Buying and Selling Crypto in Zambia – Hey, everyone! Molos here, and in today’s article, I want to discuss the simple and practical ways of purchasing and selling cryptocurrency in Zambia. I’ll also address the challenges people face when engaging in crypto transactions in the country. When buying and selling crypto, there are three main categories of transactors: those who buy small amounts, those who buy large amounts, and those who fall in between. These classifications are based on my personal experience with different transaction volumes.
Liquidity Challenges in Zambia
One of the primary obstacles in Zambia is the issue of liquidity. It can be challenging to find individuals selling small amounts of cryptocurrency, as many prefer to buy only tiny quantities. On the other hand, it is also difficult to locate buyers or sellers dealing with large amounts, although they do exist. In the following sections, I will discuss the common ways people find liquidity in the Zambian crypto market. This is How to Repay Your Zenka Loan
The Main Providers of Liquidity in Zambia
In Zambia, two main platforms offer liquidity for cryptocurrency transactions: Yellow Card and Binance. Let’s delve into the pros and cons of each platform.
Yellow Card
Yellow Card is a great platform and one of the most crypto-friendly options available in Zambia. However, it’s important to remember that no platform is perfect, whether it’s Binance, Yellow Card, Paxful, or Coinbase. Each platform has its own set of advantages and disadvantages. Yellow Card, in particular, stands out for its user-friendly features. See How to Repay Your Zenka Loan
To illustrate the pros and cons of the Yellow Card, let’s take USDT (Tether) as an example. Before we dive in, I’d like to highlight an excellent feature of Yellow Card—a handy calculator that helps you estimate the value of your crypto. For instance, if you’re buying USDT, you’ll notice that the rate on Yellow Card is 21.50. Remember this rate, as we’ll use it for calculations later.
Regarding selling USDT, Yellow Card offers a rate of 19.72. Note this rate as well, as it will be important for determining the actual transactional rates.
Yellow Card provides multiple deposit options, including bank transfer, mobile money, and Spain. While bank transfers have no fees, they can take up to two days to process, depending on your bank and other variables. On the other hand, mobile money deposits incur a two per cent fee, while Spain deposits have a one per cent fee.
Withdrawal options on Yellow Card include bank account transfers, mobile money, and manual mobile money withdrawal. Bank account transfers are free and take 24 to 48 hours to complete. Mobile money withdrawals are instant but come with a 15 quarts fee. Manual mobile money withdrawal also has a 15 quarts fee and takes 24 to 48 hours. Unfortunately, the exact difference between manual and regular mobile money withdrawals is unclear. Still, I will contact Yellow Card for clarification and provide an update in a subsequent video.
It’s important to note that the deposit and withdrawal methods you choose on Yellow Card can affect your buying or selling rates. For example, if you deposit using mobile money to purchase crypto, the rate will increase by two per cent, resulting in an effective rate of 21.93. Similarly, if you use Spain, the rate will increase by one per cent, resulting in an effective rate of 21.715. Understanding these effective rates is crucial for accurate calculations when transacting on Yellow Card.
Binance
Binance is a well-known and widely used cryptocurrency exchange platform that operates globally. It offers a wide range of cryptocurrencies for trading and has gained popularity due to its user-friendly interface and extensive features. Although Binance is not specifically targeted at the Zambian market, it is accessible to users in Zambia and provides a convenient way to buy and sell cryptocurrencies.
Account Creation and Verification
To get started on Binance, you’ll need to create an account by visiting their website or downloading the mobile application. The registration process typically involves providing your email address, creating a password, and agreeing to the terms of service. Once you’ve completed the initial registration, you may need to go through a verification process to increase your account limits and access more features.
Verification on Binance usually requires submitting identification documents, such as a passport or driver’s license, and completing a Know Your Customer (KYC) procedure. This process helps ensure compliance with regulatory requirements and enhances the platform’s security.
Deposit and Withdrawal Options
Binance offers multiple options for depositing and withdrawing funds. Common methods include bank transfers, credit/debit card payments, and third-party payment providers. However, it’s essential to note that the availability of specific deposit and withdrawal options may vary depending on your location and the currency you intend to use. See How to Apply for Zash Loan
If you plan to deposit or withdraw funds in Zambian Kwacha (ZMW), you may encounter limitations due to the lack of direct ZMW support on Binance. In such cases, you’ll need to convert your ZMW to a supported cryptocurrency, such as Bitcoin (BTC) or Ethereum (ETH), through a local exchange or peer-to-peer platform before depositing it onto Binance.
Trading and Fees
Once your account is funded, you can start trading on Binance. The platform provides various trading options, including spot trading, futures trading, and margin trading. Spot trading involves buying and selling cryptocurrencies at the current market price, while futures and margin trading involve trading with leverage and additional risk.
Binance charges trading fees for each transaction you make. The fee structure varies based on your trading volume and whether you hold Binance’s native cryptocurrency, BNB. By holding BNB in your account, you can enjoy reduced trading fees as part of Binance’s fee discount program.
Security Measures
Security is crucial to any cryptocurrency exchange, and Binance implements several measures to protect user funds and data. These measures include two-factor authentication (2FA), withdrawal whitelisting, anti-phishing mechanisms, and cold storage for most funds. Binance also allows users to enable additional security features like API key restrictions and withdrawal address whitelisting.
Additional Features
Besides trading, Binance offers additional features that can enhance your cryptocurrency experience. These include staking, where you can earn passive income by holding certain cryptocurrencies and lending and borrowing services. Binance also supports Initial Coin Offerings (ICOs) and provides a Launchpad platform for participating in token sales.
Additionally, Binance has its native blockchain network called Binance Smart Chain (BSC). BSC enables the development of decentralized applications (dApps) and facilitates faster and cheaper transactions compared to other networks.
Considerations
While Binance is a popular choice for buying and selling cryptocurrencies, there are a few considerations to remember. As with any exchange, it’s important to be cautious of potential risks and exercise due diligence when transacting on the platform. Stay updated on the latest security practices, be wary of phishing attempts, and ensure you use the official Binance website or app.
Furthermore, since Binance is an international exchange, the regulatory landscape and availability of certain features may differ depending on your country. It’s advisable to review any local regulations or restrictions regarding cryptocurrency trading in Zambia before using Binance or any other exchange platform.
Overall, Binance offers a user-friendly and feature-rich platform for trading cryptocurrencies in Zambia. By understanding the deposit and withdrawal options, trading fees, security measures, and additional features, you can make informed decisions when using Binance to buy and sell cryptocurrencies in Zambia.