Top 8 Locally Based Brokers
How to Invest in Bitcoin in Kenya
How to Invest in Bitcoin in Nigeria revealed. We tested the best way to buy Bitcoin in Kenya for Kenyan Traders.
This is a complete guide to investing in Bitcoin in Kenya.
In this in-depth guide you’ll learn:
- What is Bitcoin?
- How does Bitcoin work in Kenya?
- How much is Bitcoin worth in Kenyan Shillings?
- How to Buy Bitcoin as a Beginner Trader?
- Which brokers offer a sign-up bonus for first-time crypto traders in Kenya?
- Which brokers offer a low minimum deposit to buy Bitcoin of $5 (602 KES)?
And lots more…
So if you’re ready to go “all in” with the best-tested way to buy Bitcoin in Kenya…
Let’s dive right in…
- Louis Schoeman
How to Invest in Bitcoin in Kenya (Updated 2023)
- Why Should Kenyans invest in Bitcoin in 2023?
- Understanding how Bitcoin Works
- Buy Shares in Bitcoin-related companies
- Bitcoin Coin Trusts
- Buy Bitcoin ETFs
- Bitcoin Futures
- Trade Bitcoin Options
- Invest in Companies involved in Blockchain Technologies
- The Best Bitcoin Brokers in Kenya
- Understanding how trading platforms work
- Advantages and Disadvantages of Investing in Bitcoin
Why Should Kenyans invest in Bitcoin in 2023?
👉 This past weekend, cryptocurrency values plunged again, with Bitcoin falling to its lowest level since December 2020, relative to price movements that occurred only one month earlier.
👉 After a weekend in which the cryptocurrency market lost over $200 billion. The US crypto lender Celsius Network banned all withdrawals. Bitcoin values dropped below roughly 9% in the previous 24 hours to $20,500, or 2.4 million KES.
👉 Despite recent market falls, Bitcoin remains the dominant cryptocurrency. Bitcoin’s current adoption rate exceeded that of the internet in 1998, and millions of individuals currently own Bitcoin. Moreover, the rate at which its use is expanding seems to be accelerating.
👉 El Salvador became the first nation to recognize Bitcoin as legal cash in 2021; Paraguay and other minor nations plan to follow suit. El Salvador is the only country with Bitcoin in its national treasury.
👉 As of 2023, El Salvador possesses 1,800 Bitcoin, and President Nayib Bukele has not hesitated to tweet about his acquisitions.
👉 As the conventional banking sector recognizes Bitcoin’s disruptive potential, it must decide whether to incorporate cryptocurrencies or risk irrelevance. The choice to invest in Bitcoin is determined by your risk tolerance and outlook on the future of humanity.
👉 For instance, Russia has declared that it is investigating cryptocurrencies to reduce its reliance on the US currency. However, Bitcoin can potentially significantly undermine the US currency, which is too large to ignore currently.
👉 Conventional Kenyan traders and investors might want exposure to Bitcoin primarily as a hedge against inflation and the probable collapse of the fiat currency system. The volatility of Bitcoin is a worry for many investors. However, it is projected to lessen permanently when institutions and governments join the market.
Understanding how Bitcoin Works
👉 Bitcoin is a decentralized digital currency that operates without the oversight of any government or central bank. P2P software and encryption are utilized instead.
👉 Bitcoin transactions are publicly visible and kept in a distributed ledger on servers worldwide. Everyone with access to a spare computer may set up one of these servers, known as nodes.
👉 Consensus on currency ownership is reached cryptographically among these nodes, eliminating the need for a trusted third party like a bank.
👉 Everyone on the network can see every transaction since it is broadcast and shared across all nodes. Every 10 minutes or so, miners collect these transactions into a batch called a block and upload them permanently to the blockchain. To transact in Bitcoin, go no further than this master ledger.
👉 To protect their value, digital currencies like Bitcoin and Litecoin are kept in wallets, which may be accessed using a web browser or several other hardware and software solutions.
👉 As a reference, a milli is equal to one-thousandth of a Bitcoin. In contrast, a Satoshi equals one hundred millionth of a Bitcoin. This means that Bitcoin can be divided into seven decimal places.
👉 In addition, Bitcoin can be traded for cash just as any other asset can. There are multiple online cryptocurrency exchanges where this is possible. However, transactions can also be conducted in person or via any communication network, enabling even tiny enterprises to take Bitcoin.
👉 Bitcoin has no formal method for exchanging coins for other money. Therefore, there is no intrinsic value behind the Bitcoin network. Since abandoning the gold standard, however, this is true for many of the world’s most stable national currencies, such as the US dollar and the British pound.
Buy Shares in Bitcoin-related companies
👉 The markets are being actively monitored as Bitcoin grows in popularity and attracts new investors. Cryptocurrency prices are more volatile than stock market values, but this is not necessarily dreadful.
👉 There will be significant price swings since the crypto industry is still new (just over a decade old). The market’s volatility may put some investors off, but that should not stop you from buying crypto.
👉 You need not acquire cryptocurrency or tokens to take advantage of this novel investment opportunity.
👉 You could diversify your holdings by buying shares in firms that make direct investments in cryptocurrencies or improve blockchain network efficiency.
👉 By late 2021, the overall value of the cryptocurrency industry had risen to $3 trillion. Due to the sudden price increase and fast growth of the cryptocurrency industry, the first investors quickly became rich.
👉 Because of this, finding the next big cryptocurrency and making money from it is a top priority.
Coinbase Global
👉 Before its first public offering in April 2021, cryptocurrency exchange company Coinbase Global had already built a solid reputation. In addition to Bitcoin, Ethereum, and Cardano, the platform supports trading over 160 other altcoins.
👉 The meteoric surge in Bitcoin prices has been vital to the success of Coinbase, drawing in tens of millions of inexperienced users. Coinbase collects a modest transaction fee for each Bitcoin buy or sell request company processes.
👉 The company, however, has bigger ambitions than just being a marketplace. For example, Kenyans can use a debit card to access the funds in their digital wallets. There is also a cloud platform for enterprises to utilize and store digital currencies.
MicroStrategy, Inc.
👉 Although MicroStrategy is a data analytics company, its rising allocation to Bitcoin (BTC) has led some to mistake it for Bitcoin as a proxy for investment.
👉 Considering that one Bitcoin is now valued at about $40,000, MSTR’s holdings of more than 129,000 coins are worth almost $5 billion. It considers Bitcoin a haven since its value is expected to keep up over time.
👉 In January, MicroStrategy held a conference dubbed “Bitcoin for Corporations” to address the opportunities presented by integrating Bitcoin into business operations.
Block, Inc.
👉 Block, previously Square, is a payment processing and financial services corporation. It has many business lines relating to blockchain technology and Bitcoin. For example, its Cash App application enables users to invest in equities and Bitcoin.
👉 At the end of 2021, Block reported holding $317 million of the digital asset.
NVIDIA Corp
👉 NVIDIA gained its start as a manufacturer of computer gaming graphics cards. In recent years, though, the company has extended its usage of its technology to include cryptocurrency mining.
👉 As part of the energy-intensive and profitable accounting process that enables some cryptocurrencies to function without a central monetary authority, this method employs specialized equipment to solve complicated mathematical problems.
Riot Blockchain, Inc.
👉 Riot Blockchain is a different Bitcoin mining firm. According to the company, its Rockdale, Texas factory is the biggest of its kind in North America. According to the firm, their mining led to a Bitcoin balance of 4,884 coins worth $233 million by the end of 2021.
AMD, Inc.
👉 Advanced Micro Devices manufactures computer equipment, particularly GPUs (gaming processing units). In addition, GPUs are often used for cryptocurrency mining.
👉 According to the firm, demand for these items has surged as interest in cryptocurrencies has grown.
Bitcoin Coin Trusts
👉 Investments in Bitcoin might be challenging. It calls for a careful analysis of the related costs. The costs of storing Bitcoin may be high and, over time, add up to a sizable sum of money.
👉 To ensure safety, security-related costs are added to this amount. In addition, the cryptocurrency’s volatile price history makes it challenging for investors to choose an effective entrance or exit strategy.
👉 Publicly traded investment trusts lessen these deciding variables by purchasing and holding Bitcoin or investing in Bitcoin index funds. Subsequently, custody costs are not something investors in these funds need to consider.
👉 Investors are directly exposed to the volatility of the underlying cryptocurrency via the movement of these funds’ prices, which match that of the asset. Ownership of the trust’s shares might be compared to indirect Bitcoin ownership, depending on the trust’s structure.
👉 It is crucial to understand that the term “ownership” in this context is fictitious and changes meaning depending on the trust’s net asset value.
Simplify US Equity Plus (GBTC ETF)
👉 The Grayscale Bitcoin Trust and US stocks are investments in the Simplify US Equity Plus GBTC ETF or SPBC.
👉 The Grayscale Bitcoin Trust only has a 10% investment in the total capital. The fund invests in companies and trusts in exchange for shares that investors can trade on US open stock markets.
👉 The leading investment portfolios include the iShares Index Fund, GBTC, and S&P500 Emini FUT; however, since the adoption of the Bitcoin ETF, it has only had a US domicile.
👉 By the end of the year, investors do not get a K-1 tax reporting form. The premium/discount dynamics of GBTC and the fund’s exposure to Bitcoin are both actively managed.
👉 The expense ratio increases to 0.74% when purchased fund fees and expenditures are added to the management charge of only 0.5%.
Valkyrie Bitcoin Strategy ETF
👉 Three days following the introduction of BITO, BTF became public and has gathered over $44 million in assets under management. Like BITO, it follows Bitcoin futures and invests in them to outperform NYSE-listed equities regarding investor returns.
👉 Exchange-traded funds provide investors and themselves Bitcoin exposure without requiring actual purchases of Bitcoin in the spot market.
👉 The fund is non-diversified, actively managed, and invests in Bitcoin futures contracts traded on the Chicago Mercantile Exchange for the front month.
👉 Investors are not required to submit K-1 forms to the IRS. Its portfolio is limited to $100 in value. The top holdings consist of United States Treasury Bills, CME Bitcoin Futures, Cash, and other assets.
VanEck Bitcoin Strategy ETF
👉 The XBTF has one of the lowest expense ratios among Bitcoin ETFs, at 0.65%. The fund does not directly invest in Bitcoin but in futures, which are derivative instruments that follow spot Bitcoin.
👉 Like futures, the fund exposes investors to Bitcoin without requiring them to purchase and store Bitcoin in physical form. Instead, the fund further invests in equities, bonds, and cash.
👉 The objective of the C-corporation-styled fund is to give investors favourable tax treatment. Accordingly, investors are required to submit K-1 forms annually.
👉 The State Street Bank and Trust Company is the custodian. It is an actively managed fund that invests in Bitcoin futures with monthly or front-month expiration dates.
ProShares Bitcoin Strategy ETF
👉 ProShares introduced the first U.S.-based exchange-traded fund in 2021, and it was the first product of its kind anywhere. The ETF makes its first investment in Bitcoin via purchasing futures contracts on the CME and then re-listing its shares on the Nasdaq and other stock exchanges.
👉 Futures are derivatives that monitor the underlying assets to calculate the Bitcoin ETF price. Bitcoin futures are based on spot Bitcoin. It was created to allow consumers to invest in cryptocurrency if or when they do not want to buy directly in spot crypto.
👉 However, the legalization of Bitcoin ETFs lowered direct demand for BTC and cryptocurrency while increasing their awareness. It is an actively managed fund that does not directly follow the price of Bitcoin.
👉 Unlike spot crypto, which trades 24 hours a day, the ETF trades during conventional trading hours.
Amplify Transformational Data Sharing ETF (BLOK)
👉 The Amplify Transformational Data Sharing ETF, which began operations in 2018, allocates at least 80% of its assets (net of borrowings) to businesses engaged in blockchain technology or the provision of blockchain-related goods and services.
👉 The funds are allocated as follows: 43.7% to major enterprises, 26.7% to mid-caps, and 29.7% to small caps. The remaining 20% of the fund is invested in its partner firms.
👉 Actively managed funds adjust their holdings continuously in response to market and price fluctuations.
👉 Galaxy Digital Holdings, Digital Garage, Inc., Hive Blockchain Technologies, NVIDIA Corp., PayPal, Square, MicroStrategy, and others are some of the most valuable investments.
Buy Bitcoin ETFs
👉 A Bitcoin ETF is an exchange-traded fund made from Bitcoin or other assets whose values are associated with Bitcoin. They are traded on a conventional exchange rather than a cryptocurrency exchange.
👉 According to theory, the company buys Bitcoin, securitizes it, and then sells or trades it on an exchange. Sadly, after several filings, the SEC has shown little interest. Subsequently, no cryptocurrency ETF follows a particular coin.
👉 Exchange-traded funds (ETFs) for Bitcoin now have their underlying assets linked to futures contracts for Bitcoin traded on the Chicago Mercantile Exchange.
👉 Soon after, market players became aware of the growing price of Bitcoin and the soaring demand for cryptocurrency, and the concept of a Bitcoin ETF emerged. Additionally, buying and selling Bitcoin offered the chance to earn profits.
👉 Retail and regular investors could no longer make direct investments in Bitcoin once its price crossed several thousand dollars.
Bitwise 10 Crypto Index Fund
👉 The Bitwise 10 Crypto Index Fund is a unique option on this list. Initially, a private placement fund, shares are now available for over-the-counter purchases and sales.
👉 The actively managed fund has a high expense ratio of 2.5%, which translates to $25 in yearly fees subtracted from fund performance for every $1,000 invested.
👉 The Bitwise 10 Crypto Index Fund is rebalanced monthly to reflect changes in cryptocurrency prices and invests in the top 10 cryptocurrencies (as determined by market size).
👉 The two biggest cryptocurrencies in size are Bitcoin and Ethereum, which account for 61% and 29% of the underlying portfolio, respectively.
First Trust Indxx Innovative Transaction & Process ETF
👉 Another large wager on cryptocurrency is the First Trust Indxx Innovative Transaction & Process ETF. The fund is the most diverse cryptocurrency ETF on our list since it has 103 equities.
👉 Additionally, First Trust is a large, well-known business that has produced various investment products, which may satisfy the needs of certain investors concerned about track history and fund manager reputation.
👉 One of the most cost-effective alternatives on the market is the First Trust Indxx Innovative Transaction & Process ETF, which has an annual expense ratio of 0.65%. Diversification is not a magic solution for investing in cryptocurrencies, however.
👉 This ETF has only increased 30% since its introduction in 2018, outperforming most of its peer crypto fund groups.
👉 Nevertheless, it offers extensive exposure to the cryptocurrency sector, including numerous foreign tech businesses that can be more difficult to find for investors living in the United States (12% of the portfolio is made up of Chinese companies).
Global X Blockchain & Bitcoin Strategy ETF
👉 According to the Global X Blockchain ETF, blockchain technology has much more applications than simply cryptocurrencies. Therefore, it invests proportionally in 25 technology and Bitcoin mining firms that are leaders in cryptocurrencies and blockchain technology.
👉 This brand-new ETF product launch just began in July 2021. The fund’s yearly cost ratio is an affordable 0.5%. This new fund is worth a serious look if you are interested in gaining exposure to crypto miners and technology businesses vital to the growth of blockchain, such as Coinbase.
Bitcoin Futures
👉 Futures are agreements between two investors to speculate on a cryptocurrency’s future price. They provide a way for Nigerian investors to get exposure to certain cryptocurrencies without buying any.
👉 In that they enable bets on an underlying asset’s price trajectory, cryptocurrency futures are like conventional contracts for commodities or stocks. Currency futures contracts are traded on the Chicago Mercantile Exchange and other marketplaces.
👉 At the start of December 2017, CBOE launched its first Bitcoin futures contracts. However, they were immediately withdrawn. The Chicago Mercantile Exchange (CME) also released Bitcoin futures contracts in December 2017.
👉 Cash settlement is the standard for all contracts executed on the Globex electronic trading platform. In addition, the CME CF Bitcoin Reference Rate and CME CF Ether Reference Rate serve as the trading base for all Bitcoin and Ether futures.
Trade Bitcoin Options
👉 Like Bitcoin futures, Bitcoin options are derivatives contracts that provide a trader or investor the option, but not the obligation, to buy or sell Bitcoin by a certain date and at a specific price (strike price) (expiration date).
👉 Trading Bitcoin options is preferable to buying Bitcoin since buying options will cost less than buying the asset directly (the premium).
👉 Instead of buying and holding Bitcoin, Bitcoin options provide leverage to place speculative wagers (i.e., upward, or downward) on the price movement of BTC.
👉 The notion of offering Bitcoin options is fantastic, given the volatility of digital assets. They allow you to profit from a price fall without suffering the loss of holding the actual currency.
👉 However, Bitcoin options also allow you to profit from a price gain just as you would if you were holding the money.
👉 Moreover, for traders and investors familiar with cryptocurrencies, Bitcoin options are a fantastic choice. Losses are limited to the premium paid to start the contracts, which, combined with Bitcoin’s extraordinary volatility, results in significant profit margins.
👉 Two of the most attractive and sought-after features of trading Bitcoin options are the limited losses and boundless profit possibilities.
Invest in Companies involved in Blockchain Technologies
👉 The blockchain market is new but expanding quickly. Distributed ledgers, or blockchains, are databases kept in every computer in a network. In cryptocurrencies like Bitcoin, they are used to keep a trustworthy and decentralized ledger of transactions.
👉 Blockchains eliminate the need for a central authority by providing a secure and immutable record of transactions.
👉 Many diverse types of businesses operate in this sector, including financial technology (fintech) firms, cryptocurrency miners, and blockchain technology manufacturers.
Coinbase Global (COIN)
👉 Coinbase Global is a global supplier of financial infrastructure, including cryptocurrency-specific transaction services and technologies. The firm’s platform allows retail consumers to invest, spend, save, earn, and utilize Bitcoin.
👉 The platform also allows crypto-ecosystem partners to construct blockchain-based apps and safely accept cryptocurrency payments. In addition, it offers institutions access to a vast pool of liquidity for trading digital assets.
Monex Group, Inc. (MNXBF)
👉 Monex Group is an online banking firm located in Japan. It runs online retail brokerages in Japan, the United States, China, and Australia.
👉 Additionally, the firm provides services in asset management, investing education, mergers and acquisitions (M&A) consulting, international foreign exchange (forex), and cryptocurrency exchange.
Canaan, Inc. (CAN)
👉 Canaan is a supplier of high-performance computing technologies located in China.
👉 The company’s primary areas of expertise are in creating high-performance application-specific integrated circuit (ASIC) computer chips and related areas such as chip R&D, computer equipment production, and software services.
👉 Canaan, Inc. develops innovative technology such as AI chips, algorithms, and system-on-a-chip (SoC) integration and offers various AI services.
HIVE Blockchain Technologies Ltd. (HIVE)
👉 HIVE Blockchain Technologies is a Bitcoin mining firm situated in Canada. The firm operates data centre facilities in Canada, Sweden, and Iceland powered entirely by renewable energy and used to mine digital currencies such as Bitcoin and Ethereum.
Bitfarms Ltd. (BITF)
👉 Bitfarms is a Bitcoin mining firm situated in Canada. It also provides technical maintenance, data analytics, electrical engineering and installation, and mining.
👉 It has two main lines of business: the first is the management of server farms for blockchain transaction validation and verification, and the second is the provision of electrical services to businesses and households in Quebec.
The Best Bitcoin Brokers in Kenya
👉 In this article we have listed the best Forex Platforms in Kenya that offer trading platforms in Kenya. We have further identified some forex brokers that offer additional services and solutions to Kenyan traders.
Best MetaTrader 4 / MT4 trading platform broker in Kenya
👉 Overall, Exness is the best MetaTrader 4 / MT4 trading platform in Kenya. Exness has offices in Cyprus, the United Kingdom, Seychelles, South Africa, the British Virgin Islands, and Curaçao.
👉 Exness provides a number of benefits such as low commissions, instantaneous order execution, and the opportunity to withdraw money immediately via various instant withdrawal alternatives.
Best MetaTrader 5 / MT5 Forex Platform broker in Kenya
👉 Overall, HF Markets is the best MetaTrader 5 / MT5 trading platform in Kenya. HF Markets was previously known as HotForex. It offers a variety of pricing alternatives and account types. HF Markets has competitive fees and spreads that average 0.1 for the EUR/USD currency pair.
Best Forex platform for beginners in Kenya
👉 Overall, Tickmill is the best trading platform for beginners in Kenya. Tickmill is reputable and trustworthy forex and CFD broker. Tickmill is regulated by top-tier regulators like FSCA (South Africa), FCA (UK), and CySEC.
👉 Tickmill offers instant internet banking deposit methods and quick bank transfer withdrawals.
Best Minimum Deposit Forex platform in Kenya
👉 Overall, FBS is the best trading platform for the lowest minimum deposit in Kenya. FBS is in operation since 2009 and has evolved to become a large, reputable international forex and CFD broker. FBS offers competitive trading conditions, a range of accounts, advanced trading tools, and several other advantages to Kenyan traders.
Best ECN Forex platform in Kenya
👉 Overall, Oanda is the best ECN platform in Kenya. Oanda gives customers access to a variety of financial products for seasoned investors.
👉 Oanda offers quick and reliable transaction execution. Oanda’s research resources are superior to industry standards. Its user interfaces are easy to understand and it has a good track record of regulatory oversight.
Best Islamic / Swap-Free Forex platform in Kenya
👉 Overall, BD Swiss is the best Islamic Forex Broker in Kenya. BD Swiss is a well-regulated and reputable broker with a large international clientele. BD Swiss offers a wide range of products for trading. BD Swiss also offers trading in many cryptocurrencies.
Best trading platform Forex Trading App in Kenya
👉 Overall, OctaFX has the best forex trading app for traders in Kenya. OctaFX operates from Saint Vincent and the Grenadines. OctaFX serves traders from all over the world, including those in African countries like Kenya.
👉 Kenyan traders can trade forex currency pairs, Index CFDs, commodities, and cryptocurrencies with OctaFX’s award-winning services from investors around the world.
Best Lowest Spread Forex platform in Kenya
👉 Overall, Alpari is the best Low spread Forex platform in Kenya. Alpari is trustworthy and reliable as a market maker broker. Alpari is regarded as a broker with a low level of risk. Trading speeds are guaranteed to be swift. More than 2 million customers are enrolled with Alpari.
Best Nasdaq 100 Forex platform in Kenya
👉 Overall, FXTM is the best Nasdaq 100 forex platform in Kenya. FXTM aims to provide the best trading conditions for traders of all levels. For the safety and security of their clients’ cash, they keep such funds in segregated accounts.
👉 The broker is ideal for active trading and investment opportunities for traders of all skill levels.
Best Volatility 75 / VIX 75 Forex platform in Kenya
👉 Overall, AvaTrade is the best Volatility 75 / VIX 75 Forex Platform in Kenya. AvaTrade is trustworthy and well regulated. AvaTrade offers a single live trading account but traders have the choice to trade with either a Retail trading account or a Professional trading account.
Best NDD Forex platform in Kenya
👉 Overall, XM is the best NDD forex platform in Kenya. XM is regulated by strict financial regulators in all relevant jurisdictions. XM offers a balanced mix of all the features that users value: security, support, ease of account funding, and withdrawal. XM charges low fees.
Best STP Forex platform in Kenya
👉 Overall, Pepperstone is the best STP Forex platform in Kenya. Pepperstone gives traders across the world access to all markets backed up by very good customer care. Pepperstone also offers modern technology, low spreads, and high-speed execution.
Best sign up bonus trading platform in Kenya
👉 Overall, FP Markets is the best Sign Up bonus trading platform in Kenya. FP Markets offers stocks, indices, foreign exchange (forex), commodities, and cryptocurrencies to trade. FP Markets has a user-friendly mobile app and a variety of account types to choose from.
Understanding how trading platforms work
👉 Online trading has enabled virtually anyone with internet access, the funds to open a trading account, and a somewhat positive past financial history to participate in the market. It is not necessary to have a personal broker or a large sum of money lying around to do it, and the majority of analysts believe that trading stock is no longer a sign of impending doom.
👉 Although the market has become more accessible, this does not mean that you should take internet trading lightly.
👉 Before you can engage in online stock trading, you must first select an online broker. Your online broker will handle trade execution and will keep track of your funds and shares in an account.
👉 Furthermore, many businesses offer varying degrees of assistance, various types of accounts, and additional services. There are a few things to consider when looking for a broker, which are listed below.
Advantages and Disadvantages of Investing in Bitcoin
Advantages of Investing in Bitcoin
👉 Even though Bitcoin was introduced in 2009, there are many misconceptions about it, and it is still seen as revolutionary money. Knowing Bitcoin’s benefits will enable you to decide whether it is a sensible investment.
➡️ One of the main advantages of cryptocurrencies is that they often have no geographical boundaries. Another key benefit of Bitcoin is that it is a highly flexible and accessible form of money.
➡️ Even though Bitcoin users may have many public keys and are traceable by numbers, they are not entirely anonymous. As a result, there will be no public surveillance, and the user cannot be identified via their transactions.
➡️ Since a central bank or government does not control Bitcoin, it is a decentralized currency. This suggests that the government will not likely grab your money and demand payment.
➡️ The price of Bitcoin might change drastically monthly or even daily. This indicates that despite Bitcoin’s large price volatility, consumers of other cryptocurrencies may see this as a benefit since it may provide a high return potential. Additionally, many investors and businesses have embraced Bitcoin as a legitimate worldwide currency as its user base grows. This raises the possibility of a bigger return, especially for those who paid less for the item.
Disadvantages of Investing in Bitcoin
👉 Despite its rapid growth and increasing user base, there are drawbacks to Bitcoin, especially if you are considering investing in it.
➡️ Like many other financial decisions, your ability to decide if Bitcoin is a wise investment depends on how much information you have at your disposal.
➡️ Satoshi Nakamoto set a limit of 21 million Bitcoin when they created the cryptocurrency, which is why some people think it is very uncommon. However, Bitcoin is unbelievably valuable due to its limited quantity. Yet, the only thing that can be altered to ensure its continuing demand is its variable price. Additional factors that affect Bitcoin’s volatility include security breaches, unpredictability around its future value and use, and unfavourable news that attracts attention and is perceived unfavourably by investors.
➡️ Unlike a currency controlled by a central bank, Bitcoin transactions are often irrevocable and unprotected by law, leaving them vulnerable to fraud.
➡️ Since Bitcoin transactions are unregulated and anonymous, a further drawback is the lack of security. For example, suppose the wrong amount or recipient is transferred. In that case, nothing can be done since Bitcoin transactions are irreversible and final.
➡️ Although many businesses, like Microsoft and certain Subway outlets, accept Bitcoin, it is still not widely accepted. This limits your ability to spend your money instead of utilizing a credit or debit card.
Conclusion
👉 For Kenyans new to cryptocurrency investing, Bitcoin is a suitable place to start. In addition, Bitcoin has the longest record of accomplishment in success for Kenyan investors to consider. Bitcoin has sharply risen in value over the last ten years since its launch in 2009.
👉 Several experts equate it to “digital gold” as a long-term value store. But like with any investment, it is crucial to do basic research and comprehend the dangers.
FAQ
How do I invest in Bitcoin with M-Pesa in Kenya?
To invest in Bitcoin through M-Pesa in Kenya, traders can sign-up for a Paxful account. Alternatively, Kenyans can register online accounts with other crypto exchanges that support M-Pesa as a payment method.
How much KES must I invest in Bitcoin?
You need not invest a set amount in Bitcoin. Instead, you can invest any given amount with which you are comfortable. However, depending on your investment, you must consider trading and non-trading fees on the exchange or broker you use.
Which app can Kenyans use to invest in Bitcoin?
One of the best apps for buying Bitcoin is Coinbase.
How can Kenyans profit from investing in Bitcoin?
One of the best ways for Kenyans to profit from a Bitcoin investment is through long-term buy and hold strategies.
Is it legal to invest in Bitcoin in Kenya?
Yes, it is legal to invest in Bitcoin in Kenya.
Top 4 Brokers
