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How To Buy Bitcoin In South Africa
- Update: 02 April 2020 - Binance now ads support for South African Rand Deposits and withdrawals
- Update 06 May 2020 - ChainEx has been added to the list
So you've Googled "Buy Bitcoin in South Africa" or something to that effect after hearing about this magical internet money or rather internet of money doing the rounds, and you landed up here. Bitcoin has become the generic term used to broadly describe the entire cryptocurrency market and is the entry point for most investors.
Bitcoin and Ethereum are currently the two most popular cryptocurrencies at the moment with the largest market share. They are currently the only two cryptocurrencies that can be purchased directly with South African Rands.
You may be able to purchase other altcoins in Rands, but the conversion is more or less done via one of these currencies in the background. If you're ready to take the plunge and want to own some Bitcoin or Ethereum, then check out the following websites.
Formerly known as Bitx, Luno is currently South Africa's most popular fiat to cryptocurrency exchange and backed by Naspers. To purchase Bitcoin, you'll need to create an account and then add them as a beneficiary and EFT your Rands to your Luno ZAR account. Once the funds have cleared, you'll be able to exchange it for Bitcoin or Ethereum. I've personally used this site and the app to purchase Bitcoin and Ethereum.
Coindirect is a new player
CEX.IO is a cryptocurrency exchange and former Bitcoin cloud mining provider. CEX is based in London offers trading cryptocurrency for fiat money, such as USD, EUR, GBP and RUB. Users will be able to purchase cryptocurrency using a Visa or Mastercard credit card or debit card to instantly purchase cryptocurrency.
Altcoin trader is a relatively new exchange
They are locally based exchange with offices in Roodepoort. Altcointrader payment methods can only be done via EFT at this moment but do have some of the lowest fees of any of the sites I've seen.
Ice³X (Pronounced: “Ice Cubed”) is also a South African based Bitcoin and Cryptocurrency exchange that is CIPC registered as Internet Currency Evolution Cubed (Pty) LTD. They started as a Bitcoin exchange but has added support for multiple cryptocurrencies with new trading pairs being added recently.
You will need to transfer your Rands to them via EFT, once the funds have cleared they will be assigned to your account, and you can purchase 1 of 5 different cryptocurrencies
6. Local bitcoins
LocalBitcoins is a Helsinki based website that supports escrow service. It does not actively store bitcoin but helps users match bitcoin buyers and sellers. The most common method of payment for the purchase is cash deposit. However, users may advertise trades for whichever payment method they prefer. Users will be dealing with 3rd party suppliers on the site which do support local EFT transfers.
Note: When using any exchange always check the fees when depositing, transferring, buying or selling cryptocurrency, so you're not in for any surprises.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies. Since early 2018, Binance is considered as the biggest cryptocurrency exchange in the world in terms of the trading volume.
ChainEX was founded in early 2018 and is a proudly South African privately held company. This digital asset exchange platform allows South Africans to buy, sell or trade over 20 different digital assets using the South African rand as the default fiat-buying currency for some.
Security measures With your Bitcoin
Cryptocurrency exchanges are famous for being hit by phishing sites, and you really need to be aware of the URL you're being directed to. You also need to make sure you enable 2FA on every exchange you use in case your account is hacked, or details phished the hacker will not be able to move your currency without your 2FA pin.
Store your currency somewhere safe
Do not store your Bitcoin with any exchange, since none of them will provide you with your own private key. If the site goes down, you will not be able to recover your currency. I would recommend you store it in a hot wallet, cold wallet or paper wallet for safekeeping. It is also important to save your passphrases and private keys on physical paper and keep them somewhere secure like a safe. This is your hard-earned money we're talking about so let's not take any chances, shall we?
Manage your downside
The cryptocurrency market is highly volatile, and the value can plunge or skyrocket at any second so do not invest more than you're willing to lose.
Practice due diligence
Finding reliable information on cryptocurrency isn't easy, and there are plenty of scams out there so beware and do your research. Check the message boards, the social media, engage on the forums and directly with the customer service staff of any website you're planning on using.
I also highly recommend you start with a trail purchase first lets. Try purchasing a small amount of Bitcoin once you receive it, send it to a cold wallet and see if the transfer clears. Once you assured of the legitimacy of your cryptocurrency provider, you can then go ahead and purchase your desired amount.
It is also important to be aware of the fact that not every cryptocurrency exchange will be around for an extended period of time or performs above board.
We've seen this with sites like Mt. Gox in Japan who at its peak handled 70% of the worlds Bitcoin purchases but has since folded and filed for bankruptcy.
I cannot stress enough how careful one needs to be when purchasing cryptocurrency, it may be scary, but it can also be a fun and a very rewarding way to invest a little bit of money.
If you're not ready to spend your own money but still want to get into cryptocurrency then check out our post - 22 Ways To Earn Cryptocurrency
If you want to know more about cryptocurrency, don’t be shy we’re happy to assist. Simply contact us
Disclaimer: This article should not be taken as, and is not intended to provide any investment advice and is for educational purposes only. As of the time posting the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency as all investments contain risk.