Kenya has been a front-runner in cryptocurrency exchanges adoption among African countries for the last half a decade. A recent Finder’s report shows that over 8.5% of Kenya’s population, about 4.5 million Kenyans, owns digital assets. This ranks the country only 2nd to Ukraine in terms of crypto HODLers worldwide.
This ever-growing crypto market has attracted some of the best crypto exchanges in the country. Crypto exchange platforms are the real drivers of the current mass crypto adoption since they allow you to buy and sell Bitcoin and other altcoins safely.
That said, your choice of cryptocurrency exchanges plays a huge role in the profitability of your crypto investments — from the security of your funds to the number of altcoins available and trading features on the platform.
This piece guides you on tips to consider when choosing a crypto exchange and outlines the 3 best crypto exchanges in the country.
With the number of cryptocurrency exchanges at an all-time high, choosing one that protects you against crypto volatility and guarantees the safety of your funds can be difficult. Hopefully, these tips will help you select the ideal crypto exchange.
The safety of your data and funds is the most important factor you need to consider. For starters, cryptocurrency exchanges are easy targets for hackers, especially if they have centralized crypto storage. Therefore, it’s advisable to go for an exchange offering decentralized wallet storage. These wallets allow only end-to-end transactions, eliminating any custodian involvement, hence lowering hacker risks.
That said, to check if an exchange platform with centralized storage is secure, make sure it has implemented features such as an anti-DDoS security protocol, crypto registry locks, and an internet web security protocol.
These protocols revoke hackers from gaining unauthorized access to user accounts. Other user-end protocols, such as 2-factor authentication and automatic session logout, guarantee account safety.
A solid trading platform allows you to not only exchange one altcoin for another but also easily turn your crypto into fiat. This is referred to as liquidity. To check if a crypto exchange has good liquidity, analyze the number of altcoins supported and the daily trading volumes.
For instance, check if the platform offers more coins besides BTC and Ethereum. Also, ask if the exchange supports stablecoins to help you against market volatility.
Higher trading volumes mean the platform has more users, offering you a larger market where you can easily sell or buy crypto assets. As a crypto investor, the ideal crypto exchange platform offers more coin pairing and a significant trading volume.
Unlike brokerage accounts that allow you to buy or sell stocks for free, cryptocurrency exchanges have no freebies. Crypto exchanges make money through transaction fees. They will typically charge a fee when you trade or make deposits and withdrawals. The specific transaction fees differ across exchanges.
The amount of transaction fees charged is important. This holds true especially for crypto investors constantly trading new altcoins, and even individuals placing frequent crypto wagers, such as when playing online casino games — you will most likely be charged a fee for every crypto deposit and withdrawal you make, so it’s important to minimize them from the beginning, as they can quickly add up.
Additionally, joining an exchange that allows you to deposit fiat currency into your account is advisable — through bank transfer, mobile money, or online payments. Some platforms also let you purchase crypto directly using fiat, which is even more convenient.
An ideal crypto exchange in Kenya is not only easy to use but also compatible with institutions in the country, such as the telecom giant Safaricom and financial giants Equity Bank. Here is our list of the best exchanges:
Initially founded as a peer-to-peer Bitcoin trading network in New York, Paxful has grown into a full-fledged crypto exchange platform with over 6 million active users worldwide. The platform is best known for its peer-to-peer program that allows traders to interact directly with each other.
Paxful is secure mainly because it doesn’t store any crypto — the platform generates a new multi-signature wallet for you every time you deposit or withdraw coins. Besides, it offers 2FA to protect your account from unauthorized users.
Moreover, the platform allows you to buy crypto without transaction costs. However, sellers pay a fee ranging from 0.5% to 1%, depending on the payment method used. Some payment methods allowed include bank transfers, credit cards, mobile money, and online wallets.
Although Paxful only supports three cryptos — Bitcoin, Ethereum, and Tether USD — its large active user base guarantees high liquidity for your assets.
Binance was founded in 2017 and is currently the largest crypto trading platform in the world by trading volume. This crypto exchange supports over 300 altcoins and 50+ fiat currencies and multiple payment methods, guaranteeing liquidity. Besides, its transaction fees are quite low — ranging from 0% to 0.5% for trades and zero fees for crypto conversion.
The platform offers a smooth trading experience through its real-time charting tools and detailed trader portfolios, which may be handy for experienced crypto traders.
The security of Binance is secured by storing most of its crypto in cold wallets. It also has a 2FA feature that requires you to enter a code received via text messaging every time you log in or make a withdrawal. Binance also carries real-time monitoring on user accounts to flag unusual activity such as hacking.
Founded in 2013, BitPesa is one of Kenya’s oldest crypto exchange platforms and is licensed by the FCA. Initially, BitPesa only allowed users to send money in and out of Africa, but the business has diversified into a crypto trading platform.
The platform uses cutting-edge blockchain technology to protect its network. Besides, it uses 2-factor authentication for user sign-in to ensure privacy.
BitPesa has integrated with banks and mobile money, lowering the cost of money transfers in African currencies while increasing the speed of business payments. This guarantees deep liquidity — the platform has traded for over half a billion dollars. That said, an average of 3% on transaction fees is a bit high compared to other platforms on this list.Would you like to get published on this Popular Blog? You can now email Admin any breaking news, your Bio, articles or advertise with us on: [email protected]