A Beginner’s Guide to Buying & Selling Bitcoin in South Africa
Bitcoin doesn’t require much introduction, it’s been around for the last decade. It is currently the leading and most valuable crypto asset. The crypto continues to maintain its relevance despite the price volatility.
It’s not a surprise that the interest in BTC is high in South Africa. Many people have a lot of questions to ask about the digital asset in the country. This is because South Africa is one of the countries where the growth, adoption, and use of bitcoin continues to move at a fast pace. For beginners in the crypto space, knowing how bitcoin works, where and how to buy bitcoin may seem complicated so this article will act as a guide to help you get started.
The legal status of Bitcoin in South Africa
Buying and selling Bitcoin in South Africa has not been outlawed. The South African reserve bank, has nonetheless issued warnings with regards to dealing in the asset in an effort to make people aware of the risks. But there are no restrictions as far as people making crypto transactions. It is important to note however, the reserve bank has made it clear that incomes and earnings from crypto trades are subject to taxation.
Bitcoin trading just like other crypto trading is not restricted in SA, however, authorities are looking to establish a regulatory framework within which businesses dealing with digital assets can follow.
How to buy bitcoin in South Africa
Below are some of the ways you can buy bitcoin in South Africa.
- Using a Bitcoin Exchange
If you want to buy BTC through an exchange, you have to do a little bit of research to choose the right one. There are several exchanges to choose from, however, your choice must be secure to guarantee the safety of your asset.
- Buy Bitcoin with your bank card
You can choose to buy bitcoin with a debit or credit card. However, you still have to go through a platform, where you can input your card details. After the exchange verifies your card, you can then send money in exchange for bitcoin.
- Bitcoin ATM
There are more than 4000 bitcoin ATMs around the world, with South Africa holding the highest number in Africa. South Africa currently has about 8 ATMs that support bitcoin.
If you want to purchase bitcoin using an ATM, you have to find an ATM that facilities crypto transactions. On the ATM, you typically have to select ‘buy coins’ and input your phone number. You will receive a code on your mobile. From there you can then input the amount of BTC you want to buy and your wallet address on the ATM. Alternatively, you can scan your wallet QR code. Then you can put your money into the machine and select ‘finish’. After you are done with these steps, the amount of BTC you purchased will be deposited into your wallet. It is, however, important to crosscheck and be sure of your BTC address if you are inputting it manually before completing your transaction.
Reliable Bitcoin exchanges in South Africa
- Remitano
Remitano is a cryptocurrency exchange servicing South Africa and other African countries. It is a peer-2-peer exchange that brings buyers and sellers of bitcoin together. Remitano is a trusted platform that is super easy to use for newbies and professional traders as well.
- Coinmama
Coinmama is a top exchange that allows you to buy and sell bitcoin and other cryptos with a credit card and/or bank transfer. Since its inception in 2013, Coinmama has grown and expanded its tentacles to over 185 countries. Coinmama has a simple interface, which makes a perfect platform for fast, easy, and secure transactions.
- Binance
Binance was established in 2017 and since then, it has grown to become the largest exchange by trading volume, processing over $1 billion on a daily basis. Its rapid growth could be linked to the number of cryptos they offer and low trading fees. Binance is a secure and reliable exchange for any beginner looking to start their journey in the crypto space.
Signing up to an exchange and buying Bitcoin
As a starter, to own an account with an exchange, you have to access the exchange either through the web or your mobile by downloading the app. To create a profile, you can follow these simple steps:
- Register with your email address and create a strong password. A confirmation mail will then be sent to your mail.
- Confirm your email and go back to the website or mobile application.
- Finalize the process by providing your details which could require you to scan your ID.
- Once your account is verified, you can then send money into it from your regular bank account.
- Once the money reflects in your account, you can then purchase bitcoin.
Getting a Bitcoin wallet
A bitcoin wallet is just like a safe where you keep your crypto. This implies that before buying bitcoin, you should have a wallet. Although most exchanges offer wallet services, this means after your purchase, the coins remain in the online custodial wallet which the exchange controls. It is highly recommended that people use hardware or non-custodial wallets to store their crypto in case the exchange gets hacked or goes rogue.
With a bitcoin wallet, you can easily send and receive bitcoin. Exchanges operating in South Africa such as Luno offer crypto wallets where you can store your digital assets on the platform.
Traders especially prefer to keep some of their crypto on exchanges in order to conveniently execute their trades. Cryptocurrency holders are nevertheless encouraged to move their coins into non-custodial wallets such as Blockchain wallet and Exodus wallet which are generally considered safer storage options.
How to create a bitcoin wallet
Go to Remitano and create an account. The system will generate a unique bitcoin wallet after you finish your registration. A verification email will be sent to your email to complete your registration. You can then buy bitcoin from sellers on the platform or send the wallet address to your peers so you can receive bitcoin.
As a beginner, it is important to do adequate research to ensure that you don’t risk losing your funds. Find out about the 20 best Bitcoin wallets to store your Bitcoin in 2021.
