How to buy Polkadot from Kenya

Recommended Broker 🇰🇪
⭐⭐⭐⭐⭐
👌Difficulty Low
☢️Commissions Very low
💲Minimum deposit 200$
🪙Cryptocurrencies: Polkadot and +15 more
⚖️Regulated by: Cyprus Securities and Exchange Commission (CySec), United Kingdom's Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
🌐 Official website: www.etoro.com *
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

How to buy

If you live in Kenya, a great way to buy Polkadot is, without any doubt, this popular broker.

eToro*, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).

We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in our language, accepts users from Kenya, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.

How to sign up, step by step

The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.

Then check your email: you have received an email from eToro, click on “Verify my email” and your account will be verified.

Once on eToro, you just have to click on “Deposit funds”, in the page menu.

There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:

As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.

If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of Polkadot rising while you wait for your transfer to be done.

How to make your first trade

When eToro has confirmed the receipt of your credit, you just have to search for “Polkadot” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.

*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Introduction to Polkadot

Polkadot is a platform developed by Gavin Wood (co-founder of Ethereum) whose purpose is to allow the transfer of information between different blockchains and solve the scalability problems of these, which also has its own token: the DOT.

Each blockchain, along with its ecosystem, is a totally isolated entity from the rest, so they cannot communicate with each other. Thus, although we can exchange Bitcoin for Ethereum and vice versa, we cannot transfer data from one network to the other.

Added to this are the limitations of each network which, with the progressive increase in their use, end up congested and increasingly slower. In the case of Bitcoin, the network can only process on average 3 transactions per second, which is a very low limit.

On the other hand, Ethereum has even processed 19 transactions per second which may fall short given the large number of decentralized applications operating over the Ethereum network.

These limitations make it highly unlikely that these two cryptocurrencies (and the vast majority) will become a mainstream payment method. To understand this, let's compare with traditional means of payment such as Visa.

According to its official website, Visa can process 65 thousand transactions per second in 160 different currencies, although supposedly on average it only processes a maximum of 20 thousand transactions per second. Whatever the figure, the difference is abysmal.

Add to this the ability of the Visa platform to connect to other platforms such as Paypal, in addition to any bank's own platforms. Knowing the magnitude of the problem, we can now understand more clearly the breakthrough that Polkadot represents for the crypto world.

How much is the difference between Polkadot and other cryptocurrency networks?

Polkadot's complex infrastructure seeks to solve the problems described with a multi-chain platform where different blockchains can be connected, that's right, it connects Bitcoin with Ethereum and many others.

In addition, the platform allows individual chains to exchange information with each other also making it possible to process multiple transactions in parallel which greatly increases the amount of processing.

According to tests conducted in 2020, Polkadot is capable of processing more than 1,000 transactions per second. Although this amount is still far from what Visa processes, the best thing is that this amount can be increased very easily as the number of users and transactions grows.

But like all of them, it works with its own token, the DOT, which is used to pay fees for each transaction made using the Polkadot network. Therefore, as the use of Polkadot is expected to increase, the price of its token, the DOT, is also expected to grow steadily over time.

Reason for using eToro , for these reasons:

  1. Allows you to make investments in thousands of different goods
  2. eToro offers leverage
  3. It is uncomplicated and accessible
  4. It offers other traders successful investment strategies so you can emulate them
  5. Allows you to go short

Homepage: www.etoro.com *

If you are interested in acquiring Polkadot from Kenya, eToro is certainly the best way to do it.

eToro is popular for making “social trading” a trend, a revolutionary way of investing in which traders can repeat the moves of other investors who have been generating income over time.

If you are a novice user or haven't gained much experience in investments, eToro is great for you, because it puts your investment on autopilot by imitating moves from those who have been doing it for years and making profits. Also, in case you are an investor, the platform pays for your knowledge.

Besides, the platform is so uncomplicated, ideal for users who want to start learning about Polkadot and investment, without stressing over lots of graphs and figures.

Is eToro reliable for purchasing Polkadot?

eToro is very careful with the data about past performances from users, and its integrity has been independently tested several times.

The main office of eToro is located in Cyprus, and the platform is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 from its client's debts. On the other hand, eToro meets all the strict regulations of the European Union.

eToro responds to the European Financial Instruments Market or MiFID in Europe, and to the Financial Conduct Authority (FCA) in the USA. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users around the world. So, yes, it is a safe broker.

Their excellent customer service is also worth mentioning. They have a phone number for assistance, a ticket system, and a live chat.

How to deposit funds into your eToro account

When it comes to depositing money on eToro, there is not much to say, since it is pretty simple. Just click “Deposit funds”, put an amount, and choose the payment option you prefer. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.

Evidently, for security policies, you should be the holder of the account or the credit card.

The lowest amount you can deposit is $ 200, and there is a maximum authorized if you are not verified, so if you plan to operate with higher amounts, contact Support beforehand to verify your account.

The platform allows deposits in any currency, but charges a commission for making the conversion to USD. So it is better to use USD directly.

What are CFDs?

If you already have been on eToro, you probably noticed that the initials CFD appear all the time. Before we explain this further, you must know that cryptocurrency operations on eToro are only CFDs when you go short or leverage over x2 (although the platform does not even allow this).

If you are thinking about day trading cryptocurrency or other practices, below you will also find concepts like going short and leverage.

eToro allows you not only to bet when you are “in the black”, but with CFDs you can also bet “in red”. For instance, you believe that the Polkadot will go down, so probably you consider that the best thing to do is refrain from getting in until it actually falls. Nevertheless, if it really falls, it might mean extra money for you.

You can do this through what is known known as “going short” which consists in something like the following:

  • They lend you, for example, 100 units of Polkadot, valued at a total of $ 5,000 (these numbers are imaginary)
  • You sell the 100 units at $ 5,000
  • The price falls, as you thought, and the unit of Polkadot goes from $ 50 to $ 30
  • You purchase all 100 units one more time, but at the current value, $ 3,000
  • Then you give back the 100 units to the person that loaned them to you
  • The rest is yours, so, you will have earned $ 2000

It is far more simple than it may seem. Just know that by trading in Polkadot on eToro, you can make a profit when you anticipate the price will fall.

How to use leverage in trading

In case you are not familiar with the term “leverage”, we'll put it short. When trading, it's the capacity of multiplying your investment by borrowing money from the broker. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.

Leverage and the importance of “Take Profit” and “Stop Loss”

Let's say now that you are sure that the price of Polkadot is going to raise its price, and you are thinking about “going long”.

You are completely certain that Polkadot will rise, but you can only invest $ 1,000. Despite that, why miss the opportunity to make more money?

Possibly, you could ask your bank for a credit, put something as a guarantee, wait for it to be accepted, wait for the money, send the money to eToro, confirm that it arrived, and then buy Polkadot… However, once you've managed doing all that, probably Polkadot would be already at a much higher price (if your prediction got confirmed), and it wouldn't be a good idea to invest then.

Leverage is just like a credit, and you will only have to click a few times! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform. Before trading, you will be able to choose between the different options as in the screenshot below:

apalancamiento

Trading with other assets allows you to use higher leverage. Why? Because leverage is regularly for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. But let's explain how this works with the previous example.

You enter with $ 1,000 and decide to use leverage x2, then you would have $ 2,000 to invest, since eToro would put the other $ 1,000 (which is double your initial amount).

A couple of days pass and turns out that you were right: Polkadot has risen by 20% and the value of your investment is now $ 2,400. Ok, don't be greedy, it's time to sell.

Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you put in yourself, so the net profit is $ 400.

In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is pretty decent.

Still wondering where the catch is? The thing is, you can also lose. If everything goes as planned, you will earn profits in little time; but in the opposite case, you will also lose more really quickly.

Let's suppose that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but double, $ 40. For that reason, the concepts of Take Profit and Stop Loss are fundamental when using leverage.

Take Profit is a trading limit you can set for your assets: you program your operation and ask the platform to sell them once they get to a point above the entry price. For instance, you can buy Polkadot at $ 100 and request that your position is closed automatically when it reaches $ 120. It is very useful to avoid being blinded by greed: a 20% profit is usually very good, but once you see it goes up, you might want to gain a bit more and decide to wait, but this could be a mistake. So, Take Profit helps you to trade more safely.

Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). That is why it is essential to set a Stop Loss lower than that suggested by the broker.

Assets you can operate with in eToro

We already know about criptocurrencies, there are way more financial assets you can trade in eToro.

Equities

Stocks or shares are the most common securities. Some corporations divide their capital into fractions and have several shareholders. By investing money in them, you can own a portion of a company and obtain dividends.

We can categorize stocks into two main types: the ones that divide their earnings regularly among the investors, and those that don't. The former ones are great, obviously, but investing in the latter can also be a good idea since the profit you can make by selling the shares can be even larger.

If you invest in equities that payout, you will receive the funds into your eToro account, and you can withdraw them or invest back. However, compound interest is magic, so our suggestion is that you reinvest.

If you trade with stocks on eToro, you can use leverage to “dope” your trades. However, it is not advisable, since it would be a CFD and you would not receive dividends. On top of that, shares are usually long-term investments, and you have to pay commissions.

What is an ETF?

Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. We can say that ETFs are halfway between stocks and funds: they can be traded like regular stocks, but include a wide diversity of assets and have lower fees.

About Index Funds

Index funds are the best alternative for those who want to invest for the long term, particularly for beginners. If you don't need to take back your money in less than five or ten years, index funds are a safe option.

Unlike a lot of people think, benchmark returns are very difficult to beat and very few fund managers achieve that, apart from some specific cases.

If someone brags about having beaten the index, they probably did it for a short time or on a specific occasion, or sometimes the commissions are so high that indexing would be a better decision (with minimal commissions).

Index funds offer solutions for that: although in the long term, they regularly beat active managers, and the commissions are minimal.

Forex trading

What is known as Forex trading consists in the trading of currencies. It is the conversion between two currencies, and the aim is, evidently, to make a profit out of this.

If you decide to exchange the EUR/USD pair, for example, you purchase euros at their price in dollars, expecting that the euro will rise compared to the dollar. Then, if you bought each euro for 1.15 USD and you sell them back when they are worth 1.20 USD, that margin will be yours.

As you may have deduced, this kind of trading usually implies large resources, because prices never increase that much, or using much leverage, which implies an extra risk. Our recommendation for those starting in the world of trading is to choose another market to begin with, since Forex is risky and complex.

You can trade with almost all well-known currency pairs on eToro but keep in mind that this market functions with CFDs, which means the underlying asset won't be yours.

Have you heard about “social trading”?

eToro was the first platform that proposed social trading, and this new concept turned out to be brilliant. Lots of other brokers copied this idea, but eToro beats them all.

But it wasn't just about creating yet another social network to talk about investment. The real achievement was in the possibility for users to copy the strategies of experienced traders, and to reward the latter for their ideas and knowledge.

You will find in the left menu of the site the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” contain a collection of financial assets of a certain sector. For example, if you anticipate that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to choose a portfolio that includes a variety of related companies in that industry.

You should know that in the last twelve months, CopyPortfolio has generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss and click on the “Invest” button.

Copy People

But you can also copy other successful traders of the platform. With “Copy People” you can find them and imitate their strategies easily.

You will find in the profile of users: the kind of financial instruments they operate (forex, cryptocurrencies, raw materials, shares…), their risk profile, as well as their trading history.

Copying strategies from others can be very interesting and useful, but you should also make the most out of the platform's community, read what other users think, and learn from their experience. It is a great source of information and knowledge, especially if you want to turn investing into a lifestyle.

Trading strategies

There are several cryptotrading trategies: from purchasing and waiting to day trading using volatility of the market to your advantage.

If you are a beginner in the world of trading, my suggestion is something in between: when you open your position, place a dynamic stop loss 15-20% under the top price, and let the magic happen.

For instance, if you buy a cryptocurrency when it is worth $ 15, it rises up to $ 25 and decreases again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will get a pretty good income.

You may be wondering: why not selling back when the cost is at its maximum? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.

Sooner or later, you will be ready for applying more advanced trading techniques, like using leverage or going short.

Frequently asked questions

How much is the minimum deposit?
Only 200$.

When will I be able to take out my funds?
At any time. Simply end your Polkadot position, go to “Withdraw Funds” section and that's all.

What deposit methods accepts this broker?
Available payment methods are: Credit Card, Bank Transfer, PayPal, Rapid Transfer, Neteller, Skrill and Klarna / Sofort Banking.

* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.