How I owned my first (real) Bitcoin.
…and what I’ve learned, so far!
Like you — and many other people out there, I had always wanted to “invest” in bitcoin but, for some reason, I didn’t. I think I never really had that kind of money to throw around (also known as being broke), didn’t have sufficient knowledge or information, and also because Uganda is a third-world country (more on that in a moment)!
I personally first heard of bitcoin in 2014. That was pretty early — about five years in from the initial release! I think I’d be a millionaire (not in Uganda shillings) by now. No regrets tho. I guess it’s not too late — if anything I’m even early, for by the time some of you make up your minds, I’ll be a couple of years in — and I think then I’ll be a millionaire.
Anyway, before we proceed, it is important to point out that I’m not a financial advisor, and that this article should not be perceived as financial advice. I’m just a guy who does what he thinks is right — and that hasn’t played out well in the past — so reckless. So, take this with a grain of salt.
The crypto market is a high-risk one, very volatile, and there are lots of scams around it. The scam part even gets worse in Uganda. For one, because the system is corrupt, it licenses fake companies that outrightly plunder the citizens. I hear some of these companies are even associated with top government officials. Ugandans are not stupid — once bitten, twice shy — you know! This has given Ugandans a scare and made them extremely cautious about investment, which in part explains why some are being slow about this crypto thing.
So, how did I actually own bitcoin? You can basically own bitcoin in three ways: mine it, buy it or earn it. Mining is a very sophisticated and expensive option, so I’ll skip it. Read about it if interested. Most people own crypto by either buying or earning it. You can earn crypto the same way you would other money: do some work and get paid — this time round in digital cash, into a digital wallet. The option that most people prefer is to buy crypto from exchanges, or people. This is done by paying with a debit or credit card, PayPal, or bank transfer.
You remember that third-world point I dropped earlier? I actually meant it. I’ve had my fair share of missing out on cool stuff simply because I’m a citizen of this country. It even gets more frustrating when you learn that our neighbors, Kenya, have most of these services available. Enough of the ranting. I actually love my country. There’s a reason it is the pearl of Africa.
I’ve made attempts to buy bitcoin in the past but in vain. I believe these exchanges didn’t think Uganda presented a real opportunity, or maybe our government policy wasn’t attractive to them. I, therefore, could not buy or sell crypto on their platforms. So, I had to wait until those offerings were made available to Uganda. I actually had accounts on Coinbase and Binance, but could not own any crypto unless someone sent it to my wallet! Sure, I could have bought from individuals using LocalBitcoins, for example, but the rates on these platforms are ridiculous.
Thanks to Binance — the biggest crypto exchange — you can now easily buy and sell crypto in Uganda using mobile money. But even Binance doesn’t use its official platform when it comes to Uganda, and some other African countries. They offer a separate user interface, which at the moment allows you to only trade four currencies, and so you find yourself using a number of services to trade a single coin. The pains of living in a third-world country.
However, I didn’t jump onto this crypto thing using Binance! I used a product by BitPesa called BFX to buy bitcoin with mobile money, and then sent that bitcoin to my coinbase wallet. That was it for me — I was hooked. I have since bought five other assets in addition to bitcoin, and looking to buy more!
So, why crypto? Apart from the promise that crypto is the future, I personally got into crypto for one reason: I suck at saving — for a silly reason that I find traditional banking boring. Do I have a bank account? Of course, I do. In fact, I have more accounts than I need. Crypto is more exciting! It adds a touch of youth to how I deal with money.
Some people got into crypto to trade it. Basically, buy low and sell high. I mainly got into crypto to save — using crypto as a store of value (like gold, but better) and not necessarily as a medium of exchange. What that means is I hold my coins hoping their value will appreciate with time. I occasionally sell some depending on the level of risk involved, and generally my personal goals.
Before Binance Uganda, I had no way of withdrawing some of that money because I could not connect a bank account to my wallets. The only option was to send it to an individual in exchange for cash. But that didn’t really bother me! I was happy to log into my coinbase dashboard and look at the graphs. But even with now the possibility of making payouts via mobile money, I’m still not willing to do so. I currently own a good fraction (known as satoshis) of a bitcoin — not far from my first whole number — and that has kind of discouraged me from withdrawing it. Looking forward to a full B.
What if the market crashes? Well, then I guess I’m lucky like that. But even if it does, no harm done! I already have this satisfaction that I’m a part of something greater… a part of the future of money, trade, commerce, and life. And, above all, I get to keep my coins hoping for a bounce back — because it certainly will happen, eventually. The general trend for crypto is up. I also don’t have all my eggs in one basket. I have bank accounts, and have made investments in other areas.
That’s really the mentality you should have before investing in crypto. Don’t take a loan, or use your life’s savings to buy crypto — bad idea! Don’t sell property, land to buy crypto — at least not yet. Vet the exchanges. I told you there are many scams around. Check listings of a coin on Coin Market Cap before you buy it.
Final thoughts?
Do your research. It is your money we’re talking about here, not mine!
