Cryptocurrency in Uganda, Bitcoin
This is a digital currency that is majorly used online for different transactions. Cryptocurrency is designed as a medium of exchange for purchasing, selling and verifying transfer of assets.
Most of the cryptocurrencies are decentralized and this makes it hard for it to be forged or counterfeited. It should be noted that cryptocurrency is not issued by central authority and its transactions cannot be interfered with by the government.
The most common cryptocurrencies include the following:
This was produced in 2009 and it was the first cryptocurrency to be introduced in the world and developed by Satoshi Nakamoto. It is the most used and has a 128 billion dollar market capitalization and the block chain was developed by a mysterious person.
Elements of Bitcoin
There are three elements that form Bitcoin and these include:
Bitcoin is very private and anonymous. The only thing you need to open up an account is an email and a password which is only known by the person opening up the account thereby proving that buying and selling Bitcoin private.
It has a network filed with computers and it is not controlled by central authority. The network of computers helps in verification of Bitcoin transactions.
This involves the technology that drives Bitcoin. The blockchain records every transaction that takes place and it’s a ledger that shows how the transactions are done on Bitcoin and the good thing about it is that it cannot be edited or manipulated.
How to buy bitcoin in Uganda
Bitcoins can be bought via different avenues and these include ATMs, exchanges and contract for differences (CFDs) and the details are listed below:
Buying bitcoins through contract for differences
Most Bitcoin owners want to hold onto their coins for as long as possible until there is a much higher profit and then they sell it. But if you are into the daily trade there are a few steps that you need to follow and they are listed below.
- You should open an account
You need to first open up a Bitcoin account and this is a fast process. Go to the registration page and click on the registration page. You just need to fill in your email and a few passwords and your registration on Bitcoin is good to go.
- Verifying the account
Specific and detailed requirements are needed to verify the account that has been opened. The verification of the Bitcoin accounts is for security purposes and identification so that no scammers can access your account.
- Time to buy and sell Bitcoin
You can start buying and selling Bitcoin as soon as the account is approved. Although it should be noted that once the Bitcoin prices fall, the company gains while you lose out on the money invested.
Buying Bitcoin through Exchange
This is the most common medium of buying and selling Bitcoin and below is a listed step by step process on how to purchase the bitcoins using exchange.
- You should find a good bitcoin wallet
- A Bitcoin wallet is the same as a bank and there are two forms of wallets that are used and these are the web wallets and software wallets.
- The web wallets are easy to use and to create although someone has to make sure that the privacy measures of the people is kept. And the software wallets are put on phones and computers and the owner of the bitcoin has complete control of the security of the Bitcoins that they own.
- The wallets differ in terms of security, platforms and features and the wallets are used to store the Bitcoin until you are ready to exchange it for other currencies or until you are ready to spend them.
- The best wallet to get when you have just started is to either use one that is recommended or the one that is provided to you automatically.
- You should also get a wallet that is not connected to an exchange in order to easily access your Bitcoin in case the exchange goes down.
- The right Bitcoin trader
- The best Bitcoin trader and recommended is the coinbase because it is safer to use other than using the exchange which can plummet any time. The coinbase account is easy to open and all you need is an ID photo just to prove that you are a real person.
- The coinbase allows you to buy and sell bitcoin any time when the need arises.
- Select your payment method
- You can use the ATM cards to exchange the bitcoins into wallets for cash. If you are using coin base it allows credit cards and debit card transfers for the different transactions that need to be made.
- Buy and use the bitcoin
- The next step after selecting the preferred method is to buy the Bitcoin. The exchanges provide information on the current prices of bitcoins and the ever changing prices on the market.
- It should be noted that you can buy a Bitcoin one at a time although the richer group can afford to get more than one. The buying process of a bitcoin involves different stages that is getting the money and put it on the bitcoin that you want to purchase.
- After making the purchase, the coin is stored in the coinbase wallet. You have to pay a fee for the funds to be transferred to the Bitcoin wallet you created on the exchange.
- It should be noted that once the Bitcoin is bought it will take time since it will involve block chain and it will need to be recorded and affirmed.
There are a few factors that one needs to consider when choosing exchange and these are:
- You need to look at the security of the exchange. If the exchange has a good security, then it’s the best to use therefore you should avoid exchange where you are not sure of the security.
- You should also consider the time frame it takes for the Bitcoins to be confirmed. Look for an exchange that does not take more than two hours before the confirmation process.
- The ranking of the exchange through recommendations and reviews. if an exchange is known by most people and the reviews are good, then this is the best exchange to use for Bitcoin.
Buying Bitcoins through ATMS
The Bitcoin ATMs are used to facilitate the purchase of Bitcoins on the connected machine using the internet. These ATMs are not like the normal ones we use in banks and they allow you to deposit the cash and purchase as well as sell Bitcoins.
Finally you should note that Bitcoin can be bought using cash and this can be done by cash deposit.
This was developed in 2015 but was split into two in 2016 after it had some major setbacks. In 2018 the market capitalization for Ether was around 56 billion dollars. This is the second most valuable and popular cryptocurrency and it’s a currency token that is used in ethereum block chain.
The litecoin market value is around 6 billion dollars and it is almost similar to bitcoin but it should be noted that litecoin has better innovations and its transfers, processes and payments are a bit faster than the rest of the cryptocurrencies.
Advantages of cryptocurrency
No one can stop or censor your transactions when using Bitcoin therefore you can do your transactions without being blocked.
It is decentralized therefore you get to control your account without any interference from third parties and scammers.
Bitcoin cannot be seized that is it is not kept in central banks and it cannot be owned by anyone else but only the person who bought it.
Bitcoin is easy to use and very fast compared to banks since it’s a digital currency.
Disadvantages of cryptocurrency
The black market of cryptocurrency makes it a bit hard to own a coin and dangerous.
There are no refunds once you invest in Bitcoin and this leads to many people losing their money and investments.
It is very easy to lose the coin while carrying out transactions and once you misplace the coin you lose out on a lot of money.
There are lot scammers in Uganda for cryptocurrency and they end up stealing people’s coins and making them lose a lot of money.
Cryptocurrency has a tendency of being volatile that is it changes from time to time. One can win today and lose everything the next day.
In conclusion, cryptocurrency in Uganda is still a growing business venture and known as a risky business but it has pulled different people from all over the world and they have joined this great business that is not meant for the lighthearted people. The Government of Uganda through the central bank advises against cryptocurreny. This article is for information purposes and you can only follow this advise at your own risk.