How to Buy Bitcoins in South Africa: Best Guide
The exponential increase in the number of Bitcoin to rand transactions shouldn’t surprise you. This is due to the fact that South Africa is one of the nations where Bitcoin use, adoption, and growth have all expanded quite quickly.
An impressive quantity of Bitcoin products has been adopted as an alternative monetary system in South Africa. South Africans are reportedly looking for other investment options to safeguard themselves because of the political and economic uncertainty in the nation.
Even if South Africans can now purchase Bitcoin with ease using their own money, it is impossible to ignore the fact that there are still many unprotected sites that they must deal with. Many South Africans consider Bitcoin and blockchain to be a growing space that offers numerous business opportunities. These people worry that scammers will cheat them out of their hard-earned money at the same time.
Most South Africans have chosen reliable, trustworthy, and user-friendly foreign platforms to avoid falling victim to fraud. Currently, numerous digital currency and trading platforms in South Africa make it simple to purchase and sell Bitcoin.
Since it is difficult to research the topic, in this how to buy Bitcoins in South Africa Guide, we have reviewed several cryptocurrency exchanges and examined the best procedures and methods for legally purchasing Bitcoin in South Africa. In addition to demonstrating how to buy Bitcoin in South Africa securely and affordably, we also discuss the advantages and disadvantages you should be aware of before beginning. We also provide a more comprehensive explanation of how and where to buy Bitcoin in South Africa.
Ways to Buy Bitcoin in South Africa
In South Africa, there are several legal ways to obtain Bitcoin or even convert Bitcoin to South African Rands. The following are the different ways to buy Bitcoin in South Africa.
Buying Bitcoin with Bank Transfer
The ability of customers to transfer money internationally from their local bank is welcome news. This implies you can transact with people worldwide from their local bank to buy Bitcoin.
The process is significantly simpler when you follow the appropriate guidelines or work with a reliable vendor. This way of purchasing Bitcoins is simple since all you have to do is transfer funds to the person you wish to buy Bitcoin from, and that person will then send you back Bitcoin in exchange.
Buying Bitcoin with Gift Cards
Converting gift cards into Bitcoin is one of the most popular ways to buy Bitcoin in South Africa. With this technique, you must first buy a gift card with your local currency from an online retailer like Amazon or iTunes. You must activate the gift card after purchasing it. After activation, you select the option to use the gift card to buy Bitcoin. When you choose this option, a page will open that has traders willing to exchange your gift card’s value for Bitcoin. Once you have made a profit, you can convert the Bitcoin back to South African rand.
Use a Credit or Debit Card to Buy Bitcoin.
You can also buy Bitcoin with a credit or debit card. You must still use a reliable cryptocurrency exchange where you can add your debit card or credit card information and send money online after the information has been validated. There are credit card-associated costs, so it’s a little more expensive method of purchasing Bitcoin.
The best way to purchase Bitcoin in South Africa is to have access to a debit card or credit issued by MasterCard or Visa. Create an account with a trusted exchange, and submit your credit or debit card details as required. This will enable you to instantaneously deposit money and then buy Bitcoin or any other available digital currency.
Your debit or credit card information will be processed securely as long as you are using a reputable exchange. You cannot use a credit card to deposit funds into the exchange because they are typically used for instant purchases. The costs might go up rapidly if you only have a credit card. For instance, you will often be charged a cash advance fee by credit card companies, which can be rather expensive.
Use an ATM to buy Bitcoin
Self-service kiosks called ATMs allow anyone to buy Bitcoin and other cryptocurrencies using cash or debit cards. With more than 4,000 Bitcoin ATMs spread around the globe, South Africa has the maximum number of these ATMs.
One can buy and sell Bitcoin for cash using some Bitcoin ATMs’ bi-directional functionality. Finding a Bitcoin ATM nearby is the first step in using one to buy Bitcoin. Enter your phone number and click “purchase coins.” When you enter your phone number, a verification code will be issued to you by SMS. Then, enter the amount you wish to purchase, your wallet’s QR code, or your wallet address into the Bitcoin ATM. The next step is to put your money in the machine and choose “Finish.”
Once you have finished all the processes, the appropriate amount of Bitcoin will be deposited into your wallet. An ATM can be used to deposit funds in order to buy bitcoin, but it cannot be used to withdraw cash after selling bitcoin.
Buying Directly In-Person
This is among the riskiest ways to buy Bitcoin. This is due to the requirement that you physically meet the individual from whom you wish to buy Bitcoin. And you would either have your money—your rand—on hand or be prepared to transfer it to the recipient immediately. The main drawback in this situation is that you might not be aware that the person is trying to scam you until it is done.
Bitcoin can be bought or sold directly between individuals. In other words, when you pay money to someone, they immediately send you cryptocurrency to your Bitcoin wallet. However, this could pose new risks because scammers might steal your money without sending you any cryptocurrency.
Buy Bitcoin with Paypal
There aren’t many possibilities if you’re asking how to buy Bitcoin in South Africa using PayPal. Having said that, you can make deposits using ApplePay, PayPal, and other e-wallets on the Capital.com platform.
At Capital.com, there is a $20 minimum deposit requirement when using PayPal, and best of all, there are no transaction fees. The only other alternative you have in this is to use the P2p feature at Binance. This should allow you to deposit funds into PayPal, but since you’ll be dealing with a third party, there may be concerns with expensive fees and fraud.
Many South Africans have begun participating in the complex Bitcoin mining process. Since Bitcoin mining requires a substantial investment in processing technology, this is primarily accomplished through Bitcoin syndicates. Bitcoin miners are compensated in bitcoin for their efforts in network security and transaction verification. Although it isn’t very profitable, if you are interested in technology, you’ll find the process fascinating.
Buying Bitcoin from Crypto Exchanges
A cryptocurrency exchange is a marketplace that allows crypto investors to buy and sell cryptocurrencies. Many exchanges offer Bitcoin in South Africa, enabling you to choose one based on your preferences and needs.
Before choosing an exchange, users should be aware of fees for Bitcoin transactions, withdrawal limitations, payment options, and verification procedures. Additionally, buyers of Bitcoin should be aware that some popular exchanges may need you to get your own crypto wallet before you can purchase the digital currency. Having your own Bitcoin wallet is advised for security purposes even if it is not required (preferably a hardware wallet).
Though there are several exchanges in South Africa where you may buy Bitcoin and other cryptocurrencies, you should pick one with reasonable fees and support for the deposit method you want.
Most importantly, only use an exchange to buy Bitcoin that has a solid reputation for security and customer service. When opening an account, you must confirm your name and address as part of the Know Your Customer (KYC) procedure, which is required by law for most exchanges in South Africa.
You can know how to easily buy Bitcoin by following the reviews of the top crypto exchanges listed below.
eToro - One of The Best Bitcoin Crypto Exchanges in South Africa
eToro is one of the best cryptocurrency exchange to trade Bitcoin in South Africa. In the trading community, eToro has an excellent reputation and has over 26 million users globally. Although eToro is not officially regulated in South Africa, it does have the support of prominent regulators like the FCA, CySEC, ASIC, FINRA, and FinCEN.
eToro cryptocurrency exchange supports 75 cryptocurrencies, including Bitcoin, several altcoins, and DeFi tokens. Trading in all eToro’s cryptocurrencies costs a flat 1% charge plus the bid/ask spread. Since eToro doesn’t charge any additional hidden fees, this guarantees that the fees charged are always transparent.
South African residents who sign up for eToro need to invest $200 (3391 ZAR) as their initial deposit; however, subsequent deposits will only cost $50 (796 ZAR). If made in USD, deposits are free; however, deposits made in fiat currencies other than USD will incur a 0.5% conversion fee. eToro allows different deposit methods such as credit/debit cards, bank transfers, Neteller, PayPal, and Skrill.
Beginners can also learn how to trade on the eToro exchange because the platform uses a “fractional investing” strategy that allows users to open transactions with as little as $10. (159 ZAR). Users of the eToro cryptocurrency exchange can trade using either the user-friendly mobile app or the user-friendly web interface, both of which offer real-time price charts, a variety of order types, and a range of technical indicators.
The ‘CopyTrader’ tool is one of the most noteworthy features that the eToro exchange has to offer. Users can automatically copy the trades made by other eToro exchange users using this function without having to pay any extra fees.
Finally, eToro Money, which serves as the platform’s integrated cryptocurrency wallet, will be available to all eToro exchange users. This wallet app supports hundreds of crypto-assets and is available for free download on iOS and Android. Users can quickly and easily speculate on price changes by exchanging coins right from the dashboard of their wallets. The moment you have bought Bitcoin through eToro, you can store your crypto holdings safely in the eToro Money crypto wallet.
Crypto.com – Best Platform to Buy Bitcoin in South Africa with Low Fees
Crypto.com is another excellent location to buy Bitcoin in South Africa. The vast majority of crypto traders worldwide use this platform because of its low fees and simple yet extremely feature-rich bitcoin investment program.
In addition to Bitcoin, over 250 alternative cryptocurrencies, including but not limited to Ethereum, Dogecoin, Shiba Inu, Litecoin, EOS, and many more, are supported by the Crypto.com exchange. When it comes to trading fees, the Crypto.com exchange just levies trading fees of 0.40%, which is applied both when you purchase and sell Bitcoin.
When you trade in higher volumes and stake CRO, the platform’s native digital token, offers even cheaper fees. The Crypto.com app is popular in South Africa because it accepts payments made using Visa and MasterCard. This implies that you can buy Bitcoin from the convenience of your house in just a few minutes.
You can also use a standard bank wire to deposit money as an alternative. The delivery, however, may take a few business days. After purchasing Bitcoin using the Crypto.com exchange network, you have the chance to earn interest. This is because you can add your BTC tokens to a cryptocurrency savings account.
You can choose a flexible withdrawal plan or keep your BTC tokens locked up for one or three months. The APY you receive will depend on your choice. For instance, you can earn 6% interest on your Bitcoin deposit if you stake CRO tokens and choose a 3-month lock-up term.
In contrast, the APY reduces to 0.5% if you choose a flexible plan rather than staking CRO. The Crypto.com exchange now provides a pre-paid cryptocurrency credit card that enables you to use Bitcoin anywhere that accepts visas in South Africa and abroad. Last but not least, Crypto.com also provides a safe Bitcoin wallet that is integrated into its exclusive app.
Luno - Best User-Friendly Bitcoin Exchange in South Africa
Luno is an independent subsidiary of Digital Currency Group that invests in cryptocurrencies. The exchange was known as BitX until it was rebranded in 2017 as Luno. The exchange head office is located in London but has branch offices in Cape Town, Singapore, and South Africa. It is one of the most prominent exchanges for buying Bitcoin in South Africa.
It provides Coinbase-like services while expanding its reach even in nations where Coinbase is prohibited. Currently, it is South Africa’s most well-known cryptocurrency exchange. It has the nation’s highest cryptocurrency trading volume, closely followed by Nigeria. It provides outstanding features such as quick trade, fast deposit and withdrawal, simple trading, price direct bank account transfer, alert, etc.
For users to have the best experience possible, the Luno crypto trading exchange provides a wide range of services. The quickest and most straightforward way to buy Bitcoin in South Africa is through Luno’s “Instant Buy” option. However, using this instant buy feature does come at an additional cost. Luno assists users who want to trade Bitcoin and ETH quickly, even with fiat currencies. The instant buy or sell fiat trading charge initially starts at 2%, but it may also increase. The crypto trading platform also sets transaction limits based on the country’s choice.
South Africa Luno exchange is a trading room where crypto investors can trade crypto pairs. Both novice and seasoned crypto traders can use the trading platform’s charts and indicators. There are several crypto pairs available depending on the region. The same applies to Luno transaction costs, which vary from 0.25% to 1%. With Luno, you can transfer funds in fiat from your bank account to a Bitcoin wallet and conduct Bitcoin transactions in the digital currency.
Luno’s mobile wallet is the mobile equivalent of its original best crypto wallet. The mobile wallet, which is frequently ranked among the top cryptocurrency wallets online, is compatible with both Android and iOS smartphones. It provides convenience by enabling investors and dealers to transact anytime and from any location.
Once the deposit has been confirmed, the funds will appear in your ZAR balance. Deposit the amount you want to add to your wallet into the bank account shown on your screen. The BTC shows how much Bitcoin you have bought, and ZAR shows how much you have spent.
Binance – Low-Commission Exchange to Buy Bitcoin and Other Cryptocurrencies
The last option to consider when choosing where to buy Bitcoin in South Africa is Binance. In the past, South Africans used Binance to purchase cryptocurrency using a debit or credit card because the exchange provided a direct payment gateway for Visa and MasterCard.
However, Binance no longer offers this service; hence, you must use a third-party processor if you want to use a debit or credit card. Additionally, fees may be exorbitant as a result. However, Binance does have very low commission rates that are capped at 0.10% each side for trading. You can trade with even lower commissions by trading more frequently.
Furthermore, Binance is an excellent choice if you want to trade unique digital currencies, not least because the website hosts over 600 digital currencies. You may also buy Bitcoin in South Africa using the Binance exchange if you want advanced chart analysis tools. This includes access to TradingView and technical indicators.
If you’re looking for a reputable crypto wallet to hold your Bitcoin tokens, Binance may also be of interest. You have complete control over your private keys with the decentralized software Trust Wallet, supported by Binance. Additionally, you can earn interest on your investment by keeping your Bitcoin in a Binance savings account.
Should I Buy Bitcoin?
Investors are looking at ways to buy Bitcoin in South Africa – primarily because of the historical returns this virtual currency has generated. The Bitcoin network was only established in 2009, and at that time, you would have paid roughly 15 ZAR, or less than $1, for each token. Since Bitcoin’s founding in 2009, its value has increased by millions of percent.
Even if you had the good fortune to invest in early 2017, the cost per Bitcoin would have been close to $1,000. Nearly 70% of the South African respondents to the survey, according to Luno’s research, were aware of the trend toward digital currencies, and close to 30% had bought Bitcoin.
Furthermore, when you consider that Bitcoin reached highs of almost $69,000 in late 2021, you can calculate returns of nearly 7,000% in just under four years of trade. It’s crucial to keep in mind that Bitcoin is an extremely volatile and uncertain asset. Therefore, you must consider the increased risks of investing and the chances of losing money rapidly. The great news is that you may get exposure to cryptos without making a sizable financial commitment.
On the other hand, a user-friendly exchange allows you to purchase just a small fraction of a BTC token. This will, at the least, enable you to start building your Bitcoin portfolio using money that you’re willing to lose.
Our extensive analysis of the South African Crypto Space doesn’t stop here. You can also check out our full list of Crypto Guides for South Africans
Most frequent questions and answers
The high liquidity connected with Bitcoin makes it a good investment if you’re searching for short-term gains, but keep in mind that due to its volatility, Bitcoin is also a very high-risk investment. Although Bitcoin is a risky and volatile asset, many investors take the chance to buy it because of its potentially high returns.
In South Africa, buying and selling Bitcoin is legal. Although the South African Reserve Bank (SARB) has issued cautionary statements against the risks of trading in Bitcoin, no specific cryptocurrency trade is really prohibited. Any profits from these exchanges are clearly subject to taxation, according to SARS.
Although there is presently no regulation of cryptocurrency trading in South Africa, the government is developing new regulations to oversee the cyber-banking sector. According to reports, the South African Central Bank is researching cryptocurrencies and may soon impose guidelines to promote crypto adoption.
Approximately 75% of South Africans prefer to keep their coins on the exchange from which they purchased them. South Africans tend to select Exodus, Trezor One, and Ledger as their top wallets.
Yes. It’s a common fallacy that Bitcoin has no real-world value. This isn’t the case as more and more businesses are beginning to accept Bitcoin as payment. Starbucks, Microsoft, and PayPal, are some of the most well-known companies that allow Bitcoin purchases.
It’s necessary to know the risks involved with leaving your coins on an exchange as opposed to using a wallet. The operation of public and private keys must also be understood if you intend to use a wallet. Bitcoin transactions can never be undone. It is impossible to cancel or undo a transaction once it has been sent to the Bitcoin network. So before sending a Bitcoin payment, be sure the receiving address is correct. No bank exists to reimburse any lost money sent to the incorrect address.
There are different types of wallets that are supported in South Africa: Software wallets (mobile or desktop – Android or iOS mobile wallets); Hardware wallets (Cold-storage (paper steel or paper wallets, the former is used to back up your main Bitcoin wallet). Hot wallets, which are typically wallets where exchanges hold some or even all of the coins and tokens.
You can find ATMs in Nelspruit, Johannesburg, Capetown, and Pretoria.
Depending on your risk appetite, you should allocate between 5% and 30% of your total investment capital to buying Bitcoin. Never invest more than you can afford to lose.
You may purchase an unlimited amount of Bitcoins under legal circumstances. You can purchase as many Bitcoins as you’d like if your nation permits it. The only practical limit is the total amount of Bitcoin, which is 21 million.
After deciding how to buy Bitcoin, the next step is to think about the best payment method. You can buy Bitcoin using a debit or credit card if you have access to a debit or credit card issued by Visa or MasterCard, which is by far this.
There are different ways to buy Bitcoin crypto with a bank transfer. You could use a peer-to-peer platform or traditional exchange. Traditional exchanges are firms that benefit from buying and selling bitcoins. Usually, they demand payment for their services. Peer-to-peer platforms are websites or applications that link buyers and sellers of cryptocurrencies. Typically, these platforms don’t charge for their services.
You must find a platform that accepts a bank transfer if you want to buy Bitcoin using a bank account. You’ll need to register for an account and provide identification proof once you’ve found a platform that accepts a bank transfer. Following that, you’ll be able to deposit money to your account and begin purchasing Bitcoin.
As an example, after completing your profile on your dashboard, you must provide the personal information necessary for eToro’s KYC checks. Upload your proof of ID (such as a passport) and proof of address after (e.g., bank statement). Know Your Customer (KYC) procedure is required by law for the majority of exchanges in South Africa.
You will require a copy of a recent utility bill or bank statement with your address on it, along with photo identification, to complete this. Most of the time, KYC is accepted right away, but occasionally, you’ll have to wait a few days before your account is validated.
For people who prefer to trade with ZAR instead of Bitcoin, the Luno wallet is a great option. You could transfer, receive, purchase, and sell bitcoin using the Luno app. It is accessible online on Android, and on iOS.
You can send bitcoin to a wallet address, a phone number, and email address, or scan a QR code. Sending Bitcoin to a phone number or email address is cost-free. However, depending on the network traffic, Luno costs extra for the other options.
The price of Bitcoin in South Africa is not as simple to determine as the exchange rate between one South African Rand (ZAR) and one Bitcoin (BTC), which, at the time of writing, is equivalent to 1 BTC = 353,699.91 ZAR.
The default currency when searching for the price of Bitcoin on Google is the US dollar (since some claim it to be the “international” price). This implies that in order to convert Bitcoin to rand, they must first convert it to USD, and then from USD to Bitcoin. But this is not the actual cost of a Bitcoin in South Africa. The market rate is different from the local South African Bitcoin exchanges.
The fastest and simplest way to buy Bitcoin in South Africa is through Luno’s “Instant Buy” option. However, using this feature does come at an additional cost. A cheaper alternative is to place a ‘Buy order’ thru Luno.
Go to the Luno screen and click the “Buy/Sell” button. To transact, you can choose between using bitcoin (BTC) or ZAR. Your BTC shows the amount you want to purchase, and ZAR balance indicates the amount you have spent
Two-factor authentication (2FA) is a useful technique to keep your cryptocurrency wallet secure. It has an additional security layer. You choose your own password when you first create your bitcoin exchange wallet, and you also get an identification number. These are the only pieces of information needed to access your wallet.
By enabling 2FA, you can add a third credential—a one-time use code that is only valid once—which you’ll also need to access your wallet. Each time you try to log in, a new code will be created.
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.
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