Have you ever thought of joining the cryptocurrency world but don’t know how to get started? If yes, this article will provide a complete guide to getting started with cryptocurrency in Kenya. Many people around the world are reaping big by trading different types of cryptocurrencies. The good news is that it is not too late for you to get started with trading cryptocurrency in Kenya.
Getting started with cryptocurrency in Kenya is very simple. You don’t need to have anything special. Whether Bitcoin or any other cryptocurrency sparks your interest, you can start trading a cryptocurrency of your choice soon, as long as you have a computer/smartphone, internet connection, an online payment platform, and capital.
Before we dive into how to get started with cryptocurrency in Kenya, let’s first understand more about cryptocurrency.
What is Cryptocurrency, and how did it come into existence?
In case you are hearing about cryptocurrency for the first time, it is a digital form of currency that is created through complex algorithms in a process called mining. It is decentralised, meaning it doesn’t rely on central authorities like banks or governments. Instead, it operates under secure peer-to-peer cryptography transactions using Blockchain Technology. Blockchain Technology is a distributed ledger system that allows transactions to be recorded chronologically and publicly. The technology was originally developed for Bitcoin, but it has since been adopted for other uses such as smart contracts and supply chain management.
The concept behind cryptocurrency was first conceived by a mysterious person or a group of people calling themselves Satoshi Nakamoto in 2008. They released the invention as open-source software that could generate units of digital currency called Bitcoins. As time went on, Bitcoin became increasingly popular and valuable. In 2017, you could buy one Bitcoin for around $1000-20,000, depending on the exact time. Today, one bitcoin costs about $30,000.
Cryptocurrency was created to solve problems associated with traditional payment systems, including slow transaction times, high transaction fees, and lack of privacy. Since their value fluctuates based on supply and demand, many people have found an opportunity to invest in them.
Currently, there exist thousands of cryptocurrencies. However, The most common cryptocurrencies include Bitcoin, Ethereum, Binance Coin, Cardano, Solano, Litecoin, Tether, XRP, Polka Dot, Shiba Inu, Ripple, Monero, Dash, and Dogecoin. Currently, Bitcoin is by far the most popular, the oldest to be formed, and the most expensive cryptocurrency to buy.
Benefits of investing in cryptocurrency in Kenya
First, cryptocurrency is becoming increasingly popular with investors. Investing in it is probably one of the best decisions one can make to earn a living. It is a great way to diversify your income and earn significant returns.
Secondly, when you have money in the form of cryptocurrency, you can easily use it for secure transactions when shopping online. Cryptocurrency allows people to send money across borders without going through financial institutions. Since there is no third party involved, there is reduced risk of theft and transactions take place almost instantly.
Finally, cryptocurrency transactions are anonymous. Unlike traditional banking systems where your identity is recorded, you can use cryptocurrencies without giving away your personal information. Nobody can track your online activities like what you bought, where, and when.
Guide to getting started with cryptocurrency in Kenya
When getting started with cryptocurrency trading in Kenya, there are several things you must do first. You have to decide on the amount of capital to start trading with. It is advisable to start with a small amount first, then watch how the market changes as you gain wisdom.
After setting apart your capital, below are the steps you need to take:
1. Choose a cryptocurrency to invest in
Before getting started with cryptocurrency in Kenya, you should first decide which one to put your money on. There are many cryptocurrencies, but only a handful are worth investing in. You should choose one that is doing well in the exchanges and whose cost is not out of your reach.
You should also choose a cryptocurrency based on the following factors:
- Market Cap: This is the total value of all cryptocurrencies currently in circulation. As the market cap increases, the overall demand for that currency increases. When purchasing cryptocurrency, you should always watch its market cap.
- Price: The price of cryptocurrencies can fluctuate greatly over time, making it difficult to predict whether or when a particular coin will increase or decrease in value. However, if you are looking to invest in cryptocurrencies, you should look at their current market price. To be on the safe side when getting started with cryptocurrency, try to avoid investing too much money into a single coin unless its price is relatively stable.
- Block Time: This is the average time it takes to create new blocks on the blockchain network. It largely depends on the cryptocurrency’s mining difficulty. The more difficult it is to mine, the longer it takes to create new blocks on the network. So, choose a cryptocurrency with a fast block time.
- Transaction Volume: This is the number of transactions taking place per day across all exchanges. A high-volume coin indicates that many people believe in the cryptocurrency’s long-term viability. On the other hand, a low-volume coin could mean that fewer people are interested in investing in the cryptocurrency.
2. Set up a crypto wallet
If you want to invest in cryptocurrency, you’ll probably need a crypto wallet. A crypto wallet is a software application where you can store, transfer, and receive your coins virtually. They allow you to safely manage your coins without exposing them to hackers or malware.
There are several crypto wallets available. To set up one, you simply search for them online and register. Some of the most common crypto wallets include Coinbase, Electrum, Ledger Nano X, Bitcoin IRA, Zengo, etc. Some wallets allow you to send payments between accounts, while others only let you store them. Some also offer additional features such as cold storage (keeping your coins offline) and multisig (multiple keys). Therefore, you should choose a wallet that meets your specific needs.
3. Choose a crypto exchange
A crypto exchange is an online marketplace where buyers and sellers meet to trade their cryptocurrencies. These platforms allow traders to buy and sell coins using various online payment methods such as credit cards, bank transfers, PayPal, etc.
There are many crypto exchanges that you can join. Here are some factors you should consider when choosing a good crypto exchange platform:
- Security: Security is the number one priority when selecting any cryptocurrency exchange. Investors have lost a lot of money to hackers due to unsecured crypto exchanges. To be sure that a cryptocurrency exchange’s security measures are in place, look into its terms and conditions to check if there are any hints that might show that they are not transparent. If you find one, then it should raise red flags. Also, look into their customer service. Check whether they offer live chat and if they are willing to help you out if you run into problems while using their platform. You should do all these before signing up.
- User Experience (UX): The user experience is extremely important when choosing a crypto exchange. The site should be aesthetically pleasing, have a clean interface, and be easy to navigate. Furthermore, it should be intuitive and able to provide clear instructions. A poor user experience can leave you unsatisfied and frustrated.
- Customer Service: Another thing to consider is customer service. A crypto exchange with good customer service should offer 24/7 live chat, respond to emails quickly, and should have a phone number listed on their website where you can call and speak to someone about your issues. Your problems should be resolved right away, not having to wait for days or weeks.
- Reputation: The reputation of a crypto exchange is an important factor to consider especially when you are getting started with cryptocurrency. There are many scam exchanges out there that take advantage of people’s lack of knowledge about how cryptocurrencies work. Make sure that you do some research before signing up with any exchange. You can read online reviews to get a feel for what people are saying about them. This will give you a better idea of whether or not they are trustworthy.
- Fees: Some exchanges may charge higher fees than others. However, keep in mind that the lower fees usually come with bad liquidity. Liquidity refers to the ease of buying and selling your coins. When looking at the fees of a cryptocurrency exchange, you’ll need to weigh them against their liquidity.
4. Load your crypto wallet
Now, you are almost ready to buy your first cryptocurrency. You first need to load your crypto wallet with your capital. The most common way to do it is by buying from a crypto exchange. Once you have bought your crypto from an exchange, the next thing is to transfer them to your wallet address. You will have successfully loaded your first cryptocurrency in your wallet.
5. Buy some crypto
The next thing you need to do is to buy cryptocurrency. Remember the crypto in your wallet is not up for trading yet, until you transfer the amount you would like to trade from your wallet to a crypto exchange you have registered with.
6. Start Trading
Once you are done with setting up your wallet, opening a crypto exchange account, and loading your wallet, you are now ready to trade cryptocurrencies with normal currencies or other cryhptocurrencies.
Is There A Future For Cryptocurrencies?
Yes, it is estimated that by 2030, the cryptocurrency market will be more than three times bigger. It is slowly getting accepted across the world as a means of online payment because it plays important financial role that the traditional centralized financial system can’t. The current financial system is very centralized, with a lot of middlemen who make transfer of money inefficient and slow. On the other hand, cryptocurrency operates on peer-to-peer basis, eliminating flaws and providing free, fast, and secure transfer of money across the world.
While getting started with cryptocurrency, It is important to first understand the basics before jumping into the world of crypto trading. You also don’t need to invest a lot at first, but you should learn enough to know whether it is something you’d like to pursue further or not. Furthermore, cryptocurrency is still relatively new. Many people are skeptical of its value and potential, so don’t expect immediate results.