If you are looking for a guide on starting trading cryptocurrencies in Kenya, you have come to the right place.
Cryptocurrencies are gradually becoming popular worldwide. Bitcoin, Ethereum, and other altcoins are traded in various global exchanges.
And It’s no secret that Kenya is one of Africa’s most technologically advanced countries. Mobile money transfers are a way of life here; you can’t walk more than a few feet without seeing someone paying for something with their phone.
It’s no surprise that Kenyans are amongst the earliest adopters of cryptocurrency trading.
This guide has gathered some of the internet’s most vital resources. We’ll cover everything from setting up an account to making your first trade.
Therefore, whether you’re a beginner or an experienced trader, this guide has everything you need to start trading cryptocurrencies in Kenya. So, let’s get started!
What is a cryptocurrency, and how does it work?
A cryptocurrency is a digital or virtual asset designed to work as a medium of exchange. It uses cryptography to secure its transactions and control the creation of new currency units.
Cryptocurrencies are decentralized and not subject to government or financial institution control.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, more than 4,000 altcoins (alternative coins) have been created.
Cryptocurrencies are often traded on decentralized exchanges and can be used to purchase goods and services.
Why do you need to think about investing in Cryptocurrencies?
Cryptocurrencies have seen a meteoric rise in value over the past few years. The most well-known cryptocurrency, Bitcoin, surged from around $1,000 in early 2017 to almost $20,000 by the end of the year. Other altcoins have seen similar gains.
While prices have come down from their all-time highs, there is still a lot of money in the cryptocurrency market.
Moreover, investing in cryptocurrencies could be very profitable, with Kenya gradually becoming a cashless society.
The risks and benefits of trading cryptocurrency in Kenya
Before we get into how to start trading cryptocurrencies in Kenya, it’s essential to understand the risks and benefits.
Cryptocurrencies are a highly volatile asset class. Prices can fluctuate wildly daily and even from hour to hour. This makes them risky investments.
However, this volatility also creates opportunities for traders to make money.
Moreover, as any government or financial institution does not regulate cryptocurrencies, they are subject to little or no regulation. This lack of regulation makes them a risky investment.
However, it also means less red tape and bureaucracy are involved in trading cryptocurrencies.
Another risk to consider is the possibility of fraud. As cryptocurrencies are not regulated, investors are not protected if defrauded.
Finally, it’s important to remember that cryptocurrencies are still a relatively new asset class in Kenya. The general public does not sufficiently understand them, and their long-term viability is still uncertain.
With all this in mind, let’s look at how to start trading cryptocurrencies in Kenya.
How do people trade cryptocurrencies?
Cryptocurrency trading is the process of buying and selling cryptocurrencies. Traders can speculate on the price of a cryptocurrency using various strategies.
Some people trade cryptocurrencies to make a profit, while others use them to hedge against other investments, such as stocks or fiat currencies.
Cryptocurrency trading is a relatively new industry, and it can be challenging to know where to start. However, all traders should remember a few key things before they begin.
CHOOSE A REPUTABLE EXCHANGE.
The first and most important step in trading cryptocurrencies is to choose a reputable exchange. There are hundreds of cryptocurrency exchanges to choose from, and not all are created equal.
Doing your research and only using exchanges with a good reputation is essential. Some exchanges are more reliable than others, and some offer different features that may be more or less appealing to you.
KNOW YOUR GOALS.
It’s also important to know your goals before you start trading cryptocurrencies. Are you looking to make a quick profit, or are you trying to build a long-term portfolio?
Your goals will determine your strategies and how you approach the market.
UNDERSTAND THE RISKS
Cryptocurrency trading is a risky business. Prices can fluctuate wildly, and there’s always the potential for fraud or hacks. It’s essential to understand the risks before you start trading.
START SMALL
When starting, trading small amounts of money is a good idea. This will help you feel for the market and avoid making costly mistakes.
DON’T GET CAUGHT UP IN THE HYPE
The cryptocurrency trading world can be exciting, but staying level-headed is essential. Don’t get caught up in the hype; make decisions you regret later.
How to start trading cryptocurrency in Kenya
Now that we’ve covered some basics let’s look at how to start trading cryptocurrencies in Kenya.
1. Set Up A Digital Wallet
The first step is to set up a digital wallet. This is where you will store your cryptocurrencies. There are many different Bitcoin wallets available, but we recommend using CoinBase.
2. Choose an exchange
The first step is to choose a business. As we mentioned, there are hundreds of Cryptocurrency Companies to choose from, so research is essential.
Some exchanges are more reliable than others, and some offer different features that may be more or less appealing to you.
A few exchanges operate in Kenya, but the most popular ones are Binance, Paxful, and LocalBitcoins.
3. Create an account
Once you’ve chosen an exchange, you must create an account. This is usually a simple process, but it’s essential to make sure that you use a strong password and two-factor authentication.
4. Deposit funds
Once you’ve set up your account, you must deposit some Kenyan Shillings (KES). You can do this by linking your bank account or using a mobile money service like M-Pesa.
5. Start trading!
Now you’re ready to start trading cryptocurrencies. Take your time to learn about the different strategies and approaches before risking your own money.
Some Online Resources:
This section will explore valuable online resources that should help you with cryptocurrency trading in Kenya.
- Explain Bitcoin Like I’m Five: This is exactly what the title says. It’s an elementary introduction to Bitcoin, perfect for those learning about cryptocurrencies.
- But how does Bitcoin work?: This is a slightly more in-depth, easy-to-understand YouTube video explaining Bitcoin’s technical aspects.
- 10 Important Cryptocurrencies Other Than Bitcoin: As the title suggests, this article covers ten other popular cryptocurrencies, including Ethereum, Litecoin, and Ripple.
Top FAQS on Cryptocurrency Trading in Kenya
1. How can I trade cryptocurrency in Kenya?
To trade cryptocurrency in Kenya, you’ll need to set up a digital wallet and create an account on an exchange. We recommend using Coinbase and Binance.
2. What are the risks of trading cryptocurrency?
Cryptocurrency trading is a risky business. Prices can fluctuate wildly, and there’s always the potential for fraud or hacks. It’s essential to understand the risks before you start trading.
3. Is cryptocurrency trading legal in Kenya?
Cryptocurrency trading is legal in Kenya. However, it’s important to note that the Kenyan government has not yet regulated the industry.
4. How much money can I make from trading cryptocurrency in Kenya?
There is no limit to how much money you can make from cryptocurrency trading in Kenya. However, it’s important to remember that prices fluctuate wildly, so you could lose a lot of money if you’re not careful.
5. What are the best strategies for trading cryptocurrency in Kenya?
There is no one-size-fits-all answer to this question. The best strategy for trading cryptocurrency in Kenya will depend on your circumstances and goals.
6. Where can I find more information about cryptocurrency trading in Kenya?
Many online resources can help you learn more about cryptocurrency trading in Kenya. We recommend starting with the resources listed in this article.
7. Can I trade cryptocurrency on my mobile phone?
Yes, you can trade cryptocurrency on your mobile phone. However, we recommend using a desktop or laptop for the best experience.
Hopefully, this article has given you an excellent introduction to Cryptocurrency Trading in Kenya. Remember to take your time, do your research and start small.
