they limited the amount citizen can withdraw in cash at the bankhttps://t.co/Ggmd7FzjJ7
— Science&SELFHOSTED (@scienceXBT) January 28, 2023
So, the CBN came up with new policies to push adoption. First, the CBN offered a 5% discount on e-Naira payments in Keke Napep, a popular local transportation system.
The CBN also limited the amount of cash citizens could withdraw in a bid to push them towards using the e-naira. Nigeria’s Central Bank Governor, Godwin Emefiele, said of the policy: “The destination, as far as I am concerned, is to achieve a 100% cashless economy in Nigeria.”
The CBN’s cashless policy affects more than 200 million Nigerians. Surprisingly, rather than adopt the e-naira for transactions, Nigerians turned to an “old friend” Bitcoin. Reports showed that “how to buy bitcoin” searches on Google grew in number. In response to the CBN’s cashless policy, Nigerians made Bitcoin their most sought-after asset.
Nigeria is one of the top countries for Bitcoin searches, with approximately 75k searches per day. Google searches show that Nigeria feels safer with Bitcoin than with the e-naira.
Recent activities show that Bitcoin is a huge deal in Africa. However, not many people know where to buy cryptocurrency. Now let’s look at how to buy Bitcoin in some African countries.
How to Buy Bitcoin in Nigeria
As mentioned earlier, Bitcoin is pretty popular in Nigeria. While Binance has a more global presence, Nigerians seem to have a special liking for Paxful, mostly due to the wide payment options it offers. So, let’s show you how to buy Bitcoin in Nigeria using Paxful.
- Get a Paxful account. You need to create and verify your account to get your free Bitcoin wallet with 2FA security. Then, take some minutes to set up your account. The process requires basic information such as your email address, ID, and phone number.
- Find a vendor : Select Buy from the main menu and click Buy Bitcoin. Type in the amount you want to spend, your payment method, and your preferred currency. You’ll see local and international sellers that match your requirements.
It is important to filter for all the user types to display vendors that have gone through more security checks and are trustworthy.
- Read the requirements – Select the Buy button to see the vendor’s terms. The vendor might request a snapshot of the funds in your online wallet, a picture of your bank’s deposit slip, or a snap of the receipt of the gift card you bought. This, however, depends on the payment method. For further protection, some merchants may also request that you provide a selfie while carrying a valid ID.
- Start the trade – Set the amount of Bitcoin you wish to purchase in the widget, and then click “Buy now” to begin the transaction. Of course, you must comply with the seller’s conditions.
- Internal Chat – This will start a live conversation with the seller, where you may get more guidance on how to finish the transaction. Please avoid communicating outside of Paxful because the live chat logs all conversations and will protect you if you have any issues.
- Send payment and receive your BTC –Transfer the payment and click “Paid” after the vendor provides the all-clear and all requirements are fulfilled. To prevent the vendor from accepting payment and holding onto the bitcoin, the vendor’s BTC will be locked in escrow.
Trading on Paxful means trading with real people—no barriers, no third parties, no extra fees.
This is the power of #P2P 🤝 pic.twitter.com/WBnfXXqx4U
— Paxful (@paxful) January 20, 2023
The bitcoin will be unlocked from escrow and delivered to your Paxful wallet as soon as the seller accepts your payment. The last step is to provide the vendor with a review of your experience. Check out the video below for more information.
How to Buy Bitcoin in Kenya
Kenya was one of the early adopters of Bitcoin and remains bullish on cryptocurrency. The United Nations Conference on Trade and Development (UNCTAD) noted that 8.5% of Kenya’s population, or 4.25 million people, are crypto owners.
Vibra remains the easiest and safest war for peer-to-peer cryptocurrency in Africa.
Here are steps on how to buy Bitcoin in Kenya using the Vibra app.
What full video here👇#Vibra #Kenya #Africa #Crypto pic.twitter.com/PxHhlTTgm2
— Prolific Joy 💝 (@BenKharah) September 23, 2022
The procedure for purchasing bitcoin and other cryptocurrencies in Kenya is straightforward and typically takes less than 10 minutes to complete. First, you have to register with a platform, app, or exchange. Then complete the “Know Your Customer” (KYC) process. The exchange you select will let you withdraw funds to your individual hardware wallet and be compatible with the majority of desktop and mobile devices.
There are a few crucial things you should get ready for before buying BTC in Kenya.
- To finish the KYC procedure, you’ll have to provide a passport, national identity card, or driver’s license.
- Public WiFi is not advised because it could present security issues.
You need a mobile device that uses two-factor authentication to confirm your identity.
- Provide a bank account or credit card that can be used to deposit fiat money before buying cryptocurrency.
- You need a crypto wallet where you can keep your funds. Nearly all exchanges will include built-in wallets. However, for maximum security, it is crucial to withdraw your cryptocurrency to your own private cold wallet.
Buying BTC With Yellow Card
There are several exchanges to use in Kenya. Binance and Kraken are quite popular. But for this piece, we’ll use Yellow Card.
You also start to enjoy a better trading experience when you download and sign up on the Yellow Card App today. Visit https://t.co/JCn6NFxqNL to get started.
— Yellow Card App (@yellowcard_app) February 16, 2023
How to Buy Bitcoin in Tanzania
Tanzania has an active crypto market that is bullish on bitcoin. The African country also has access to several exchanges, such as Yellow Card, Binance, and Kraken. So, buying Bitcoin should not be a challenge.
Tanzania’s Zanzibar reportedly exploring ways to adopt crypto . More African countries are considering adopting Bitcoin as the local crypto market surges over 1,200% in one year.
— 美玲 (@meiling13316644) February 10, 2023
If you are using Yellow Card, then here are the steps.
- Sign up for a Yellow Card account.
- Fund the account. You’d have to choose your preferred payment option to fund your account with shillings. Once you confirm the amount to be deposited, your account will be credited.
- Select “Buy Bitcoin” from your dashboard once you fund your account. Then enter the amount you want to buy, confirm, and buy. You’ll get your bitcoin once you finish these steps.
🔗 Can Bitcoin be the future digital currency? 🎙️ https://t.co/NSf2l5t93Y
🔗 Tanzanian soldier hitches a ride from a Ugandan local in Soroti, Uganda-Tanzania War 1979. 646×808 pic.twitter.com/e1TVcEKa1V
— UPSC Practice (@UPSCPractice) February 15, 2023
As said earlier, crypto exchanges are no strangers to the African crypto market. So, the steps are pretty much the same when using exchanges like Binance, Kraken, or Paxful.
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