What are NFTs in Kenya
What are NFTs in Kenya revealed. We tested and verified the best guide to what NFTs are for Kenyan Traders.
This is a complete guide to NFTs in Kenya.
In this in-depth guide you’ll learn:
- What is an NFT?
- How to create an NFT as a Kenyan trader?
- What does non-fungible mean?
- What are examples of NFTs?
- How can I trade Bitcoin for $5 (602 KES)?
- Which brokers offer a signup bonus on a $5 (602 KES) deposit?
And lots more…
So if you’re ready to go “all in” with the best-tested guide to NFTs in Kenya…
Let’s dive right in…
Are NFTs cryptocurrency?
👉 Despite their differences, mainstream investors can be forgiven for confusing cryptocurrencies and NFTs.
👉 While cryptocurrency was the first of its kind, widespread awareness of blockchain technology emerged simultaneously. Therefore, the NFT industry is a spinoff of the cryptocurrency industry since NFTs are often traded using cryptocurrencies, and the same people participate in both industries.
👉 Both are constructed using the same programming language and encoded with the same underlying software. Both are stored in digital wallets, but that is the extent of their similarities.
👉 Cryptocurrencies, like Bitcoin, are digital payment systems that are both decentralized and encrypted and are neither issued nor backed by any government or financial institution.
👉 On the other hand, the value of cryptocurrencies is derived from cryptographic evidence of transactions that have been confirmed and recorded on a blockchain. Unique works of art such as photographs, songs, and videos may be represented in the form of NFTs.
👉 While it is theoretically possible to make an infinite number of copies of a digital image, the same cannot be said of Picasso or an oil painting.
👉 The blockchain technology that made cryptocurrencies so popular is also used to create NFTs. These digital files could represent ownership of anything. They are mostly stored on the Ethereum network, but you can also find them on other blockchains.
👉 Like cryptocurrencies, NFTs can never be held by more than one person at a time. However, blockchain technology makes it simple to verify ownership and transfer tokens from one person to another.
Overview of NFTs for Kenyans
👉 Non-fungible tokens (NFTs) are unique digital assets that can serve as an unalterable proof of ownership when connected to real-world assets.
👉 It is possible to associate the information stored in an NFT with other digital artifacts like photos, videos, and characters. However, they may also be utilized to provide NFT owner access to exclusive items, live or digital event tickets, or be tied to assets like automobiles, yachts, and more.
👉 This is because NFTs facilitate the creation, purchase, and sale of goods transparently via blockchain technology. Many NFTs are created and stored on the Ethereum network, but other blockchains (like Flow and Tezos) also support NFTs.
👉 Because the blockchain is publicly accessible, NFT ownership can be easily verified and tracked. At the same time, the identity of the token’s owner can remain concealed.
👉 Tokenization can be applied to various digital assets, including artwork, game assets, and even still images and videos from live broadcasts. The digital asset’s file size is irrelevant since it will stay outside of the blockchain even after the NFT conveying ownership has been inserted.
👉 Depending on the NFT, the copyright or license rights could not come with the purchase, although that is not usually the case. In the same way, purchasing a limited-edition print does not automatically endow the buyer with ownership of the print’s subject matter.
👉 NFTs have the potential to be used in many fields outside of the arts if the underlying technology and concept continue to develop.
Understanding How NFTs Work
👉 Most NFTs are created and kept on the Ethereum blockchain. However, many other blockchains, such as Solana, Polkadot, Flow, Tezos, and others, support NFTs.
👉 When an NFT is minted, its association with a certain asset is entered into its attributes, like a certificate associated with the NFT. This means that an NFT can function as a digital representation of an item or proof of ownership for a range of assets.
👉 One of the key features of blockchain is that its records cannot be altered, which ensures transparent disclosure of information. Therefore, representing unique assets on the blockchain by using NFTs makes sense.
👉 Subsequently, anyone with an NFT representing a real-world asset can be certain of their ownership of the item thanks to blockchain technology. Furthermore, once Kenyans create (mint) an NFT through an NFT platform, it can be listed on a marketplace or held until they wish to sell it.
👉 NFTs can represent several items, including but not limited to, some discussed below.
👉 Several companies worldwide tend to rally around sports figures and use NFTs. They can allow people worldwide to own unique items such as stills, autographed photos, sports, cards, and more.
👉 This is one of the most popular types of NFTs, allowing artists from around the world to highlight their designs online. Some art NFTs have sold for millions, and because of asset tracking capability, artists can attach their ownership of real-world art to NFTs.
Memes or Tweets
👉 Memes are known across social media platforms, and it should not be surprising that they have a place in NFTs. The subjects of these images can sell them on different marketplaces; the same can be said for Tweets.
👉 Tweet NFTs relate to a specific tweet and not a Twitter account. Subsequently, when you purchase a tweet, it does not mean that you can delete the tweet. Instead, people tend to buy Tweets that hold some significance, giving online creators the chance to monetize content such as jokes or media.
👉 NFTs are also popular in several games, such as Axie Infinity, The Sandbox, Decentraland, and others. This helps gamers set themselves apart by choosing a unique outfit, weapon, powers, or skills.
👉 If gamers grow tired of their items, they can easily sell them on marketplaces and move on to the next trendy item.
👉 Electronic books (eBooks) have slowly replaced paperbacks and hardbacks in the past few years. These digital iterations are, therefore, viable options for conversion to NFTs.
👉 The books are available in the same manner as other eBooks, with the difference that their ownership is accompanied by a signed NFT by the author, making them a unique item.
👉 eBook NFTs are also set apart from regular editions by introducing unique features, including the author’s commentary, a limited-edition artwork, or more.
👉 These files are still submitted via email or through an off-chain app, with the NFT attached to them being transferred to the owner’s digital wallet.
👉 Music is another popular area where NFTs have become popular. Musicians can tokenize snippets or full songs and sell them for a profit. This also allows fans to support their favourite artists and ensures that the artist receives royalties for their work.
How can NFTs be created, bought, and sold in Kenya?
👉 There is no restriction on who could create NFTs, given that users have the necessary tools to mint a token of their own. However, Kenyans need a digital asset they have created, or they must have sole ownership of one.
👉 However, while minting, buying, and selling NFTs may sound simple, there is a lot more to it. Buying an NFT is different from walking into a store, selecting an item, checking out, and going home with it.
👉 Kenyans need cryptocurrency to finance their NFT transactions and a digital currency wallet where they can safely store the data when they mint, purchase, or keep NFTs.
Choose a Crypto Wallet
👉 Any Kenyans with experience in trading cryptocurrency will understand the function and importance of a crypto wallet.
👉 However, for those new to the concept, a crypto wallet can be described as a physical device (USB) or a software application or program where you store and transfer digital assets.
👉 Two of the main types of wallets are software and hardware wallets. While each has its own features, pros, and cons, a software wallet is the best option for minting NFTs and participating in short-term trades.
👉 However, for safety reasons, you must also have a hardware wallet where you keep most of your funds offline.
➡️ A software or “hot” wallet is an application you can download and install to your computer or phone or use on a mobile or computer browser. Software wallets are versatile and more accessible than hardware wallets, attributable to their constant Internet connection. However, this makes them more vulnerable to attacks and security breaches.
➡️ Hardware or “cold” wallets are physical devices that resemble flash drives used to store documents and other files. However, in this case, you use it only to store the private keys to your crypto funds and NFTs. As a result, these wallets are isolated from the network. As a result, they are less vulnerable to online attacks but not impervious to theft. Therefore, keep your physical wallets secure.
Buy Some Cryptocurrency
👉 Some NFT Marketplaces will allow you to purchase NFTs using fiat currency through bank wire transfers or cards. However, most marketplaces only accept payment in cryptocurrency. Many marketplaces allow Ethereum (Ether or ETH) as the leading crypto used for transactions.
👉 ETH is the native currency for Ethereum’s blockchain. Kenyans can purchase it in a few ways, including through exchanges such as Coinbase, Binance, and Gemini, which allow Kenyans to purchase Ethereum using fiat currency.
👉 However, Kenyans will find that fiat payments attract high transaction fees. Furthermore, Ethereum is, alongside Bitcoin, a cause for concern regarding environmental matters, at least until Ethereum upgrades to a Proof-of-Stake consensus which is more environmentally friendly.
👉 Alternatively, Kenyans can consider marketplaces that allow Solana (SOL), Binance Coin (BNB), Tezos (XTZ), or Flow (FLOW), among others. However, if you are a beginner, experts recommend using Ethereum until you have expanded your knowledge of crypto and NFTs.
Find a Suitable Marketplace
👉 When you seek a marketplace, you should consider whether you want to mint NFTs and whether to mint one at a time to put it up for action, or as an individually priced collection. If you want to mint and action collections, such as art or music, consider OpenSea.
👉 OpenSea is popular and has over 1 million users, ensuring you will get more exposure and traffic. In addition, Rarible and LooksRare are popular competitors to OpenSea.
👉 In contrast, if you want to mint individual NFTS, you can consider platforms such as SuperRare, Foundation, or Zora. These platforms are selective when it comes to artists and when you are selected, you can rest assured that you will get more exposure.
👉 Kenyans must note that there are certain costs associated with minting NFTs. Users will be subject to a gas or transaction fee when they mint. However, some marketplaces charge additional fees when NFTs are bought and sold.
👉 In addition, Kenyans must ensure that they thoroughly research royalty splits. For example, users are not guaranteed to have cross-platform royalties on certain marketplaces such as Rarible or OpenSea.
👉 However, a few smart contract tools combat this by ensuring that splits are automated. This ensures that the artist will receive secondary sales royalties regardless of where their NFTs are sold and resold.
Mint Your NFT
👉 New NFTs are created by “minting” them. This procedure involves associating a specific set of data, or the NFT, with its real-world object. When you choose an object to tokenize, you must remember that you must be the copyright owner and own the intellectual property rights for that specific item.
👉 This process requires care, and if you create NFTs of items you do not own, you may end up in legal battles with the rightful owner.
👉 Once you have selected a suitable marketplace and created an account, you can start minting your NFT.
👉 Every marketplace has its unique process, but it typically involves uploading the file you want associating with your NFT and funding the transaction using Ether or another supported crypto according to the blockchain you use.
👉 You could also mint a physical, real-world object. However, the process is extremely complex and above the experience level of most users. Once you have completed the minting procedure, you will receive the necessary information about your new NFT.
👉 In addition, this NFT will be registered to your digital wallet, where you can hold it or trade/sell it if you wish.
Buy/Sell NFTs on a Marketplace
👉 Kenyans must remember that some NFTs are unavailable across all marketplaces, and some can only be purchased from a specific vendor. For example, Larva Labs is the only vendor for CryptoPunks.
👉 However, while these NFTs are no longer for sale, they can be traded via different marketplaces. Thus, when you find an NFT that you want to buy, you could buy it outright. However, in some cases, you might need to bid on the NFT and wait until the auction closes.
👉 Suppose you are the top bidder of the NFT once the auction closes. In that case, the transaction will complete automatically, and the NFT will be transferred to your wallet. Once it appears in your wallet, you can hold, sell, or trade it on a compatible marketplace.
👉 Selling an NFT works the same way as acquiring one. To sell an NFT, you can set up an auction on a marketplace where users will bid on it. However, before you do this, make sure that you understand the fees and different auction options available.
👉 When the auction concludes, the NFT will automatically be transferred from your digital wallet to the new owner.
What is the Environmental Impact of NFTs?
👉 The NFT growth is not without its disadvantages. For example, the energy required to maintain a large blockchain network, such as Bitcoin and Ethereum, are two of the most often voiced critiques.
👉 These blockchains use more energy than most countries because of the energy consumption of computers to solve the algorithms to mine blocks.
👉 Many claims that NFTs add to the total carbon footprint of blockchain since they encourage the technology’s usage. Nevertheless, blockchain would continue to consume the same amount of energy even if everyone stopped using NFTs tomorrow.
👉 This is because transactions do not increase the network’s energy consumption. The reason relates to blockchains continuing to operate at the same rate and energy usage regardless of whether there are pending transactions.
👉 Even if this were not the case, many other technologies have comparable energy requirements. For example, YouTube and Ethereum have identical carbon footprints.
👉 This is not an acceptable justification for blockchains and the carbon footprint they produce. However, it is essential to put the problem in its appropriate perspective.
👉 In addition, several blockchains have already begun to address the energy issue. Solana, for instance, utilizes a novel mix of proof-of-history (PoH) and proof-of-stake (PoS) techniques to minimize energy consumption significantly.
👉 In addition, Tezos’ Liquid Proof-of-Stake (LPoS) method requires about two million times less energy than Ethereum’s. However, it must be noted that Ethereum is busy changing its consensus method from Proof-of-Work to Proof-of-Stake, which will reduce its environmental impact significantly.
What NFT Scams must Kenyans look out for
👉 NFTs are still a new phenomenon. Subsequently, the market is still extremely vulnerable to scams that take advantage of unsuspecting users. We have listed some of the most elaborate and recurring scams for Kenyans to acknowledge and look out for when they navigate the NFT space.
👉 As with stocks and other collectibles, NFT auctions are susceptible to market manipulation.
👉 A group of prospective purchasers may push up the price of an NFT by increasing the bid price artificially until an unwary bidder enters the fight. The item loses value after the sale, leaving the buyer with an NFT that has no worth.
👉 Wash trading is one of the most prevalent methods of achieving this using NFTs. When one user handles both the sale and purchase of a given NFT, a practice known as “wash trading” takes place.
👉 When several transactions of this kind are conducted, the trading volume increases. Consequently, the underlying asset is in great demand. This has the effect of boosting the price (value) of the affected NFT.
👉 Even though collectors prefer big generative projects, there may not always be safety in numbers, and no NFT project is risk-free.
👉 Several enterprises have failed to owe to rug pull frauds. A rug pull happens when the developers of an enterprise take the investment funds and vanish
👉 Notably, these practices are often not illegal, but they may be very immoral. For example, little can be done if a project claims to give funding but subsequently decides to retain the money. Rarely, a rug pull may constitute fraud, although this is often not the case.
👉 Rug pulls may also occur when NFT developers eliminate investors’ ability to sell tokens. This rug pulls unlawful, and you may be eligible for a refund. However, it will result in a protracted legal struggle.
👉 Furthermore, many NFT inventors do not use their legal identities, making locating them difficult (if not impossible).
👉 Scammers will occasionally request your private wallet keys and other sensitive information, such as your seed phrase, through deceptive advertisements, NFT giveaways, or other forms of coercion.
👉 The fraudster could then use the information they have obtained to empty your wallet of any bitcoin or NFTs and sign transactions on your behalf.
👉 Since blockchain is decentralized and frequently anonymous (no regulatory authority and people do not have to show evidence of identification to use it), there is often no way to retrieve your funds if this occurs.
👉 Like password phishing emails, these scams come in various forms and may be difficult to notice if you are not searching for them.
👉 Remember, you should never discuss your seed phrase or private keys with anybody, lest somebody get access to your cash. You should only click on links from legitimate websites and accounts.
Why Should Kenyans consider owning NFTs?
👉 Recently, there has been an incredible increase in interest in NFT artwork. Although, many people still doubt it. Considering that NFTs are normally associated with digital files, this makes sense.
👉 Kenyans still on the fence about whether to invest in NFTs can consider the following reasons to participate in NFTs.
They become a part of an NFT Community
👉 Many creators have turned their NFT projects into thriving communities, demonstrating another social benefit of NFT ownership. The Bored Ape Yacht Club is the greatest example of community development in connection to an NFT project.
👉 Members of the collector community may participate in shaping the project’s future, get access to a private discord, purchase virtual meeting tickets, and more. As such, for many collectors possessing an NFT, how they connect with friends and a matter of identification.
It empowers creators and artists
👉 Publishers, producers, and auction houses routinely strong-arm creative into contracts that do not suit their interests.
👉 Using NFTs, creators own full rights to their work and profit from sales without relying on an agent. In addition, from any resale of their work, artists are entitled to royalties.
👉 Many people buy NFTs to empower and financially support the creators that they love, and this is because NFTs have the potential to create fairer models than the ones currently used in the creative industries.
NFTs have collectability
👉 A Mickey Mantle rookie card from 1952 sold for $5.2 million despite costing less than 5 cents to produce. This occurred because the card has significant historical and cultural significance. The NFT is the equivalent in the digital world.
👉 For those who wish to establish a collection of digital goods, NFTs provide a unique option that has not existed outside regular collections and art markets.
They can be a Solid Investment
👉 Some NFT holders are only interested in capital appreciation. In this way, NFTs might be seen by certain collectors as an investment option, like conventional art.
👉 However, NFTs are risky because of the overall market volatility, and Kenyans should evaluate their risk tolerance first.
The Best CFD 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
👉 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.
👉 Non-Fungible Tokens are an innovative method of proving ownership of works of art, musical compositions, or anything else which might contribute to the item’s collectability.
👉 An NFT’s rising value attracts more buyers of blockchain-based tokens. This is the forefront of protecting your intellectual property rights and attracting investors to your art or other items.
👉 However, despite their popularity, they are still a risky investment, especially considering recent crypto market crashes. Therefore, Kenyans must determine their risk tolerance and whether NFTs would be a suitable investment.
👉 In addition, Kenyans must ensure they only risk what they can afford to lose and never risk more than 1% to 3% of their capital on a single asset.
Are there NFT communities in Kenya?
One of the most prominent NFT communities in Kenya is the Kenyan NFT Club, founded in 2021. Kenyan artists, collectors, and NFT enthusiasts come together in this community.
In addition, the NFT community boasts a Discord membership that exceeds 300 as of June.
Can you sell NFTs in Kenya?
You can sell NFTs in Kenya via marketplaces such as OpenSea, Rarible, and more.
How can I invest in NFTs in Kenya?
Once you have Ethereum, you can choose from different marketplaces that host different NFTs and NFT collections.
What are NFTs in Kenya?
NFTs are blockchain-based digital assets representing a unique object or assets like a music video, a song, an eBook, a piece of art, a meme, a photograph, or other media.
How do I know what my NFT is worth?
You can determine the value of your NFT by measuring the income that it generates. For example, suppose your NFT has cash flow.
In that case, you can determine the overall lifetime income you expect to receive by multiplying it by 0.10 and 0.15, giving you the overall value of your NFT.