William Nanjero: Understand the Basics Before Investing in Crypto – Tuko.co.ke | Jewelry Dukan

  • Cryptocurrency adoption is gaining traction globally and Kenya is leading the African market
  • Although crypto is not yet regulated in Kenya, the country is among the top 20 global economies with the highest number of people owning cryptocurrencies
  • William Nanjero, a digital financial services expert, explains the steps to crypto investing and other opportunities Kenyan youth can take advantage of

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.

William Nanjero, digital finance expert/person who trades crypto on the phone. Photo: William Nanjero/Getty Images.
Source: UGC

Introduction of cryptocurrencies in Kenya

Kenya ranked fifth among the top 20 global economies with the highest number of people owning digital currencies, beating developed economies like the United States and the United Kingdom in crypto adoption.

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But what could be driving the rapid adoption of cryptocurrencies in Kenya? How can new investors get involved and make money, what are the risks and how do you deal with them?

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And what is a cryptocurrency?

“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,” said William Nanjero, a digital financial services expert, in an exclusive interview with TUKO.co.ke.

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 Nanjero defined simply as digital currency, exists on a technology called blockchain.

“Blockchain is a ledger’s storage… (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,” he explained.

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“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.”

Crypto is decentralized

Nanjero noted that cryptocurrencies are not limited to the borders of one country. It is not regulated or controlled by any authority.

“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.”

He said there are over 10,000 cryptocurrencies including Bitcoin and Ethereum.

Global payment

According to Nanjero, most of these coins were useful for 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.”

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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.

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?

crypto investment

The turning point in our conversation was crypto investing and what you must dare.

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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.

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.

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“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.

Cryptocurrency Risks

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.

“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.

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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.

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.

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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.”

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.

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“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.”

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.

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Source: TUKO.co.ke

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