How To Buy Ethereum South Africa: Beginners Guide 2021

Fact Checked by Gary McFarlane

If you’re thinking of how to buy Ethereum in South Africa, we’ve got your back. The process involves opening an online account on a reliable crypto broker website and transferring funds into it. Then, you can select the quantity of Ethereum you plan to buy.

The good news is that there are reliable platforms where you can invest in Ethereum with a small amount of money. These trusted brokers include Capital.com, Binance, and Coinbase.

Buy Ethereum at Capital.com –  South Africa’s #1 Platform

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Through this article, we’ll guide you on how to buy Ethereum in South Africa seamlessly.

How to Buy Ethereum – Quick 4-Step Guide

Here are four quick steps to buy Ethereum in South Africa using Capital.com.

  1. Open an Account with Capital.com – The easiest way to buy Ethereum in South Africa is through Capital.com. a CFD broker. Sign-up for an account using your details to enjoy 0% commission on trading on the platform.
  2. Upload ID – Simply upload any government-issued ID (passport or driver’s license) and a recent utility for your account verification process.
  3. Deposit Funds – Deposit your funds using any supported payment option on the platform.
  4. Buy Cryptocurrency – Search and select the crypto Ethereum, then purchase some.

Where to Buy Ethereum in South Africa

When considering where to buy Ethereum  in South Africa, the first thing is to choose a crypto exchange or broker. When choosing you should aim to pick a trusted and secure exchange/broker to ensure that you operate from a regulated platform.

Below, we present the best top brokers where to buy Ethereum in South Africa. These brokers are not only safe when buying crypto, but they also provide the best cost-effective means for investors.

1. Capital.com – Best Platform to Buy Ethereum South Africa

Capital.com

Capital.com is a global CFD and forex broker with physical offices in Cyprus, London, and Belarus. It is referred to as a fintech company founded on April 7, 2016, with Ivan Gowan.

The company aims to enhance the world of finance by making it more helpful, accessible, and engaging.

This broker has lots of financial assets apart from Bitcoin. You can access stocks, commodities, ETFs, Forex, Indices, etc. Bear in mind that Capital.com allows investors to trade crypto as CFDs. So, you don’t have to worry about the storage or ownership of your Bitcoin.

Capital.com is regulated by the Financial Conduct Authority(FCA) UK and the National Bank of the Republic of Belarus (NBRB).

It’s also regulated by the Cyprus Securities and Exchange Commission (CySEC) and operates in over 183 countries globally. Capital.com is regarded as a reliable broker because it’s regulated by the top-tier FCA.

A table of the broker’s fees.

Items Fee Fee Terms
Deposit 0 No Deposit fee
Withdrawal 0 No Withdrawal Fee
Trading fee $3.1-$6.4

(45.2SGD -93.46SGD)

varies
Inactivity low No inactivity fee

 

 Pros

  • It has excellent customer support that provides a quick and detailed response.
  • The account opening process is easy, user-friendly, and fast.
  • It has low stock CFD fees.
  • It takes as low as $20 (27.04SGD) direct fund deposit, and $250 (338.01SGD) for bank transfers.
  • com charges a zero-commission fee for deposits and withdrawals.

Cons

  • The price alerts are not included in the web trading platform
  • The available product range is limited to CFDs like shares, cryptos, etc.
  • Minor account base currencies are also missing in the platform.

 

2. Binance – The Largest Broker for Trading Volume to Buy Ethereum in South Africa

Buy Ethereum at Binance

Binance remains the global largest exchange in volume and liquidity trading. The exchange has hundreds of digital assets listed on it. Binance is popular due to its policy on low-fee.

You can buy Ethereum on Binance through a simple and easy approach. Binance allows its customers to deposit funds using different fiat currencies with South African Rand inclusive. So, you can conveniently buy Ethereum from Binance using bank transfers and others.

You have to log in to the Binance platform to register and open an online account using your personal information and details.

Then proceed to upload your ID and other documents for the account verification. When the account is verified, you can make transfer funds to it.

If you’re using the bank transfer option, you will first get an account from Binance, where you will transfer the fund.

In this case, there may be a waiting period for the arrival of the deposit. This will take at least 48 hours, excluding public holidays and weekends.

Also, you can opt for credit/debit cards for fund deposits on Binance. Silvergate, a third-party firm, enables this payment option. The use of cards for deposits has a flat charge of $10 irrespective of the amount involved.

There are no charges for fund deposits with Binance, but it has a transaction trading fee of 0.1%.

This charge also applies in cases of cashing out. After the arrival of your deposit, you can proceed to buy Ethereum from the search button. Place the amount you require and click the ‘Trade’ button to keep your coin open.

You may decide to keep your coins in the Binance web wallet. This will allow you to enjoy some incentives from the exchange.

One of the benefits of using this broker is the 2-factor authentication (2FA) for its account holders. There is also free access to wallet address whitelisting and email notifications. Alternatively,  you can move the Ethereum coins to any private compatible wallet.

Binance Transaction fees for Buying Ethereum

Transaction Fees
Withdrawal (minimum)

BEP2

BEP 20 (BSC)

ERC20

 

0.00016

0.00016

0.0072

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.
Deposit fees 0%
Withdrawal Fees

BEP2

BEP 20 (BSC)

ERC20

 

0.000082

0.000082

0.0036

Pros

  • The global largest crypto exchange in trading volume and liquidity.
  • Facilitates several cryptocurrency pairs.
  • Special features and tools make it suitable for professional users.
  • Trading commission of 0.1%.
  • Trusted reputation in security and cost-effective.
  • Gives crypto storing and saving option
  • Permits funds transfer using credit/debit cards and bank transfers.

Cons

  • Might be too sophisticated for beginners.
  • Slow process for bank transfers.

3. Coinbase – A Trusted Exchange to Buy Ethereum in South Africa

Buy Ethereum at Coinbase

Coinbase maintains the top position as the global largest cryptocurrency broker in popularity and customers usage.

The platform boasts over 35 million customers who buy, sell, and trade digital assets. Coinbase’s popularity is attributed to its simple and easy interface that even newbies can navigate comfortably.

The broker maintains a reputable standing in the crypto industry since 2012. In addition, the platform is secured; there’s the 2FA feature that customers can use when they leave their cryptocurrencies in their accounts.

Buying Ethereum on Coinbase is quite simple. Once you’ve registered on the platform, you can deposit funds using any of the several methods that the broker supports.

Some of the methods include bank transfers and the use of cards like MasterCard and Visa. With Coinbase, you are sure of instantaneous transactions after your account verification.

Coinbase Transaction fees

Transaction Fees
Withdrawal (minimum) R7.50
Commission on trading 1.49%
Bank Deposit fees 0%
Debit card transfer 3.99%

 

Pros

  • Can purchase a small value of $25 Ethereum.
  • Beginners-friendly interface for easy navigation.
  • Great reputation with about 35 million customers.
  • Simple and handy mobile app.
  • Multiple options for fund deposits like credit/debit cards, bank transfers.
  • Facilitates several other digital assets.

Cons

  • High fee of 3.99% for debit card deposits.

Buy Ethereum in South Africa – Capital.com Full Guide

Once you’ve decided on buying Ethereum in South Africa, you can follow the full guide below. Again, the process is completely seamless and the most cost-effective platform to use is Capital.com.

Step 1: Open an Account

Visit the official website of Capital.com, click “register now”. Then input your email address and create your 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.

That’s it! Your trading journey just started!

Why Buy Ethereum in South Africa

South Africans have many reasons to buy Ethereum (ETH). We will discuss some of these reasons in detail below. This will be an eye-opener for you to decide whether to add Ethereum to your digital portfolio.

Innovative Smart Contract Technology

Ethereum can enhance the operability of many businesses with its ‘smart contract’ technology. Smart contracts are known for their inherent security and cost-effectiveness.

They are revolutionary and focus on logic and facts for prompt execution of contracts. Hence, eliminating the need for a third party or an intermediary.

A typical example is when trying to buy a property; the smart contract may be developed to automatically release the funding for the exchange of the property once the parties sign the agreement.

Secondly, smart contracts are built on the blockchain, and once they’re recorded, they become inaccessible to hackers. This makes them appear safer than using other intermediaries or banks.

Therefore if you intend to buy Ethereum in South Africa, you are venturing into the future technology of smart contracts. People believe that Ethereum will become more valuable in the future as many industries plan to adopt smart contract technology.

Incredible Price Potential

In terms of price, Ethereum has a unique price potential. ETH price is currently at $1 878.53 as of July 16, 2021. Though, its previous growth shows that ETH has a long way to go.

However, the use of the Ethereum platform is gaining popularity in recent times, which contributed to its recent price rise. Developers now use the platform to create DApps (decentralized applications) and sell NFT (non-fungible tokens).

However, Ethereum’s price potential is evident in its variation in value. For example, ETH was worth $746 in December 2020 but has increased to $2,008 within 7 months, according to Statista. This is over 100% growth in less than 12months.

Exposure to the Cryptocurrency Market

Buying Ethereum in South Africa will give you more exposure to the entire crypto market. This exposure is best enjoyed when you buy through the best crypto trading platforms.

They will give you assets that will diversify your digital portfolio and include other non-crypto assets in it. You will find this aspect of diversification easier when you use reliable brokers like Capital.com.

Furthermore, Ethereum price is also boosted with the positive news from other non-ETH cryptos due to its correlation.

This is an excellent benefit to enjoy when you buy Ethereum in South Africa. It gives you access to the potential gains made by the cryptocurrency market in general.

ETH is a Store of Value

When we say that ETH is a store of value, we mean that it has the characteristics of silver and gold. You can invest part of your savings in it when the price is down and then sell off at a higher rate. Also, you can use it to save you funds- buy and store it for future purposes.

It is good to note that ETH has an unlimited total supply with a maximum annual supply of 18 million. Therefore, if the demand for ETH becomes greater than the supply, ETH, just like other stores of value, will certainly appreciate.

Ethereum is Super-Liquid

The Super liquidity characteristic of Ethereum in South Africa is another major and sweet advantage for buying it. This simply means that you can take back (cash out) your ETH coin in Rands anytime you want. Furthermore, unlike other traditional markets, ETH trades 24/7- that is, all round the clock.

Again you don’t need to start looking for a buyer. This is because its liquidity levels and trading volumes are usually higher than renowned stock exchanges.

To sell out (liquidate) your ETH for fast cash, just go to the brokerage platform where you made the initial purchase. Once you initiate a sell order, the broker executes the order and transfer the proceeds to your Rand account.

Safest ways to Buy Ethereum in South Africa

If you’re wondering how to buy Ethereum in South Africa, we present some ways to do it safely and efficiently.

Buy Ethereum With a Credit Card

One of the safest ways to buy Ethereum in South Africa is through your credit card. But, unfortunately, many brokers such as Coinbase now prohibits such transactions as they don’t support the crypto investment with borrowed funds.

So to buy Ethereum with a South African credit card, you must find a broker that will accept it. But bear in mind that you may pay some extra fees for using a credit card on some platforms. So, make sure to check if the broker you want to use requires a deposit fee for using the card.

Fortunately, Capital.com supports credit card deposits for its users. So, you can buy Ethereum on the platform with your card and pay the same 0.5% fees. But don’t forget to check if your card issuer charges a fee for such transactions.

Buy Ethereum with Luno

Luno is a crypto app that allows South Africans to buy Ethereum.  It also supports Electronic Funds Transfer in Rand. All you need to do is open your account on the app and fill in the necessary details. Also, upload your South African ID and deposit the funds you want with EFT. After the deposit, enter the Ehereum amount you want and complete your transaction.

Luno doesn’t charge a commission for depositing funds using the EFT method. But you’ll pay a commission on your purchase.

Buy Ethereum with Debit Card

Though few South Africans will want to buy Ethereum with PayPal, most prefer using the traditional debit card.

There are dozens of crypto trading platforms that now support this payment type irrespective of the type of debit card. So it doesn’t matter whether it is a Master or Visa card, so long as it is a debit card, you are good to go.

However, it is good to note how much the platform takes as deposit fees.

For instance, Coinbase charges 3.99%, while Coinmama takes 5% for all transactions involving debit cards.

Again, Capital.com has proven to be the best platform for buying Ethereum using a debit card. The broker takes only 0.5% when you pay with Rands. This Rand is converted instantly to USD to enable you to buy Ethereum as soon as possible.

Buy Ethereum with PayPal

Buy Ethereum With PayPal

If you want to buy Ethereum, one of the safe methods is to use PayPal. Some reputable brokers and crypto exchanges such as Capital.com permit the use of PayPal in buying Ethereum. For example, with Capital.com, there’s no charge in buying Ethereum with PayPal. This is indeed a cost-effective, safer, and easy way of buying Ethereum in South Africa.

All you need to do is to open your account on the platform and verify it with a government-issued ID. Then deposit the amount of money you want to invest using Paypal.

However, you should beware of those crypto brokers and exchanges that operate on peer-to-peer principles using PayPal. They will insist that you first transfer your funds before receiving the Ethereum tokens after a long time. Also, P2P platforms are susceptible to hacking and scamming.

Risks of buying Ethereum coin in South Africa

The major risks associated with buying Ethereum coins in South Africa are summarized in the three points below.

It’s extremely volatile

Cryptocurrencies generally are volatile investments. Their price fluctuations are unpredictable. Ethereum coin in May has proven this by losing almost 50% of its market value between 12th and 24th.

Though it has recovered since then, crashes like this could be scary as it is not even the first time. In 2018 ETH coin price dropped by almost 94%.

It has no sustainability Guarantee

Cryptocurrency investments are still very speculative, and there is no guarantee that Ethereum will generally be adopted later. Bitcoin has gained more recognition than Ethereum. Even if South African merchants want to adopt a form of crypto, it will certainly not be Ethereum.

If you are buying Ethereum, ensure that you have a high tolerance to risk. It is better to invest what you can afford to lose.

It is not Regulated

It is legal to buy and sell cryptocurrency in South Africa, but it is not regulated at the moment. The South African Reserve Bank (SARB) issued a warning that it ‘doesn’t regulate the activities of virtual currency systems and their intermediaries.’ They don’t oversee or supervise them for effectiveness, soundness, or robustness. They also warned investors and buyers of the risk attached to investing in such currencies as Ethereum and Bitcoin.

SARB warns that Ethereum is not yet recognized in South Africa as a legal tender. This means that any payment made with this coin is solely at both the payer and the receiver’s risk.

SARB notes that all virtual currencies plus Ethereum are not regarded as securities according to the 2012 Financial Markets Act.   This policy of Act no. 19 of 2012 also states that virtual currencies are not regulated like other trading securities.

The South African Reserve Bank also stated that all profits made from Ethereum transactions would be taxed.

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Rating
5.0
4.5
4.3
Mobile App Rating
1/10
10/10
9/10
Mobile App
Wallet
Number of Coins
1271115
Trading Fees
SpreadsCommissionN/A
Deposit Fees
N/A$0N/A
Withdrawal Fees
5 USD$0N/A
Regulated
N/AYesCBI and MiFID in Europe
Min. Deposit
50$$20$100
Leveraged Trading
N/AYes1:2 for cryptocurrencies
Bitcoin
$56999.97$57051.26$57193.75
Ethereum
$4384.82$4307.36$4318.12
XRP
$1.00$0.98$0.99
Tether
$1.00N/AN/A
Litecoin
$200.42N/A$197.86
Bitcoin Cash
$574.82N/A$571.15
Chainlink
$24.79N/A$25.16
Cardano
$1.61$1.57N/A
IOTA
$1.45N/A$1.41
Binance Coin
$624.16$717.98N/A
Stellar
$0.33$0.32$0.33
Bitcoin SV
$148.11N/AN/A
USD Coin
$1.01N/AN/A
EOS
$4.05N/A$3.99
Monero
$237.28N/AN/A
Credit Card
Paypal
Sepa Transfer
Skrill
Sofort
Giropay
Neteller

Ethereum Coin Price Analysis- Should I buy Ethereum?

The price of Ethereum as of April 12th, 2016, was $7.10 per ETH, according to Coindesk.

This is about one year after its launch. Since then, the price has been fluctuating until January 2018, when it hit the first-time high of about $1,066. However, the Ethereum price later depreciated to $111 the same year and never reached the all-time high value again until 2021.

The second-largest crypto experienced a price bounce back in 2021 with another all-time high of over $2,700. It laid a good foundation that will support its price appreciation for few more years. This price increase in 2021 is due to increased demand for the coin to settle gas fees. ETH now has a total locked value of over $90 billion.

Let’s assume that you bought $10 worth of ETH in 2016; you will have $10/$7.10, which gives you 1.4 ETH. Then selling it off in 2021 will give you about $3,780, which is like a 37,000% gain.

However, If the locked values continue to increase, the demand for Ethereum will rise, and the supply will decrease. Presently, close to 25% of the total ETH in circulation is locked in the smart contract.

As of July 16, 2021, the Ethtereum price chart below gives a picture description of the ETH/USD price analysis in the past 1 year.

Ethereum Price Prediction

Ethereum Price Prediction
On the 8th of July 2021, Ethereum’s price went below the rising wedge pattern at $2,330. It appears ETH has a downward base of $1,869, indicating that it may rise again. Bitcoin on its own has a bullish reaction around its main demand zone, also indicating that Bitcoin will rise soon. If Bitcoin later rises, Ethereum will follow suit and even head higher.

The first and the major obstacle that Ethereum would face is reaching $2,018. Crossing this level will make the altcoin face the recently overthrown supply zone, ranging from $2,041 to $ 2,106. Therefore, if there is positive news that ETH crosses this range, it simply means that the buyers are back again.

This move will pave the way for Ethereum’s price to rise again above the trading range midpoint of $2,297. The ETH price increase from $1,869 to $2,297 will give like a 17% growth. Also, a decrease below the $1,869 benchmark shows that the positive momentum has decreased too. This condition will make ETH sell at a lower range of $1,700.

A decrease below this barrier will make the bullish outlook invalid and cause a downward move of ETH to $1,438.

Selling Ethereum – A quick overview

You can decide to sell Ethereum for either a fiat (traditional) currency or in exchange for another crypto. Here is a quick guide on how to go about the two methods.

Selling ETH for Fiat Currency.

Register with an ETH/ USD exchange.

You should look for a broker that can give the USD in exchange for ETH. Compare the rate with that of other cryptos to know the one that is best for you. Then, follow the display instructions to register with the exchange providing all the requirements like your ID.

Remember to enable the two-factor authentication as soon as you are signed in.

Deposit ETH into your account

The next step is to transfer the ETH you wish to sell from your holdings to the new account. But bear in mind that you will log in to your crypto account and use the required wallet address for Ethereum to make the deposit.

If you are using the Coinbase exchange, just click on the ‘Wallets’ button at the top of the screen to select Ethereum. Then click on ‘Generate Deposit Address,’ an address where you will transfer your Ethereum will pop up.

Sell Your ETH

Once you confirm the transfer on your exchange wallet, return to the ‘trading page’ to select your desired fiat currency. The currency is ETH/USD in this case. Then input the amount of ETH that you wish to sell to continue with your order.

On Coinbase, you will just click on ‘Sell’ and select the wallet that you want to sell from (ETH). Click on ‘Sell ETH’ before inputting the amount in the empty box. Then select the desired fiat currency (USD) and complete the transaction by hitting on the ‘Sell’ icon.

Make sure you confirm the details of the transaction before hitting on the ‘Sell’ button for any exchange you choose.

Withdraw the USD

The last step is to cash out the fiat currency into the bank account you linked to the exchange. This is not difficult, but you need to know the withdrawal limits and the fees associated with your transaction.

Selling ETH for Cryptocurrency.

This section will look at the step-by-step guide on how to sell your Ethereum for other cryptocurrencies.

Register on an exchange that lists ETH

There are two options here. First, if you want to sell your ETH coin on the exchange, you bought them from, then move to step two. But if you intend to use another exchange, follow step one above to guide you on how to register.

Deposit ETH into your account

Proceed by transferring the ETH that you wish to sell to the new account. You will log in to your crypto account and use the required wallet address for Ethereum to make the deposit.

Click on the ‘Wallets’ button at the top of the screen to select Ethereum. Then click on ‘Generate Deposit Address,’ an address where you will transfer your Ethereum will pop up.

Sell ETH

Once you confirm that the ETH has entered your exchange wallet, return to the ‘trading page’ to choose a currency. The currency may be ETH/BTC or any other crypto of your choice. Then input the amount of ETH you wish to sell or how much of the crypto pair you want to buy.

Again, endeavor to confirm the details of the transaction before hitting on the ‘Sell’ icon for any exchange you choose.

Transfer the newly purchased Crypto to a secure wallet

It is important to store the newly purchased crypto on a secure wallet. We recommend that you do not leave it on an exchange as it is not safe.  Storing it in a personal wallet enables you to have sole control over your private key.

Conclusion

With the dynamic nature of cryptocurrency, you will agree that the growth of Ethereum through the years is quite impressive. Unfortunately, the recent crackdown in crypto mining and other controversial rules has negatively pushed the cryptocurrency world. But through the whole process, Ethereum’s price performance has been commendable.

So going by its future price prediction, Ethereum remains one of the prominent cryptocurrencies you can invest in. It also has a blockchain that pushes it as a digital asset that you can’t afford to relegate.

In this article, we’ve given you detailed information about Ethereum. Also, you now have a full guide on how and where to buy Ethereum in South Africa. When you consider buying Ethereum in South Africa, don’t forget to use Capital.com.

Its zero commission charge and amazing spreads are fertile ground to leverage for your investment. Interesting, it will take just a few minutes to open an account on the platform without any hassles. So try it today!

Leading Platform to Buy Ethereum: Capital.com

1
£20Exclusive promotion
Our score10
  • No commission or hidden fees
  • Officially regulated by FCA, CySEC, and NBRB
  • Hedging mode available

FAQs

How to Buy Ethereum?

Where to Buy Ethereum?

Is Ethereum A Good Investment?

Is Ethereum Safe to Invest In?

How to Sell Ethereum?

About Asad Gilani PRO INVESTOR

Asad is a freelance writer. He is interested in cryptocurrencies, technology, and in particular the subject of online security. An open supporter of freedom of speech, privacy, and equality for all. On a personal level, he likes to stay socially active, loves playing snooker, cricket, enjoys seafood and loves listening to folk music.