Cape Crypto

Overview

Former product manager Leon Kowalski of the South African-founded cryptocurrency exchange Luno established his trading platform for Bitcoin called Cape Crypto. Cape Crypto only allows deposits in South African Rands and Bitcoin since it is a South African-based exchange explicitly created for the local market. The exchange asserts that no ID verification is needed for purchases and charges the lowest trading commissions in South Africa, aiming to have every South African invest in Bitcoin to increase national wealth.

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CapeCrypto Summary

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Platforms

Cape Crypto has a desktop and mobile platform where users can access its services. The exchange has Android and iOS applications and uses biometrics to make things even more straightforward for users to access their assets. Users can deposit and withdraw money in Rands using the app. According to the exchange, the app also supports two-factor authentication and identity verification.

Getting started with Cape Crypto

Users need to finish their identity verification if they want to withdraw cryptocurrency, which makes investing in Bitcoin with Cape Crypto simpler. Cape Crypto uses identification verification to adhere to AML (Anti Money Laundering) regulations. To prove that clients are who they say they are, KYC (know your customer) is a crucial component of a successful defense against AML and fraud.

Products and services

Cape Crypto has a wide range of crypto-related products and services for its users. These products include:

• Loans

Cape Crypto provides South African users with cryptocurrency-secured loans where they can borrow Rands using their Bitcoin as collateral. Cape Crypto immediately releases the user’s Bitcoin once they have repaid the borrowed Rands. With loan amounts ranging from R500 to R20,000 per loan, the exchange offers a variety of lending options and terms. Any number of loans are available to users. Users can be sure they will always keep their Bitcoin locked and safe until they repay their loan. Unlike other lenders, Cape Crypto doesn’t lend out users’ Bitcoin to other customers. Only South African citizens who have undergone KYC verification are eligible for Cape Crypto Loans.

• Crypto Arbitrage

Cape Crypto Arbitrage partners assist users in profiting from Bitcoin price variations between domestic and international exchanges. The local price of Bitcoin in South Africa is greater than the price on foreign exchanges, and their business partners profit from these price discrepancies for the user. Cape Crypto claims that users can earn between R150k and R200k in profit annually through their arbitrage partners.

One of the best crypto arbitrage providers in the nation is available from Cape Crypto, which only earns when customers do. There are no recurring or subscription fees. Citizens from South Africa are the only ones who can use Cape Crypto Arbitrage. Additionally, users must be eligible for a South African bank account and be in good financial standing. The minimum capital is at least R200k. Users can begin by submitting a support request, and a member of the Cape Crypto team will contact them to start their arbitrage journey. Other Crypto Arbitrage companies include Currency Hub, FutureForex and Koin Expert.

• Voucher

Customers can purchase Bitcoin with or without a bank account as part of Cape Crypto’s effort to increase Bitcoin usage in South Africa. The exchange and 1Voucher have joined in introducing vouchers to the Bitcoin community. Users don’t need to fund their wallets beforehand or endure annoying waits; they can purchase a 1Voucher from any partner retailer, sign up, and make purchases using that voucher immediately. It is one of the quickest ways to buy bitcoin in South Africa.

The steps are as follows:

1. Install the app
2. Check the user email.
3. Type in the flash voucher number and select an amount.
4. Bitcoin reflects in their wallet

Fees

The user’s overall trade volume determines transaction costs over the previous 30 days. Up to ZAR 1 million, Cape Crypto charges 0.7 percent. The fee of Quick Buy may vary because it combines services from the Cape Crypto exchange with those from other suppliers. Users can verify the average cost to ensure they are not overpaying for slippage. By purchasing via a voucher, users incur three fees. They include a 4.6% 1Voucher fee, a 1% Cape Crypto fee, and a 0.6% trade fee. For instance, if a user spends R10, they will receive R9.38 in cryptocurrency.

 The exchange accepts only South African citizens; third-party deposits or cash payments are not accepted. R20 is the minimum withdrawal amount. A user withdrawing R20 will receive R11.5 due to bank fees. Users will receive BTC 0.0001 if they withdraw BTC 0.0005. Ethereum withdrawal costs vary depending on the market and are dynamically affected by the level of market activity. It implies that the fees will fluctuate depending on how busy the market is, sometimes being cheap and other times being high.

Deposits and withdrawals

Users deposit Rands into their accounts using a bank transfer after verifying their email address. Regular bank transfers can take up to two business days to reach the user’s account because they are subject to SA bank clearing processes. Withdrawals are handled daily at 3:30 PM and are subject to typical South African bank clearing delays and should be in the user’s bank account in 1 to 2 days.

Security

Two-factor authentication (2FA) is an additional security measure offered by Cape Crypto for users’ accounts. It functions by requesting a unique one-time pin code each time a user signs in to their Cape Crypto account. Cape Crypto uses identity verification to adhere to AML (Anti Money Laundering) rules. To ascertain the identity of their consumers, KYC (know your customer) is an essential component of a sound defense against AML.

Rewards

Market makers at Cape Crypto receive 20% of the transaction fees the taker pays when their maker order is executed. Users can also receive a lifetime percentage of the trading fees from friends they refer to the platform. Users receive a piece of their trading commissions in perpetuity for every buy or sale their friend makes on Cape Crypto. This is similar to the Valr referral, Revix referral and Luno Referral programs.

Customer service

Customer support is available at Cape Crypto through a submission request on the top right section of their support page. In-site chat is not available and quick feedback is not readily available. A Frequently Asked Questions (FAQ) section on the website holds answers to most users’ questions.