Buying Bitcoin in South Africa

If you’re interested in getting started with buying Bitcoin, or you’re a veteran of this cryptocurrency and want to learn some helpful facts, then use our guide to become the ultimate Bitcoin investor.

In the online investment market, there’s one dominateing cryptocurrency making a splash: Bitcoin. A quick look on any financial forum will have at least a handful of people talking about it in one form or another; it’s a rapidly exploding currency that’s been taking the online trading market by storm.

What is Bitcoin?

Bitcoin isn’t difficult to figure out; simply put, it’s a form of online payment that works without using an intermediary, such as a bank, for your money. The currency was invented in 2008 by a user known as Satoshi Nakamoto and was subsequently released as open-source pieces in 2009.

Bitcoin is the world’s first ever decentralised online currency and since any single entity does not control them, their market value can change regularly, which makes it ideal for investment.

Why Invest in Bitcoin?

Why are so many people taking a risk on a digital currency when there are chances it could fail?

To start, Bitcoin is renowned for its price fluidity, with its value changing almost overnight in some cases. A small investment now could, potentially, triple in the space of a week. With that, if you leave that for a year, you could have a sizeable return on your investment on your hands.

For example, if you spent $1,000 on Bitcoin back in 2012, that would now be worth over $1,200,000, which is a staggering net increase of 100,000%.

There’s also the added benefit that Bitcoins are incredibly secure, and when you add on how easy they are to buy, sell, and use, you can see why so many people are taking a risk on cryptocurrency.

How Can I Use Bitcoin?

You can use Bitcoin for pretty much everything, from physical items like furniture and clothes, to gift cards and much more.

Most modern websites have started to incorporate them as a form of payment in one way or another.

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For example, REEDS is the first US company to accept Bitcoin as a form of payment, as does Microsoft on Xbox – even Dell, through a partnership with Coinbase, lets you buy high-end computers with a 10% price reduction for using Bitcoin alone when you buy.

The most popular method for using Bitcoin outside of trading CFDs is to use what’s known as a cryptocurrency wallet. This is a software programme that you can use to store many private and public keys that are used to interact with a series of blockchains, which allow people to send and receive different types of online currency to each other across a network that is entirely secure.

Sending and Receiving Bitcoin

If you were to send someone cash it would go to a specific address, which is normally another wallet that you’ve been sent a code or a link to. After the cash arrives, it’s stored in the wallet for a specified period until the recipient unlocks the wallet to withdraw the cash.

To unlock the wallet, the recipient uses a special key code; if the key matches the one that’s stored inside the wallet, the exchange is complete, and both parties’ balances are adjusted to match the deposit and withdrawal of cash. It’s that simple!

Bitcoin in South Africa: The Facts

Generally, in the South African Bitcoin market, you’ll be operating with the USD price since that’s known as the ‘international price’ that are used in most of the large exchanges that South Africa allows.

buy bitcoin in south africa

Finding the Correct Bitcoin Value

The prices on varying exchanges don’t always match.

For example, if you were to Google ‘South African Bitcoin’, you would be presented with the Google equivalent, which is an incorrect conversion rate since they convert your local currency to the South African Rand equivalent of the last known Bitcoin price.

This price isn’t the same as the current market value as the prices on each exchange are based on what the current demand is for the cryptocurrency at that given time.

One source may tell you that one Bitcoin is worth 175,505.60 South African Rand, while others could have a different price, so you need to do your research first to see which exchange will be giving you the best rate for your money when you’re buying Bitcoin.

Bitcoin Exchange Rate in South Africa

The exchange rate is much higher in South Africa compared to other places, such as the UK. This is because of South Africa’s stricter controls on international exchanges and trades, which is why, when you buy Bitcoin online in South Africa, you may be paying more than if you bought in the UK.

How and Where Can I Buy Bitcoin?

If Bitcoin has caught your interest and you’re now desperate to buy, simply follow our helpful step-by-step guide and we’ll get you up-and-running with your own cryptocurrency in no time at all.

First off, you need to decide if you’re going to buy from an exchange or stick to trading CFD’s – both have their own pros and cons.

CFD’s are excellent for short-term investing and capitalising on regular price movement, plus they also come with a multiplier of up to 25 times the initial amount so that you can get a huge return on your investment. Depending on the type of CFD you opt for, there’s the chance for you to multiply your money a hundred times over.

However, long-term investment can be risky as price swings have the potential to obliterate investments over time if you’re not careful. Ideally, if you’re using CFD’s, you want to get your cash in and out as quickly as you can to monopolise on potentially advantageous swings in the market.

Long-term investment in cryptocurrency is actively encouraged as it’s impossible to lose all your money in the trading market unless you’re unlucky enough that your currency type suddenly becomes worthless on the market, which almost never happens. Plus, if you’re using Bitcoin, the regular price fluctuation can net you a sizeable return in no time at all.

To purchase from an exchange, all you need to do is a pick a website you want to use, or that fits your budget. eToro is our broker of choice, so we’ll show you how to sign up and get buying Bitcoin.

How to Buy Bitcoins on eToro

1) First, head over to etoro.com and click the ‘Join Now’ button on the homepage.

Buy Bitcoin in South Africa - eToro

2) Next, enter your account details such as your name, email, phone number, and the username and password you want to use to access the site. Ideally, you should choose something unique to you that will make the account as secure as possible.

Buy Bitcoin in South Africa - Setting up your account

3) Then, select ‘Create Account’, and you will be brought to the main trading page and prompted to complete your eToro profile.

Buy Bitcoin in South Africa - Bitcoin Market

4) During the profile completion stage, you’ll be asked to enter personal details like your address, date of birth, and other information. This process usually takes a few minutes and once complete you can depositing funds into your account whenever you like by clicking the ‘Deposit Funds’ button on the main online trade page.

Buy Bitcoin in South Africa - eToro

5) Depositing cash into your account is straightforward; simply enter your payment details. eToro accepts several different payment options from credit and debit cards to PayPal, wire transfers, Skrill, Neteller, and many more. After entering your payment details, select the amount you wish to deposit and then click ‘Submit’ at the bottom of the page.

Buy Bitcoin in South Africa - Add Funds

Congratulations! You’re on your way to purchasing and trading Bitcoin online in South Africa.

The Future of South African Bitcoin Trading

As the proud owner of Bitcoin, however much that may be, your focus should now be on what the market holds for your valuable digital cash. After all, making sure your investment works the best it possibly can for you is the secret to maximising your profits.

If you’re a South African Bitcoin trader, the coming years are arguably going to be ideal for you as the value of Bitcoin is set to rocket in South Africa, continuing the trend this year. Back in August, it peaked at an all-time high of $4,225, and that amount continues to rise. Although there is the occasional dip in value, it’s expected with online currencies, and the Bitcoin SA price tends to bounce back higher quickly. In some cases, almost $10,000 worth can be gained in the space of a weekend, which happened back in August.

The regular increase in the Bitcoin South Africa market is down to the perceived notion of SA investors that it’s a safe-haven for financial assets during times of geopolitical tension.

Like gold, Bitcoin supply is restricted, but it’s more portable, easier, and cheaper to store, and isn’t controlled by any single government or company. It’s starting to be taken seriously as a place to store your money in times of potential economic downturn and, arguably, the South Africa Bitcoin market is at the forefront of this push.

Also, although currently the trade of cryptocurrencies for Bitcoin sellers in South Africa is not regulated, there is a behind-the-scenes push for the government to step in. According to Finance Minister, Malusi Gigaba, the government is holding talks with a number of privately-owned businesses that hold a sphere of influence in the Bitcoin South Africa market.

So, perhaps in the coming years, we could see Bitcoin taking off in a big way in South African, to the point where potentially it could become the number one currency over the Rand or the US Dollar.

Our Recommendations

Buying and selling Bitcoin has never been easier; there are lots of different platforms and ways in which you can have your fill and turn a tidy profit with this cryptocurrency. In closing, here are a few helpful tips that we recommend sticking to when you’re just starting out:

  • To begin with, if you’re looking for a reliable and secure way to purchase Bitcoin, we recommend going through a broker and having them handle your transactions. This is chiefly because of the majority of brokers out there are all strictly-controlled and heavily regulated to ensure that they do not perform any shady practices with their investors. This is our main choice over using an exchange to handle your cash as they can be a little daunting for first-time users and there’s not always a reliable option that’s available to provide help.
  • We recommend eToro as our broker of choice because of their benefits and ease of use.
  • Aside from being incredibly simple to use, eToro provides you with a myriad of different tools to guide you through your first few steps of becoming an online trader. With tons of discussion boards and a useful messaging system, they actively encourage social trading on their platform. They also have an excellent, dedicated account team that is always at your disposal should you need support with your account, plus you can stay up-to-date with the latest trade news, and even enrol in a training course to hone your skills as an online trader.

If you’re a beginner, then stay away from exchanges until you’re confident. The last thing you want is to throw your money away accidentally; it’s all about maximising your cash as well as you can.

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