How To Make Money Online in Kenya by Trading Crypto

Last updated on October 24th, 2023 at 02:00 pm

Crypto trading has exploded in popularity in Kenya as more people look to supplement their income or even make a full-time living from this new financial market.

As a certified blockchain expert and crypto trader with over 5 years of experience, I want to provide Kenyans with an in-depth guide on how to start earning money online through crypto trading.

In this comprehensive article, we’ll cover:

• How crypto trading works and strategies to earn money
• Step-by-step process to start crypto trading in Kenya
• Tips for successfully trading crypto as a beginner
• Common mistakes to avoid
• FAQs on making money from crypto in Kenya

Let’s get started!

TLDR Key Summary Points:

• Popular crypto trading strategies include day trading, swing trading, arbitrage, options, and long term investing.
• You can get started by signing up on a suitable exchange like Paxful and verifying your account.
• Start small, practice trading skills, manage risks, learn analysis, and avoid beginner mistakes.
• Crypto trading income and capital gains are taxable above certain thresholds in Kenya.
• With the right strategies, crypto trading presents opportunities for Kenyans to earn money online.

How to Earn Money Trading Crypto in Kenya

Here are some of the most popular ways Kenyans can earn income trading cryptocurrencies online:

Day Trading

This involves buying and selling crypto coins multiple times within the same day to take advantage of small price movements. Using technical analysis, you aim to make small but consistent profits that add up over time.

Swing Trading

Holding trades for days or weeks to profit from medium-term trends and swings in the crypto markets. Unlike day trading, swing trading focuses more on overall price trends rather than short intervals.

Arbitrage

This involves buying crypto on exchanges where the prices are lower and simultaneously selling it at exchanges where prices are higher to pocket the price difference as profit.

Options Trading

Options contracts allow you to agree to buy or sell a crypto asset at a predetermined price on or before a particular date. Savvy options trading can earn high returns but also involves high risk.

Passive Investing

Simply buying and holding crypto assets for long term as you expect prices to rise over the years. This requires less frequent trading but needs patience to hold assets during down periods.

How to Start Crypto Trading in Kenya

Follow this step-by-step process to start trading crypto online in Kenya:

Step 1: Select a Crypto Exchange

Crypto exchanges are platforms that allow you to buy, sell and trade cryptocurrencies. Some popular options in Kenya:

• Paxful – Peer-to-peer crypto marketplace with 250+ payment options. Easy to use interface.
• Coindirect – Supports trading of 100+ crypto coins using MPesa. Low fees.
• LocalBitcoins – Connects buyers and sellers directly in Kenya. Good for privacy.
• Luno – Easy to use exchange for beginners. Backed by large exchanges.
• Binance – Top global exchange with lowest fees but can be complex for beginners.

Step 2: Sign Up and Verify Account

Once signed up, you’ll need to verify your account by providing your official ID and proof of address documents. This identity verification is required by exchanges to tackle fraud and money laundering.

Step 3: Deposit Funds

To start trading, you’ll need to deposit Kenyan Shillings or other currencies into your exchange account. Exchanges like Paxful and Coindirect offer options like MPesa, bank wire transfer, cash deposit etc.

Step 4: Place Your First Trade

Once your account is funded, you can place a market order to buy your first crypto coins like Bitcoin, Ethereum, Litecoin etc. Some exchanges also allow you to trade crypto derivatives and futures contracts.

Step 5: Withdraw Profits

Once your trades earn you profits, you can withdraw your crypto asset holdings or cash them out back into fiat currency like KES and have your earnings sent to your local Kenyan bank account.

And that’s it – by following these steps you can start earning money trading crypto right from Kenya!

Tips for Beginner Crypto Traders in Kenya

Here are some top tips for those starting out with crypto trading in Kenya:

• Start small – Allocate only a small portion of your capital when first starting out. Gradual learning is key.
• Practice with demo account – Most exchanges offer demo accounts with virtual funds to practice risk-free.
• Analyze crypto charts – Learn to analyze price trends using indicators like moving averages, RSI, volume etc.
• Manage risk – Use stop losses and maintain good risk:reward ratio per trade. Don’t risk all capital on one trade.
• Join online communities – Connect with fellow Kenyan crypto traders on Telegram, Discord etc. to learn from each other.
• Stay updated on news – Keep up with crypto news, regulations, technological developments etc. that may impact prices.
• Track tax obligations – Be aware of capital gains tax and income tax rules to remain compliant.

By mastering these tips as a beginner, you’ll be well equipped to trade crypto successfully in Kenya.

Common Crypto Trading Mistakes to Avoid in Kenya

Here are some key mistakes I recommend Kenyan crypto traders avoid especially when starting out:

• Trading without proper education and research.
• Investing too much capital too fast. Be cautious and patient.
• Getting swayed too much by emotions of fear or greed. Remain level-headed.
• Not paying fees to exchanges and taxes. This can lead to legal issues.
• Keeping all holdings on an exchange. Recommended to transfer to private wallet.
• Falling for “get rich quick” Ponzi schemes and crypto scams. Vet opportunities judiciously.
• Sharing login credentials or setting weak passwords. Can lead to hacking.
• Using excessive leverage and taking oversized risks. This can amplify losses fast.

By being aware of these pitfalls, Kenyans can avoid costly mistakes and trade crypto safely.

FAQs on Trading Crypto in Kenya

What amount is needed to start crypto trading in Kenya?

You can start crypto trading even with an initial capital of KES 5000 or less. Exchanges allow you to buy fractions of coins so you can start small.

Are crypto trading profits taxed in Kenya?

Yes, both capital gains tax and income tax will apply if you earn above the taxable threshold from crypto trading.

Can I make crypto trades on my phone in Kenya?

Yes, exchanges like Paxful, Luno etc. offer mobile apps so you can trade crypto conveniently on-the-go from your smartphone.

What is the easiest way to buy crypto in Kenya?

Using a peer-to-peer exchange like Paxful that supports MPesa payments makes buying crypto quick and accessible in Kenya.

Which crypto coins are best for beginner traders in Kenya?

For beginners, stablecoins like USDT or major coins like Bitcoin, Ethereum, Litecoin are relatively easier to trade.

Conclusion

I hope this detailed guide provided you with insights into how to start earning money by trading cryptocurrency in Kenya. The key takeaways are:

• Crypto trading allows you to profit from buying low and selling high by implementing strategies like day trading or long-term investing.
• You can conveniently start trading crypto by signing up on an exchange platform like Paxful or Luno in a few steps.
• Start small, learn technical analysis, manage risk properly, and avoid common mistakes as a beginner crypto trader.
• With discipline and perseverance, crypto trading can become a viable income stream for Kenyans alongside other income opportunities.

So open your crypto trading account today and start profiting from this lucrative opportunity trading digital assets online!

Read also:

• How to Earn from Worldcoin in Kenya
• How To Make Money With NFT in Kenya: A Beginners Guide
• How To Make Money With Bitcoin In Kenya (Step By Step)