Carla Moretti
Carla Moretti
With almost two decades of experience in the fast-paced financial industry, Carla has established herself as a powerhouse and an innovative leader.
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    Valr Review 2022: Fees, Features, Pros & Cons

    Valr South Africa Review

    VALR Review: Our Opinion

    VALR is a cryptocurrency exchange with a huge potential to grow and expand in the future. The platform is perfect for all beginners and some professional crypto investors. You can easily trade a decent number of cryptocurrencies against the ZAR. Thanks to zero-fee deposits and unique features like VALR Pay, making payments and withdrawals is straightforward on the platform. On top of all that, the VALR fee structure is one of the lowest in the industry.

    However, improvement is needed in a few areas. First, we would love to see VALR support more fiat currencies in the near future to enable users outside South Africa to enjoy the platform to its full potential. Moreover, the exchange should consider accepting PayPal, Zelle, and other such banking methods to increase accessibility.

    An Overview of VALR

    Valr Home Page

    Similar to other crypto exchanges, VALR is a centralised crypto trading platform that allows users to leverage the financial sector by buying and trading different cryptocurrencies. Based in South Africa, the company is relatively new compared to most popular crypto exchanges elsewhere. It was launched only in 2019 after a successful funding round of raising around $1.5 million, which was led by Bittrex and Montegray Capital of Michael Jordaan – former CEO of First National Bank (FNB). 

    The VALR cryptocurrency exchange hosts over 250,000 retail users and about 50 institutional clients. About 95% of these clients are based in South Africa. This is no surprise when you consider that the crypto exchange supports most local banks, which means South African citizens can buy and sell Bitcoin, Ethereum, XRP, and many other cryptocurrencies using South African Rand (ZAR). 

    VALR states that its cryptocurrency exchange is suited for all sorts of users, regardless of investment amount and experience level. The easy-to-use interface and incorporation of several advanced trading tools make the platform a good option for both beginners and experienced traders/investors. 

    You’d also be interested to know that the VALR cryptocurrency exchange recently finished the Series B funding round and raised $50 million, which is the highest fundraising yet by any cryptocurrency firm in South Africa. The company is also valued at $240 million, ten times more than its valuation in July 2020. 

    VALR’s mission is to bridge the gap between the traditional financial system and crypto-based decentralized finance by allowing users an easy and cheap way to on-ramp their funds. It also aims to remove the differences and bring unity to the crypto space in the country. According to the CEO of VALR, Farzam Ehsani, “We need a financial system that recognises the oneness of humanity.”

    Pros

    Cons

    Key Features of VALR

    Following are some of the unique products and services offered by VALR which can improve your overall trading experience.

    VALR Pay

    VALR Pay

    VALR incorporates several digital products and services in order to provide a seamless and convenient experience to users when sending and receiving funds around the globe. Among these, VALR Pay is its own unique and probably the most popular product so far, enabling the easiest possible way to transfer fiat currency funds. 

    With VALR Pay, users can send ZAR to any individual around the globe. Using this method, you can quickly deposit funds into the wallets of your friends and family, allowing them to access instant liquidity. The entire process is entirely free and barely takes a minute. 

    All you need is the VALR ID (a unique QR code) of the user you want to send the funds to. After scanning the QR code, enter the amount of ZAR you want to send, and confirm the transaction. You have the option to send the payment anonymously as well. If the recipient does not have a VALR ID, you can simply enter their phone number or email address and a message informing them of the payment with an invitation link to join the VALR crypto exchange.

    The maximum transfer limit through VALR Pay is capped at R50,000. However, there is no limit to the number of transfers you can make. Moreover, if a payment is not claimed within 72 hours, it is reversed. This means added security for crypto investors.

    VALR API

    VALR is a global trading platform operating on multiple blockchains. To bring the potential of all these networks together and enable users to benefit from each ecosystem, the crypto exchange offers VALR API. Using it, anyone can take advantage of a live crypto market and access market data.

    Cryptocurrencies Available on Valr

    Cryptocurrencies available on VALR

    The cryptocurrency space is currently home to more than 19,000 coins and tokens. However, not all are good investments, and many of them will most likely collapse sooner or later. It is up to cryptocurrency exchanges to not accept each coin and support only those projects that are reliable and safe for investments. At the same time, exchanges with a small range of accepted cryptocurrencies limit traders and investors to only a few options, forcing them to switch between different trading platforms. 

    As you would expect from any reputed crypto exchange, VALR accepts a decent number of digital assets, all of which are popular projects with strong fundamentals. Currently, the platform supports over 70 cryptocurrencies (including stablecoins) and trading pairs. The list includes Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Aave (AAVE), Algorand (ALGO), XRP (Ripple), Aragon (ANT), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Shiba Inu (SHIB), Basic Attention Token (BAT), Polkadot (DOT), Polygon (MATIC), Litecoin (LTC) Tron (TRX), and many more. 

    This number is suitable for most experienced traders, giving them enough diversity. Moreover, the most accepted projects are the large-cap cryptocurrencies which are good for entry-level traders as it exposes them to relatively safer options.

    Accepted Fiat Currencies

    Though the trading platform accepts a wide range of cryptocurrencies, the spectrum is much limited for fiat currency options. The only fiat currency you can use to make payments is the South African Rand. Unlike many popular exchanges, VALR does not support common fiat currency deposits such as EUR and USD. While it is good for users based in South Africa, if you want to trade cryptocurrencies against any other fiat currency, the platform is not right for you.

    VALR Fee Structure

    VALR fees

    Every good cryptocurrency trading platform ought to have a low fee structure. No one likes to lose a substantial portion of their initial investments to trading fees. Moreover, you must be extra careful when researching the fee structure for any exchange. Many trading sites have a series of undisclosed fees apart from the few main fee charges. 

    VALR crypto exchange is among the most lenient platforms with a really cheap fee structure.

    Trading Fee

    VALR trading fees

    A trading fee is the portion of the total trading amount that the platform charges you with each transaction made. Usually, the trading fee is divided into makers and takers fees. Makers are the users that make orders, bringing liquidity to the exchange. On the other hand, takers are the users who fulfil these orders, removing the liquidity from the market. Almost every exchange charges a greater taker trading fee than that for makers.

    VALR charges takers a 0.1% trading fee of the total amount being traded. However, makers are not charged anything, but they are incentivized with a -0.1% makers fee which means they receive 0.1% of the total amount they trade with each transaction. 

    Although the above-mentioned trading fees are highly competitive, the trading fees for instant buys and sells are a bit expensive, i.e., 0.75%. While this may sound affordable to some users, there are cheaper alternatives.

    Deposit and Withdrawal Fees

    VALR deposit and withdrawal fees

    VALR charges absolutely no fees for both crypto and fiat currency deposits. However, all withdrawals using ZAR are charged with R8.50 withdrawal fees. These withdrawal fees vary with different cryptocurrencies.

    Valr Payment Methods

    As mentioned before, VALR allows deposits and withdrawals only in ZAR. To fund your VALR wallet, you can connect your e-banking account and deposit fiat funds for free. The platform also accepts wire transfers, but be prepared to wait a little longer for the bank to clear payments.

    Similarly, it has a seamless withdrawal procedure that allows you to transfer funds from your wallet to your bank account. For users outside South Africa, VALR supports cryptocurrencies like Bitcoin and Ethereum to make deposits and withdrawals.

    One of the biggest criticisms the trading platform faces is limited banking options. VALR does not support credit/debit card payments or any digital services, such as PayPal or Zelle. However, the exchange is still one of the most convenient ways for South African citizens to buy and sell crypto funds directly using ZAR.

    Valr Security

    VALR security

    Security is one of the most important aspects you need to consider whenever choosing a crypto exchange. When you use an exchange, you are trusting the platform with not only the security of your funds but the privacy of highly-sensitive user data as well. Unfortunately, there have been several incidents in the past when the entire crypto exchange got hacked, and users lost all of their funds. The 2014 Mt Gox hack, which resulted in users losing 740,000 BTC ($16.2 billion according to the current price), still haunts crypto holders. 

    VALR makes absolutely no compromises when it comes to privacy and security. The platform is partnered with Bittrex – one of the leading cryptocurrency exchanges and custodians worldwide – to ensure the security of users’ funds. The platform uses cold storage wallets which keep all the crypto funds disconnected from the internet, reducing the chances of hacking incidents to zero. 

    VALR uses several other security measures to ensure that no individual, including the CEO, can single-handedly transfer all the funds to a private wallet. Furthermore, the exchange uses end-to-end encryption technology to protect users’ data. All users are required to complete KYC requirements and submit official documentation for identity verification. On the users’ end, you can add another layer of security by enabling 2FF (two-factor authentication) using an authenticator application.

    Earning Opportunities with VALR

    VALR rewards

    With so many exchanges cropping up in the industry, each trading site tries to attract and incentivize new users and traders with several earning features. Some of them offer staking and yielding pools, while others have attractive refer-a-friend packages. Following are the earning opportunities available at VALR.

    VALR Referral Program

    VALR referral program rebates and rewards

    A referral program involves inviting new users to join the exchange using a unique invitation code (or referral link). The new sign-up is required to input that code at the time of creating their account. At every successfully referred sign-up, the person who sent the invitation gets rewarded for contributing to the exchange’s network.

    VALR’s referral program is divided into rebates and rewards. Rebates are the discount that you enjoy on your trading fees. Rewards are the commission you get from the trading costs of your referrals.

    The rewards and rebates are given according to a three-tier model. The first level is achieved when you use a referral code at the time of sign-up. The second level is achieved when one new account is created using your invitation code. The third and highest level is achieved when two or more people join the exchange trading platform using your invitation code.

    Level one users are incentivized with a 10% rebate on their trading fees. Level two users enjoy a bigger 15% rebate on their trading fees. Similarly, Level three users get a 15% rebate on their trading fees, as well as 10% of the trading fees of all their referrals as a reward.

    You should know that all rebate offers are capped at R1,500 which means the rebate offer is valid only up to a total of R1,500 cash backs. However, there is no limit to the referral rewards. Moreover, the higher the number of referrals you have, the greater your potential rewards will be.

    To get your invitation code, sign in to your VALR account and click the profile at the top right corner of the screen. Click on the “Referrals” option in the menu. You will get a referral link that you can send to your friends to create a new account. You will also get a unique code that can be used at the time of signing up by your referrals. On top of that, you also get the option to invite your friends and family through email or social media platforms.

    VALR Staking and Yielding Pools

    VALR market makers rewards

    Staking means locking up your crypto funds to participate in the blockchain network consensus protocol to validate and record transactions on the blockchain’s decentralized database. Yield farming, on the other hand, is an essential component of the DeFi world. It involves lending your cryptocurrency holdings to a DeFi platform to provide liquidity. The profits for yield farming are measured in annual percentage yield (APY).

    Unfortunately, the VALR crypto exchange does not offer any staking or yield farming earning opportunities as of now. If these interest-generating features matter a lot to you, we recommend you look for some other exchanges, such as the Crypto.com trading site where you can earn up to 14.5% interest per year on some crypto coins.

    Opening a VALR Account

    You can quickly sign up on VALR and start crypto trading by following these steps:

    1. Visit VALR’s official webpage and click on the ‘Get Started’ button at the top right of the screen.

    VALR sign up page

    2. Fill in the required details: your first and last name, country of residence, email address, referral code (if any), and create a strong password. Make sure to create a password that is not easy to guess and not hard to remember, as it will be asked every time you sign in. Alternatively, you can also create a new account using your Google or Facebook account. 

    3. If you sign up using an email address, you will be asked to verify your email address by visiting your inbox and clicking the ‘Verify My Email’ button. 

    4. After this, you can sign in using your email address and password. You will be asked to provide a phone number and verify it.

    5. Your account is now created. However, you will have to complete the verification procedure to be able to trade cryptocurrencies.

    6. The verification procedure includes submitting your address, official identity documentation, a scanned copy of your ID card, and a simple live video. 

    7. After the verification procedure is completed, your account will be ready to trade straight away, or the customer support team may contact you to provide any additional documentation if needed.

    Trading Experience on VALR

    VALR trading platform

    The trading experience at VALR is clean, seamless, and suitable for both intermediate and professional traders. The crypto trading platform integrates live charts from TradingView – the world’s most active social network for traders and investors. As a result, new crypto investors can use several chart indicators and tools to carry out advanced-level technical analysis while executing a transaction. 

    Apart from the live candlestick chart, the trading interface includes an order entry box, order book, and trade history. The order entry box is similar to any other crypto trading platform. You can click on the recent orders to automatically enter the price and amount. Moreover, you can automatically find 25%, 50%, 75%, and 100% buttons to enter the trading amount based on the available capital. 

    VALR allows users (owns VALR) to execute market orders, limit orders, and stop-limit orders. Market orders are executed quickly, while limit orders are triggered when the entered price is hit. The platform does not offer any advanced order option, such as One Cancels the Other Order, to take profit and place stop loss at the same position. 

    User Interface

    An intuitive user interface is a defining factor for a seamless user experience for any crypto exchange. VALR offers a web-based trading platform for the desktop experience, as well as cellphone applications for android and iOS devices. The interface is really smartly designed and well integrated on all three device types.

    Despite having such a detailed trading experience with so many tools and a wide range of deposit/withdrawal methods, you won’t find the application lagging even for a moment. The application is free to download at Google Playstore and Apple’s App Store.

    You will also find the unique custom-design live crypto widget feature which works surprisingly well across all operating systems. These widgets are useful to stay up to date with live prices for Bitcoin and other digital currency assets in real-time. You can also set notifications to alert you when a coin hit a certain price point. These options are quite useful in the case of intraday trading when the traders have to stay updated even with the slightest price actions.

    VALR Customer Support

    VALR Customer Support

    VALR customer support team is composed of 10 members. While the number may seem small, the results are well beyond our expectations. The responses are pretty fast and helpful, too. 

    First of all, if you face any difficulty while you trade crypto, you visit VALR’s dedicated support page, which has a list of FAQs. Unlike most exchange platform sites, these FAQs are actually helpful and settle almost every problem users commonly face. 

    However, if the FAQs section does not help you with your matter, you can always contact the customer support team via email and social media handles. The former is generally the quickest way. However, you also have the option to approach them through their Facebook, Instagram, Twitter, and LinkedIn accounts.

    Is VALR Right For You?

    VALR is among the best options for South Africans who want to trade crypto and fund their wallets through bank accounts. The crypto platform allows users to buy and sell cryptocurrencies against ZAR at highly competitive fees.

    The exchange also supports a decent number of crypto-to-crypto pairs. However, users based outside South Africa who want to use fiat currencies to trade crypto should look for alternate options. Moreover, if you prefer using credit/debit cards and digital banking services like PayPal, this exchange won’t work for you. VALR makes it easy for new crypto investors to get started with digital currency.

    Final Thoughts

    Despite being relatively new in business, VALR is one of the fastest-growing crypto exchanges in South Africa today. The platform is not focused on one specific type of crypto investor but works perfectly well for beginner and professional crypto investors alike. With its smartly designed user interface, a great referral program, and low fee structure, it is definitely worth checking out for crypto investors, the experienced trader as well as new crypto investors.

    Our extensive analysis of the South African Crypto Exchanges doesn’t stop here. You can also read about our eToro South Africa review as an alternative to VALR or you can check out our best crypto exchanges South Africa guide for our top choices available in South Africa.

    FAQ

    Most frequent questions and answers

    VALR is a South Africa-based cryptocurrency exchange with the highest level of security standards in the country.

    Using the Fast Withdrawals technology, VALR allows users to withdraw their funds almost instantly.

    VALR accepts over 70 cryptocurrencies. It includes many popular coins like Bitcoin, Ethereum, XRP, Cardano, Dogecoin, and more. The list is expected to grow with time.

    VALR is the fastest-growing crypto trading platform in South Africa, currently hosting more than 250,000 users.

    We always try to provide the most accurate information available, and make sure our team follow through.
    If you want to know more about our Crypto Exchanges Review Methodology follow the link below

    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual’s needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

    To view our privacy policy read here.

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