Cryptocurrency Investment: Understanding the Risks and Benefits

Cryptocurrency has gained significant traction in Kenya, with many young Kenyans using it for investment, remittances, and hedging against currency depreciation. The Virtual Asset Service Providers Act, 2025, regulates crypto exchanges and requires licenses for entities dealing in digital assets.

The most well-known cryptocurrencies include Bitcoin and Ethereum, which operate on blockchain technology. This decentralized system records transactions across many computers instead of relying on banks.

Investors can make money from cryptocurrency through various strategies, including buying and holding, trading, staking, yield farming, or getting paid in crypto for freelance work.