20 Smart Bitcoin Investment Tips for Kenyans Plus 5 Blunders To Avoid

Barry Silbert, Tim Draper, Charlie Shrem, Erik Fineman, and Tim Enneking?

Do these names ring a bell?

Well, these are guys who have invested big in the Bitcoin since its nascent days and have gone on to reap big from their investment.

The good news is that there are still plenty of mammoth opportunities offered by the Bitcoin- possibly worth hundreds of billions if you know how to play your cards.

The best part?

There’s no limit into what you can achieve if you master your game.

Here are some of the top Bitcoin investment tips for Kenyans. Plus the pitfalls to avoid.

  1. Plan your investment goals. And follow them.

Many are waiting to pounce on the opportunities offered by the emergence of the Bitcoin.

But only those who have smart goals succeed.

This means that you have to ask yourself the hard questions before starting.

What do you want from the venture? What’s the timeframe? And which is the best working plan to help you reach the targets?

What fallback strategies do you have in case your investment wobbles in the initial days?

And what maximization tactics have you put in place to ensure you reap to the fullest when the investment starts to yield returns?

Having clear goals definitely makes it easier to last the distance. Plus you will be able to minimize losses if things don’t first turn out so well.

Ideally, you should have multiple goals including portfolio diversification, fiat-risk hedging, ideological objectives, and more.

With such broad goals, you will be generally insensitive to typical price volatility and thus unlikely to exit your position, barring some dire happenings.

In contrast, goal-less traders adopt severely short-term positions and aim to stay for only a couple of months in the trade.

They are subsequently exceedingly price-sensitive and abandon their positions immediately their expectations prove untenable.

  1. Begin small, grow organically

Bitcoin investments are pretty similar to other investments and all gurus will keep drumming this into your ears: Start with small sums and build your portfolio using the little gains that you gather along the way.

First, this gives you ample time to learn the game.

Then, low leverage means you won’t get a heart attack if your Crypto venture goes south- a possibility especially during the days when the market wakes up to some negative news.

On the same note, since you’re in this with a clear plan (as I mentioned earlier), you cannot justify continued lumping up of larger amounts of Bitcoins unless the original commitment is already yielding handsome percentages.

Looking at it closely, this plan goes well with what most experts recommend:

Buy low then sell high- obviously, because you won’t feel much pinch when prices are depressed.

The rule of thumb is to invest 1% or less of your total budgeted investment fund with each buy-in for the simple reason that losing 100% of the sacrificed 1% leaves your 99% untouched so you can go back and take further risk when the market improves.

Something else:

As you flirt with your 1%, forget about the rewards and build on your capital preservation and risk management skills until you feel like a champion.

It’s only after this orientation phase that you can take on bigger buy-ins since you can rely on your self-preservation experience to negate apparent threats.

Overall, nothing is as sweet as increasing the amount in your account through smart trading choices.

  1. Remember it? Don’t Carry you Eggs in One basket

Jeremy Gardner is yet another big time player in the Bitcoin investment industry.

As well as starting dabbling in the markets in those very early days when the digital currency was still a mystery, he is a firm believer in holding several baskets.

And so he has invested smartly in myriad start-ups and supporting companies in either the Bitcoin or the blockchain technology.

He also pulls out some profits from some of these outlays and invests them in new, short-term but promising opportunities, for example, in p2p Bitcoin lending.

Thanks to this broad network of Bitcoin investments, Gardener has been able to protect his net worth despite earth-shaking market fluctuations.

Also, globally, more and more Bitcoin-based businesses are opening, further creating more channels through which you can leverage your Bitcoin holding to generate more money including online Bitcoin casinos and gaming.

Yeah, it’s true that diversifying isn’t the most lucrative tactic but it’s nevertheless very good for your sanity as you work on your business.

  1. Timing Is King

Nakamoto, the shadowy figure(s) that’s credited with inventing the Bitcoin is estimated to hold about 1 million Bitcoins.

At the current average rates of about S$8800, his/her haul would be approximately  an astonishing S$8.8 billion.

But for some reason, this investor hasn’t yet appeared in the market scene.

Because, perhaps, he/she knows that with such a large stock, he/she would quickly drive down demand and subsequently the value of the Bitcoin if he was to sell off.

And so my guess is as good as yours:

Nakamoto is happy to play the waiting game as he waits for an opportune moment to strike.

What is clear is that the moment he does, the market will surely feel his presence.


When we speak about Bitcoin hitting S$20,000, everyone runs around all excited but in the real sense, those are the periods you need to be very apprehensive.

You see, the sentimental value shoots up the roof skewing prices and making it a hard-to- enter market.

So, instead…

I have over the years learned to wait until the media is all like “it’s all over, bitcoin is dead, that’s it” before launching the next phase of my plan.

In a nutshell, knowing your investment calendar can make all the difference.


  1. Patience Pays

Tim Enneking is another big success story in Crypto investments.

Using his experience from his past as a successful fund manager, Tim has dabbled and conquered this market by having the patience of a saint.

He preaches the gospel of being cautious, avoiding greed, and taking time to learn the market trends because he fully understands that it usually takes time to see any real investment become fruitful.

Tell you what?

This works….

I bought my bitcoins two years ago with the intention of keeping them for the longest time.

And it’s already paying off.

But I’m not selling my share anytime soon. Not with the  future prospects looking this bright!

Going back, Enneking reminds budding investors that digital currencies fluctuate wildly so don’t come into it expecting a bumper harvest overnight.

And that’s my strategy… keep them, maybe beyond 2020, at the very least.

Okay, I speculated here and there when I was starting but that was deliberate and as part of learning all the stuff about wallets, exchanges, and securing my tokens- not the short-lived profit zones.

  1. Hungrily hunt for trusted information

You’ve heard this countless times but allow me to reiterate it.

If investing was a World war, the most powerful weapon (of Nuclear scale maybe) would be precise market information.

In short, you must know where to turn for useful Bitcoin market guides and expert trading information.

So, which are your most trustworthy sources of information?

Google is most probably your first destination because it links you to thousands of Cryptocurrency blogs.

But is it everything?

CryptoCoinsNews, CoinDesk, and CoinTelegraph, are highly rated on Crypto news.

Also closely watch Forbes, CNBC, and Bloomberg for beneficial trading information.

Lastly, keep tabs on all newsworthy events both within and without Kenya.

For instance, the Central Bank has in the past months announced that it will only be watching – not regulating cryptocurrencies .
Such an announcement could lead to a sudden bump in prices and could be another window of opportunity for keen investors.

  1. Analysis, Friend!

I know it’s some work but by delving deeper into the spreadsheets, charts, forecasts, and past reports, you will be placing yourself in a vantage position to strike gold.

And you don’t have to be a master analyst- just the basics are enough;

Fundamental analysis gives you the knowledge on the key Bitcoin’s price drivers while technical analysis looks at key technicalities including price movements, trading volumes, market sentiments, and more.

Understanding the trend, moving averages, price indexes, and candles may open your eyes to fresh buying and selling opportunities.

In addition, it will help you know when to divest from a current venture.

All the Gurus use these while most of the big time players have gone further and invested in bots which run the analysis for them.

The best bit is that more and more people are adopting the business so eventually there will be a variety of data sources to rely on.

Even if you have taken the mining route, you still need to capture the finer details as part of ensuring that you will enter the market at the best time.

And if the figures overwhelm you, just copy what the leading investors are doing- some of them have the resources to hire the best analysts so their moves will point you to the best direction to take in the short-term.

  1. Don’t watch the Markets 24/7

Digital currencies are traded 24/7 so the temptation to track the prices full-time is real.

But, according to experts like Tim, monitoring the trend 24/7 is not only impractical but also littered with many risks.

You could panic and make a rush quitting decision if you feel the prices are fast deteriorating only to realize you made an enormous mistake when you see the prices rebound only a few days down the line.

There’s also chance that you get suddenly bullish leading to you pumping in big amounts  only to again learn a while later that you are in a deep mess.

Any investor should instead hold their positions if solid and only make alternative decisions after a thorough analysis- and not as a result of temporary random swings.

  1. Get Your Own Angle to Matters

Listen to others; yes, but always take what you hear with a grain of salt.

That’s because every player has their own interest and position and like you, they’re there to protect their assets and grow them.

And so they’ll have different opinions on matters such as the prospects, risk, expansion, and market intelligence.

Also, stakeholders –including professional investment advisors, will interpret the reports from their own perspectives and not necessarily from a neutral point of view.

Hence, to be on the safe side, study what’s on offer around the different options but eventually find and rely on your own angle to things.

That way, you could soon the crowd of those laughing all the way to the bank.

  1. Use Stop-loss orders

Certain tools can help you meet your Bitcoin investment objectives, chief among them stop-loss orders.

Essentially, this is an order you place with an agent to purchase or sell specified Bitcoin units as soon as it hits a certain price.

This strategy limits your losses on the holding and can help you return a profit from expected price fluctuations considering that Bitcoin can change a lot within 24 hours.

For instance, let’s assume you have 1 BTC and technical analysis forecasts that price will drop to about S$ 8000 at some point.

This is what you do:

Set a stop-loss order that tells your exchange to automatically dispose of the 1 BTC immediately price drops below S$8,000.

That way, you minimize further losses.

Other variations to this tactic include setting a trailing stop or a partial stop loss.

A trailing stop could even be better as it sells at a percentage (fraction) of the prevailing market price giving you a chance of making a profit provided you choose your percentage keenly.

On the other hand, a partial stop loss can be the perfect compromise between a fixed pure stop loss order and the trailing stop.

  1. Maintain Accurate Records

Maintaining a Bitcoin trading journal will effectively enable you to learn from your successes and failures.

By recording your experiences, you get a handy referral point and an additional tool to consult before making your next investment decision.

When periodically reviewed, your Bitcoin trading journal also provides important feedback which simplifies the learning process ,especially for beginners.

So, is there a recommended formula?

Well, though researching how the others are doing it may help, there’s no right or wrong way to do it.

Instead, you should adopt an approach that fits your style and unique situation.

Otherwise, without appropriate record keeping, you are more likely to repeat the same costly mistakes.

  1. Be an Early Bird

It pays to strike the rod when it’s hot or rather before anyone else notices you are onto something.

You see, sometimes you could be privileged to be among the first people to learn about a certain trend or momentum maybe as you do your analysis. Now, if it’s something that you feel will lead to significant changes in prices- for better or worse, regardless of where you have invested your Bitcoins, then you should act promptly in the direction that the new disclosure point to.

And quick action pays..

Since the Bitcoin made its debut, the happiest lot comprises largely of the group that acted earliest.

For instance, American twins Tyler and Cameron Winklevoss- who initially rose to fame for claiming that Facebook founder Mark Zuckerberg stole the social network idea from them – reportedly become Billionaires thanks to an early speculative $11 Million investment in Bitcoins from way back in 2013.

So, sell or buy more as soon as possible since ,for sure, others will soon discover the ‘trick’ and react which could end up eroding the potential gains.

Like now, many Kenyans are studying cryptos and are actively contemplating investing so those taking action will be at a premium position some few years to come.

  1. Understand The TaxMan and Treat him well

Whatever you do, the Taxman will always want his share. You, therefore, need to familiarize with KRA (Kenya Revenue Authority) policies when reporting gain/losses on your trading.

Generally, KRA regards Bitcoins as “goods” and not as a currency. This means that any capital gains on the Bitcoin is taxable as it happens with shares and similar investments.

Understanding the tax implications and the subsequent treatment of your investment activities helps you to act wisely as far as the tax man is concerned.

Consulting with a qualified accountant or a taxation specialist can help you get a finer grasp of what to expect so as to avoid rude surprises later when you’ve already made your moves.

Then, since tax rules change regularly, form a working relationship with a professional and let them manage all taxation-related matters so that you can focus on what matters- growing your business.

  1. Treat it As a serious Business

You have a better chance of earning good returns if you treat your Bitcoin investment undertakings as a business.

That way, you will be psychologically ready to go the full distance and avoid being distracted by fortuitous maneuvers in pricing.

When you view it as a potentially lucrative field, you will be less concerned on short-term wins and losses and instead be more concerned by how your holding performs over time.

In like manner, you’ll not become overly emotional about rises or drops in the value of the hedge.

This means you will stick to your stated plan to the last moment enhancing your chances of winning.

  1. Be Consistent

Consistency is one of those traits that can be the difference between huge losses and rich returns.

Indeed, one of the major reasons why smaller investors never see the light is because they operate in a case-by-case, spur-of-the moment fashion that is undisciplined, chaotic, and certainly inefficient.

Even if your stake is worth Billions, you will be left scratching your head each time colleagues report on their increasingly profitability wondering where you lost it if you can’t get your act together.

So it’s easier to start by researching the market, mastering the trading fundamentals, and eventually picking a game plan that will take you to your vision.

From there, you move to the implementation phase where you will be required to act consistently and methodically until you reach your pre-defined goals.

An ability to continually adapt your actions to the changing market dynamics also helps.

  1. Zip Your Coins Inside Wallets

The cake in the world of cryptos can be big. And as you would expect, cybercriminals only target systems with big enough cakes to reward their criminal activities.

Now, exchanges such as Remitano are fantastic for buying digital currencies but not holding them because they’re a huge attraction for hackers.

That’s why every now and then, you hear of another exchange heist.

And it didn’t start yesterday.

A leading Bitcoin exchange, Bitfloor suffered a mammoth attack In September 2012 with criminals taking off with a mind-boggling 24,000 Bitcoins (worth approximately $250,000 by the exchange rates then).

Things were even worse in 2014 with the then World leading Bitcoin exchange, Mt. Gox announcing the loss of 850,000 Bitcoins to thieves.

Since scripts are easier to run on coin exchanges, experts reckon that it’s a bad idea to leave your coins there after a transaction.

Instead, you should move your cryptos into your favorite online wallet as soon as possible.

You can choose the established wallets such as BlockChain.com or even create your own free paper wallet.

Another option that can enhance your security is to use a mixture of hot (online) and cold (offline) wallets.

With wallets, you can enjoy more peace of mind as their levels of security make them quite difficult to infiltrate.

  1. Don’t follow the herd

The assumption that a large group can’t go wrong has been a downfall of many investors.

That has been the case in many investments and the Bitcoin is not an exception. You will find investors who hit the sell button because they’ve heard that ‘everyone’ is selling and vice versa.

Such a plan is neither sound nor profitable- in any case, it will not only turn you away from your initial blueprint but also blind you to any emerging opportunities.

Not least because the affected Bitcoin investors are always battling hard to chase the fluctuating investment trends.

Another drawback to this behavior is that the trader makes too many transactions increasing transaction costs which eventually eats away a large chunk of potential profits
So, rather than mimic others, investors should follow their gut instincts as guided by their independent analysis and other guiding factors.

It’s the only way you can escape the heartbreak that most certainly results when you are involved in a Bitcoin investment fad gone wrong.

  1. Keep It Simple

I once had a colleague who wanted me to invest her S$10,000 on behalf. I asked her reason and she suggested she had heard a certain Ad. On TV where someone was promising a 15% return per month on any Bitcoins holding invested with the firm.

Well, I have to say that I treat such news with the contempt they deserve.

Look here:

The previous day, the digital coin had lost about 35% of its value after an announcement that the Chinese government was launching new regulatory mechanism to control the virtual currency market in Beijing.

Then I meet someone bragging how they’re going to guarantee a 15% profit per month on an investment that was fast depreciating.

Well, to me, that was impractical and my rule is very simple…..if it sounds too good, it probably is.

And that applies always…indeed, the simplest ideas are the one which pay.

Now, see here:

It’s not rocket science. Learn the trade, perfect the basics, invest, and stick to your well-thought-out plan.

Anybody telling you otherwise is lying. It could even be a Ponzi scheme.

Let’s face it: The greed to make a quick buck has been the bane of many Bitcoin investors.

  1. Keep Learning

This is a game like any other and players need to keep upping their skills and expertise.

Investors cannot afford to proclaim themselves masters of the art simply because what worked yesterday doesn’t have any assurances of succeeding today.

After all, the markets keep confounding observers by demonstrating high levels of unpredictability.

You, therefore, can’t rest on your laurels at any single moment.

Not only do you need to be hawk-eyed and quick to act, you also need to keep applying newly found information in your analysis.

Not to mention that you shouldn’t fear to experiment and to venture on uncharted waters.

Ask questions. Test, test, and test again.


Map new paths and Optimize. Even try out new tools.

Is there something you haven’t done and which could help you turn a corner? Try to see how the outcome is with it.

The idea is to eventually create the best version of your investor-self so that you’ll start seeing and hearing what other can’t see or hear.

That way, you’ll give yourself an edge and immensely improve your decision making.

  1. Commit On What You Can Afford to Lose

This is again for newbies.

The market can sometimes be absolutely crazy going totally against expectations.

And so to avoid unending headaches and stress, you need to be smart from the word go.

And one way of doing this is by only investing what you can comfortably afford to lose.

It’s only the other day when the market experienced its latest crash with prices tumbling by almost 50% from record highs.

In the process, lots of hobby-investors suffered serious ‘burns’  with widespread reports of massive losses coming at the high cost of smashed laptops, distressed couples, and depression.

Some of these investors had been lured by the promise of obtaining a super-normal profit within no time.

There were even incidences where some hadn’t been afraid take loans to fund their newly-found ‘money-minting’ hobbies.

And so this is the biggest law…

As soon as you convert your fiat into virtual coins, consider it permanently lost- until proven otherwise.

Remember loses can happen in a flash and be caused by events which basically look harmless the first time including a hack, an anonymous investor selling off his loot, proposed new government legislation….anything.

The end game is ,therefore, to still stick to your lanes and only risk your surplus money.

And not credit card advances, mortgages, or even your family assets.


Mistakes To Avoid

Investors will occasionally commit fatal blunders leading to huge losses or chaos in their portfolio.

It, therefore, pays to know where the dangers lie and how to hide from them.

  1. Selling Because it’s ‘ripe’
    Do you recall what we said about playing for the long haul?

Now, one morning you may wake up to suddenly find that the price scaled by 50% overnight.

Well, that’s huge and the temptation to sell is real.

You feel that it’s your chance to get an immediate income on your investment- after all; it may never go beyond this, you say to yourself.

The thing is it takes a whole lot more not to fall for this –you’ve to be fully focused on your master strategy to survive.

But the truth remains that there’s no telling the upper limit for the upsurge in pricing.

So you may sell your stake only to feel sorry for yourself two months later seeing the same rise 1000%.

That’s why it’s important that you stick to your plan of action when trading- it’s the end game that matters.

In short, focus on the main show and forget sideshows.

  1. Allowing Fear to Overwhelm You

Some call it FOMO (fear of missing out) and it’s another menace especially when you’re just getting a foothold on the field.

Weird thoughts and the ensuing rash decisions can disorient your ambitions and leave you in a hole.

Thoughts such as “this happens only once”, “my partner is going to make it big time”, “I cannot just watch while big bucks are being made” and such panicky thinking could sound the death knell to your original scheme.

Interestingly, FOMO is never too far away even for accomplished traders so you’re not alone.

Whichever way it’s packaged or sold, rein on it.

Open your eyes and understand that there’ll always be new opportunities in the crypto-currency world each passing day.

And if such an urge comes, do your own in-depth research and warn FOMO to keep off.

  1. Pursuing the “Next Bitcoin”

Historically, earth-shaking innovations only come round once in a very long time.

So, yes, there’s an always an odd chance that it may happen but don’t bet your life on it- the Bitcoin wave is already here and it will never occur again- certainly not in its current form.

Even if you’re a die-hard optimist, the closest you can come to hitting a Bitcoin-like gold mine is another altcoin- again we already have about 1500 different coins!

It’s better to focus channel your energy on perfecting on what is there instead of wasting time trying to frantically unearth the ‘newest’ Bitcoin.

It’s energy sapping and ultimately demoralizing.

Anchor your strategy on the Bitcoin in its existing format and look for gaps instead of attempting to re-invent the wheel.

Remember we are just about 10 years into the cryptocurrencies era so perhaps there’s still more to come for devoted Bitcoin investors.

  1. Following Blindly

The internet is packed full of forums where you can learn a lot about the Bitcoin and other Cryptos.

Not to mention the countless social media groups where you can ask all types of questions.

But should you take the information that you get at face value? How trustworthy is the available crypto trading “advice”?

Just recently, international Cryptocurrency exchange Coinbase was sued over supposed insider trading during their launch of the bitcoin cash.

Elsewhere, government officials in South Korea were reportedly caught up in some insider trading mess where they sold their holdings (and profited) just before the release of new crypto regulatory measures in the country.

Now imagine if you posed the question “Should I buy the Bitcoin today” in one of the forums where they moderate?

What would be their ‘honest’ advice? “Buy as much as you can Bro!”

In certain cases, Bitcoins have been part of systematic pump and dump online schemes preying on unsuspecting newbies hungry for big money in a short time.

So, if you have to follow advice from a mentor or a guru, ensure that he/she is a real expert and independently investigate the proposals further before acting.

That said, there’s one thing you can follow blindly without losing… your strategy.

  1. Revenge-driven Trading

If you are fervently trading urged on by the need to get one over the market, chances are that you could soon find yourself in unbelievable turmoil.

Maybe it happened so fast and you backed out of a deal to buy at the very last moment and then to your horror, the price went north- reaching unprecedented levels.

Now, driven by anger, you pump in everything within your reach into the exchange hoping to make up for lost time and claim what you believe was rightfully yours.

By doing so, you overexpose yourself and step on a landmine.

You need to accept that losses are pretty much part of the game as are winning spells.

Avoid taking losses personally and stop reacting to your losses haphazardly.

You have hardly researched the market and you are simply powered by raw emotions so it’s pretty easy to predict the ultimate outcome- more tears!

The further your emotions are from your trade, the better for you.


Getting a share of the big pie that is the Bitcoin in Kenya doesn’t need any alien weapons or science.

It’s as simple as following the above time-proven strategies that have been employed by Bitcoin millionaires to achieve stunning ROI on their investments including having a plan and following it meticulously, starting small, keeping it simple among others.

As you perfect these, you also need to tread carefully and avoid the costly mistakes that can put paid to your dreams of becoming a bigwig Bitcoin investor among them revenge-driven trading and following advice blindly.

Do everything well, keep tweaking, and who knows, you could be the first Bitcoin billionaire from Kenya.

ALSO READ: Bitcoin Kenya: Can You Make Money Mining Bitcoins in Kenya?

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