A Guide To Investing In Bitcoin In Kenya

Bitcoin and cryptocurrencies are no longer a passing fad. Over $200 billion of value has been created in what is just the beginning of an open alternative financial system. In Kenya, you can buy, trade, exchange, hold and store cryptocurrencies as long as you do not break any existing laws. To get started, you need to try paper trading before investing. Then, you will need a blockchain wallet, an app that lets you store, send and receive digital assets. Once downloaded, secure your wallet in case you forget your password or lose your phone. Add a strong PIN and back up your 12-word phrase to help you recover your bitcoin. You can then buy bitcoin through a bitcoin wallet, a bitcoin exchange, or a peer-to-peer marketplace.

Get a blockchain wallet

A blockchain wallet is a digital app that allows you to store, send, and receive cryptocurrencies. It is similar to PayPal or any other digital wallet you may use daily, but it uses cryptocurrency instead. Examples of blockchain wallets include Blockchain.com's DeFi Wallet, Electrum, Blockchain.info, Jaxx, Mycelium, Samurai, and Bitcoin paper wallet.

There are dozens of options to choose from, including online wallets and wallets for Android and Apple devices. When choosing a blockchain wallet, it is important to consider security and ease of use. Some wallets offer two-factor authentication, IP whitelisting, and password stretching to prevent theft.

Once you have chosen a wallet, you will need to download and install it on your device. You will then need to create an account and register with your details and chosen cryptocurrency. It is important to back up your account details and create a strong password to protect your wallet in case your device is lost or stolen.

Your wallet address is a long hexadecimal string that allows others to deposit bitcoins into your wallet. This is different from your private key, which should be kept secret and secure. Your private key is similar to your password and is used to spend your funds. If someone gets access to your private key, your account may be compromised.

Blockchain wallets are highly secure and allow for instant transactions across geographies, without intermediaries. They also offer low transaction fees, making them a cost-effective way to transfer funds.

Paper trading

Before you begin paper trading, you should have a basic understanding of how Bitcoin works, and the blockchain technology that underpins it. You should also be aware of the risks and volatility of the cryptocurrency market.

Once you are ready to begin, you will need to set up a blockchain wallet. This is a digital app that allows you to store, send, and receive digital assets. Examples of blockchain wallets include Bitpal, Blockchain, Mycelium, and Coinomi. You can download these onto your phone or other digital devices.

After downloading your chosen wallet, you will need to secure it with a strong PIN and back up your account details. You can then begin to buy and trade Bitcoin, without the risk of losing real money.

Exchange with local and foreign currency

Like other cryptocurrencies, bitcoin can be exchanged with the national currency of Kenya and other African currencies. This exchange with local and foreign currency helps in earning huge profits by exchanging a low-priced digital currency into an expensive or high-value traditional money or vice versa.

There are hundreds of bitcoin exchanges that can help with your bitcoin exchange in Kenya. These include:

• Merchant exchanges: A professional platform to buy bitcoins by exchanging your paper money. It is smooth, easy, and quick to get started and contains the best customer support for local and international Kenyans.
• Bitcoin services: Bitcoin is a highly volatile and complicated digital currency. These services help connect you to the right bitcoin seller and navigate every possibility to ensure you buy a series of true and profitable bitcoins.
• Yellow card: A helpful way to buy bitcoin in Africa without getting targeted by banks and authorities. It lends a helping hand to buy and sell your critical cryptocurrencies like bitcoin without running into hassle or paperwork.

There are also several peer-to-peer (P2P) exchanges available for buying and selling without verification, although they are much less user-friendly and are recommended for more advanced users.

Some of the most popular exchanges in Kenya include Binance, Paxful, Kraken, and OKX. These platforms allow you to buy bitcoin with Kenyan Shillings (KES) and other currencies. For example, Paxful allows you to use over 450 ways to pay, including bank transfers, M-Pesa, Chipper Cash, and Paypal.

It is important to note that the Central Bank of Kenya has previously issued a warning to the public against the use of digital currencies, citing the lack of regulation and consumer protection. However, this is not an outright ban on the use of cryptocurrencies in Kenya. The Kenyan Revenue Authority (KRA) treats cryptocurrency transactions as a form of barter trade for tax purposes, and profits or gains made from the buying or selling of cryptocurrencies are subject to capital gains tax (CGT).

Merchant exchanges

• Binance is the most popular Bitcoin exchange in Kenya with 200,000,000 users. It skyrocketed into the world's largest cryptocurrency exchange by trading volume within 8 months of launching in July 2017, processing more than $1 billion daily. It offers low trading fees, an impressive number of cryptocurrencies, a professional attitude, and a friendly and transparent CEO. It is considered a safe exchange, providing 2-factor authentication and offering both multi-signature wallets and cold storage options.
• Kraken is one of the big three cryptocurrency exchanges in the global market, alongside Coinbase and Binance. It has millions of active users and strategic investors on board. It provides cryptocurrency-to-fiat trading and price information to Bloomberg Terminal. In February 2019, Kraken raised $100 million in a direct offering to its largest customers at a $4 billion valuation. It is considered one of the safest bitcoin exchanges, providing cryptography-verified proof of reserve audits.
• OKX is a leading cryptocurrency exchange known for its vast selection of cryptocurrencies and user-friendly interface. It stands out as an ideal choice for both novice and experienced traders seeking a reliable and feature-rich platform. OKX has created an asset risk reserve fund to guarantee and protect assets from crypto security risks.
• Paxful is one of the best ways to get your hands on BTC in Kenya. It offers zero transaction fees and over 450 ways to pay, including bank transfers, M-Pesa, Chipper Cash, and Paypal. It also has a free Bitcoin wallet.
• Changelly allows users to exchange one cryptocurrency for another and also buy using a bank card. It is convenient and clean, with a quick registration process via email or social media account. There are no geographical restrictions to using Changelly. It offers two-factor authentication and an HTTPS security protocol.

Bitcoin services

One of the challenges of acquiring, trading, or investing in blockchain assets is fraud and scams. Bitcoin services can help you avoid this pitfall by connecting you with trusted brokers with stellar reputations.

One such service is Paxful, which allows you to buy Bitcoin in Kenya cheaply and with zero transaction fees. Paxful offers over 450 ways to pay, including bank transfers, M-Pesa, Chipper Cash, and Paypal. You can also use Paxful to send money by purchasing Bitcoin and then transferring the funds from your wallet to the recipient's BTC address.

Other trusted online cryptocurrency exchanges operating in Kenya include Binance, Kraken, and OKX. These platforms allow you to buy, sell, and trade Bitcoin and other cryptocurrencies. Binance, for example, offers low trading fees, a friendly and transparent CEO, and an impressive number of cryptocurrencies to choose from. Kraken provides cryptocurrency-to-fiat trading and price information to Bloomberg Terminal, while OKX stands out for its user-friendly interface, low fees, and deep liquidity.

Before choosing an exchange, be sure to compare fees, security, payment methods, and other features to find the one that best fits your needs.

Frequently asked questions