In the online investment market, there’s one dominating cryptocurrency making a splash: Bitcoin. A quick look on any financial forum will surely have a handful of people talking about it; it’s a rapidly exploding currency that’s been taking the online trading market by storm. We’ll teach how to buy Bitcoin in South Africa, according to the platforms and regulations available in this country.
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 had $1,000 on Bitcoin back in 2012, that would now be worth over $1,000,000. That means a net increase of over 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.
Buy 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 is used in most of the large exchanges that are allowed to operate in South Africa. Please bear in mind the following considerations.
Finding the Correct Bitcoin Value
Bitcoin price varies depending on the exchange or broker, it doesn’t match exactly. 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 than in other countries, 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 in South Africa?
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.
Most Popular Bitcoin Exchanges to Buy Bitcoin in South Africa
Buying, storing, and selling Bitcoin has never been easier in South Arica. The Rainbow Nation now enjoys the thrill of trading cryptocurrency, pretty much like its most cherished northern and western counterparts.
Although the government has not yet decided how to deal with the new currency, there are more than enough trusted and world-reputed bitcoin exchanges in South Africa, and, of course, lots of equally highly regarded and regulated brokers to get you started. Below, you can find comprehensive lists with some of the most popular South African bitcoin exchanges and brokers.
Truted Bitcoin Exchanges in South Africa (With Higher Fees)
The following is a list of equally trusted and reputed bitcoin exchanges in South Africa that are certainly worth considering, despite the slightly high fees:
- Coinmama – Operates almost globally and allows bitcoin purchases with a credit/debit card, charging about 6% fee on each purchase. Good option if you want to make small purchases as no verification process is required.
- Bitit – It allows you to make purchases online with Cashlib vouchers, cash, or 3DS-enabled credit/debit cards (8% Neosurf fee) while there are also Bitcoin gift cards available.
- Mycelium Local Trader – Works pretty much like LocalBitcoins. It helps you find bitcoin sellers to conduct a trade. You get to arrange an in-person meeting with the seller and pay Mycelium absolutely nothing in fees. Works like a charm in highly populated areas, where the possibility to find a seller is increased.
5 Most Popular South Africa Forex Brokers
FXTM is an award-winning broker with global clients from over 180 countries, including South Africa. It offers an impressive plethora of almost everything, from trading accounts and tradable products to execution types and payment methods. It is a well-regulated broker with tight ECN spreads and low commission fees that also offers various secure payment methods, including Bank Wire transfers, credit/debit card payments, and several e-wallets. Finally, users can stay relaxed with negative balance protection and high leverage levels.
IG is one of the oldest brokers in the world that has been provided CFD, forex, spread betting, and stock financial services since 1974. It is regulated by both the ASIC and Financial Conduct Authority (UK). With more than 120,000 traders, a wide range of platforms, and low margins and spreads, it is a good option for those in search of a trusted trader that also provides a decent plethora of trading options and markets. The funding methods available are credit card, bank transfer, and PayPal, while users can choose between 3 different types of accounts, plus a demo account.
One of the most popular brokers not only in South Africa but across Europe and America too. Navigating through its platform, one instantly realises that it is a platform that takes trading a bit more serious than some others. With cTrader and MT4 accounts, a low starting deposit ($100), exceptional customer service, two quality platforms (one for traders and one for investors), negative balance protection, mobile platform version, and very competitive spreads, FxPro is indeed a broker worth noting. Well-regulated and full of valuable information on the market, it is no wonder it has received so many awards as a broker.
Harborx is not a broker per se, rather than a mobile-only trading platform that helps users learn how to trade using a particularly user-friendly UI. The innovative STP broker is fully regulated by Cyprus Securities and Exchange Commission and while it supports a small array of payment methods (bank wire transfer, credit cards, PayPal, and e-wallets), its proprietary trading mobile app makes it great for those that wish to trade on the go. Let us also not forget that, on top of everything else, it offers commission-free trading and the option to trade in micro lots on its mobile apps.
CMTrading is a South African brokerage with good trading platforms – including an Android mobile app – and several promotions from time to time, giving South African traders the opportunity to benefit from exclusive bonuses. The popular FSB-regulated brokerage also has a broad range of account types (plus an Islamic option), as well as minimum deposit levels and varying features and spreads.
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 strategic for Bitcoin’s growth. Due to the volatility, you’ll need to take all factors into consideration, managing your risk accordingly. If you use a broker, you’ll be able to take advantage of ups and downs in price. 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 has a maximum supply. But BTC it’s more portable, easier, and cheaper to store, and no central company or government controls it. 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.
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.
- eToro provides you with a myriad of different tools to guide you through the process 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.
More about Cryptocurrency in South Africa
- Best South Africa Cryptocurrency Brokers and Exchanges
- Cryptocurrency gains now taxable income in South Africa
- South Africa reserve bank tests Blockchain
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