How to Identify Cryptocurrencies to Buy in Kenya

While bitcoin (BTC) was the first cryptocurrency and remains the biggest by market capitalization, alternative cryptocurrencies (altcoins) can be profitable investments.

There are already over 20,000 cryptocurrencies, and many of these altcoins have a bleak future.

Therefore, it is essential to understand how to choose which coins are worth your time and money.

In this article, I will teach you how to identify cryptocurrencies to buy in Kenya, allowing you to invest more confidently.

But, before we proceed,

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How to find best cryptocurrency to invest in

1. Check the project website and Social-Media

It is essential to consider an initial comprehensive assessment of the project. Check the crypto project's website and social media channels to learn more about the project, its staff, and its community and gauge its social activity.

The project website should be navigable, functional, and transparent to provide information about the project, its team, a white paper, and a roadmap.

Here is a sample website for Multiverse with a navigation to various resources:

2. Read the White Paper and Road Map

A crypto white paper is one of the essential tools for analyzing a cryptocurrency since it serves as the proposal's foundation. It is an authorized document explaining the objectives and tactics for using the cryptocurrency.

In addition, white papers act as a road map for the token and are often one of the first things that prospective investors read before investing in a project.

Additionally, a white paper for a cryptocurrency is where you will find the tokenomics of a coin. The tokenomics provide information about the token's distribution among investors and its supply constraints.

It also provides information about the minting of new tokens and the burning of tokens if these processes are part of the ecosystem.

Some white papers are so sophisticated and thorough that you may not need to comprehend every piece of the tech specifications. However, it is essential to understand the project's team, objectives, and strategy for achieving those objectives.

Here is the abstract for the Multiverse whitepaper (note that this is just an example):

The absence of a white paper is a huge red flag, and any credible white paper should be free of typographical and grammatical errors.

3. Analyze the Team

The team members of a cryptocurrency determine its success. Numerous credible coins include project members who participated in the establishment of other successful cryptocurrencies.

If the team is not openly disclosed, that’s a red flag. In addition, you should investigate the team's past expertise in the crypto industry and other projects they've worked on.

You will want to know, for instance, whether this is their first project or if they have a track record of generating successful crypto initiatives. In addition, consider the leadership of the project team.

For instance, this is the About Page for the TRON cryptocurrency project/network that clearly shows the founder:

In addition to the project team, review the list of partnerships, if present. This is often located on the homepage of a website.

Occasionally, agreements with well-known companies such as IBM, Visa, Google (GOOG), Amazon (AMZN), and JPMorgan (JPM) can be seen on their website.

4. Analyze the Crypto Pricing Data

After the first broad evaluation of possible cryptocurrency investment, it is essential to concentrate on the technical features of the cryptocurrency you want to invest in.

Most experts agree that technical analysis in cryptocurrency is more difficult than in the stock market, but there are a few significant signs and measures you may use to influence your investing decisions:

i. Trading History

Examine the daily, weekly, monthly, and annual trading history to understand the project's pricing and performance.

There are pricing patterns that stand out that you should investigate more. A cryptocurrency's long-term potential is typically shown by continuous growth over extended periods.

For instance, here is the Bitcoin graph showing continuous growth over the years:

ii. Market Capitalization

The market capitalization of a cryptocurrency is determined by multiplying its price by the total number of coins or tokens in circulation.

Generally, the greater the market capitalization, the safer the investment. However, this is not always the case with cryptocurrencies. Small market capitalization often means the crypto project is new and high-risk.

In addition, market capitalization provides a better view of an asset's growth potential. Cryptocurrencies with smaller market capitalizations are more likely to grow than those with more established market capitalizations.

iii. Trading Volume

The trading volume of a coin is another factor to consider. This indicator shows how much the cryptocurrency was exchanged within a certain period.

A high volume indicates that many investors are buying and selling, resulting in more liquidity and price stability.

In contrast, a low volume indicates investors' lack of confidence in the price movement and may result in big price fluctuations and poor liquidity.

iv. Supply Metrics

Most cryptocurrencies have a predetermined supply cap. When this limit is reached, generally via mining, no further tokens will be created. For instance, Bitcoin supply has been capped at 21 million Bitcoins.

Source: Glassnode

If demand for the project is maintained while supply remains constant, the price may rise. Before investing, analyze the entire supply and current circulation of any cryptocurrency.

5. Determine if the Project has any Utility/Practical Use

Examine currencies that provide benefits inside the blockchain ecosystem. Does the project intend to resolve a network-based problem or increase its functionality? Ethereum is a noteworthy example.

Numerous smart contracts, NFT initiatives, and organizations rely on this technology. Therefore, you can anticipate that it will maintain its worth over time.

Others, like bitcoin, are decentralized digital currencies used as both a medium of exchange and a store of value.

Other cryptocurrencies include utility tokens. These tokens fulfill a specific function.

Basic Attention Token (BAT) is one example; marketers use this utility token to pay for advertisements on the Brave browser, which bans all advertisements by default. Users who prefer to see advertisements may join a program that compensates them in BAT for their attention.

In contrast, some coins exist only as memes. Or are extensively promoted by social media influencers, similar to meme coins. That doesn't mean you can't earn money with these currencies.

However, you need to be aware of the dangers since many are susceptible to failure sometimes. As such, if you want to invest in meme coins, you must understand how to do it responsibly.

How to Find New Crypto Coins Early in Kenya

While established cryptocurrencies like Bitcoin and Ethereum remain popular choices, finding and investing in new crypto coins early can be an exciting opportunity.

In this section, we will explore strategies on how to discover and evaluate emerging cryptocurrencies to invest in.

1. Visit Cryptocurrency Websites

Numerous websites focus on cryptocurrency news and trends. For Kenyan investors looking to find new crypto coins, websites like Top ICO List and Smith & Crown are reputable sources.

These platforms often provide insights into upcoming initial coin offerings (ICOs) and emerging projects in the crypto space.

You may also frequent The Crypto Quill. Here, I share insightful content of all you need to know about this exciting space, and what I have learned over the years, as a cryptocurrency trader.

I have also created a Comprehensive Cryptocurrency Investing and Trading Course for beginners and experienced traders who would like to sharpen their skills.

Join the Class HERE!

2. Engage on Social Media

Social media platforms like Twitter (formerly X), Discord, and Telegram are powerful tools for staying updated on the crypto landscape.

You can follow cryptocurrency influencers, developers, and projects to access timely information about new coin releases and developments. Follow people I follow on twitter (X) HERE!

3. Leverage Data Aggregators

Utilize cryptocurrency data aggregators like CoinGecko and CoinMarketCap. These platforms provide comprehensive information about cryptocurrencies, making it easy to identify new projects.

You can use these platforms to research and compare new coins' prices, market capitalization, trading volume, and historical performance. It's an excellent way to discover promising assets.

4. Explore Cryptocurrency Exchanges

Cryptocurrency exchanges are a valuable resource for discovering new coins. Platforms like Binance, Coinbase, Crypto.com, and Kraken offer access to a wide range of cryptocurrencies, including newly listed ones.

In Kenya, you can easily create accounts on these exchanges to explore and invest in emerging digital assets. Keep an eye on their listings for new coins and tokens.

5. Stay Informed About ICOs

While initial coin offerings (ICOs) have become less common due to regulatory concerns, you can still find compliant ICOs that offer opportunities to invest early in new projects.

There are various platforms like ICODrops that provide updates for upcoming ICOs:

However, ensure you thoroughly research these ICOs and consider their compliance with regulations.

6. Explore DeFi Platforms and NFT Marketplaces

Decentralized Finance (DeFi) platforms like Pancake Swap, Uniswap, and Aave have native tokens within their ecosystems. These tokens can present investment opportunities for crypto investors.

Additionally, non-fungible token (NFT) marketplaces like OpenSea and Rarible allow you to discover unique digital assets with potential for growth.

7. Utilize Crypto Tools

You can use specialized tools to assess the validity of a cryptocurrency. Tools like PooCoin Charts and Token Sniffer offer insights into transactions, contracts, holders, and more.

Token Sniffer even provides visual representations of a token's ecosystem, aiding in due diligence.

8. Explore Crypto ETFs and Futures

Instead of buying the actual cryptocurrencies on crypto exchanges, you may consider investing indirectly. This is possible through exchange-traded funds (ETFs) and crypto futures.

Therefore, keep an eye on developments in this space, as more investment products may become available as huge corporate players apply futures and spot ETFs.

Conclusion

When searching for new cryptocurrencies to buy in Kenya, you should consider factors such as the use cases of the coin, liquidity, value, adoption prospects, and supply limitations.

In addition, conducting thorough research and staying informed about market trends will help you identify promising cryptocurrencies that align with your investment goals.

Keep in mind that cryptocurrency investments carry risks, so always invest responsibly and within your means.

FAQs for How to Identify Cryptocurrencies to Buy in Kenya

How do I know which crypto is best to invest in?

Research projects, understand their use cases, and diversify based on your goals and risk tolerance. Stay informed through market analysis and seek advice from professionals.

Which cryptocurrency is most traded in Kenya?

Bitcoin (BTC) is the most traded cryptocurrency in Kenya, followed by Ethereum (ETH) and Binance Coin (BNB).

How do you know which coin will go up?

Predicting price movements is challenging. Research fundamentals, analyze market trends, stay updated on news, and diversify your investments. Manage risks with stop-loss orders.

How do I know what crypto to trade?

Choose cryptocurrencies based on your trading strategy. Research historical data, analyze market trends, select trading pairs with sufficient liquidity, and stay informed about news and events.

How do you know if a crypto is good or bad?

Evaluate the use case, team, technology, community strength, transparency, market performance, and regulatory factors. Diversify and conduct due diligence before investing.