- Cryptocurrency trading and investing is gaining traction around the world as one of the trends in digital currency
- Although crypto is unregulated in Kenya, the country is among the top 20 global economies with the highest number of people owning the currency
- William Nanjero, a digital financial services expert, explains the steps to crypto investing and use cases
In July 2022, a new report from the United Nations Conference on Trade and Development revealed that Kenya holds the largest share of the African cryptocurrency market.
Introduction of cryptocurrencies in Kenya
Kenya ranked fifth among the top 20 global economies with the highest number of people owning digital currencies, even beating developed economies like the United States and the United Kingdom in crypto adoption.
But what could be driving this rapid adoption of cryptocurrencies in Kenya? How can new investors get involved and make money, what are the risks involved and how do you navigate the risky market?
The Ethereum blockchain completes the “monumental” overhaul
PAY ATTENTION: Share your outstanding story with our editors! Please reach us via firstname.lastname@example.org or WhatsApp: 0732482690.
What is a cryptocurrency to start with?
Tuko Biashara had a 30 minute conversation with a digital financial services expert, William Nanjero, and he had a simple answer.
“Cryptocurrency is basically any currency on a digital platform, that’s the most basic way to explain it to me. There are thousands and thousands of cryptocurrencies out there,” he said.
Nanjero is General Manager at Sol Generation. He also advises the International Finance Corporation (IFC) and advises banks, mobile network operators and fintechs.
Crypto, which has been defined simply as digital currency, exists on a technology called blockchain.
“Blockchain is a memory of a ledger… (let’s say) if you have a digital asset and you want to store it in a way that is secure, can’t be tampered with or stolen, blockchain technology makes that easier,” Nanjero explained.
TUKO.co.ke hosts exclusive webinar for ecopreneurs with digital finance expert William Nanjero
“Blockchain technology is decentralized, which means that you and I can both initiate, store and own this asset… Based on the same concept, crypto is decentralized, which means the rules are not defined by any authority.”
As we continued with the interview, it quickly became clear that Nanjero has a passion for digital currencies.
His gesture and eloquent explanation of facts and ideas showed that he is versatile in the financial sector, especially in the areas of digital assets and fintech.
Nanjero noted the fact that cryptocurrency is not limited to the borders of any country. Therefore, it is not regulated in Kenya.
“This is a very important issue that we are discussing. I want to be very careful when talking about popularity as crypto is not limited to the borders of any country.
“There is no legal framework for crypto in Kenya. For example, I can’t go to the only generation store and buy a product with cryptocurrency.”
Woman collects 886.9 million KSh from fake cryptocurrency transaction and buys mansion in Australia
He said there are over ten thousand cryptocurrencies including Bitcoin, Ethereum and Solanas.
According to the fintech guru, most of these coins have been significant in global digital payments.
“One of the biggest use cases for crypto is payments. It enables fast, easy and efficient cross-border payments. For example, if I want to buy a Ferrari in Italy, I can initiate it very quickly via crypto as opposed to traditional services like fiat, which are regulated by both local and international regulations.”
Kenya’s leading telecommunications company Safaricom has launched a virtual Visa card on its M-Pesa platform to facilitate global payments.
Safaricom noted that the card will reduce the cost of converting foreign exchange to the local currency used in online payments.
But for Nanjero, such costs can be avoided by using crypto coins to make global payments.
“M-Pesa operates within the legal framework of Kenya’s fiscal policy. Crypto does not compete with M-Pesa in Kenya to facilitate payments because, as I mentioned, there is no regulatory framework.
Economist advises Ruto to carefully print more money to employ all unemployed to make up for cash deficit
But when it comes to cross-border transactions, the use case for crypto is much larger than for M-Pesa. Compared to the global M-Pesa payment card, the difference is in the cost. How much does it cost if I use M-Pesa or Crypto to make a transaction in Brazil for example?
The turning point in our conversation was crypto investing and what you must dare.
Nanjero said the first step is to understand the fundamentals of the currency, just like any other form of investment.
“Let’s say you want to invest in Bitcoin. The basics are known, you can research what bitcoin is, how it is mined and traded and where it is accepted.”
“Then you have to understand the demand and the supply, the authenticity and how many people are using the coin.”
The investor should also understand the wallet and the efficiency it allows in converting currency.
12 Greatest African Inventions That Changed the World
The risk profile that you possess as an investor is another fundamental to consider when investing in crypto.
“…how much money are you willing to put away that you know won’t come back. This should be income you don’t need, shouldn’t be money fueling your basic needs…it’s your disposable income. Be patient too.
“Look at the coin itself, who are the founders of this coin, what do they do, what are the use cases and the success stories of the people who trade it.”
Sol Generation CEO said Bitcoin has invested heavily in its distribution services to enable exchange to US dollars and payments at cafes and hotels worldwide.
Nanjero told us that the crucial step in crypto trading is choosing the right exchange house that is properly registered and regulated in a country.
This reduces the risk of hoarding money in fraudulent exchange offices and losing it.
20 Kenyan entrepreneurs who started small and became successful
“An exchange is a market that facilitates the buying and selling of crypto, all coins and assets. Conduct background research on the trading history of the exchange.
“Find an exchange office that will give you a wallet, fund your wallet, buy the coin and it will be in your wallet.”
He noted that the only way to improve the digital currency environment is for the private sector, policymakers and consumers to work together.
How to start crypto trading
For starters, he recommended finding a trustworthy crypto broker who understands market trends.
“You only need a shilling to start. I would not recommend you to buy outright because you may not understand the market trends, when to buy and when to sell when it is a bull or bear market and it can get very technical at times. Get in, work with someone who’s done this before, learn, gain the confidence and start building your portfolio on your own,” he explained.
12 richest people in Tanzania in 2022
The exchange house should provide you with a platform (app) that is easy to use – able to sell, buy, check trends and history and mine your coins.
“One piece of advice I always give is to build a community of people with the same investment ideas, risk appetite and goals, and then you will win together,” advises Nanjero.
Nanjero explained that Digital applies the same investment principles — short-term (0-6 months), medium-term (1-2 years), and long-term (over 10 years) — that consider different asset classes.
For example, bitcoin and etherium, which are very easy to liquidate assets, may be good for months 0-6 and other coins for months 6-1 and long-term.
“Bitcoin and Ethereum are different because they’ve spent a lot of time building the trust element around their brand.
“They have built a strong distribution network. You can go to Portugal, have a coffee and pay with bitcoin.”
Who is the poorest person in the world? Meet Jerome Kerviel
He noted that the coins have a solid business that has developed through continuous innovation.
“Ethereum and Bitcoin are currently working on a technology that will make mining cheaper, which is crucial as one of the cheapest spends in this industry is mining,” he said.
Nanjero revealed that digital currency is an opportunity for youth to build traditional industries and add value.
He said the creative industries can leverage the trends in digital currency to maximize value for artists.
“Right now, an artist doesn’t have to physically distribute their song to a club or a radio station. You can take your digital asset, publish it as an NFT and make money from it.
“We want to build a platform where any creative person, anyone in Samburu who has an artwork, can exchange that artwork and make money from it.”
Top 6 Investment Banks in Kenya
The CEO noted that innovation lays the foundation for the future generation.
Kenyan founds billion-dollar PR firm with KSh 10,000
In separate messages TUKO.co.ke reported on Lindah Kiyeng, Chief Executive Officer (CEO) and founder of a public relations firm, Lindah Kiyeng Communications.
Kiyeng started the deal immediately after its closing in 2017 with 10,000 KSh and today can boast a net profit of up to 500,000 KSh per customer.
PAY ATTENTION: watch the news closely for her ➡️ Find the Recommended for you block and enjoy!