BitcoinFundi is a bitcoin exchange based in Zimbabwe. Find out everything you need to know about the exchange today in our review.
What is BitcoinFundi?
BitcoinFundi is a Zimbabwe-based cryptocurrency exchange that aims to make it easier for people across the continent of Africa to buy and sell cryptocurrencies. The company launched as a bitcoin exchange. Today, the exchange has expanded into popular altcoin pairs, including Dash and Litecoin.
Africa presents an enormous market for the cryptocurrency industry. You’ve probably heard talk about the “2 billion unbanked” people around the world. A significant number of those people live in Africa. Cryptocurrencies have the potential to allow Africans to access traditional banking infrastructure despite holding minimal ID and having no credit history.
In any case, BitcoinFundi announced the addition of Dash on August 1. Dash has experienced a substantial increase in its value in the past few months, and has vastly increased its appeal for users and investors. Some believe it can build itself to be bitcoin’s rival in the long run. It seems to be particularly popular in Africa.
One of the advantages of BitcoinFundi is that Africans tend to prefer trading over digital exchanges as opposed to using services like LocalBitcoins. Several notable scams have occurred with LocalBitcoins in the past, which has encouraged Africans to work with exchanges like BitcoinFundi.
How Does BitcoinFundi Work?
BitcoinFundi works in a similar way to any other digital exchange. The main benefit is that it accepts South African Rand (ZAR) deposits via RTGS/bank transfers. You can also trade in USD pairs.
Initially, the platform featured three wallets: USD, BTC, and ZAR. Today, that number has expanded. It’s important to note that BitcoinFundi doesn’t accept Zimbabwe dollars because Zimbabwe dollars (ZWL) are not the country’s official currency any more. Instead, the USD and ZAR are used as the country’s official currencies. It’s also important to note that BitcoinFundi isn’t the only exchange to accept ZAR (Luno is a South African-based exchange that also works with ZAR/BTC).
One thing you’ll notice is that the price of bitcoin is significantly higher on African exchanges like BitcoinFundi than it is on conventional exchanges. At the time of writing, BitcoinFundi was listing its BTC/USD pair at around $3300 USD = 1 BTC. Worldwide, it’s trading at about $2700 USD = 1 BTC.
The company claims that the higher prices in Africa are because nobody is mining cryptocurrencies locally. It’s generally thought that electricity is too expensive in Africa to facilitate efficient mining operations. That means the only bitcoin sales in Africa come from people who bought the coins elsewhere and are seeking a profit by selling on African exchanges.
Low liquidity also leads to higher prices. There’s less trading on African exchanges in general. Luno, for example, is South Africa’s most popular bitcoin exchange and has a BTC/ZAR trading volume of under $1 million in each daily period. BitcoinFundi, at the start of August 2017, was trading less than 1 BTC per hour, with a monthly trading volume of 17 BTC.
Nevertheless, the price of BTC may still be worthwhile to BitcoinFundi users – especially since it’s hard to find exchanges that accept ZAR.
BitcoinFundi is a cryptocurrency exchange owned by BitFinance.
This past week, the company announced plans to add popular altcoins Litecoin and Dash to its trading platform. Previously, the platform only worked with USD, ZAR, and BTC.
BitcoinFundi is based in Zimbabwe. The addition of Litecoin and Dash represents the startup’s push to expand across Africa, open their services to unbanked individuals across the continent, and widen the use of cryptocurrencies in the region.
BitcoinFundi is a Zimbabwean startup aiming to promote the use of cryptocurrencies throughout the region. The company recently announced an expansion into Dash and Litecoin. Previously, BitcoinFundi only offered bitcoin. BitcoinFundi is one of the few online platforms that accepts ZAR.
You can learn more about BitcoinFundi, or sign up for the platform today, by visiting BitcoinFundi.com