Trading Bitcoin is buying and selling your Bitcoin asset for a profit. However, unlike traditional currencies you can trade at a bank, digital money is bought from a reliable crypto platform. Know all about trading Bitcoin in Kenya right here at Crypto in Afrika.
What is Bitcoin trading?
Bitcoin trading is the process of purchasing crypto coins at an exchange. There are various ways to earn profit and grow your assets when you invest in Bitcoin, but you need to closely watch market movements and coin volatility before you start to trade.
How to trade Bitcoin in Kenya
You need to follow a few steps to trade your fiat funds into BTC. During this process, remember that keeping watch of market volatility is crucial to trading Bitcoin for profit.
Ready to start a profitable investment? Read the easy guide below to learn Bitcoin trading with Crypto in Afrika.
- Find where you can trade Bitcoin
The first thing you need to do when you start Bitcoins trading is list down the top crypto exchanges available in the region to determine which platform can serve your intent the best. Some factors you need to consider when choosing the platform are trading fees, trading features, and mobile accessibility.
- Compare Bitcoin price
Once you’ve got a shortlist of the top platforms to trade Bitcoin with, the next step is to compare the crypto price across the exchanges. Take note that Bitcoin prices vary depending on the platform.
Aside from Bitcoin being volatile, the platform’s trading fees, liquidity, and trade volume also affect its price. That’s why learning how Bitcoin trading works and buying Bitcoin in Kenya is essential.
- Use a Bitcoin trading strategy
It’s important to employ the best crypto trading strategies to ensure your crypto investments will grow.
When it comes to BTC trading, there are countless strategies to choose from. However, it largely depends on several factors to determine the best investment method. This includes determining if you’re a passive or active investor, how frequently you want to trade, and how big or small your budget is.
You should also know about the common crypto trading mistakes beginners make that can be used as Bitcoin trading tips to help you avoid costly errors during your Bitcoin trading in Kenya.
- Place your Bitcoin trade order
With everything in order, initiating your first transaction is the only thing left to do. You can successfully do so by learning how Bitcoins trade works on your chosen exchange. Fortunately, the trading process is similar regardless of whichever platform you use. Start your transaction by going to the ‘buy and sell’ page and filling up the appropriate form to finalise your transaction.
Why trade Bitcoin in Kenya?
Bitcoin is the most well-known crypto across African countries, including Kenya. It is most known for utilising blockchain technology and cryptography to safe-keep digital assets without worrying about security and third-party interference.
Since its inception, it has always ranked as the most preferred crypto for peer-to-peer transactions, which makes it easy to access and use. Now that Bitcoin’s popularity has grown mainstream, you can also use it as payment for various real-world purchases.
Risks and benefits of trading Bitcoin in Kenya
You should consider different pros and cons before making your Bitcoin trade investment. These are:
- Use of blockchain technology
Bitcoin was established with the help of cryptography and blockchain technology to allow verifiable transactions without a central authority. Among the many blockchain potentials is its function as a public digital ledger that records all transactions within a network. With this, any attempt to manipulate or alter the data is easily detected and rejected.
- Low to zero trading fees
Since there are many available crypto exchanges for Bitcoin traders in Kenya, you’ll have numerous exchange platform options that offer a wide range of trading fees. However, ensure that the platform you use for trading Bitcoins is reliable and trustworthy to ensure your assets’ security.
- Crypto regulations
One of the many risks that detract people from trading crypto is the differing regulation per region since many fear falling victim to scams. Additionally, banks do not recognise crypto as legal tenders, unlike fiat money.
Fortunately, as the crypto market grows, governments worldwide are becoming more accepting of crypto. Most of them are now developing regulations for safer crypto trading and investment.
Types of Bitcoin trading
You can use various trading methods depending on how passive or active you want to be when trading. See each of their descriptions below:
The Scalping trading style is where you buy and sell a specific amount of crypto in a single day. With this type of trade, you only earn small profits from the multiple small trades you conduct.
When it comes to Day Trading or intraday trading, investors conduct trades daily and earn from the day-to-day changes in crypto prices. With this kind of trading, you can use Bitcoin Trade Robots or automated trading bots and set the parameters so you can automatically trade every day.
Range trading sets a price range of when you should buy or sell. With this, you actively watch the changes within the crypto market and make your trade once the crypto price matches the one you set.
The Swing trading method can take a few days to weeks since the goal is to wait until the prices swing upwards.
Unlike most, position trading is a long-term strategy wherein you hold your assets for months. Investors use this strategy for high returns since monthly price differences can be higher than waiting for days with the swing trading method.
As a crypto investor, another way to earn aside from trading is by joining lending programs to loan your Bitcoin assets and earn through interest.
The best Bitcoin trading platform in Kenya
Now that you have all the information you need to make smart trading investments, it’s time to find the right exchange to conduct your Bitcoin trade in Kenya. See the list below for the top crypto platforms Bitcoin traders use in Kenya.
One great platform trusted by Kenyan users is Kraken, a crypto exchange founded in 2011 and has grown to be one of the most reliable and secure channels for crypto trading. You can conduct trades such as margin trading, staking, futures, indices, and more through the platform.
Binance is a worldwide platform that has grown quickly since its launch in 2017. Today, the exchange is used by over 120 million users worldwide for crypto trading. Aside from Bitcoin, Binance supports over 600 other crypto coins and tokens.
Additionally, various trading options are available in Binance, including swap farming, Peer-to-peer (P2P), Margin, Spot, and others. You can earn through liquidity farming, Binance Earn, the Launchpad, DeFi Staking and more.
Another great exchange you can use is Coinbase which was founded in 2012. As a global platform, you can use it to buy and sell crypto or make derivatives trades. Alternatively, you can borrow on the platform, buy NFTs, or use Coinbase Earn.
Last on the list is CEX.io, an exchange platform dedicated to Bitcoin. Some of the best aspects of this exchange include varied payment options, strong security, big commissions, 24/7 customer support, and more.
When it comes to trading, CEX.io allows regular buy and sell, spot, and margin trading. You can also use its Bitcoin trade app to make transactions on your mobile just as easily.
Bitcoin trading wallets in Kenya
Aside from knowing how to invest in Bitcoin in Kenya, you also need to know how to keep your crypto assets secure. You can store them in a crypto wallet accessible only through private keys.
Discover the top crypto wallets in the market recommended by crypto investors across the globe to know which one to choose.
- Coinbase wallet
Coinbase, like most crypto exchanges, also features its wallets, so you can store your crypto funds directly on the platform after purchasing them. This is considered one of the safest crypto wallets in the world, so you don’t have to worry about your funds when using it.
- Trezor Model T
The Trezor Model T is a hardware wallet that can’t be accessed online. This is considered the most secure type of wallet since only the owner can access it when plugged into their computer.
- BitGo cryptocurrency wallet
BitGo Wallet is a multi-coin wallet where you can store different crypto assets besides Bitcoin. It also operates with a three-key management system which makes the safety protocols in place top-notch.
- Trust Wallet
Trust Wallet is a free-to-use crypto wallet for those who can’t afford to access one. The great thing about this wallet is that it supports many blockchains and cryptos, making it easier to store even if you purchase different coins and tokens.
- eToro Wallet
The eToro wallet is a multi-crypto asset storage from one of the top crypto exchange platforms in the world. This wallet is preferred by many due to its security protocols, such as advanced encryption and two-factor authentication.
Start your crypto investment today with Crypto in Afrika
Understanding bitcoin trading might seem like a complicated task, especially for beginners. However, figuring out how to trade bitcoins is easy if you take the time to know how it works and navigate it.
As you’ve seen throughout this article, starting your crypto investment is simple. You just need to follow a few simple steps, such as finding the right exchange platform and employing a good trading method.
FAQs on how to trade Bitcoin in Kenya
What is Bitcoin investment?
Bitcoin investment is the process of buying Bitcoin assets to make a profit. You do this by trading your assets actively or passively, depending on your preference.
How to join Bitcoin in Kenya?
Assuming that your question also includes ‘How does Bitcoin work in Kenya?’, the answer is that it works the same way anywhere else around the globe. To join Bitcoin trading, purchase your chosen crypto through a trusted exchange platform. After that, the task of growing your investment follows.
Is Bitcoin legal in Kenya?
At the time of writing, people are allowed to trade Bitcoin in Kenya. However, remember that government regulations are in place for consumer protection.
Which platform can I trade Bitcoin on in Kenya?
Top exchange platforms, such as Coinbase, Binance, and more, are all reliable when buying and selling crypto. Choosing which one to use depends on whether they offer additional features you require for a better trading experience.
How to earn Bitcoins in Kenya?
The main way to earn crypto is by trading them. Some of the best trading methods for this include Day trading, Swing trading, Range trading, Position trading and more.