The best decision you can make is an investment in yourself.

There are various ways to achieve this. You could learn a new skill, join fitness classes or start investing in sound money assets like Bitcoin. 

Well, you could also put your money in the capital markets.

But as a young person living in Kenya, there’s no easier way to invest your money in the traditional finance system or even the real estate market.

In fact, most ordinary folk who have tried this investment route before will freely confess to you that it's a long, winding road to nowhere.

And it's the same old and tired story about lack of effective government protections for investors participating in the capital markets.

The harsh truth is that for you to reap the benefits of investing in the capital markets in a country like Kenya, you either have to be a politician or from a rich family with deep connections.

I learned this soon after launching my writing career at a local publication 9 years ago which gave me a platform to talk with corporate leaders and study their companies.

Perhaps my most unforgettable finance lesson occurred when I began to cover investor’s briefings (of blue chip companies) and having to listen to executives repeat the same false promises they had never met.

Retail investors stood no chance despite spending most of their time complaining during those meetings.

I’ve heard people argue that the problem lies within the Kenyan stock market itself and perhaps people should try out other investment routes such as the money market funds (MMFs). 

Well, I think even MMFs aren’t a safe investment option either. And the reason is simple. There’s really no door you can knock if your MMF decides to breach the binding contract.

This actually happened to my own father back in 2018. He had opened a money market account (which is a type of interest-earning savings account) with Britam in 2005. So, when the account finally matured, he received the money he’d saved to the last cent, but without the interest. 

We obviously sought an explanation but Britam handled the whole issue callously and we had to let it slide. 

We all know it's possible to file a lawsuit in cases like this, but most of the people who find themselves in such situations neither have the time to waste in a corrupt judicial system nor money to hire a lawyer.

I could spend a whole day (and night) giving examples of the rot in the traditional financial services sector, but my point is to educate you about the democratized financial system that Bitcoin and the crypto ecosystem now offers.

Bitcoin is truly democratized, which means there’s really no one who can shortchange you no matter how long you hold this asset.

And I’m fully alive to the fact that Bitcoin is not cheap, but you can buy it in small amounts called satoshis or sats.

A satoshi is the smallest fraction in which you can divide a bitcoin. In the same way that a shilling is divisible into 100 cents, a bitcoin is divisible into 100,000,000 satoshis.

By investing in Bitcoin, you’ll join 4.5 million Kenyans who already own this asset. Beyond the Kenyan borders, adoption of cryptocurrencies has also grown rapidly particularly in South Africa and Nigeria as shown in the table below.

I have read various crypto adoption reports and they all seem to suggest that the adoption of cryptocurrencies in Africa accelerated after the crypto exchange, Binance, entered the market and more so after they launched the peer to peer (P2P) trading platform.

Going by the stats, most people feel safer buying Bitcoin via P2P method since it gives them more control over who they buy from. The ability to determine pricing and settlement time is also seen as a huge advantage. 

How P2P trading works in Kenya

You can think of a P2P exchange as a marketplace like Jiji.co.ke because both are designed to connect buyers and sellers. The only difference is the commodities that people can trade on such platforms.

With Binance P2P exchange, you’d expect people to trade cryptocurrencies.

Binance requires new users to create an account in order to start trading on the P2P platform.

You can access the Binance P2P exchange from a web browser or mobile app. Download the iOS app here and Android app here. 

If you’d rather use the mobile app, simply press the icon on the top left corner to reveal the login/ register page. Then click register now, and follow the prompts. I think it is worth mentioning that this referral code “28082527” makes you eligible to claim a special welcome bonus of up to $100. It might be a nice idea to key in the code on the referral ID tab before finalizing the sign up process. 

If you’re on a PC or Desktop, simply visit https://www.binance.com/en which is already preloaded with the referral code.

Beyond that, there’s just two more steps before you can finally get started trading on Binance P2P. 

The first step is a simple KYC verification process. KYC refers to a process that crypto exchanges (and even banks) use to gather identifying data and contact information from clients for the purpose of preventing fraud, money laundering, and other illicit activities. You can either use your Driving License, Government-issued ID or a Passport for the KYC process.

The other step involves setting M-Pesa as your payment method.

After verifying your Binance account and setting a payment method, you can browse crypto ads by different sellers as well as buy crypto without paying fees. 

In terms of user safety, Binance P2P exchange provides a layer of protection for everyone involved in the transaction, by implementing a feedback or rating system. And there’s a reason why this is important.

Picture this: You meet someone on Twitter who is interested in selling Bitcoin. But Twitter is not a P2P platform, so it is difficult to establish trust. What happens when the seller receives your money but doesn't send the crypto? What happens when the seller sends a lower amount than expected? 

As you’ve already figured out, fraud is the biggest risk of conducting P2P trades without an exchange.

Binance P2P can protect both buyers and sellers to safeguard transactions and reduce the risk of fraud. 

In addition to a public rating system, Binance P2P uses escrow to secure the cryptocurrencies until both parties have confirmed the transaction. 

How Binance P2P’s Escrow Service Works

In everyday transactions, money goes to the seller and the commodity goes to the buyer.

But in online marketplaces where the seller and buyer cannot establish physical presence, there needs to be a delay while all of the advertised features of the tradable asset are verified.

During that delay, the seller has to provide the asset to prove they're serious about selling, but the buyer shouldn't get the asset until they have paid for it. Therefore, the asset is set aside for a while and belongs to neither the seller or buyer. 

During that time, a platform like Binance P2P holds the crypto with the intent to give it to the buyer if the seller confirms to have received payment. If the buyer fails to pay, Binance returns the crypto back to the seller. 

While the Binance holds on to the crypto, it is said to be in escrow.

For example, when you send a request to buy Bitcoin from a seller on Binance P2P Exchange, Binance will escrow that Bitcoin if the seller accepts your request. Once you send the required amount of money, the seller will confirm the transaction and Binance will subsequently credit the Bitcoin to your account.

This ensures a safe and secure transaction. If either party is unhappy with the transaction, they can file an appeal to resolve the issue between counterparties, or have Binance Customer Support step in. 

Please read this article to learn more about how Binance P2P escrow service works.

How To Buy Bitcoin on Binance P2P via M-Pesa

While Binance P2P Exchange offers an affordable way to buy Bitcoin in Kenya, it also provides a seamless user experience that is somewhat self explanatory but which we’ll discuss anyway.

For mobile app users

Step 1: Open your Binance app and click “Register” on the top left. If you already have a Binance account, click “Log in” and go to Step 3.

Step 2: Enter your email and password, then click on the arrow to Log In.

Step 3: Once logged in, click the user icon again on the top left to complete identity verification. Then click “Payment Methods'' to complete SMS authentication and set M-Pesa as your payment method.

Step 4: Once your payment method is set, click the return button to go back to the home page. Then click P2P Trading.

Step 5: Several crypto assets are displayed on this menu. Select Bitcoin or any other crypto. This action will populate adverts by different sellers. Choose the advert with the best rates and then enter the quantity you want to buy. Then confirm the seller's payment method, and click Buy Bitcoin.

Step 6: Confirm the seller's payment method, and click Buy with 0 fee. You will be directed to a new window displaying the payment details and a button that says Make Payment.

Step 7: Open the sim toolkit, select M-Pesa and then transfer the money directly to the seller’s M-Pesa account. When you receive the M-Pesa confirmation message that the funds have reached the seller, go back to the Binance app and then click Transfer the fund. Tap on the payment method you transferred to, then click Transferred, next.

Step 8: You will see a message that says Releasing. This means that the seller on the other end is confirming that you’ve indeed made payment. Then the seller will release the cryptocurrency and the transaction will be marked as completed. 

Step 9: Click Transfer to Spot Wallet to transfer the Bitcoin to your Spot Wallet.

For web users

Step 1: Log in to your Binance account.

Step 2: Go to P2P Exchange by clicking Buy Crypto on the top navigation bar and choose P2P Trading.

Step 3: Click (1) Buy and (2) select BTC in the crypto assets submenu. Then (3) select KES as the currency you want to buy BTC as shown in the example below. Also select M-Pesa as your Payment Method as shown in (4). Filter the prices by different sellers in the drop-down, then select an ad. As for me, I chose to buy from a seller going by the name MimiHustler then click Buy BTC like I did in (5).

Step 4: As you can see in (1) below, my preferred seller has completed 27 order which has earned him a 93.1% completion rate. This information tells you how smooth your transaction is going to be with the seller of your choosing. The next important bit o of information is highlighted in (2) and it shows the time you've been given to complete the order. On (3) is where you should confirm the seller's payment method and you can actually see that my preferred seller accepts M-Pesa. Moving on, check (4) and enter the amount of money you'd like to spend. Alternatively, you can enter the quantity (in crypto) you want to buy (5) and then click Buy BTC on (6).

Step 5: The transaction will now display the Payment Method you've selected (1) and personal information about the seller, including his or her real name and the M-Pesa mobile number as shown in (2). There's also a chatbox (4) where you can engage the seller. In the meantime, go to your M-Pesa app and send the required amount of cash as per the order. The example below shows I should send Ksh 5,000 to MimiHustler. After sending and confirming that the seller has indeed received the payment, click the mark as paid button (3) that says Transferred, notify seller and the subsequent pop up that says Confirm.

Please note, it's a good practice to notify the seller beforehand that you want to buy crypto from them. I prefer doing this via the live chat which is an easier way to know if the seller is online. Sometimes some sellers go offline for long periods and they may leave you stranded after sending them your money. Again, notify the seller first to avoid the
inconvenience of having to go through the appeal process.

Step 6: After clicking Confirm, the transaction will now display To be released. On the other end of the transation, the seller will release the crypto after confirming payment. When the seller releases the crypto, the transaction will be marked as Completed. You will find the crypto in your Funding wallet and the system will further prompt you to send the funds to your Spot wallet.

Final Thoughts

At this stage, the steps demonstrated above clearly show it's not that hard to buy Bitcoin or other cryptos while living in Kenya. 

I think what's left is to remind you to always scroll through the adverts to scout for sellers with the most realistic prices. 

Also, make sure you have enough money in your M-Pesa wallet so as to be able to complete the transaction within the specified time limit.

Lastly, don't make a habit of canceling orders before completing the transaction.