This archive report was first published on 11 September 2019.
Kenya's Silicon Savannah has seen a surge in interest in cryptocurrency trade over the past six years, with many viewing it as the future of value exchange.
However, the ride has not been easy for newbies, with many losing huge sums of money due to a lack of regulation in the online market.
According to Bryan Adams, a seasoned trader, many Kenyans still lack information about crypto buying and selling, making them vulnerable to scammers.
"They buy the trap of getting high returns in a short time and end up losing their cash," Adams warns.
Despite the challenges, Kenyans are innovating to bridge the gaps and make the trade more enjoyable.
Cryptos give users the liberty of buying value in fractions, trading it, or simply hedging it, making it more accessible to new investors.
For instance, users can buy a small percentage of Ethereum and sell it immediately at a profit, unlike traditional currencies which are centrally controlled.
Armed with this knowledge, Joshua Mutisya and his Russian friend Dmitrii Surkov launched Totalcoin, a crypto solutions platform that offers affordable mobile crypto banking, secure trading platforms, and exchange services for various digital coins.
One of the notable features of Totalcoin is the ability to transfer cryptos between users on the platform using phone numbers, eliminating the need to copy addresses with long characters.
"We realised that most crypto exchange platforms push a couple of transaction costs to customers, who, in lack of affordable rates, had to bear with the charges," Mutisya explains.
The duo targets new crypto investors who want to buy or sell, store, send, or receive digital value online without being scammed.
Their competitive advantage comes when customers can send, receive, deposit, and withdraw for free, and charge only 1% when buying or selling.
On the platform, Kenyan users can use M-Pesa to buy or sell Bitcoin, Ethereum, Litecoin, Ripple, and other major global cryptos, using their mobile numbers as identity.
"Customers can also transact using Paypal, Western Union, Payoneer, and other world digital payment modes. We allow them to exchange different coins in a seamless and secure environment," Mutisya says.
Launched in Kenya in August 2019, Totalcoin has over 27,000 global users, 15,000 of which are active, with 400 trading daily in Kenya.
Chairperson of Distributed Ledger Technologies and Artificial Intelligence Taskforce Prof Bitange Ndemo says cryptocurrency platforms make purchases faster and more affordable.
"Kenyans are now using cryptos to buy vehicles abroad. There is a big capacity for their use in Kenya, especially for Kenyans in diaspora who wish to send cash to their families back in the rural areas," he says.
However, Kenyans are still getting conned in such platforms that promise to offer immutable, secure, and trusted online marketplaces.
George Mwakisha, Kubitx's business investments manager, believes the only way for newbies to avoid scams is through getting the right education.
"New investors need to be taught how to trade, get in the right forums, and interact with experts. I know of two cases where a trader lost Sh10 million and another Sh3 million all because of the get-rich-quick mentality," he warns.
