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Geting Started with Bitcoin in Uganda Complete Guide

Bitcoin is less than two decades old and it’s already making huge headlines in the world of financing and investing.

Bitcoin is different than what you know in traditional investments and use everyday. There are a few things that you need to know inorder to get started with buying and selling bitcoin.

Getting started has always been a scare to most Ugandans but when you take time and read this guide, Bitcoin trading will become more easier.

What is inside this guide

  • What is Bitcoin?
  • How many bitcoins are there and what is it’s worth?
  • What is crypto currency?
  • Why is Bitcoin popular compared to other crypto currencies.
  • Is Bitcoin a good investment?
  • How do I buy Bitcoin in Uganda?
  • Are crypto currencies legal in Uganda?
  • Should you buy Bitcoin?
  • how to invest in Bitcoin and make money in Uganda.
  • The ups and downs of Bitcoin Trading.

What is Bitcoin?

Bitcoin is a decentralized digital currency without a central bank or single administrator, that can be sent from user to user without the need for intermediaries.

The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakomoto.

So what is a Cryptocurrency?

A Cryptocurrency is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in ledger which is a computerised database using crypto graph to secure transaction records, to control the creation of additional coins and to verify the coin ownership.

There are over 6,000 Bitcoins in circulation per 2021 and a few include;

  • Bitcoin
  • Ethereum
  • Biance coin
  • Lite coin
  • Doge coin

How many Bitcoins are there and what is there worth?

According to coinmarketcap.com a market research website. The total value of bitcoin is capped at $1.13T. The total supply of Bitcoins is capped at 21 million Bitcoins. And it’s price is $60,079.31 per Bitcoin when this post was published.

Why is Bitcoin so popular?

Just like other ordinary currencie, like the USD, Bitcoin has value.

It’s market is always liable to change rapidly and unpredictably, it can be healthy with steady increases or decreases in price within a general range. The main reason behind it’s popularity is it’s big usage across the world.

Many businesses and individuals are using Bitcoin as a payment method instead of traditional currencies. Through this, trading Bitcoins has become a lot easier and possible. People are choosing businesses, companies and even retail shops that accept Bitcoin payments. By looking at the value and the growth rate of Bitcoin, Bitcoin’s value may rise with more retailers and businesses accepting it as a payment method.

But why is it popular compared to other crypto currencies;

  • Bitcoin’s quick, easy and cheap transactions. Bitcoin is not dependent on any government authority and banks and this means there are no intermediaries. With no intermediaries being involved, no high transaction fee is charged when compared to other traditional currencies.
  • High volatile market. The government of Uganda does not control the bitcoin market. It’s Users control it. Therefore a Bitcoin market is highly volatile, and it behaves according to demand and supply in economics. A volatile market can make you lose all your Bitcoins and proper knowledge of Bitcoin investment methods is a must. But don’t worry in this gudieni got you covered on how to start investing in Bitcoin in Uganda. The reason for the volatile market of Bitcoin is the various uncertainties related to legitimacy of Bitcoin.
  • Less risk of Fraud. Most investors are attracted to trading in Bitcoin because it’s absolutely digital, there are no physical apearence and is not controlled by a central bank.

How do I buy Bitcoin in Uganda?

I have broken down the steps to buy Bitcoin in Uganda below. Remember that you still need to perform your research and select the best option for yourself based on your circumstances.

Step one: Choose a Crypto Trading service or venue.

The first step in buying Bitcoin consists of choosing a Crypto trading service of venue. Popular trading services and venues for buying Cryptocurrencies are Cryptocurency Exachanges and Brokerages, out of these, Cryptocurrencies for trading as compared to other places.

The favourable Crypto Exchanges in Uganda include;

Binance

Binance Uganda provides the safest, most stable, and most effective fiat-to-crypto service in Africa. Get started here.

Yellow Card.

Yellow Card offers the safest way to buy and sell Bitcoin in Uganda. Get started with Yellow Card Here.

Coin Mama

Perfect choice to buy and sell bitcoin with credit card and debit card in Uganda. Click here to get started with coin mama.

 

Chipper Cash

Instantly convert Uganda Shillings to Bitcoin on Chipper Cash in just a few taps. To get started with Chipper cash easily clink GET STARTED

Luno

Is trusted by 40 countries by over 5 million people in buying and selling Bitcoin.

Step two: Register

Signing up for a Cryptocurrency Exchange will enable you to buy, sell and hold Bitcoin. Register and go through the Know Your Customer Process (KYC). The listed exchanges are not decentralized and follow laws that require users to submit identifying documents you National ID.

An important thing to note when creating a Cryptocurrency Exchange account is to use safe internet access. This includes using two-factor authentication and a very strong password that is unique and long.

Step three: connect your exchange to a payment option.

After you have chosen an exchange you will need to gather your personal documents like your National ID or drivers license. After the exchange has verified you will be asked to connect a payment option. Most of the exchanges listed above made it easy depositing funds using mobile money for both Mtn and Airtel, you can even connect your bank directly or you can connect a do it or credit card.

There are different fees for deposits via mobile money, bank accounts, debit or credit card. It’s important to research the fees associated with each payment option to help choose an exchange or to choose which payment option works for. Feel free to contact me for any help click here.

Step four: place and order.

You can start buying Bitcoin when you have chosen you exchange and payment option.

But before buying Bitcoin you should know;

Bitcoin is highly volatile and speculative investment. Bitcoin price is just likely to fall back as it is to climb. The price swings are going to keep happening and experts say there are something long term so Bitcoin investors will have to continue dealing with it. If you are investing in Bitcoin expect volatility to continue.

You shouldn’t let a price drop influence your decision to buy Bitcoin, don’t let a sudden price increase affect your long term investment. No matter if Bitcoin price is going up or down, the best thing you can do is not look at it. Set it and forget it like you would do with any traditional long term investment.

How to sell Bitcoin in Uganda?

How do I sell my Bitcoin? Is one of the common questions whoen people become interested in buying Bitcoin. Since getting your money out is as important as investing.

You can sell the Bitcoin at the same exchanges where you purchased the Bitcoin. except, to sell Bitcoin, you must first have Bitcoin on hand in your wallet.

Exchanges generally have daily and monthly withdraw limits. Therefore cash from a large sale may not be immediately available to the trader.

Are Cryptocurrencies Legal in Uganda?

According to the ministry of Finance in Uganda, the government of Uganda does not recognise any crypto currency as legal tender in Uganda.

The government of Uganda has not licensed any organization in Uganda to sell crypto currencies of any sort.

As such unlike other owners of financial assets who are protected by government regulations, holders of crypto currencies in Uganda do not enjoy any consumer protection should they lose the value to their holdings of crypto currencies.

Therefore cryptocurrencies trading is still illegal in Uganda per this day. But before you start investing in Bitcoin, prefer to use the recommended Bitcoin Exchanges listed above to protect yourself against risk of loss.

Should you buy Bitcoin in Uganda?

Bitcoin is extremely volatile but if you are willing to take the risk, first make sure you understand what you are investing in and have a crypto investment strategy. Also make sure you aren’t investing simply because you have a fear of missing out.

There are a number of questions you have to ask yourself before getting involved

  1. Do I understand what I am investing in?
  2. Am I ready to encounter all the risks?
  3. Is there any evidence of prices to increase?

If you don’t have answers to any of these questions, it’s probably not a good idea for you to invest, if you buy Bitcoin, make sure you are putting in money you are able to lose.

What to consider before buying Botcoin.

Like another investment, crypto currency comes with risks and potential rewards. Compared to other forms of investments, Bitcoin is particularly risky, you should think about this before you invest.

  • I don’t recommend investing all your life savings on Bitcoin.
  • Its best to see it as betting, so only invest small amounts of your ka money.
  • Never invest more than you can afford to lose.

Can you lose all your money in Bitcoin.

You can lose it in the following ways;

  • Cyber Crime: Hackers and scammers are thought to steal around 10 million worth of crypto currencies every day according to Atlas VPN.
  • Your memory: Forgeting your passwords of bitcoin exchanges, experts estimate 20 percent of all crypto currency has either been forgotten about or lost with a current value of $140 billion. According to a crypto data firm chainalysis.
  • Volatile nature of Bitcoin: But technically you only lose money if you sell an Investment for less than you bought it for in the first place.

How risky is Bitcoin trading in Uganda?

Bitcoin is very risky not like your traditional investment.

First and foremost Bitcoin is illegal in Uganda so the government is not responsible for any related loses.

Bitcoin value is based on surely predications and speculations

How to invest money in Bitcoin and make money in Uganda.

Like any other investment, making money depends on what price you buy and sell an asset for. If you sell when it’s price is higher than you bought it for, you will make a profit.

For Example;

If you had invested in Bitcoin at the start of 2020 and sold it on 31 December of 2020, you would have made a 300% profit.

If you want decide to try to invest in bitcoin, you should follow the following steps.

  • Start Small: The listed Bitcoin Exchanges enable you to start with as little as 10000 ugx to buy bitcoin.
  • Buy and Hold Bitcoin: Investors who want to hold Bitcoin for the long term are convinced it will apreciate over long periods of time.
  • Trade it on short term volatility. When its price has dropped buy it, when it is high sell it.

Conclusion

Bitcoin is worth a try in Uganda in 2022 and beyond. But remember investing in it will be at your own risk.

Feel free to leave a comment and tell more what you think about investing in bitcoin in Uganda.

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