8 Steps to Start Cryptocurrency Trading in?Kenya (2024)
Approximately 6.1 million people in Kenya own cryptocurrency. This accounts for about 10.71% of the country’s total population.
Kenya is highlighted as one of the top three Bitcoin markets in Africa, alongside Nigeria and South Africa.
As more Kenyans explore the potential of investing in digital currencies, it is essential to understand the basics of cryptocurrency trading in Kenya and how to get started in this exciting space.
This article will guide you through the process of trading cryptocurrencies in Kenya.
But, before we dive in,
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Here is what we will cover in this guide:
Understanding Cryptocurrency in?Kenya
Now that you are getting started in this exciting journey, it is important to first understand the basics.
What is cryptocurrency? Cryptocurrency is a digital or virtual form of money that operates on decentralized technology called blockchain.
In Kenya, cryptocurrency has witnessed a surge in popularity as more Kenyans embrace the benefits and opportunities it presents.
Many Kenyans are adopting cryptocurrencies as a means to preserve their purchasing power in the face of local currency devaluation.
According to data from UNCTAD, Kenya is top five in terms of crypto ownership as share of population:
Source: UNCTAD
The Rise of Cryptocurrency Adoption in Kenya
Kenya has witnessed a significant rise in cryptocurrency adoption due to several factors.
One of the key reasons behind this surge is the accessibility and simplicity of using mobile money platforms in the country.
Kenyans are accustomed to using mobile money services such as M-Pesa, which has facilitated the adoption of digital currencies.
Moreover, cryptocurrency offers various advantages over traditional financial systems.
It provides fast and affordable cross-border transactions, financial inclusivity for the unbanked population, and potential investment opportunities.
Here is a graph showing data on Kenyans who either owned or used cryptocurrencies from 2019 to 2023:
Source: Statista
Benefits and Opportunities of Cryptocurrency Trading
Cryptocurrency trading in Kenya offers numerous benefits and opportunities for individuals looking to diversify their investment portfolios or explore alternative financial systems.
Some advantages of trading cryptocurrencies include:
By understanding the potential benefits and opportunities of cryptocurrency trading, you can make informed investment decisions and maximize your chances of success.
How to Start Trading Cryptocurrency in?Kenya
To begin your cryptocurrency trading journey in Kenya, you need to follow several steps. These include choosing a reputable cryptocurrency exchange, creating a cryptocurrency wallet, and completing the necessary Know Your Customer (KYC) and verification processes.
Choosing a Reputable Cryptocurrency Exchange
A cryptocurrency exchange is a platform that facilitates the buying and selling of digital assets. When selecting a cryptocurrency exchange, consider factors such as security, user interface, available trading pairs, fees, and customer support.
Some popular cryptocurrency exchanges accessible in Kenya include:
It is important to note that there are two types of cryptocurrency exchanges: centralized and decentralized.
Here’s a simple table outlining the key differences between centralized and decentralized crypto exchanges:
Research and compare different exchanges to find the one that best suits your trading needs and preferences.
Creating Your Cryptocurrency Wallet
A cryptocurrency wallet is where you store your digital assets securely.
There are two main types of crypto wallets: hot wallets and cold wallets. Each has its own level of security and ease of use.
Here is a table outlining the key differences between hot wallets (online) and cold wallets (offline):
For beginners, using a hot wallet or a reputable software wallet is recommended. Examples of popular online wallets include MetaMask and MyEtherWallet.
Research and choose a wallet that supports the cryptocurrencies you wish to trade.
You can learn more about choosing the right crypto exchange and setting up your wallet in my Comprehensive Cryptocurrency Investing and Trading Course Here.
Navigating the KYC and Verification Process
Know Your Customer (KYC) regulations are in place to prevent fraud, money laundering, and other illegal activities.
Most reputable cryptocurrency exchanges require users to complete a verification process to comply with these regulations.
Be prepared to provide identification documents, proof of residence, and other necessary information during the KYC process.
This might include submitting a photo of your ID card or passport, a utility bill, and a selfie for verification purposes.
Here is an example of a KYC identity verification by ByBit Cryptocurrency Exchange:
Source: ByBit
Ensure you follow the exchange’s instructions carefully to complete the KYC process successfully. This authentication process is crucial for the security of your trading account.
Selecting the Right Cryptocurrencies
Choosing the right cryptocurrencies to trade is a crucial aspect of successful trading.
With thousands of cryptocurrencies available, it’s essential to conduct thorough research and consider various factors before making investment decisions.
Exploring Popular Cryptocurrency Options
Bitcoin (BTC) remains the most well-known and widely used cryptocurrency globally, making it a popular investment choice. Other popular cryptocurrencies include Ethereum (ETH), Ripple (XRP), Solana, Cardano, and Litecoin (LTC).
However, new cryptocurrencies and tokens emerge regularly, each with its own unique features and potential for growth. This does not mean you should jump into any projects that comes up first on Google.
You should stay updated with industry news and consider factors. Here is a table outlining various factors to consider when choosing new cryptocurrencies (altcoins) to invest in:
It is clear that there is a lot to learn. That’s why you need to educate yourself more about cryptocurrency trading and investing so you can easily identify high-potential coins to buy, for higher returns.
Make sure to sign up for my course and the weekly newsletter to stay ahead of the pack.
Assessing Investment Goals and Risk Tolerance
Before investing in cryptocurrencies, it’s crucial to determine your investment goals and risk tolerance.
Cryptocurrency markets are known for their volatility, and prices can experience significant fluctuations in short periods.
Consider whether you are a long-term investor, seeking stable growth over time, or a short-term trader aiming to capitalize on market fluctuations.
Assess your risk tolerance and financial capacity to withstand potential losses.
By aligning your investment goals and risk tolerance, you can make informed decisions when selecting cryptocurrencies to trade.
Security Measures for Safe?Trading
Security is paramount in the cryptocurrency trading world.
As the crypto market expands, there have been various reports of hacking that have caused investors to lose their assets.
According to ChainAnalysis, $3.8 billion worth of cryptocurrencies was stolen through hacking in 2022.
Here is a breakdown of total value stolen in crypto hacks between 2016 and 2022:
Source: Chainanalysis
Taking adequate security measures ensures the protection of your digital assets from potential hacks and theft. Take the following steps:
Implement Two-Factor Authentication (2FA)
Two-factor authentication adds an extra layer of security to your trading account.
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Enable 2FA on your exchange account using a mobile app such as Google Authenticator or Authy. This requires you to enter a unique code generated on your mobile device during the login process.
By implementing 2FA, you significantly reduce the risk of unauthorized access to your trading account.
Safeguard Your Private Keys
Private keys are crucial for accessing and managing your cryptocurrencies. Always keep your private keys offline and secure.
At this point, you probably don’t understand what are private or public keys.
Private and public keys are fundamental components of cryptocurrency and blockchain technology. They play a crucial role in securing and conducting transactions within a cryptocurrency network.
Here are the differences between the two:
Consider using a hot/hardware wallet, which provides enhanced security for storing your private keys.
Avoid sharing your private keys or storing them in easily accessible digital formats, such as screenshots or text documents.
How to Buy Cryptocurrency in?Kenya
Once you have set up your exchange account, verified your identity, and selected suitable cryptocurrencies, you are ready to buy your first cryptocurrency.
Funding Your Cryptocurrency Account
To fund your cryptocurrency account, navigate to the deposit section on your chosen cryptocurrency exchange. Select the preferred payment method, which can include bank transfers, mobile money, or credit/debit cards. Follow the instructions provided to complete the deposit process.
Before moving to the next stage, it is important to have adequate education so you can make informed decisions.
That’s why I have created a comprehensive cryptocurrency investing and trading course that will guide you throughout the process of researching and deciding the best cryptocurrency to buy.
Here are some of the things you will learn in my course:
Crypto Investing and Trading Course
??? Nail down risk management to protect your assets.
?? Keep your cool in the heat of the market.
?? Avoid mistakes that could clean you out.
?? Uncover simple hacks I use myself to pump up profits.
? Get the timing down for buying, selling, and going big.
Placing Your First Cryptocurrency Order
After you have learnt all my secrets from the course and your account is funded, you can proceed to place your first cryptocurrency order.
Determine whether you want to buy at the current market price (market order) or set a specific price at which you want to buy (limit order).
Once your order is complete, congratulations! You are now a cryptocurrency holder.
Cryptocurrency Trading Strategies for Beginners in?Kenya
Successful cryptocurrency trading requires implementing effective trading strategies.
Here is a table with a few successful cryptocurrency trading strategies that I have tried:
Consider the following basic trading concepts when starting your trading journey:
Basics of Trading: Market Orders vs. Limit Orders
Tips for Risk Management and Portfolio Diversification
Monitoring Your Investments
Monitoring your cryptocurrency investments is essential to stay informed about market trends and make educated decisions.
Use the following tools and strategies to track your investments effectively:
Utilize Cryptocurrency Tracking Tools
There are various cryptocurrency tracking tools available that provide real-time information on market prices, portfolio performance, and news updates. Popular tracking tools include CoinMarketCap, CoinGecko, and Blockfolio.
These tools enable you to monitor your investments, set price alerts, and access historical data to make informed trading decisions.
Staying Informed about Market Trends
Stay updated with the latest news and developments in the cryptocurrency industry.
Subscribe to reputable cryptocurrency news platforms, follow influential figures in the space on social media, and join relevant online communities.
Consider following me on Twitter (X) and subscribing to my FREE weekly newsletter.
This will help you stay ahead of market trends and make informed decisions.
Cashing Out Your Cryptocurrency
When the time comes to cash out your cryptocurrency investments, you have several options.
Converting Cryptocurrency to Fiat Currency
Most cryptocurrency exchanges allow you to sell your digital assets and convert them into traditional fiat currency, such as Kenyan Shillings (KES).
Select the desired cryptocurrency to sell, choose the appropriate trading pair, and follow the selling instructions provided by the exchange.
Tax Implications and Compliance
It is crucial to consider the tax implications of trading cryptocurrencies in Kenya. Most crypto exchanges have all information about your obligations to ensure compliance with relevant tax laws.
Keep track of your trading activities, including buying, selling, and any capital gains or losses incurred.
Closing Thoughts
By following the steps outlined in this article and continuously educating yourself about cryptocurrency trading, you can embark on a successful trading journey in Kenya.
Remember to conduct thorough research, assess your risk tolerance, and implement the necessary security measures to protect your investments.
Join 100+ traders in my Advanced Training and Learn to Invest in the Crypto Market like a Pro.
The article 8 Steps to Get Started with Cryptocurrency Trading in Kenya was first published in my blog The Crypto Quill.
FAQ for Cryptocurrency Trading in Kenya
How many Kenyans are into cryptocurrency?
The exact number of Kenyans involved in cryptocurrency is not readily available, but estimates suggest that approximately 6.1 million people, which is about 10.71% of Kenya’s population, own cryptocurrencies.
What is the state of cryptocurrency in Kenya?
As of 2023, Kenya remains one of the top cryptocurrency markets in Africa, alongside Nigeria and South Africa. It ranks well in global cryptocurrency adoption and has seen record trading volumes. The Kenyan government is also taking steps to integrate cryptocurrency into its financial system.
How is cryptocurrency improving in Kenya?
Cryptocurrency is improving in Kenya with growing adoption due to its use as a hedge against local currency devaluation. The government and financial sector are working on regulation and security measures. The younger president, William Ruto, brings optimism to crypto enthusiasts in the country.
What is the best cryptocurrency exchange in Kenya?
The choice of the best cryptocurrency exchange depends on your specific needs. Some popular exchanges in Kenya include Binance, Paxful, and ByBit. Research and consider factors like fees, security, and available cryptocurrencies before choosing one.
Which cryptocurrencies should I invest in as a beginner?
As a beginner, consider well-established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), or Solana. These are often less volatile and more widely accepted. Research and diversify your investments based on your risk tolerance.
How can I secure my cryptocurrency investments?
To secure your cryptocurrency investments, use hardware wallets, strong passwords, and two-factor authentication (2FA). Be cautious of phishing scams, keep your private keys secret, and stay updated on security best practices.
Where can I buy cryptocurrency in Kenya?
You can buy cryptocurrency in Kenya through various exchanges, peer-to-peer platforms like LocalBitcoins, or cryptocurrency ATMs. Ensure you choose a reputable and secure platform.
What are some basic cryptocurrency trading strategies for beginners in Kenya?
Basic trading strategies for beginners include “buy and hold,” dollar-cost averaging (DCA), and learning technical and fundamental analysis. Start with small investments and practice risk management.
How do I track my cryptocurrency investments?
You can track your cryptocurrency investments using portfolio-tracking apps or websites. These tools help you monitor your holdings, portfolio performance, and real-time market prices.
What is the process for converting cryptocurrency to cash in Kenya?
To convert cryptocurrency to cash in Kenya, you can use peer-to-peer platforms like Paxful or sell through a cryptocurrency exchange. Ensure you follow local regulations and tax requirements when cashing out.
Your step-by-step guide to cryptocurrency trading is paving the way for a more transparent and decentralized democratic future in Kenya through the power of blockchain. #FutureOfDemocracy