Cryptocurrency and blockchain technology are no longer just buzzwords. They are becoming part of everyday conversations here in Kenya. More people are exploring crypto as a new way to send money, invest, or access digital finance tools.
But to be honest, the jargon can be overwhelming. This tends to put off many people who see blockchain as a complicated universe meant for a few individuals.
Whether you’re just curious or already using platforms like Binance, Yellow Card or Paxful, here is a breakdown of 20 crypto and blockchain terms you’should know about.
1. Blockchain
This refers to a digital ledger that stores transactions securely and transparently. Imagine a public Google Sheet that no one can change or delete. This is the foundation of most cryptocurrencies.
Kenya Context: Some local startups are already exploring blockchain for land registry, SACCO record-keeping, and supply chain traceability.
2. Cryptocurrency
Digital money that works without banks. It uses encryption and the blockchain to ensure security and transparency.
Examples: Bitcoin (BTC), Ethereum (ETH), and USDT (Tether) all of which can be bought using M-PESA on local platforms.
3. Bitcoin (BTC)
The first and most well-known cryptocurrency. Often called “digital gold”, it’s used globally as a store of value and investment.
In Kenya, some freelancers prefer to be paid in Bitcoin via platforms like Paxful or BitPay.
4. Ethereum (ETH)
A blockchain like Bitcoin, but more flexible. It supports smart contracts and decentralized applications (dApps).
ETH is used in many DeFi platforms accessible from Kenya, like Aave and Uniswap.
5. Wallet
An app or device where you store your crypto.
- Hot wallets are connected to the internet (like Trust Wallet or Binance Wallet).
- Cold wallets are offline and more secure (like Ledger Nano).
You need a wallet to receive crypto, and many Kenyan users start with Trust Wallet or Binance Wallet.
6. Exchange
A platform where you can buy, sell, or trade crypto.
Popular exchanges used by Kenyans: Binance, Yellow Card, Paxful, LocalBitcoins, and newer entrants like Kotani Pay and Bitlipa.
7. On-ramp
A way to convert fiat currency (like KES) into crypto.
In Kenya, Yellow Card lets you use M-PESA to buy Bitcoin. Binance also allows P2P purchases using M-PESA.
8. Off-ramp
A way to convert crypto back to fiat currency.
Example: You sell your USDT on Paxful and receive KES via M-PESA. That’s an off-ramp.
9. Fiat
Government-issued currency.
In Kenya, Kenyan Shillings (KES) is fiat. Crypto is not fiat because it’s not issued by a central bank.
10. DeFi (Decentralized Finance)
Financial tools and services that run on blockchain — no banks needed.
Kenyans use DeFi platforms to earn interest on their crypto or borrow without collateral via protocols like Aave.
11. NFT (Non-Fungible Token)
A unique digital asset that represents ownership of an item — like art, music, or virtual real estate.
Kenyan artists like Rich Allela have sold digital artwork as NFTs to global collectors.
12. Stablecoin
Crypto that’s tied to the value of a fiat currency. It’s designed to avoid volatility.
Example: USDT (Tether) and USDC, often used in Kenya as a safer alternative to holding Bitcoin or ETH.
13. Gas Fees
Transaction fees paid when sending crypto on networks like Ethereum.
Tip: These fees can be high during congestion — especially in DeFi. Many Kenyan users opt for Polygon or BNB Chain to reduce costs.
14. Private Key / Seed Phrase
Your secret code to access your wallet. If you lose it, your crypto is gone — forever.
Pro tip: Don’t store your private key in a screenshot or Google Doc. Write it down and keep it offline.
15. Smart Contract
Self-executing code that runs on blockchain. Think of it as a digital contract that doesn’t need a lawyer.
Smart contracts power things like crypto lending, NFT marketplaces, and even blockchain-powered betting apps used in Africa.
16. Mining
The process of validating blockchain transactions and earning rewards (usually in crypto).
Bitcoin mining is rare in Kenya due to high power costs, but there’s interest in using renewable energy sources to power future mining operations.
17. Proof of Work (PoW)
A method where miners solve puzzles to validate transactions. Used by Bitcoin.
18. Proof of Stake (PoS)
A more energy-efficient method where validators “stake” crypto to confirm transactions. Used by Ethereum and newer blockchains.
Some Kenyans stake crypto on exchanges like Binance to earn passive income.
19. HODL
Crypto slang for “Hold On for Dear Life.” Basically, it means don’t panic sell during price dips.
A common term in Kenyan crypto Telegram groups when prices are crashing: “Just HODL, bro!”
20. Web3
The next version of the internet — decentralized, open, and user-controlled.
In Kenya, Web3 is gaining traction with local devs building dApps, NFT marketplaces, and using platforms like Celo, Polygon, and Solana.
Also Read: How to Stay Safe from Cryptocurrency Scams: Tips to Protect Yourself
