To buy Bitcoin, you need to access crypto services platforms. These platforms are called Cryptocurrency Exchanges. You need to create an account, after which you deposit fiat (cash) into the exchanges to initiate a purchase. Here are the steps and factors to consider before buying Bitcoin from a crypto exchange:
Step 1. Choose where to buy bitcoin in South Africa
Cryptocurrency exchanges are the popular means of buying crypto assets. They offer other crypto-related services like storage, earning, and trading features. They all differ in fees, security measures, accessibility, and payment methods. Other factors to be considered when choosing the best exchange to buy Bitcoin include:
- Convenience – Purchasing Bitcoin from exchanges offers comfort. You will only need a single account and password. You can also control your portfolio easily, all in a single place.
- Trading options – This depends on what type of a Bitcoin investor you are looking to be. If you plan on active trading rather than holding for a longer time, a suitable exchange should follow. Exchanges that offer staking and loans for having Bitcoin can be an option for long-time holders. Regular traders should look for exchanges with enough information and advanced trading tools.
- Security – Cryptocurrencies being digital assets, are more susceptible to cyber-attacks. A crypto exchange for Bitcoin should ensure that users’ assets are kept safe with clear security procedures. Some of the security features to check are:
- Cold Storage – Users’ crypto assets are safer in cold storage, inaccessible from the internet.
- Two-Factor Authentication (2FA) – Refers to an extra layer of security used for logins and withdrawals from accounts in exchanges. They include email verifications, OTP codes, and Biometric verifications.
- AML and KYC – The Know Your Customer (KYC) and Anti-Money Laundering (AML) compliances. They are required to ensure fair trade and avoid upsets of asset lock-up.
- Insurance – These are contingencies to cover the loss of user assets and breaches from cyber attacks. Exchanges that have insurance for users guarantee refunds.
- Fees – Charges for transactions and other services the exchanges offer. Fees generally depend on the trading volume. Users should check if the hefty fees are worth it for their assets. Fees differ in different exchanges.
Step 2: Create and verify the account
Once you have picked your preferred exchange, create an account with the platform. Most exchanges have mobile apps as well as websites for desktops. Fill in your details correctly from full name, location, to email address.
You will further need to verify your address, name, and location through KYC. It is a requirement in South Africa; hence a valid ID is required. KYC verification can take up to 3 days, after which you can purchase, sell, and trade Bitcoin.
Step 3: Fund your account
You will need to fund your account or buy Bitcoin directly to your wallet achieved by linking your bank account. Most exchanges also accept Credit/Debit card payments and Wire Transfers. These methods are subject to different fees that your crypto exchange has set up. P2P trading is also suitable for ZAR direct deposits to your account.
Step 4: Buy Bitcoin
Exchanges have minimum buys for Bitcoin, so you don’t have to buy the whole coin. Some of these options state from as little as 160 Rand or $10, as is the case in Binance. Bitcoin in exchanges can be purchased in instant buys directly or in Spot markets with market orders. Always check the Bitcoin to Rand price to ensure you know what you are spending.
Cryptocurrency exchanges to buy Bitcoin from in South Africa
Here are some crypto exchanges to consider for buying your Bitcoin, both local and international.
1. Binance
South African residents can buy through credit/debit cards and P2P trading offering direct conversion of ZAR to BTC fast with local payment methods. Users can also withdraw funds directly to bank accounts.
Summary
- Low fees for deposits and withdrawals
- Offers staking and an NFT marketplace
- Beginner-friendly
- Advanced trading tools
- Extensive cryptocurrency listing, over 600 coins
- P2P service
2. Luno – International exchange
Luno is a beginner-friendly multi-platform crypto exchange. It allows users in South Africa to convert ZAR to crypto-assets such as Bitcoin with ease. Withdrawals to ZAR via EFT are free. A premium of 1.40% is charged for deposits.
Summary
- Repeat buy feature
- Luno has only listed eight cryptocurrencies.
- 2% Bitcoin transcation fee
- Hefty fees
- Beginner-friendly
3. VALR – Local Exchange
VALR is a domestic exchange in South Africa with many features that make trading through ZAR easier. Crypto prices in VALR are quoted in ZAR. Deposits supported are Wire transfers, Credit cards. Credit cards attract a 3% admin fee.
Summary
- Listings of over 60 cryptocurrencies
- ZAR support
- Fees for Bitcoin transactions at 0.75%
- Based in South Africa
4. Coinbase
Coin base is a reputable US-based exchange known for being reliable, simple, and beginner-friendly where South Africans can purchase Bitcoin from. Deposit and withdrawal fees are relatively high in comparison to other exchanges. Coinbase Pro is for advanced users, packed with trading tools and features.
Summary.
- High fees
- Beginner-friendly
- Insurance for user assets
- 1.49% Bitcoin transaction fee
- 3.99 Debit card fee
- Listing of over 60 cryptocurrencies
5. Capital.com
Capital.com is a CFD trading platform offering futures trading for over 470 crypto pairs. South African users can use this site to purchase their Bitcoin assets
The platform offers an excellent entry position to the futures markets. Leverage services are also available where you can trade ZAR against Bitcoin. Credit card deposits and wire transfers are accepted.
Summary
- Over 470 crypto markets
- 20$ minimum deposits and $250 in Wire transfers
- Long and shorting options
- Trading crypto with leverage
- Zero fees to trade Bitcoin.
6. Crypto.com
Crypto.com offer crypto services all in one place hence suitable for Bitcoin purchasers. Their services include buying and selling crypto, loans, and staking. You can spend your crypto assets with the Crypto.com Visa card.
Summary
- A 90-day zero-fee waiver for new users
- Buy Bitcoin with a Credit card for 0% fees.
- High fees for transactions
- Low minimum deposits