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Kenya is well known as one of the countries that has traded high volumes of cryptocurrency (crypto) Bitcoin in Africa. During the crypto hyper wave 2017, crypto, in particular Bitcoin, was the city's speech.
In fact, according to recent statistics, 2.3% of Kenya's GDP is held in Bitcoin!
We do not want to elaborate on the explanation of cryptocurrencies, but here's something you need to know in light of these recent developments.
Cryptocurrencies are digital currencies with the following characteristics:
- decentralized: Cryptocurrencies do not have a central control point. They are managed and owned by the community.
- Peer to peer: The encrypted ones are easy to transfer from one person to another anywhere in the world.
- Fast transactions: Unlike bank transfers that may take days, the encrypted takes a few seconds or minutes at most. The speed of the transaction varies between different cryptocurrencies.
- Cheap: Believe it or not, but now you can send millions of dollars anywhere in the world just a few cents.
These features, without mentioning the blockchain, are some of the reasons why cryptocurrencies have gained much traction in recent years. Even the banks, including central banks around the world, worry about the encrypted because they are difficult to regulate.
Having this in mind, you're wondering:
How can I buy Cryptocurrencies in Kenya?
Although many of you have heard of cryptocurrencies or bitcoins, not many people seem to understand it. I was asked, not once,
"How can I register?"
Well, this is not something you join like Public Likes or Bold Cashers.
Nuh! So here's what you need.
Funds / Capital
Investing in cryptocurrencies does not require huge amounts of money. The good thing is that you can buy cryptos with a minimum of $ 1.
The cryptocurrencies, as we have said, are digital currencies that have a monetary value.
So, to start, you need to buy or exchange your money with cryptocurrencies.
For example, at the time of writing this article, the ADA Cardano coin costs $ 0.043046 per coin, so to buy 100 ADA Cardano coins you will need $ 4.3046, which, once translated, arrives at about Kshs. 450.
To check the latest cryptocurrency prices, consult our crypto tracker located in the sidebar above this page or visit CoinMarketCap for a detailed view of all the cryptocurrencies listed globally.
NB: Remember, never invest what you can not afford to lose. This is an investment that comes with risks just like any other investment out there.
If you do not have capital, however, this should not stop you from getting some cryptocurrencies. Take a look at How Can You Earn Free Cryptocurrencies as well.
Wallet
You need to have a digital stock exchange where you can keep digital currencies. The portfolio / wallet is provided with the send, receive and backup options.
To receive funds, such as your ADA wallet, you will need to provide the sender with the address of your wallet, which acts as your bank account number, or as a mobile phone number for your MPESA or mobile money.
In your wallet you will also find the backup option. We recommend that you back up your private and public keys in a secure offline location, probably on paper or on a flash drive. You would not want to be the guy who lost access to his encrypted wallet which had a total savings of one million dollars in the year 2025. With encryption everything is possible, I've seen it happen. So be vigilant and take care of your investment.
One of the most popular local wallets is the KuCitX OTC portfolio. You can learn more about the cryptocurrency portfolios here.
exchanges
An exchange is an online platform where buyers and sellers of digital currencies exchange hands without necessarily having to meet. There are several types of exchanges available for a Kenyan who tries to invest in cryptocurrencies.
The three most popular points of purchase of cryptocurrencies directly with MPESA are:
- Localbitcoins: This exchange only concerns Bitcoin. To get started, sign up here, activate your account via the link sent to your subscription email, sign in and make sure you keep your wallet safe. Once you've done this, browse to buy or sell bitcoins and find a suitable dealer for you. Be sure to check the profile of traders before trading.
- Localethereum: this exchange concerns only Ethereum. To start, register here. On this platform, there are buyers and sellers of the famous cryptocurrency, Ether, who are always willing to exchange encrypted with cash and vice versa. Through the help of a commitment, a third-party program, you can send funds to the seller without worrying that he or she escapes with its funds. However, it is important to view the performance and trading history of a merchant on the platform in order to be safe.
On the two platforms above, you will notice that merchants sell cryptocurrencies at a relatively higher rate than the market price, and they also tend to buy at the market price or at a lower rate than the market price.
There is, however, another option that allows you to buy cryptocurrencies at the market rate.
Commercial exchanges
Exchanges are online platforms that bring buyers and sellers together by matching their orders to perform operations. Buyers and sellers exchange cryptocurrencies from one another.
A buyer places his purchase price order and the seller places his sales price order. Once the orders match, the exchange takes place automatically. It is advisable to start on an exchange that has high commercial volumes. One of these exchanges, which is also available to Kenyans, is the Binance Exchange which recently opened its operations in Uganda.
It becomes very easy to exchange a cryptocurrency with one another. For as long as you have a crypt exchanged in exchanges, you can exchange it with one another.
For example on the Bitcoin market, Bitcoin / ADA pair, you can easily place a purchase order to buy Bitcoin with Ada or buy ADA with Bitcoin.
The commercial exchanges have portfolios in them which make it super easy to deposit and withdraw cryptocurrencies. These portfolios do not have private and public keys that make them unsafe to contain your cryptocurrencies in them. Exchanges are known to be hacked continuously.
As mentioned, one of the most popular cryptocurrency platforms with high trading volumes is Binance. You can register on binance here.
Other exchanges in which a Kenyan can easily open an account and start trading include:
KuBitX – The first African exchange by Africans
PesaMill – An African exchange that is trying to list African coins.
Here is a summary:
- Take a wallet
- Backup your wallet
- Buy Bitcoin or Ethereum
- Register on a trade exchange
- Protect your trading account
- Deposit Bitcoin or Ethereum, exchange bitcoin or Ethereum with the desired currency
- Withdraw the address of the specific coin portfolio
- Keep your account safe.
