It’s not surprising that Kenyans were among the first to trade cryptocurrency and would need platforms like TransferXO to start trading cryptocurrency in Kenya.
Just as global acceptance of cryptocurrencies is growing. Various international exchanges offer trading of Bitcoin, Ethereum, and other cryptocurrencies in Kenya.
Kenya is one of Africa’s most technologically advanced nations, which is also no secret. Here, mobile money transfers are ubiquitous; you can hardly move more than a few steps without coming across someone using their phone to make a purchase.
Some of the most important online resources about trading cryptocurrency in Kenya have been collected in this guide with a focus on harnessing the use of a platform like TransferXO. From opening an account to placing your first trade, we’ll cover it all.
Therefore, this article covers everything you need to know on how to start trading cryptocurrency in Kenya, regardless of your level of experience.
So let’s delve in!
Understanding What Crypto Trading Involves in Kenya
A buyer and a seller are involved in a bitcoin exchange. One party will undoubtedly profit more from a transaction because there are two competing sides—a purchase and a sale. As a result, trading is a zero-sum game in which both winners and losers exist.
Kenyans must comprehend how the cryptocurrency market works in order to limit loss and maximize possible gain. You will need to understand what is involved in cryptocurrency before you learn how to start trading cryptocurrencies in Kenya.
When the price is agreed upon by the buyer and seller, the transaction is completed (by an exchange), and the asset’s market value is established. The order book’s two sides are created most frequently when buyers submit orders at a lower price than sellers.
The price of a cryptocurrency often rises when there are more buy than sell orders since there is more demand for the asset.
When there are more vendors than customers, however, the price drops. Multiple trading interfaces use different colors to indicate buying and sales. This will give the trader a quick signal of the state of the market.
Don’t Fail to Read This Article: Can You Trade Crypto Like Forex? What You Need to Know
Why Do You Need to Think about Investing in Cryptocurrencies in Kenya?
The value of cryptocurrencies has skyrocketed in recent years. By the end of the year, Bitcoin, the most well-known cryptocurrency, had increased from about $1,000 at the beginning of the year. Similar improvements have been recorded for other altcoins.
Despite the fact that prices have dropped from their record highs, there is still a substantial amount of money in the cryptocurrency market.
Additionally, as Kenya gradually transitions to a cashless culture, learning how to start trading cryptocurrencies in Kenya and might be quite rewarding.
You Should Also Read Through How to Trade Cryptocurrency in Nigeria Legally and Make a Profit
The Risks and Benefits of Trading Cryptocurrency in Kenya
Before learning how to trade cryptocurrencies in Kenya, it’s important to comprehend the advantages and disadvantages.
The asset class of cryptocurrencies is quite volatile. Prices might change drastically during the day and even from hour to hour. As a result, they are dangerous investments.
However, this turbulence also offers traders chances to profit.
Furthermore, because no government or financial institution controls cryptocurrencies, they are either not regulated at all or just loosely so. They are a dangerous investment because of the absence of regulation.
However, it also implies that trading bitcoins involves less paperwork and bureaucracy.
The potential for fraud is another danger to take into account. Investors are not protected if scammed because cryptocurrencies are not regulated.
Last but not least, it’s critical to keep in mind that in Kenya, cryptocurrencies are still a relatively new asset class. They are not well understood by the general public, and it is yet unclear if they will last in the long run.
Let’s now examine how to begin trading cryptocurrencies in Kenya with all of this in mind.
Read this article to get in-depth insight on trading on TransferXO: Can You Trade Crypto All Day on TransferXO?
How Do People Trade Cryptocurrencies in Kenya?
The act of purchasing and selling bitcoins is known as cryptocurrency trading. Different strategies can be used by traders to make price predictions for cryptocurrencies.
Some individuals trade cryptocurrencies for financial benefit, while others do so as a form of insurance against other investments like stocks or fiat money.
Being a relatively young sector, cryptocurrency trading might be difficult to get started in. However, before they start trading, everyone should keep in mind a few important points.
Take a Quick Glance on the 10 Best Crypto Day Trading Strategies in 2023
Choose A Reputable Exchange
Choosing a trustworthy exchange like TransferXO is the first and most crucial step in trading cryptocurrency. There are a huge number of cryptocurrency exchanges available, but not all of them are the same.
It’s crucial to do your homework and only use exchangers with a solid reputation. There are some exchanges that are more trustworthy than others, and some of them have features that you could find more or less enticing.
Know Your Goals
Prior to beginning to trade cryptocurrencies, it’s also critical to understand your objectives. Are you attempting to create a long-term portfolio or are you hoping to make a quick profit?
Your plans and marketing tactics will be based on your aims.
Understand The Risks
Trading cryptocurrencies is a dangerous endeavor. Prices can change drastically, and fraud and hackers are always a possibility. Understanding the risks is crucial before you begin trading.
Start Small
Trading modest sums of cash when first starting out is a good idea. This will aid in developing a sense of the market and preventing costly errors.
Don’t Get Caught Up In The Hype
Although the world of bitcoin trading might be exhilarating, maintaining composure is crucial. Don’t make decisions you’ll regret later by falling for the hype.
Take Out Time to Also Read: How Do Crypto Trading Bots Work And Are They Worth It?
How to Start Trading Cryptocurrency in Kenya on TransferXO
Cryptocurrency has taken the financial world by storm, and Kenya is no exception. With the rise in popularity of digital currencies, many Kenyan investors are looking to enter the world of cryptocurrency trading.
TransferXO, a leading cryptocurrency exchange, provides an excellent platform for Kenyans to start their journey into the world of digital assets.
In this comprehensive guide, we will walk you through the steps on how to start trading cryptocurrency in Kenya on TransferXO.
Whether you’re a beginner or an experienced trader, this article will equip you with the knowledge and strategies you need to succeed in the world of cryptocurrency trading.
Sign up for a Crypto Exchange
You must register for an account with a cryptocurrency exchange unless you already hold cryptocurrency. The most recommended Bitcoin brokerage is TransferXO.
The TransferXO platform offers a user-friendly user interface and a wide range of cryptocurrencies. Just like with a stock brokerage, opening an account with a cryptocurrency brokerage requires providing identifiable information.
When opening an account, you must meet Know Your Customer (KYC) requirements, which include providing your address, birth date, Identity Number, and email address.
You might not have to go through a KYC procedure if you utilize a decentralized exchange to trade cryptocurrencies, making it simpler to get started quickly.
Choose a Crypto Wallet Compatible with your Exchange
Kenyans cannot interact with a blockchain network without using a cryptocurrency wallet. The three most common types of cryptocurrency wallets are hardware, software, and paper wallets. Depending on their work, they could also be classified as cold or hot wallets.
Software-based wallets are the most convenient and easily accessible, whereas hardware-based wallets are the most secure. Paper wallets, which are printed on paper, are regrettably unreliable and out-of-date.
Cryptocurrency wallets are a mechanism for connecting with the blockchain, producing the data necessary to send and receive money through blockchain transactions.
Both private and public key pairs are present in the data. An address-like alphanumeric identity is produced using these keys. This address designates the location to which funds may be sent to the blockchain.
To receive money, the address can be spread around, but private keys should never be revealed. You can access the cryptocurrency on any wallet by using the private key. Any device can access funds as long as the private key is known.
Additionally, without ever leaving the network, coins are transferred between addresses. The wallet that best meets your needs can be chosen, but be sure to regularly back up your data and use the latest software.
Don’t Fail to also read: Can P2P Trading Affect Credit Score Dynamics? An In-Depth Analysis
Add Funds to Your Online Wallet or Account
Most centralized exchanges like TransferXO let you connect your bank account, debit card, or credit card. Although you can buy Bitcoin using a credit card, the price volatility of cryptocurrencies combined with credit card interest may raise the overall cost of buying a coin.
The process of adding funds will differ because the majority of decentralized exchanges do not accept money. For instance, before sending the money to your DEX, where you can trade cryptocurrencies, you might be obliged to convert your cash into cryptocurrency on a controlled platform.
For instance, if the decentralized exchange (DEX) you’re utilizing is based on the Ethereum network, you’ll first need to buy some ETH before using it to buy any decentralized cryptocurrencies. Self-hosted wallet is necessary for this transaction.
Using a mobile app or browser extension wallet to transfer ETH to your self-custody wallet is simple. If your account is linked to your wallet, you can also transfer money right away.
You can buy the appropriate crypto tokens from within the app using a mobile app wallet. To swap ETH for the token, you click the Trade tab. Next, select the digital asset you want to buy by tapping the “Choose Coin” button.
Select the amount of ETH you wish to trade. Follow the on-screen procedures to confirm the order and complete the transaction.
You Should Also Read: Is P2P Trading Safe? How to Stay Safe in Peer-to-Peer (P2P) Trading
Choose a Cryptocurrency to Trade
In Bitcoin and Ether, many cryptocurrency investors put their money. Technical indicators are useful for trading since major cryptocurrencies’ price fluctuations are more predictable than those of smaller altcoins.
Many cryptocurrency investors put some of their money in altcoins. Mid-market capitalization cryptocurrencies have a higher upside potential despite being riskier than large-market capitalization cryptocurrencies.
Decide on A Crypto Trading Strategy
There are four active trading strategies that are frequently used in the market. Buying and selling while analyzing short-term market trends and taking advantage of the market’s volatility is an active trading strategy.
According to the majority of Kenyan experts, active trading tactics must change to accommodate long-term plans in which investors acquire and hold assets.
Below is a breakdown of the four most common trading methods: scalping, day trading, swing trading, and position trading.
Scalping
Scalping is the shortest-term trading strategy, and many experts use it to generate quick cash. In this transaction, the coins are held for a few seconds or minutes. In contrast to other trading techniques, the profit is, nevertheless, not substantial.
The goal of scalping is to accumulate small profits during a trading day. When the market is most active and there is a great chance of making a profit, that is the best time to complete a deal.
Scalping is a strategy used by licensed cryptocurrency traders and experts to profit from minute price changes.
Day Trading
The holding time for this kind of bitcoin trading is one day. Day trading is also known as “intraday trading” since traders enter and exit positions on the same day.
It is crucial to take into account fundamental technical analysis while trading in this manner in order to assess the market’s health and identify new trends.
Although it also produces modest gains, this type of trading protects you from overnight market volatility. Several hours are frequently spent day trading.
Swing Trading
The swing trading approach keeps positions open for days or even weeks. This type of trading frequently follows trends that last one to thirty days and are short- to medium-term.
This trading strategy is appropriate for those who routinely trade yet devote most of their time to their jobs. Swing trading also eliminates the need to worry about daily price swings because you don’t hold the coin for a single day.
You may enhance your gains by following the trend and looking over the daily analysis.
Position Trading
You must concentrate on long-term price variations when using this trading strategy. Trading specialists take major price movements into account to optimize earnings. Since traders like to hold their positions for longer, position trading is occasionally referred to as “trend trading.”
Additionally, keeping an eye on weekly and monthly price charts will aid in your assessment of market trends.
Small price movements are unimportant to traders who use this kind of trading. Instead, they pay close attention to the biggest changes in the market and act accordingly.
Diversify Your Portfolio and Remain Updated on Trends
Equities and digital assets both fall under the proverbial “don’t put all your eggs in one basket” rule. Although investing in digital assets may be advantageous, there is also a chance of losing everything.
If the value of one cryptocurrency falls, diversifying among several will help you reduce losses.
Kenyans must stay on top of recent developments and notable trends due to the market’s and the bitcoin trading industry’s rapid progress.
Therefore, having a platform where you can collect data to precisely analyse trends and user viewpoints may be beneficial.
How to Choose the Right Crypto Exchange in Kenya
Kenyan traders must assess a forex broker’s suitability for their particular trading needs and/or ambitions by considering the elements listed below.
Regulations and Licenses
This is the first crucial element that traders must carefully assess. Market regulators like FCA, ASIC, CySEC, FSCA, and others control reputable brokers.
When dealing with brokers who are exclusively subject to offshore regulations, such as the FSA, SVG BVI, FSC, and others, Kenyans must exercise caution.
Account Features
Account features include leverage trading, the need for margin, commissions, and spreads, the initial deposit, extra features on accounts for retail investors, and so on.
Deposits and Withdrawals
In addition to other trading and non-trading expenses, Kenyans must assess the payment alternatives offered, the processing timeframes for withdrawal requests, the deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal restrictions.
Range of Markets
The amount and variety of tradable instruments that the broker offers are referred to as the range of markets offered. Kenyans must weigh their trading preferences against what is available.
Customer Support
Customer Support is another important consideration, and Kenyans should assess the level of support (trading hours), the nature of the help, and the speed at which the staff responds to inquiries.
Trading Platform
The Kenyan trader’s gateway to the financial markets is a trading platform. The technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools that traders may use must all be present on the trading platform.
Frequently Asked Questions
Is crypto trading legal in Kenya?
Crypto may not be legal tender in Kenya, but it is legal to trade cryptocurrencies.
How do I start trading cryptocurrency in Kenya?
To start trading cryptocurrency in Kenya, you will need to create an account on a reputable cryptocurrency exchange such as Binance, Paxful, or LocalBitcoins. After verifying your account, you can deposit funds and use them to purchase the cryptocurrency of your choice.
What are the most popular cryptocurrencies for trading in Kenya?
The most popular cryptocurrencies for trading in Kenya are Bitcoin, Ethereum, and Ripple. Other popular cryptocurrencies such as Litecoin, Tether, and Bitcoin Cash may also be available for trading on certain exchanges like TransferXO.
What are the risks involved in trading cryptocurrency in Kenya?
Trading cryptocurrency in Kenya, or anywhere, involves a high level of risk due to the volatility of the markets. It is important to understand that the value of cryptocurrencies can fluctuate rapidly and that there is a risk of losing your investment.
How can I secure my cryptocurrency trades in Kenya?
To secure your cryptocurrency trades in Kenya, it is important to choose a reputable exchange that offers robust security measures, such as two-factor authentication and secure storage. It is also recommended to store your cryptocurrencies in a hardware wallet for added security and to regularly monitor your trades and account security.
Where can I find more information about cryptocurrency trading in Kenya?
Many online resources can help you learn more about cryptocurrency trading in Kenya. We recommend starting with the resources listed in this article.
Can I trade cryptocurrency on my mobile phone?
Yes, you can trade cryptocurrency on your mobile phone. However, we recommend using a desktop or laptop for the best experience.
Conclusion
The highly volatile asset of cryptocurrency draws a lot of investors. Cryptocurrency trading may offer greater returns than traditional investing if you can pace the market correctly. However, there is a chance of substantial loss along with the possibility of huge rewards.
The cryptocurrency market has undergone rapid and abrupt shifts, hitting record-breaking highs and falling to record-lows in the last year.
Before they risk money, they must learn how to start trading cryptocurrencies in Kenya and comprehend what it entails. They must also make sure to safeguard their capital against loss.