Buying Bitcoin (BTC) in South Africa is often easier said than done.
Although the regulation on cryptocurrencies, especially Bitcoin, has become stricter in South Africa, It is actually easier to buy and sell Bitcoin, thanks to more secure cryptocurrency exchanges and KYC (Know Your Customer).
Today, buying Bitcoin in South Africa, is as easy as opening a bank account, if not easier. All you need is your I.D (Identification Document) or passport and an email address. Some exchanges might require you to upload your proof of residence.
You will also definitely require some South African Rands.
How to buy Bitcoin In South Africa, step-by step (Only 3 steps)
Choosing where to store your Bitcoin (BTC). This is the MOST IMPORTANT part of buying Bitcoin In South Africa. Because, if you ever lose your Bitcoin, or it gets stolen, you will most probably never regain access to it.
About 6 million Bitcoin BTC, if not more is inaccessible and permanently lost on the bitcoin blockchain.
Given that it is not possible to hard fork the chain to recover the lost Bitcoin, around 28.5 percent of the bitcoin’s fixed supply is permanently lost. So choosing a more secure wallet will be to your benefit.
There are various types of Bitcoin wallets, namely; web wallets, desktop wallets, cloud wallets, paper wallets, and hardware wallets (also known as cold storage, highly recommended).
There are also cryptocurrency cards available, however it may be difficult to get a hold a physical cryptocurrency card in South Africa. Check out Wirex. Wirex offers virtual cards (In app).
The first Bitcoin wallet you are likely to interact with will be an exchange wallet. When you buy Bitcoin (BTC) on an exchange like LUNO, your Bitcoin will will be stored on a Bitcoin wallet provided by the exchange. Should LUNO have a security breach and you lose your Bitcoin. You lose your Bitcoin. LUNO might be able to cover the lost funds, however most exchanges won’t be able to cover stolen funds.
Unless you plan to actively trade Bitcoin (BTC) multiple times a month, you should consider storing Bitcoin on a wallet that you own. Owning your own wallet is a great option if you plan on simply holding some Bitcoin as an idle investment.
If you choose to store your Bitcoin on a wallet that you own, you need to accept the following:
- There is no central authority that will reset your password for you if you forget it.
- There is no customer service center to complain to when something goes wrong.
Be sure to choose the best wallet for your needs.
Now that you have your Bitcoin wallet, it’s time to change your South African Rands into Bitcoin. If you wish to buy Bitcoin with cash, you will need to find a local Bitcoin ATM, or someone willing to give you Bitcoin for your cash.
If you are privileged to have a bank account and you are able to do EFT’s (Electronic Fund Transfers) you can buy Bitcoin on most of South Africa’s local cryptocurrency exchanges.
South Africa’s most popular and trusted exchanges are:
- LUNO: Gives South Africans the option to buy Bitcoin (BTC) or Ethereum (ETH) with South African Rand (ZAR). LUNO is serving more than 2 million customers and has a learning portal to help new cryptocurrency users to quickly understand the basics.
- VALR: Brings you over 50 cryptocurrencies with more to come.
- OVEX: supports over 20 of the world’s top 20 cryptocurrencies.
- Ice3x: One of South Africa’s oldest and best cryptocurrency exchanges, constantly adding new cryptocurrencies to trade.
- BitFund: BitFund removes the barriers to entry of investing in the cryptocurrency market in South Africa, offering users the option to buy baskets of cryptocurrency.
- Coindirect: Buy, sell, store, convert and trade BTC, ETH, USDT, XRP, LTC, DASH, BCH and 35 more of the world’s leading cryptocurrencies in one place.
- Altcoin Trader: Buy and Sell Bitcoin (BTC) on one of South Africa’s largest Crypto Exchanges.
Have a credit Card? You can buy Bitcoin on International exchanges.
Recommended International Bitcoin (BTC) exchanges:
- CEX.IO: A quick, cheap, and safe way to buy Bitcoin. Whether you would like to receive some Bitcoin instantly by making a market order, or to wait for specific conditions for the order execution with a limit order option, CEX.IO offers a unique and simple solution.
- Coinbase: Buy/ Sell bitcoin. You also have the option to invest in digital currency slowly over time by scheduling Bitcoin purchases daily, weekly, or monthly. Digital assets stored on their servers is covered by their insurance policy.
Once you have purchased some Bitcoin, you now need to receive it and keep it safe. When buying Bitcoin on exchanges, the transfer is near instant. Once you have received your Bitcoin, you can trade it, spend it or you can HODL (Hold On For Dear Life).
Buying Bitcoin is not difficult, it’s the complexities that come with owning Bitcoin that makes buying Bitcoin seem difficult. We hope this guide makes buying Bitcoin In South Africa easier for you.