Cryptocurrencies in Kenya are not new, as their origins can be historically traced to early 2010, but their adoption became more prevalent when Bitcoins started reaching their peak level in Kenya around 2019 and June 2021. Furthermore, during this time, it is said that approximately 4.25 million people or 8.5% of the whole Kenyan population, at least had Cryptocurrencies, as per a report by the United Nations Conference on Trade and Development (UNCTAD).
Despite the positive growth in the country, the adoption of Cryptocurrency has, in the past, faced a backlash from the Kenyan government. For example, the Central Bank of Kenya in 2015 issued a public notice warning Kenyans against the use of various digital assets as they are not regulated. Quickly moving forward to December 2024, there is a change of tune in the future of cryptocurrencies in Kenya. The National Treasury has announced new regulations, majorly the draft of the National Policy on Virtual Assets and Virtual Asset Service Providers ( VASP Bill of 2025 ), that if they become laws, Cryptocurrencies will now officially be used in the country.
Therefore, if you are considering entering this market, the time to start is now. But if you are unaware of how cryptocurrency works, this guide has just been made for you. Here, we have provided you with a roadmap for starting the journey to Cryptocurrency trading.
What is Cryptocurrency?
In simple words, Cryptocurrency is a type of currency that exists only digitally but not as something that one can interact with physically in the real world. Unlike fiat or traditional Currencies (i.e., our Keyan currency-Ksh), Cryptocurrencies are not regulated or controlled by financial authorities since they operate purely on decentralized networks based on Blockchain technologies. This means when you transfer the Crypto funds from one wallet to another, the transactions are recorded on a public ledger, thus providing security and safety.
Several cryptocurrencies in Kenya today that have gained popularity are Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Ripple (XRP), Solana (SOL) and Cardano (ADA). For a comprehensive list of the top performing Crypto coins, see the embedded data below:
Why Trade Cryptocurrency in Kenya?
Our country (Kenya) is still a developing nation where various digital assets have yet to be fully exploited, even by those who hold some of its various coins. By the close of the 2024 financial year in December 2024, the Central Bank of Kenya (CBK) reports that about 15.2% of the adult population in Kenya does not own Bank accounts.
Since Cryptocurrency represents a new form of decentralized money over which banks and financial institutions do not have any control, it can quickly become an alternative financial solution for many Kenyans if it is well adopted due to its benefits. A few reasons as to why you should consider trading Crypto in Kenya are:
Mobile Money Integration
Various mobile Platforms in Kenya, such as Airtel Money and M-Pesa, have made it easier for Kenyans to participate in trading. Today, major cryptocurrency platforms, such as Eversend and Binance, have integrated M-Pesa, making it easier for Kenyans to convert their Cash to Bitcoins and even withdraw directly to M-Pesa.
Youthful Population
Cryptocurrencies are more common among the youthful population in Kenya than the other adult generation. About 16.9 million are youth, representing about 29% of the population, according to the National Council for Population and Development (NCPD) data for 2023. Furthermore, the youthful population in Kenya is tech-driven, making it easier for cryptocurrencies to be adopted.
Peer-to-Peer Trading Platforms
The advantage of crypto trading with platforms that support peer-to-peer trading is that it allows users to trade directly with each other. Some of these platforms in Kenya are Paxful and local bitcoins, which have seen a growth of $16.2 million in P2P trading volume in Kenya alone. Binance, which has also adopted the M-pesa as a payment method, also supports P2P trading.
However, while cryptocurrency has its benefits, it also presents tradeoffs. The Key concern that has been raised as a red flag in the past, even by the government, is that it allows for illegal activities such as money laundering or even function terrorism since it is unregulated by any authorities.
But then, this is what the VASP Bill Of 2025, Proposed by the National Treasury, seeks to address. Under this policy, all the crypto platforms must be licensed by the Central Bank of Kenya or the Capital Market Authority (CMA) of Kenya to present the possibility of illegal activity associated with them in the country.
At the same time, these regulations also open another door to the possibility of being tracked by the government since for every transaction that one makes with trading the coins, they leave a trail on the Public ledger, again questioning.
How to Start Trading Cryptocurrency in Kenya
For those looking to get started with the cryptocurrency trading journey, it may sound challenging at first, but it is not as complicated as you may think. With the right knowledge and skills, it is actually easy to get started. Below is a step-by-step process to follow to get started with trading:
Step 1: Choosing the Right Exchange
The First step to mastering Crypto trading is finding a reputable crypto broker like Binance, Coinbase, Gemini, Bitget, and so on. Here again, we advise you to read various online reviews and do proper research to compare what makes one exchange unique from the other.
Step 2: Setting Up Your Trading Account
Once you have found a trading platform that ticks all your needs, create an account with them and verify your details through the Know Your Customer (KYC) process as guided by the form. Also, to secure your account from hackers, you may want to enable two-factor authentication.
Step 3: Creating a Cryptocurrency Wallet
When trading, you will need a trustworthy wallet as it provides you with a secure means for accessing and storing your digital currencies. The wallets themselves do not really “Store” your assets, but rather, they provide you with either private or public keys, which are now required for facilitating transactions and ownership of your assets.
There are two types of crypto wallets: online hot wallets, which provide easy access to your key and are prone to hacking, and offline Cold wallets, which provide more solid security and long-term storage.
If you are just getting started, hot wallets such as Ledger Nano are an option to consider; however, if you are handling more significant amounts of coins and transactions, then consider having them in cold wallets such as Trust Wallet for safety purposes.
Step 4:Funding Your Account
To participate in a trade, you will need enough funds in your Crypto exchange account. Luckily, major exchange sites today support M-Pesa, making it a go-to solution for Kenyans. However, you can also consider other options, including bank transfers or using bank Cards in Kenya, such as Visa or Mastercard.
Step 5: Selecting a Crypto & Making a Trade
To proceed with a trade, you first need to understand some key trading concepts, such as :
- Market Orders: Buy or sell orders executed immediately at current market prices.
- Limit Orders: Set a specific price you want to buy or sell; these orders execute only when the market reaches that price.
- Trading Pairs: When trading, you’ll deal with pairs like BTC/USDT, meaning you’re trading Bitcoin against Tether (a stablecoin).
Also, when making a trade, you must understand how to conduct Fundamental and Technical analysis. The Technical aspect involves studying how the coins have performed in the past, their trade volumes, and other relevant market data. Lastly, fundamental analysis mainly consists of analyzing the true worth of the coin you are trading based on its fundamentals.
If you are new and can’t figure out this concept, don’t worry. There are many educational resources on the internet that you can use to learn. Also, try trading with a trading demo account to avoid risking your real money.
Step 6: Cashing Out Your Cryptocurrency
After making a profit on a trade ( Hopefully), you can either choose to keep your funds on the exchanges if you are considering entering another trader or even store the Crypto balances in a trusted wallet. When you are ready to convert them into Cash, if the platform you are on supports P2p Trading, you can have them sent directly to your M-Pesa wallet. However, you should also consider the transaction fees and the best rates for cashing out.
Conclusion
Well, and there you have it. We hope that this guide has equipped you with the proper knowledge on how to start Crypto trading in Kenya if you are a beginner without any experience. By following up on the fundamentals we have listed in the article, including picking up the right platform and starting a trade, we advise you to take the time to learn. If you have any questions, please comment below, and we will guide you.
