Bitcoin has been one popular asset besides stocks and bonds that has attracted many investors in South Africa. This has, in turn, made the country one of the places where Bitcoin adoption and transactions from Bitcoin to South Africa Rand (ZAR), and vice versa, have quickly grown. So, if you’re a beginner trader interested in investing in this asset, you must know how to buy Bitcoin online in South Africa.
Ways To Buy Bitcoin Online In South Africa
1. Crypto Exchanges
Many exchanges enable you to purchase Bitcoin in South Africa. However, it is important to consider factors like trading fees, payment options, withdrawal limitations, excellent security, responsive customer support, and verification procedures before purchasing your preferred exchange.
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 operating in South Africa.
It should also be noted that some exchanges may require you to get your Bitcoin wallet before the purchase.
The standard process of buying BTC from exchanges is as follows:
- Choose a reputable exchange that supports South African Rand deposits.
- Create an account and verify your identity.
- Deposit funds through bank transfer or other supported methods on the exchange.
- Place an order to specify the amount of BTC you want and confirm the order. The exchange will execute your trade at the current market price of Bitcoin.
- The BTC will be transferred to your provided wallet.
2. Peer-to-Peer (P2P) Platforms
P2P platforms are another way to buy Bitcoin online in South Africa. An example of such a platform is Paxful. It acts as a marketplace for buyers and sellers to meet and negotiate over the price of buying or selling the coin.
This method is considerably fast, and you can use different payment methods to acquire Bitcoin, depending on the seller’s preference.
However, P2P platforms can reek of scammers lurking around to steal unsuspecting users’ funds. That is why you must always be cautious of trading Bitcoin on various P2P online platforms.
Popular Exchanges To Buy Bitcoin In South Africa
1. Binance
South African Bitcoin traders can buy Bitcoin on Binance, which is used to support credit/debit cards on the platform. But you may now have to use a third-party payment processor if you want to use the cards to buy BTC in the country.
Binance has a low commission rate that is capped at 0.10% when buying or selling BTC. The exchange provides advanced chart analysis tools like TradingView and technical indicators to help your trading journey.
2. Luno
Luno is a popular exchange in South Africa, with one of its branches in Cape Town. This exchange boasts the highest crypto trading volume, offering features like quick trade, fast deposit and withdrawal, simple trading, etc.
The most efficient way to buy Bitcoin in South Africa on this platform is through the “Instant Buy” option, which supports bank transfers in South African Rand. This feature does not come at an additional cost. The trading fee on Luno ranges from 0.25% to 1%.
3. Crypto.com
Crypto.com is a notable exchange in South Africa because it supports Visa and Mastercard payments. This means that you can purchase BTC conveniently on the platform.
Trading fees on Crypto.com are 0.40%, which applies to buying and selling Bitcoin. This exchange has a Bitcoin wallet on which you can store your BTC.
4. eToro
eToro supports many cryptocurrencies, including Bitcoin. Therefore, South African users must make an initial deposit of $200 when they sign up for an eToro account. You can use payment methods like credit/debit cards, PayPal, Skrill, Neteller, bank transfers, etc., on the exchange.
The trading fee on eToro is 1% plus the bid/ask spread. There is a ‘CopyTrader’ tool that enables you to copy the trade made by other eToro users without any cost.
Where To Sell Bitcoin
The purchase of Bitcoin is with the understanding of selling the coin after some time of holding it. The whole idea is to make gains during trade, which makes crypto trading one of the best ways to make money online.
However, you must know the best place to stay to sell Bitcoin when the time is right to convert your Bitcoin in South Africa.
Prestmit is the most reliable and credible platform to sell your BTC. It boasts advanced security features, multiple payment methods, a user-friendly interface, and an automated Bitcoin rate calculator to enable you to have profitable trading always.
How To Sell Bitcoin On Prestmit
- Visit the official website of Prestmit or download the Prestmit app on the Google Play Store or Apple Store.
- Create a Prestmit account and log in.
- Click “Buy & Sell Cryptocurrency” and choose “Sell Cryptocurrency.”
- Select “Sell Bitcoin” and generate a Prestmit wallet address.
- Follow the prompts to sell your Bitcoin.
- You will receive payment immediately after the successful confirmation of your transaction,
Frequently Asked Questions (FAQs) About Buying Bitcoin In South Africa
Is It Legal To Buy Bitcoin In South Africa?
It is legal to buy or sell Bitcoin in South Africa. But, any profit from the exchanges is subject to taxation, according to the South African Reserves Bank (SARB). This is similar to the crypto tax structure in Canada.
How Much Money Should I Invest in Buying Bitcoin in South Africa?
This depends on your risk appetite because the Bitcoin market is volatile mainly.
What Is The Fastest Way To Purchase Bitcoin In South Africa?
The fastest way to buy BTC in South Africa is via the “Instant Buy” option on Luno. But this comes with an additional cost.
What Is The Best Payment Method To Buy BTC In South Africa?
You can purchase Bitcoin using credit/debit cards from Visa or Mastercard, considered the popular and best payment method.
Conclusion
Buying Bitcoin in South Africa has been made easy with the various ways to acquire this coin, as highlighted in this article. These online methods enable you to purchase Bitcoin as fast as possible.
However, it is essential to consider trading fees, security, payment methods, and trading options before purchasing Bitcoin on exchanges or P2P platforms.
