Cryptocurrency in Kenya is not very new; it has rapidly grown in the last few years as more people invest in cryptocurrency. Most people have little knowledge of cryptocurrency, with Bitcoin being the most talked about. Unfortunately, most people still believe cryptocurrency is a scam and people should not put their hard-earned cash into it.
Most people may have shunned investing in cryptocurrency in Kenya, but many Kenyans have adopted Bitcoin and other cryptocurrencies. Believe it or not, Kenya has been one of the few African countries to adopt and invest in cryptocurrency. AUN reportshows that Kenya has the highest number of cryptocurrency investors in Africa; a whopping 4.25 million Kenyans (8.3% of the population) are cryptocurrency investors. Kenya has been ranked ahead of South Africa (7.1% of its population) and Nigeria (6.3% of its population)
What you need to invest in cryptocurrency in Kenya
Before investing in cryptocurrency in Kenya, you need to have some knowledge of technology, finance, and of course, a knack for speculation. You must also be very versed in current business news, especially cryptocurrency.
You also need to know the means of payment or exchange you'll use for buying and selling cryptocurrency coins. You don't need a Paypal or a USD or Euro account; you can trade with M-PESA! How cool is that? You can trade with your phone everywhere and anywhere!
Lastly, before you invest in cryptocurrency in Kenya, you should research widely on the legit places or platforms you can trade in cryptocurrency. Currently, there are 5 most vouched-for platforms or exchanges you can trade in cryptocurrency in Kenya: Binance, Coinbase, Paxful, Kraken, and Yellow Card.
Characteristics of a good exchange when investing in cryptocurrency.
Investing in cryptocurrency is almost the same as investing in shares in the stock market. Therefore, you should invest in platforms where the majority is investing. Sometimes it doesn't work like that, but that's why we discussed doing your due diligence. Here are some characteristics you should be on the lookout for;
When investing in cryptocurrency and not just in Kenya, look for exchanges with multiple payment options. This gives you the liberty to use your local currency and bank transfers; in this case, you can use M-PESA (or any other mobile money platform) to buy cryptocurrency. All the 5 mentioned cryptocurrency exchanges in Kenya allow you to trade with cryptocurrency using M-PESA. The peer-to-peer system will enable you to find other crypto traders in Kenya easily.
The cryptocurrency exchange you choose should allow you to have access to other cryptocurrency traders in the rest of the World and just in Kenya. This geographical accessibility enables you to trade anywhere and in whatever currency you fancy. Ensure the cryptocurrency exchange you settle for operates in Kenya; some exchanges like EToro do not work in Kenya.
Security in cryptocurrency is paramount because there are high chances of accounts being hacked and investors losing their funds. Secure infrastructure also reduces the chances of P2P-related fraud. So, you need to verify (by asking around) if the platform prioritizes safety.
Before you invest in cryptocurrency in Kenya, ensure the exchange supports the coins you want to trade with. Some exchanges only support a handful of coins which may lock out some crypto traders.
Before your start your cryptocurrency investment journey, compare and contrast the fees charged by the various crypto exchanges.
How to buy cryptocurrency in Kenya
Create your account and verify it. Verification involves providing your name, phone number, email address, and personal identification document like your National ID, Driver's license, or Passport.
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Once you've verified your account, you should deposit funds into it, and you can use whatever method; credit/debit cards, bank transfers, wire transfers, or M-PESA, so long as the exchange provides it.
You can buy one cryptocurrency for starters, but most exchanges allow you to buy more than one cryptocurrency coin to increase your investment.
Just like in forex trading, cryptocurrency trading involves buying low and selling high. Keep researching the best cryptocurrency coins, transaction fees, and market volatility.
To withdraw your funds, select the 'withdraw' option on your dashboard, and specify the amount you want to withdraw as well as the wallet you want to withdraw to. Once the transaction is complete, check your bank account or mobile banking platform to confirm the availability of funds.
Frequently Asked Questions
Is there cryptocurrency in Kenya?
By July 2022, according to a UN report, about 4.25M Kenyans owned cryptocurrency, making Kenya the first few countries in the content. Kenya is actually competing with first-world countries like USA and Russia.
Which crypto app does Kenya use?
Pepperstone App has been praised by many crypto investors in Kenya due to its ease of use, security, and low fees. Another crypto App that's worth looking at is Yellowcard.
Which crypto wallet is best in Kenya?
Some of the best crypto wallets in Kenya are; Coinbase, Trezor Model T, Coinomi, and MetaMask.
How much does one need to start investing in cryptocurrency in Kenya?
To start trading in cryptocurrency in Kenya, you can start with as low as Kshs 1,000. Just look at the various crypto wallets and see their minimum trading amounts.
Is crypto taxed in Kenya?
Cryptocurrencies in Kenya are taxed under capital gains tax; they are subjected to a 5% flat tax rate.
Does Kenya use Binance?
Yes, Binance opened and allowed the use of KES in Kenya in 2020. Kenyans now have direct access to the cryptocurrency markets, and they can buy coins like ETH, BTC, BUSD, and BNB with KES.
Which cryptocurrency accepts MPESA?
Paxful and Yellowcard accept MPESA.
