Kipi Bitcoins

November 11, 2015

One of the conditions for becoming a KIPI member is that you must pay your Kipi Bitcoins subscription fee of 0.1 btc once a year. Converted into South African Rand values, and depending on the Bitcoin price, the annual subscription fee can cost you as little as R 400 if you have your own Bitcoin wallet. However, if you don’t have your own Bitcoin account and do not know how to buy or transfer Bitcoins, it can cost you as much as R 800 to have somebody else pay the Kipi Bitcoins subscription for you.

It is therefore of utmost importance that you learn how to buy Bitcoins and pay subscription fee yourself. Learning how to use Bitcoins will also allow you to take advantages of many Bitcoins investments opportunities that are available online.

I created this post to teach you the absolute basics of Bitcoins. Once you have learned the basics of Bitcoins, you will be in a position to learn how to pay for your Kipi Bitcoins subscription without involving a third party.

What is a Bitcoin?

In simple terms, a Bitcoin is a digital currency that you can transfer directly from one person to another without the involvement of a third party intermediary such as a bank or financial services provider such as western union, paypal, or your bank.

You don’t really need to understand the technical details of how Bitcoins work to use them. Anybody who has a computer or a smart phone can use Bitcoins. All you have to do is create Bitcoin account with a reputable company such LocalBitcoins or Altcointrader.

The company will allocate a Bitcoin address to your account. Now all you have to do is give this address to the person who wants to sell or send you Bitcoins. The same applies if you want to send Bitcoins to someone else, they must give you their Bitcoin wallet address. So sending and receiving Bitcoins like sending messages through email. But instead of having an email address, you have a Bitcoin wallet address where you receive and send out Bitcoins.

Where do Bitcoins come from?

Anybody can create Bitcoins by using a special computer software, but it’s not easy because it requires a lot of computing power. It is like mining for gold in a deep underground mine, except in the case of Bitcoins, a lot of computing power is required to perform a extremely complex mathematical calculations.

The calculations have to with the Bitcoins transactions or transfer of Bitcoins from one address to another. And every time a calculation is performed successfully by a computer, a number of new Bitcoins are created and allocated to it as a form of reward. This process is referred as Bitcoins mining. So Bitcoins come from Bitcoins mining.

How do people use Bitcoins

Bitcoins are like cash, because they can be exchanged for a specific amount of money or other goods, depending on the prevailing price. People mainly use Bitcoins to transfer money from one part of the world to another because it is very cheap to transfer Bitcoins, it is like sending email. Like with KIPI, we use Bitcoins to transfer money from South Africa to Russia at a negligible cost.

You can send Bitcoins to anyone once you know their address. These days, you can even use Bitcoins to buy goods or services online as increasingly more online and offline shops are starting to accept Bitcoins. Bitcoins are widely used for online investments such as MMM Global or Elevrus, or Bitknock

How to acquire Bitcoins

The easiest way acquire Bitcoins is to buy them from a Bitcoins Trader. Alternatively, if you have the technical knowledge and powerful computer servers, you can produce your own Bitcoins by mining them.

Where to buy Bitcoins

The first step to take when buying Bitcoins is to decide where you’re going to buy them. The following are some Bitcoin trading websites that allow you to buy Bitcoins:

All the websites listed above have a system in place to ensure that you are  protected from traders who might want to defraud you when buying Bitcoins.

The best place to start buying Bitcoins for a beginner is Localbitcoins. At localbitcoins, you will buy directly from the traders and you will interact with them through a messaging system set up by Localbicoinsl

What I like about Localbitcoins is that you can start trading immediately after opening your localbitcoins account. Whereas with other trading platforms requires you to KYC (Fica) your documents – identity document and proof of address. It can take up to 2 days (or even more) to have account approved for trading. Moreover, you must load your banking details into their platform. And transferring funds from your bank account into their Bitcoin trading account can take up to 2 days as well.

Creating a Bitcoin account and a Bitcoin wallet

To get started:

  1. Go to localbitcoins.com and click ‘sign up’ for a new account.

  2. Type a username, type your email address, type a password and click ‘Register’

  3. After registering, the website will guide you through verification process of your email address and phone numbers.

After you have created your account and verified your phone numbers, you will be ready to purchase Bitcoins from most traders. To see your Bitcoin wallet address, click the digits next to the Bitcoin symbol “B”. You Bitcoin address is the long text with characters. Give out this address when you want people to send Bitcoins to you.

LocalBitcoins Wallet

Buying Bitcoins

Click ‘Buy Bitcoins’ on the main menu of the Localbitcoins.com website. A list of Bitcoins traders will be shown, starting with the cheapest to the most expensive. Generally, it is best to select a seller who has a 100% rating (under seller) and who is online (indicated by a green dot).

LocalBitcoin Trading

Under ‘Payment Method’ select a trader specifying ‘National Bank Transfer’ method if you intend using your local banks (Capitec, FNB etc..) to transfer funds to the trader. Then click ‘buy’ on the dealer you prefer.

Read the terms of trade to see that if you comply with them or they satisfy your requirements. If not, go back and select another trader.

Request to Trade

Type in the the amount of Bitcoins you want to buy and also type a message to the trader such as ‘ I want to buy 0.7 bitcons. I will will be using Capitec EFT for payment. Should I proceed with the trade?”

Click “send trade request” as soon as you receive a go ahead from the trader. You will receive bank account details for depositing or transferring the money into the bank account of the seller.

The system will allow you 90 to 120 minutes to make the payment and confirm it. The trader will release Bitcoins to your Bitcoin wallet as soon as he receives the money in his bank account. You are now ready to pay the Kipi subscription fee with your Bitcoins.

Paying for your Kipi Bitcoin Subscription

To pay your Kipi Bitcoin subscription, you must transfer 0.1 btc to the Bitcoin address that is linked to your Kipi account. Follow the following steps:

  • Log into your Kipi mydeposit241 account

  • Click ‘Profile’ on the side menu

  • Click ‘Apply’ or ‘See More’ on top if your subscription has not yet expired. A pop up dialog box will appear

  • Your payment Bitcoin address is the long text in a box below the label “Your Payment Address (Bitcoin)”. Copy the Bitcoins address (long text).

    Kipi Subscription
  • Go to your localbitcoin.com account and log in.

  • Click on your Bitcoin wallet ( zeros with Bitcoin sign (B))

  • Paste your Kipi payment bitcoin address under ‘Receiving Bitcoin Address’ and enter the amount to pay for your subscription (0.1)

  • Enter your password and click ‘send from wallet’

Congratulations! You have just transferred Bitcoins from your wallet to Kipi Bitcoin wallet linked to your account.

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