Can you trade Bitcoin in Kenya with USD?

How does Bitcoin trading Kenya markets work?

Bitcoin trading is becoming increasingly popular in Kenya. Kenya has emerged as one of the leading countries in Africa in terms of crypto trading and investing. The country has a significant number of citizens living and working abroad. Sending money back home using cryptocurrencies is instant and easier for many people. In addition, Kenya has a well established mobile payment infrastructure, led by the popular payment platform M-Pesa, that makes Bitcoin trading easier. 

Kenyans can use the US dollar to invest and trade Bitcoin. It should also be mentioned that while most exchanges and brokers allow clients to make deposits in USD, some also allow customers to make deposits in Kenyan Shillings (KES). 

Before we explain how to trade Bitcoin in Kenya using USD, it’s important to differentiate investing long terms. 

Difference between physical Bitcoin and Bitcoin as CFD

CFD stands for Contract for Difference and is used for short and medium term market speculations. While physical assets such as precious metals, and coins are for long term investing. Both Bitcoin and Bitcoin CFD are two different ways to gain exposure to Bitcoin. And they both have their unique characteristics. To trade bitcoin Kenya USD traders should take into account their features.

Bitcoin coin

  • Ownership: When you purchase physical Bitcoin coins, you own the actual cryptocurrency. You receive the private keys that give you control over the asset, You are free to transfer, store, or use the asset as you see fit. 
  • Security: The security of your coins largely depends on how you store and manage your private keys. Investors use secure wallets and follow best practices to protect their assets from hackers. 
  • Liquidity: Bitcoin coins are bought and sold on crypto exchanges. Liquidity varies depending on the market activity. Physical coins are less liquid than CFDs on Bitcoin.
  • Best suited for investing long term. Owning Bitcoin coins is viewed as a long-term investment strategy. 

Bitcoin CFD

  • Contract for Difference: this means that you do not own the actual Bitcoin. Instead, you enter into a contract that represents the price movement of Bitcoin. CFDs allow traders to speculate underlying asset prices without actually owning them.
  • Leverage: when trading CFDs, traders can use leverage, which is borrowed money from the broker for increasing purchasing power. Majority of brokers offer 5:1 or 10:1 maximum available leverage on cryptocurrencies. This means for every deposit, you get to manage up to 5 or 10 times the worth of assets.
  • BTC to USD in Kenya as CFD offers high liquidity: CFDs are more liquid than underlying assets and therefore spreads are much lower. 
  • Most Forex brokers offer access to trading Bitcoin as CFD. And therefore, by trading this asset, you can also trade currencies and other assets with the same platform. 
  • CFDs can be traded in both directions. Traders can short bitcoin CFDs or go long and make money in all types of market conditions.

How to trade Bitcoin in Kenya using USD

There are a couple of ways to invest or trade Bitcoin using the US Dollar in Kenya. In case you are looking for ways to simply speculate the cryptocurrency, you can pick CFD brokers. For investing in Bitcoin long or medium term, you need to open accounts with crypto coin brokers. Trading BTC in Kenya with USD involves a few steps:

  • Select a cryptocurrency exchange: Choose a reputable crypto exchange that operates in Kenya and supports trading Bitcoin with USD. Some of the most popular exchanges amongst most successful traders are: Binance, Coinbase, Bitstamp, and Kraken. Those exchanges enable you to make deposits in the US Dollar. 
  • Create a trading account: Sign up for an account on the selected exchange. This usually involves providing your email address, creating a password, and completing verification steps, such as KYC (Know Your Customer). 
  • Make a deposit: Once your account is verified, you can make deposits in US Dollar. Some exchanges allow clients to deposit and trade while the verification process is not fully completed, however, it’s recommended that you fully complete the verification first. This will allow you to withdraw funds from your account without barriers. 
  • Make a purchase: After your account is funded, you can navigate to the trading section on the exchange and purchase it. 

Bitcoin Kenya trading is easily accessible in the country as regulations are suited for regular investors. Financial trading is authorised and regulated by the Capital Markets Authority in Kenya.

Choosing a crypto wallet

Investors that wish to buy bitcoin with USD in Keny, need to store their coins in Wallets. There are several options available: 

  • Software wallets: you can install software wallets on your computer, smartphone, or tablet. These wallets help generate and store your bitcoin private keys, allowing you to manage your coins. Examples of computer wallets are: Electrum, Exodus, and Atomic Wallet. As for mobile wallets, you can use some of the most popular options, such as: Trust Wallet, Edge, and Mycelium. Moreover, you can use web wallets, such as: Coinbase Wallet, MetaMask, and Blockchain.com.
  • Hardware wallets: hardware wallets store your private keys offline, which increases your level of security. On the other hand, in case you lose the hardware key, you will lose the valuable asset as well. Popular brands that sell hardware wallets include: Ledger, Trezor, and KeepKey.
  • Paper wallets: you can print down your private keys or write them on a piece of paper. Paper wallets are completely offline and are considered as highly secure. 
  • Custodial wallets: some crypto exchanges provide their clients with online wallet services. In which case the chosen platform manages the private keys on customers’ behalf. On the downside, these wallets include higher risks as investors are reliant on the platform’s security measures. 

When selecting a Bitcoin wallet, consider security and accessibility. Make sure that you have a backup, so that in case you lose your wallet, you can access your assets. Online wallets are considered to be less secure due to treats related to hacking. 

FAQs on how to trade Bitcoin in Kenya with USD

Should you trade with Bitcoin in Kenya?

Kenya bitcoin USD market offers many possibilities for increasing wealth. However, many lose their savings. Bitcoin trading is worth trying, as it can become an additional source of income for you. However, it’s important to always manage your risks, emotions and have an edge. 

Is bitcoin trading better than Forex in Kenya?

Depends on the trader. It should be mentioned that cryptocurrency trading Kenya markets has its pros and cons. On the upside, Bitcoin can be used for investing long term and speculating with its price short term. To trade BTC/USD Kenya markets pair, traders have access to 24/7 markets. While trading currencies is only available 24/5. On the other hand, forex pairs are more diverse and offer higher leverage. It’s best to demo trade different assets to find what best suits your interests. 

Where can you trade Bitcoin in Kenya?

BTC trading Kenya financial markets is available online. Most international CFD brokers offer Bitcoin as CFD for trading. CFDs are best for speculating asset prices. While physical coins are used for investing. In order to invest in Bitcoin, you can use international exchanges, such as Binance, Coinbase, Bitstamp, and Kraken.

Subscribe to Our Newsletter

Traders Love and Trust

Mugan Markets

Open a live account and start trading on one of the most transparent
trading platforms. Keep trading, keep winning.