If you’re new to the world of cryptocurrency, understanding exactly how Bitcoin works and where and how to buy Bitcoin in South Africa is a pretty big challenge.
Cryptocurrency regulation in South Africa
As AZCoin News reported, several countries in African territory have either decided to ban or prohibit the use of cryptocurrency. Meanwhile, South Africa’s financial regulators recommended cryptocurrency remain without legal tender status. So they could become the nation’s first comprehensive crypto laws.
According to the policy paper by South Africa’s Intergovernmental Fintech Working Group (IFWG), crypto assets and the various activities associated with this innovation can no longer remain outside of the regulatory perimeter. However, until now, no specific laws or regulations are governing the use or trading of virtual currencies in South Africa.
Buy Bitcoin using a Bitcoin exchange Luno
Bitcoin exchanges such as Luno allow you to deposit fiat funds from a bank account into a Bitcoin wallet to transact in the digital currency. Luno is a Bitcoin exchange with a presence in South Africa, Singapore, Nigeria, Malaysia, and Indonesia. It offers 0% fees for market makers, meaning you can avoid fees if you place a buy order then wait for a seller to take it.
Advantages:
- One of the most trusted Bitcoin exchanges in Asia
- Free deposits and low withdrawal fees
- Low fees; 0% for market makers and only 0% – 1% for market takers (depending on fiat currency)
- High to infinite limits for exchange, depending on the verification level
Defect:
- Only supports Bitcoin and Ethereum
What Is Luno? How To Register On Luno Exchange?
Buy Bitcoin in South Africa by using Coinmama
Coinmama allows customers in almost every country to buy bitcoin. They charge a 4.9%-5.9% (depends on volume) fee on each purchase. Customers in Europe can also purchase bitcoins with SEPA transfer for a lower fee.
Advantages:
- Works in almost all countries
- Highest limits for buying bitcoins with a credit card
- Reliable and trusted broker
Defect:
- Some of the highest fees among credit/debit card bitcoin brokers
What Is Coinmama? How To Register On Coinmama?
Buy and sell Bitcoin on Altcointrader
Since its inception in 2015, AltCoinTrader has become one of the most trusted cryptocurrency exchange in South Africa. Behind the name is a dedicated team of professionals who are passionate about the crypto industry.
The main advantage with this exchange is that it offers many trading pairs against the ZAR. If that option is not important to you, then this exchange is presumably not the best cryptocurrency exchange site for you.
Buy and sell Bitcoin through the Bitpanda
Bitpanda is a Bitcoin broker based in Europe. They have high payment limits and low fees across their wide range of payment methods.
Bitpanda offers customers the option to buy bitcoins with a credit card, debit card, SOFORT, Skrill, NETELLER, giropay, eps, SEPA, and Online Bank Transfer.
Advantages:
- Some of the lowest fees for buying bitcoins with credit/debit card
- Reliable and trusted broker
Defect:
- Fees aren’t shown openly on the site but instead included in the buying price
Buy Bitcoin at Kraken exchange
Founded mid-2011, Kraken is one of the world’s largest cryptocurrency exchanges and the largest in Europe based on daily average trading volume. It is available in almost all countries. Deposits can be made via bank wire, SEPA, ACH, and SWIFT.
Advantages:
- Meager 0.25% taker fee, falling to 0.1% with sufficient trading volume
- Very low maker fee, falling to 0% with sufficient trading volume
- Highly-rated for security and data protection
Defect:
- Requires ID verification, so not private
Buy and sell Bitcoin at CoinCorner
CoinCorner is a Bitcoin exchange based on the Isle of Man. They cater to first-time buyers in the UK, Europe, Canada, Australia, and certain African, Asian, and South American countries. CoinCorner users may purchase bitcoins with SEPA, credit/debit card, GBP bank transfer, and now Neteller too. No verification required for purchases under £100.
Advantages:
- Trusted and regulated company in the UK
- Wide range of payment options
- Good customer support
- Instant credit card purchases
- Supports an extensive range of countries
- Video tutorials covering the basics of Bitcoin and buying and selling
- Multi-sig security features
Defect:
- 1% trading fee slightly high by European standards
- Offers a mobile wallet but this is not ideal for bitcoin storage
- Requires ID verification, so not private
- Does not provide exchange prices for comparison without sign-up
Buy Bitcoin at Bitit
Bitit lets you purchase bitcoin online with 3DS-enabled credit/debit cards or with cash via Neosurf, Flexepin, and Cashlib vouchers, available in over 150,000 local stores across Europe.
Advantages:
- The unique way of purchasing offers extra privacy over other methods
- 8% Neosurf fee is slightly better than Coinhouse’s 10%
- Available in 50 countries
- €10,000 initial weekly Neosurf cash payment limit
- Bitcoin gift cards also available; more expensive than other options
Defect:
- In-person buying methods offer more privacy but can be confusing
- Identity verification required for buying amounts over €25
- €500 initial weekly credit/debit card limit
Buy Bitcoin in South Africa through P2P platforms LocalBitcoins
LocalBitcoins is an escrow service that also helps to match bitcoin buyers and sellers. Users may advertise trades for whichever payment method they prefer. Buying bitcoins via an in-person meeting, secured and facilitated by LocalBitcoins, maybe one of the fastest and most private ways to buy bitcoins in any country, including the United States, Europe (besides Germany), UK, Singapore, Canada, Australia and many more.
Source: Localbitcoins
Buy Bitcoin through P2P platforms Paxful
Paxful is an online marketplace which allows buyers and seller to meet online and trade Bitcoins. Similar to LocalBitcoins or Remitano, Paxful allows a wide range of payment methods and buying options which can not be found on traditional exchanges.
Paxful aims to be the “Uber” of the Bitcoin community. Paxful enables individuals to become merchants and sell Bitcoin online, similar to how eBay allows people to sell merchandise.
Buy Bitcoin through Bitcoin ATMs
You can use our Bitcoin ATM (BTM) map to buy Bitcoin with cash. Bitcoin ATMs can be a quick and easy way to buy bitcoins and they’re also private. You can use a BTM to deposit funds to purchase Bitcoin but you can’t use a BTM to withdraw the money earned from selling Bitcoin. That convenience and privacy, however, comes with a price; most ATMs have fees of 5% – 10%.
There are not many BTMs in South Africa currently but they are available in some of the major cities. You need to have a Bitcoin wallet loaded on your Smartphone which generates a QR code that the BTM reads.
Source: Coinatmradar
Advantages:
- Our map makes it super easy to find a Bitcoin ATM near you
Defect:
- Bitcoin ATMs often have 5-10% fees per purchase
Conclusion
Users looking to buy Bitcoin in South Africa can do so from one of the many exchanges available in the country. However, buyers should keep in mind that they should first get a wallet to store the Bitcoin. In case you don’t have a wallet, you can go through our guide on the best Bitcoin and cryptocurrency wallets.
Once you have a wallet in place, you can choose from the likes of Luno, Coinmama, CoinCorner, Bitit, and a few other options to buy Bitcoin from. There are different pros and cons of all the exchanges. Luno, for instance, allows users to instantly buy Bitcoin, is known for free deposits, and provides users with really high limits based on their verification level.
More importantly, South Africa gives users more than a few choices where they can spend their Bitcoin. In fact, cryptocurrency exchange Luno reports that there are thousands of merchants that accept Bitcoin in the country, including stationery seller Applebee, fashion clothing provider BLVD Boutique, and even hula hoop performers. In the end, it can be concluded that Bitcoin is in a healthy state in South Africa and it should continue flourishing thanks to the government’s proactive and positive approach toward developing the country’s cryptocurrency system.
Read more:
- Top 10 Best Exchanges To Buy Bitcoin
- How To Buy And Sell Bitcoin In Nigeria?
- Cryptocurrency Regulation In Africa