Buy Cryptocurrency – How to Buy Cryptocurrency in South Africa For Beginners
The debate on whether to buy Cryptocurrency in South Africa is no longer necessary. This article will guide you on how to buy cryptocurrency in South Africa. Also, we will highlight the possible rewards and risks to crypto investment.
Furthermore, you’ll know the right and best brokers to use when buying cryptocurrency in South Africa.
Currently, you can conveniently buy cryptocurrency within few minutes through any trusted and reputable crypto broker. Interestingly, top brokers like Capital.com will give you competitive charges and accept payments in Rands.
Buy Cryptocurrency at Capital.com – South Africa’s #1 Platform
How to Buy Cryptocurrency South Africa – The Full Guide
You can conveniently buy any crypto of your choice within the shortest time. Here are the steps to buy cryptocurrency South Africa through Capital.com- the best broker that asks for 0% commission on crypto trading.
We’ve made a detailed analysis of the cryptocurrency for a clearer understanding of why you should buy the asset. Also, reveal the top brokerages and exchanges where you can buy the assets in South Africa.
Below, we present the tutorial guide on how to buy cryptocurrency from Capital.com. Through its operations, fees, and features, the broker remains the overall best platform for trading cryptocurrency in South Africa.
Step 1: Open an Account
Once you’re ready to open an online account for trading cryptocurrency, visit the official website of Capital.com. You will click on REGISTER NOW button. Then, you will need to input your email address and create your password.
To ensure adequate account security, endeavor to form a strong password. You can use a combination of special characters, numbers, upper and lower cases for the password.
After concluding the account sign-up process, you will have access to a demo account on the platform. This will assist you in learning the processes of buying or trading on cryptocurrency as a newbie.
Step 2: Verify Your Account
Account verification is one of the prerequisites for trading in Capital.com. Being under the regulation of some giant financial agencies such as the FCA and others, the broker maintains KYC compliance. Thus, every account must undergo verification.
The verification process requires an upload of any government-issued ID such as a passport or driver’s license. Also, you’ll upload a copy of your recent utility bill or bank statement that is not more than 3 months. After the upload, Capital.com sends a notification message to
Step 3: Deposit Your Funds
When you get a notification for the account verification, you can deposit your funds. Capital.com accepts the deposit of South African Rand. It later converts it to USD, one of the fiats for crypto transactions.
Log in to your online account and click the DEPOSIT button.
Then select any payment option that is suitable for you. The broker supports deposits through bank transfers, e-wallets, and debit/credit cards. The minimum deposit on the platform is $20. This is considerably low in comparison to other competitors in the industry.
With Capital.com, there’s no deposit fee for any method of transfer that you choose. While bank transfers may take a longer time to reflect in your account, transfers from cards and e-wallets are instantaneous.
Step 4: Buy Cryptocurrency
You can buy any cryptocurrency of your choice after funding your account. First, search for the digital asset your want to buy in the search box. Then select the crypto and USD pair that matches your choice. For instance, when buying Bitcoin, you will choose USD/BTC. Proceed by clicking the TRADE button.
Then, input the amount of the digital asset you’re buying and set your order. Ensure you confirm your order and click the TRADE button. The broker will buy your cryptocurrency according to your order.
Select the crypto you want to buy and click on the ‘BUY’ button. For instance, you can decide to buy Bitcoin. Then, fill in the buy order by entering the amount of the digital asset you want.
What is Cryptocurrency?
Cryptocurrency can mean different things to different people. So, it’s pertinent to have a good understanding of cryptocurrency before investing.
Cryptocurrency is a virtual or digital asset used for transactions verifications and records maintenance via cryptography. The entire system of operation in cryptocurrency is on a decentralized system.
In a nutshell, we’ll summarize the features of cryptocurrency below:
- First, cryptocurrency is a digital or virtual asset. This means that it’s not physical money that you can touch. Rather it is in the form of non-tangible coins.
- The foundation of cryptocurrencies is the blockchain technology that records, tracks, and maintains transactions.
- Several digital assets are decentralized. This means that the currency has no third-party influence and control like governments or central banks.
- Cryptocurrencies are dynamic and speculative. Thus, the value is also flexible and can move at any time.
Bitcoin remains the largest crypto globally. It’s the first and the most used digital asset, boasting of the highest market capitalization in the industry.
So to several people, when you mention cryptocurrency, it’s Bitcoin that comes into their minds. This is because its limited supply makes Bitcoin the digital gold in the crypto world.
Besides Bitcoin, there are still other cryptocurrencies that are good for investment in South Africa. However, with over 8,000 digital assets currently available, a newbie can easily be confused.
So, the best approach is to focus on the prominent cryptocurrencies in market capitalization. This will help to reduce unnecessary exposure to risks associated with digital assets.
The Trend of Cryptocurrency Investment in South Africa
There is a specific and distinctive purpose for each digital asset. For instance, Bitcoin focuses on tackling the banking industry globally.
Ripple, on its part, permits the sending and receiving of funds by financial institutions using a quick and low-cost approach. The use of smart contracts for digital assets remains Ethereum’s main objective.
But even with the different purposes of cryptocurrency, people are investing in South Africa to earn some cash. Thus, when buying cryptocurrency, the speculative approach is more relevant for you.
When financial gains are your main purpose in buying cryptocurrency in South Africa, the flow below gives the procedure:
- Assume you invested R3, 000 in Bitcoin.
- The price of Bitcoin is worth $30,000 at the time of purchase.
- After some years, the price of Bitcoin increased to $60,000.
- This implies that your investment has gained a 100% increment in terms of percentage.
- You can cash out to receive Rands by selling your cryptocurrency through any exchange of your choice.
From the illustration above, your investment of R3 000 brought a 100% gain. This represents double your investment amount. Thus, when you sell out, you’ll be getting R6, 000 indicating a profit of R3 000.
Alternatively, you can view the crypto market in South Africa similarly to the penny shares. In addition to being highly volatile, the prices of digital assets are very dynamic. Thus, they change on a per-second basis.
For instance, the price of Ethereum at the time of writing has dipped by 3.52% within the last 24 hours. However, further zooming on the price shows a decrease of 12.02% within the last 7 days.
Thus, you should only engage in cryptocurrency investment in South Africa if you can cope with the industry’s volatile nature.
Why Buy Cryptocurrency?
As with other countries, the major reason why South Africans buy cryptocurrency is for financial gains.
They now see digital currencies as a good investment for the sole reason of their potential price increase. Ethereum and Bitcoin are the best performing digital assets in recent years. Also, some altcoins like Tron have started gaining momentum.
Comparing JSE 40 and Cryptocurrencies
The JSE 40 is a South African primary stock market index that most people prefer to invest in. It tracks the prices of the 40 top companies in the country.
The South Africans see JSE 40 as a risk-free way of investing money. It allows them to invest within the 40 different stocks from various industries and sectors of the economy.
However, the JSE 40 index recorded a 31% increase in the last five years. These returns are small compared to cryptos like Bitcoin.
- For instance, five years ago, before July 2021, the price of Bitcoin was just $434 (6,309 Rands). But it is now $29,000 (421,575 Rands) even with the recent price slash. This implies that Bitcoin has made over a 6,000% increase compared to the 31% of the JSE 40 index.
- Other cryptos, in addition to Bitcoin, have also made significant growth recently. Binance coin, for instance, was $0.10 in 2017 when it was initially adopted. But it has increased to $261 in July 2021. Thus, it has recorded over 260,000% growth in just four years.
This type of growth is the ultimate reason why many South Africans resort to crypto investment.
Increased Popularity Over Time
The growth of internet stocks has taken the world by surprise. For example, investing in Microsoft, Apple, and Amazon back in the early days of the internet would have cost just a token of their current values.
This is why many people believe that crypto would be the major internet business future. Crypto will impact lives as the internet does now with its growing awareness.
Currently, more than 8000 crypto projects are on the market, and some of them may fade off. But cryptos like Ethereum and Bitcoin are worth just a piece of their real potential, especially in their global usage.
Moderate Staking Amount
Digital assets are volatile regardless of their growth and popularity; they are highly speculative too. Remember that Bitcoin decreased from $13,412 on January 1st, 2018, to $ 4,165 in November. In 2020, this same crypto rose and fell without maintaining a particular trend or stability in growth.
This behavior is common among all cryptos. As such, you must invest or stake modestly. The good thing is that you can buy any amount of crypto, even if it’s a fraction. This is best when investing in popular assets like Bitcoin, which costs tens of thousands of dollars.
Many South Africans now prefer investing through Capital.com brokers as they accept a minimum investment amount of $25. Hence, you can have access to this innovative digital asset with small stakes.
Many people think that the only avenue to make money in a crypto investment is via price increase. This is somehow true because digital assets don’t pay dividends, but there is an additional means of earning an income here. It is known as a crypto savings account, and many trusted providers now offer the services. The working process is stated as follows;
- Open an account with any of the crypto savings providers like Binance or YouHodler.
- You then deposit your cryptocurrency holdings into the system or platform.
- The platform uses your holdings to fund cryptocurrency loans secured by user’s collaterals.
- The system will, in turn, pay you an interest rate so long as your funds remain in the crypto savings account.
- This process allows you to store your funds safely as long as you desire and earn extra annual income. So again, when the crypto price rises, you still stand a chance to earn more.
Hedge Against Rand’s Depreciation
The South African Rands have been depreciating hopelessly in recent times. This may be a result of the negative impact of the Covid-19 pandemic on the economy. However, the depreciating Rand is also another factor encouraging South Africans to turn to crypto investment.
They have decided to consider cryptos like Bitcoin to hedge against the depreciating Rand.
Of course, this idea is still subject to proof, but there is strong evidence of large-scale financial institutions following the same route to hedge against bond yields that are falling. If all these are true, then the value of Bitcoin will be positively affected.
The Best Cryptocurrency to Buy in South Africa Currently?
After learning how to buy cryptos, you need to know the type of crypto asset to add to your portfolio. Since there are lots of these assets in the South African crypto market, you can get some with ease.
We advise you do your research first before making a decision.
Bitcoin is the best and most popular crypto you can buy in South Africa. It is also the largest crypto market, with a market cap of over $554 Billion as of July 20th, 2021.
This amount makes Bitcoin to be more valuable compared to other companies that have been listed in South Africa. Check more features of Bitcoin below;
Bitcoin holds over 60% market shares out of the 8,600 cryptos in the market. Moreover, it is the best-recognized digital asset globally. This implies that it is a reliable option for beginners.
The de-facto crypto has already reached Wall Street financial firm too. Institutional investors are now allowed to buy, trade, and sell Bitcoin futures.
Experts predict that Bitcoin ETF will gain some growth in future years. However, Bitcoin is not only a good platform for exchanges; it’s also another store of value.
Bitcoin as a trading platform operates with a network that allows borderless transactions within 10 minutes. Thus, the transaction fee is cheap-less than $1, and as a store of value, it mimics the likes of gold and silver.
2. Binance Coin
Binance coin, as we mentioned earlier, has maintained its stand since its launch in 2017. The crypto recorded over 260,000% increase in 4 years. Imagine if you had invested like 100 Rands in 2017, it would be worth over 1.79 million Rands.
It may surprise you to know that the primary objective of the BNB coin is to provide reduced trading fees on the exchange.
However, Binance now pulls several billions of dollars in as its trading volume. This signifies that bull investors will like to hold larger BNB coins to enjoy the low transaction fees. As a result, Binance management has engaged in a program known as burning.
The burning program operation is similar to that of a normal share buyback. Binance buys BNB from the market with its profit and burns them later to checkmate its circulating supply.
This process, in turn, helps to increase the value of the coin by reducing its total supply. Binance’s major revenue stream is from its trading commissions. You can buy it from Capital.com with a minimum capital of $25 (364 Rands) at zero commission fee.
When you compare Ripple’s behavior in the marketplace, you can see it as a sleeping giant. Ripple is a digital asset that aims to change the interbank trading arena fundamentally. This is a huge marketplace since trillions of dollars now pass through the SWIFT network every day.
SWIFT transactions are costly and take some days to complete. The technology in Ripple allows financial institutions and banks to transfer funds in second to overseas at a lower price.
However, the Ripples native crypto-XRP is the link between two clashing currencies-providing all the liquidity needs of both senders and receivers. Therefore, there is every tendency that as more banks scout for Ripple’s Technology, the XRP valve will surely increase.
Ethereum has proven to be among the most favorable digital technology investments in recent times. The crypto market adopted it in 2015, and it has made over 1000% growth since then.
Ethereum is more than a digital currency; it is also an open-sourced protocol. In 2015 the value of Ethereum was $1.3 (18.87 Rands), but the crypto is now $1,880 (27,452 Rands). This behavior is similar to Bitcoin and is over 145,000% growth.
The native token of this unique protocol is ‘Ether- ETH.’ Ether aims at speeding decentralization in the world’s economy with the ability to influence other industries.
The crypto has the backing of various Fortune 500 companies who joined forces in 2016 to develop its technology. The Ether, just like other cryptos, can be volatile and serves as digital assets for crypto traders.
Ethereum classic is the initial version of the general Ethereum blockchain, which later gave birth to the recent version. This recent version adopted Ethereum as its name.
Is Cryptocurrency Investment in South Africa Legal?
One of the major concerns of intending crypto investors in South Africa is how to legally and safely buy it. If you’re in this plight, then no need to worry as the entire buying, trading, and selling process is legal. But, unfortunately, there is no specific legislation on crypto in South Africa currently.
Crypto-specific legislation is an issue the South African government will introduce in the future. But there is an area in the crypto scope the domestic law covers, which is taxation. You will pay tax for any profit you make with your crypto holdings, just like other stock investments.
How To Buy Cryptocurrency Safely
Though cryptocurrencies have recently made a better impact in South Africa, the market is still prone to scam. This is because no one can trace crypto transactions to the receiver or sender; hence, digital assets such as Bitcoin are mostly the choice of currency for scammers.
In South Africa, you need to take these measures to ensure you buy your crypto safely.
Choose a Regulated Broker
Buying your crypto via a regulated broker in South Africa is the safest possible way to adopt. The most renowned and biggest crypto exchangers-Bitcoin exchanges are based overseas. They have the backing of reputable financial bodies recognized globally.
For instance, Capital.com, our most rated broker, has three tier-one bodies as regulators. They include; CySEC (Cyprus), FCA (UK), and ASIC (Australia).
This is an assurance that you can safely buy cryptos in South Africa. The benefit of using a broker is that you stand a chance of benefiting from various predictions from investors. The broker will also keep your fund in a separate bank account.
Shun Peer-to-Peer Transactions
Peer-to-peer crypto transactions are becoming more rampant in South Africa. This involves the process of purchasing digital assets from the seller directly without involving a middle man.
You can achieve this in person or online through a P2P website based on mere trust. However, this process is hazardous as any regulated provider will not back you.
Store in a Wallet
Buying crypto safely in South Africa does not end at the initial process of a transaction. First, you need to get the best means of storing your holdings- private digital wallets. It will help keep your crypto holdings safe from digital thieves or wrong hands.
But as a beginner, understanding the wallet security techniques may be difficult hence putting your funds at risk.
The funds are exposed, and remote hackers may have access to them. But with a regulated broker, your funds will be safe until you are ready to liquidate them.
However, you need a wallet to store your crypto once you decide to start investing in it. Crypto wallets can be mobile, software, or a hardware wallet.
Hardware wallets are safer than others, while on-chain wallets are convenient but not safe. So, dig a little to choose the best wallet to use.
Payment Methods For Buying Cryptocurrency
If you wish to buy cryptos in South Africa using the day-to-day payment method, you will require a regulated broker. This is important as unlicensed exchanges cannot legally touch or accept fiat currency. Instead, they permit withdrawals and deposits in digital assets only.
For instance, Capital.com, our top-rated crypto trading platform, allows you to buy your preferred crypto with a fast and convenient method. Moreover, it guarantees instant credit for all the payment methods listed below except the conventional bank wire.
The various payment method you can use to buy your crypto in South Africa includes;
- Credit Card
- Debit Card
- Bank Wire
Where To Buy Cryptocurrency – The Best Brokers
Choosing a trust and the right broker or exchange is essential when you’re considering buying cryptocurrency in South Africa. Unfortunately, the industry is flooded with several brokerages and exchanges; you must gather your bits to avoid unnecessary flops.
We’ll explain below the best and reliable brokers where to buy cryptocurrency in South Africa securely.
1. Capital.com – The Overall Best Broker to Buy Cryptocurrency in South Africa
Capital.com stands out as our top pick when you’re looking for a trading platform for financial instruments in South Africa. The broker is a trusted and reputable site that offers its users access to over 3000 financial market instruments. Some of the traded instruments include stocks, forex, indices, cryptocurrencies, commodities, etc.
The company specializes in providing CFDs tradings for its customers. This means that with Capital.com, you won’t have ownership of the underlying financial assets. The trading will be based on the difference of price settlement between the opening and closing trades of the assets.
So, when you want to trade a cryptocurrency like Bitcoin, it will be the speculation of the price movement. You won’t have ownership of the Bitcoin tokens. This removes the issues of coin storage in wallets and the risks associated with the safekeeping of private wallet keys.
Moreover, Capital.com is a regulated and safe platform for buying, selling, and trading your assets. The broker is under strict regulation of top-tier agencies such as the FCA, CySEC, and others. It ensures and maintains the necessary compliance and regulatory rules for users through KYC documentation.
The company has an insurance cover for its customers’ funds and transactions. This accounts for the trust of its over 20 million users. As such, you are sure that your funds are in good hands without fear of fraud and hacking.
When it comes to fees, you can’t compare Capital.com with any other platform for low cost in South Africa. The broker offers a 0% commission for trading in all assets. The charges on the platform are on a variable spread approach on the buy/sell prices of the assets.
For instance, the broker uses a spread of 0.74% for Bitcoin. Also, Capital .com accepts deposits in Rands and supports several payment options. So you can transfer your funds by bank transfers, credit/debit cards, Paypal, Skrill, ApplePay, and others.
Furthermore, the broker maintains 24/7 customer support services for its users. The top-notch interactions and responses are through emails and phone. Also, there’s an integration of an advanced trading tool, AI software.
This feature functions through cognitive detective biases for customers, trading patterns. It alerts the users automatically on their trading changes and offers insight for improved trading performances.
You can visit the Capital.com website now to open an online account in a few minutes for you to start trading on crypto CFDs. Once you’ve completed the account opening process and verification, make your funds deposit, and you’re ready for transactions.
To trade on crypto CFDs, select the digital asset of your choice, like Bitcoin. Then, click the BUY or SELL button and input your order accordingly.
- Trusted and reputable platform.
- Under strict regulation of top-tier agencies like the FCA, CySEC, and others.
- 0% commission on trading.
- Competitive variable spread for charges.
- Demo account for more trading insights.
- Smart AI software for improved trading performances.
- Availability of several payment options.
- Educational materials which are suitable for beginners.
- 24/7 top-notch customer support system.
- Exclusively deals on CFDs, so there’s no actual ownership of assets.
- High possibility for loss of money through CFDs tradings.
2. Coinbase – Friendly Broker To Buy Cryptocurrency in South Africa
Coinbase is the top user-friendly platform for cryptocurrency transactions. The brokerage site was launched in 2012. The platform, which boasts of over 35 million customers, ranks among the top largest crypto brokers.
Though Capital.com has about 18 top digital assets on its listing, you can get more cryptocurrencies using Coinbase.
Buying cryptocurrencies in South Africa through Coinbase require a straightforward process. The platform is also a safe environment to run your crypto transactions.
Opening an online account with Coinbase requires that you visit the broker’s official website. Complete the on-screen account opening form by filling in your information. Then, proceed to upload your ID and other necessary documents to verify the account faster.
Then, you can transfer some funds into the account using the supported transfer options by the broker. This makes you eligible to select and buy any cryptocurrency from the platform.
Coinbase offers many cryptocurrencies to diversify your investments even though it doesn’t have ETFs and stock. Also, the broker is under the regulation of the Financial Conduct Authority (FCA) and the U.S. SEC.
Coinbase offers two-factor authentication (2FA) through the Google Authenticator app or SMS. Users also get other features like email notifications.
There’s also added security to the customers when they leave cryptocurrencies in their accounts. For example, the locking option allows users to lock withdrawal requests within the Coinbase vault for 48 hours.
Coinbase charges are based on a spread basis. The platform charges about 0.5% for crypto sales and purchases. It also fee of 3.99% for deposits from debit cards when buying cryptocurrencies. So, a deposit of R5 000 attracts a charge of about R200 on your account.
The best low-cost deposit with Coinbase is through direct bank wire. There’s, however, an applicable 1.49% trading commission when the funds hit your account.
Coinbase’s Transaction Fees
|Commission on trading||1.49%|
|Debit card transfer||3.99%|
|Crypto conversion||0.5% to 2%|
|Purchases||0% to 0.5%|
Here are the pros and cons of using Coinbase
- Availability of several digital assets.
- Multiple options for fund deposits like credit/debit cards, bank transfers.
- Beginners-friendly interface.
- Outstanding reputation with over 35 million customers.
- Simple and handy mobile app.
- Safe and secured platform with FCA license.
- A high fee of 3.99% for debit card deposits.
3. Binance – The Largest Broker for Trading Volume and Liquidity to Buy crypto in South Africa
Binance has thousands of listed cryptocurrencies and ranks as the world’s largest exchange/broker for trading volumes and liquidity. In addition, the platform has a high-level trust in the crypto industry due to its low-fee policy and outstanding services.
Binance has several cryptocurrencies on its platform as the world’s largest crypto platform for trading volumes and liquidity.
You will get easy access to diverse digital assets on the platform and hence boost your crypto portfolio. In addition, the broker also gives unique trading opportunities in the form of crypto-cross and crypto-fiat pairs.
If you decide on buying cryptocurrency from Binance, visit the official website to sign in for an online account. Enter your information and details. Then verify your account by uploading your government-issued ID. When you receive a confirmation for the account verification, you can deposit your funds.
Binance supports deposits through debit/credit cards, bank transfers, and e-wallets. Depositing through bank transfer requires the use of an intermediary account from the Binance. The process has a waiting period of about 48 hours to confirm the transaction.
The broker takes no charge for fund deposits when you make bank transfers. When you confirm the deposit, the next thing is to buy crypto from the account.
However, by using your debit/credit card, you will get a faster transaction and confirmation for your deposits. You can then proceed to place the buy order for any crypto of your choice.
Also, by using Binance, you will get leverage of a 0.1% trading commission. Again, this’s comparatively low to charges by other platforms.
Furthermore, Binance offers a web wallet to store digital assets. Using the web wallet comes maximum security as there will be a two-factor authentication (2FA) on the platform.
Binance’s Transactions Fees
|Trading and transaction fees||0.1% spot trading fee; 0.5% Instant Buy/Sell fee. Debit card transactions add 4.5%. Other fees may apply.|
BEP 20 (BSC)
Pros and Cons of Buying crypto in South Africa through Binance.
- The world’s largest crypto exchange in liquidity & trading volume.
- Facilitates many cryptocurrency pairs
- Thousands of digital assets are listed on the platform.
- Special features and tools are suitable for professional users.
- Charges 0.1% commission for trading
- Cost-effective and Reputable
- Accepts funds transfer using bank transfers, credit cards, or debit cards
- Too technical for beginners.
- A high fee of 3% charge for deposit through credit/debit cards.
Conclusion – How To Buy Crypto in South Africa
This article serves as a guide and covers the in and out of ‘how to buy cryptocurrency in South Africa.’ It explained in detail crypto issues like choosing a reliable broker and the trending crypto at the moment. It also highlights the potential rewards and risks any intending and experienced investor needs to consider.
If you have decided to invest in digital currencies and start instantly, a regulated broker like Capital.com is a good option. It links you with up to eighteen digital assets which you can buy and sell without any commission fee.
It takes only a few minutes to open a digital account. Then, you can deposit funds into it using a South African credit/debit card, an e-wallet, or a bank account. This implies that you can buy Bitcoin with either a credit card or any payment method of your choice.
Best Platform to Buy Cryptocurrency: Capital.com
Can I buy cryptocurrency with South African rands?
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