How To Buy Bitcoin In South Africa 2024

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To buy Bitcoin in South Africa in 2024, follow these steps:

  • 1

    Choose a reputable cryptocurrency exchange that operates in South Africa

  • 2

    Register an account and complete the necessary KYC (Know Your Customer) verification

  • 3

    Deposit South African Ringgit (MYR) into your exchange account

  • 4

    Place a buy order for Bitcoin (BTC) on the exchange

  • 5

    Store your purchased Bitcoin in a secure wallet for added safety

The continent of Africa has shown so much interest in cryptocurrencies like Ethereum and Litecoin, as well as in Bitcoin. Among African nations, South Africa stands out as a major centre for Bitcoin trading, being the second-largest consumer of the cryptocurrency on the continent. It has embraced Bitcoin as an alternative currency on a significant scale. So, if you're a South African, it's crucial to understand how to securely acquire and store your Bitcoins, regardless of your experience level. This article not only guides you through the process of buying and safeguarding Bitcoin but also addresses key questions regarding its legality among the country's cryptocurrency enthusiasts.

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Is buying Bitcoin a good idea in 2024?

Before looking at how you can buy Bitcoin in South Africa, we'll need to answer the question: Is buying Bitcoin a good idea in 2023? Here, the simple answer is yes.

Let's look at some of the reasons why it's a good idea in more detail:

  • Bitcoin is the largest crypto asset. Simply put, Bitcoin is the largest cryptocurrency. As such, it has the highest liquidity, which means you’ll be able to buy and sell it easily at the best prices.

  • It's a hedge against inflation. A hedge protects you against the decreasing value of a currency during times of increased inflation. It's for this reason that investors often turn to assets like gold as a hedge. Here, Bitcoin is also an excellent hedge against inflation. In fact, many view Bitcoin as digital gold. And this is an especially important benefit when, nowadays, there's an increased risk of inflation around the world.

  • Demand for Bitcoin. One of the reasons why there's an increased risk for inflation is that governments globally are able to print as much of their currency as they want. In other words, there's an infinite supply of fiat currency. In contrast, Bitcoin only has a finite supply because only 21 million Bitcoin will be mined. This means that, as more people become involved in Bitcoin, the demand will increase, and supply will decrease. This, in turn, leads to higher prices.

  • Increased adoption. A recent survey showed that more than 50% of all Bitcoin investors invested within the past 12 months. Moreover, 44% of the respondents in the survey said that they are now favourable towards Bitcoin. This shows increased adoption of the cryptocurrency. In addition to this, more institutions are investing in and adopting Bitcoin. In turn, the increased adoption by both retail and institutional investors leads to more demand.

  • It has excellent growth. By this time, you probably know that Bitcoin, and many other cryptocurrencies for that matter, can be extremely volatile. This means you can experience significant up and down movements in their value. Despite this, Bitcoin has still shown impressive growth for the past few years. As such, it has outperformed many other traditional investment assets and could be an exceptional investment in the long term.

  • It can help you diversify. Let's face it, diversification is always a good idea. It could help you increase the return on your investments and, more importantly, limit your risk. Bitcoin is an excellent tool to help you do this, as it's not correlated to other currencies and other traditional assets. As such, it could protect your portfolio when many other assets decrease in value.

  • Bitcoin is secure. Because Bitcoin is based on blockchain technology, it's inherently secure.

These are just some of the reasons for and benefits of buying Bitcoin. Depending on your unique goals and circumstances, there might be other reasons you should consider. Keep in mind, however, no matter what your reasons, Bitcoin can be volatile and, as such, could be a riskier investment compared to other traditional assets.

Best options to buy Bitcoin in South Africa

Before we dive into our options for buying Bitcoin in South Africa, let us take a close look at a simple comparison of the leading cryptocurrency exchanges in the regions below:

Crypto Exchanges Bitcoin All assets Minimum deposit

Bybit

Yes

Bitcoin spot and margin trading, futures, options, dual assets, p2p trading, over 300 supported altcoins.

from $1

OKX

Yes

Spot and margin trading, NFT, DeFi, GameFi, options, futures, indices, lending, mining, and P2P trading are available

0.00005 BTC / 0.00000001 USDT

Binance

Yes

Options trading, spot trading, Binance coin, etc

from $1

Huobi Global

Yes

Bitcoin spot and futures, over 400 altcoins, NFTs etc

100 USDT / 0,001 BTC

KuCoin

Yes

Bitcoin spot and futures, over 600 altcoins

$1 Minimum deposit

Bybit

Open an account
Your capital is at risk.

Bybit is a prominent cryptocurrency exchange that operates globally, with its headquarters located in Singapore. The founder of Bybit is none other than Ben Zhou, who is highly regarded in the cryptosphere. Bybit specialises in cryptocurrency derivatives trading, which allows its users to leverage up to 100x. Interestingly, Bybit does not require its users to undergo KYC verification, which makes the onboarding process faster and more convenient. Experts in the South African cryptocurrency market consider Bybit as one of the best crypto exchanges available. Bybit's platform offers a one-stop-shop for minting, buying, and bidding on NFTs, making it ideal for those interested in the NFT market. The platform prioritises security, transparency, and privacy, which makes it a reliable choice for South African investors. Unlike other exchanges, Bybit does not require KYC, ensuring investor privacy. To maintain transparency in its assets, Bybit provides proof of reserves, which confirms a 1:1 holding of funds.

Supported assets

  • 300+ supported assets

  • Up to 100x leverage on crypto

  • Advanced tools supported by great technology

  • Risk-free testnet environment

  • Trading bots

  • Very low trading fees

Investment options

OKX

Open an account
Your capital is at risk.

OKX has implemented several measures to cater to the South African market, including user-friendly deposit options. Its users can deposit Rand through any local bank account or payment method with ease and security. OKX is committed to delivering a safe trading environment to its South African users by complying with security protocols and legal requirements, making it one of the best cryptocurrency exchanges in the market.

Supported assets

  • Cold storage of digital assets

  • NFT Marketplace

  • Over 350+ supported digital assets

  • Trading tools and derivative products

  • Access to DeFi services

Investment options

  • Staking

  • Lending

  • NFT trading

Binance

Open an account
Your capital is at risk.

Binance has established itself as a highly-regarded cryptocurrency exchange in South Africa thanks to its commitment to regulatory compliance, secure trading platform, and peer-to-peer exchange. Known worldwide, Binance offers South African traders access to a broad spectrum of over 350 crypto assets that can be purchased using the South African rand. Binance also provides a wide range of trading options and boasts one of the lowest crypto exchange fees, at just 0.1%.

Due to its user-friendly interface, extensive functionality, and strong security measures, Binance appears to be the best option for South African investors. Its platform makes transactions simple and straightforward, ensuring a hassle-free experience for its users. The exchange is also committed to providing a safe trading environment, implementing robust security measures to instil confidence among its users. In addition to its advanced security measures, Binance adheres to regulatory requirements, offers a comprehensive set of features, and has a reputation as a leading cryptocurrency exchange in South Africa.

Supported assets

  • Cold storage of digital assets

  • NFT Marketplace

  • Over 350+ supported digital assets

  • Trading tools and derivative products

  • Access to DeFi services

Investment options

Huobi Global

Open an account
Your capital is at risk.

Following the Chinese government's ban on fiat-to-cryptocurrency trading, numerous prominent cryptocurrency exchanges were obliged to cease operations in China and relocate to other regions across the globe. Huobi was one of the few exchanges that managed to survive the Chinese crackdown on cryptocurrency trading. Huobi Global is a well-known digital asset exchange that operates globally in over 100 countries, including South Africa. Established in China in 2013, the exchange has been providing investment and trading services to users worldwide ever since.

With a significant presence in Singapore, Huobi Global is one of the most popular cryptocurrency exchange platforms that serves a diverse clientele. Although the company was founded in Beijing, it has relocated its headquarters to Singapore to make it more accessible to traders worldwide. One of its most notable features is the Huobi Trading Bot, which offers South African traders the flexibility of bot trading. Additionally, Huobi Global provides a platform and customer support in South African languages, which makes it easier for traders to use the exchange.

Supported assets

  • Over 400+ supported assets

  • Has an advanced user interface

  • Trading bot

  • Smart-Chain analysis

Investment options

KuCoin

Open an account
Your capital is at risk.

According to TU experts, KuCoin emerges as a suitable option for South African investors who wish to engage in altcoin trading. The platform offers access to a vast array of more than 500 cryptocurrencies, comprising both established and lesser-known coins. KuCoin stands out in the market owing to its intuitive user interface, reasonable trading charges, and advanced trading capabilities, making it a popular choice among SA altcoin traders. Consequently, it has established itself as a robust contender in the South African market.

KuCoin is an enticing option for South African investors who want to trade cryptocurrencies. The exchange offers a range of features, including support for the South African language and flexible deposit methods for the Rand. KuCoin is committed to providing a secure and trustworthy trading experience, with a focus on user privacy and strict adherence to regulatory standards. These important factors make KuCoin a dependable and credible choice for anyone looking to participate in South Africa's thriving crypto market.

Supported assets

  • Over 500+ supported assets

  • Leverage up to x100

  • Trading bot

  • Marketplace

Investment options

How to Buy Bitcoin in South Africa: Step-by-step

  • 1

    Select a safe Bitcoin wallet. Before you begin, choose a safe place to keep your cryptocurrency. Make sure it is well-secured and reliable.

  • 2

    Choose a trustworthy cryptocurrency exchange. Exchanges also enable investors to buy, sell, and hold cryptocurrency. Choose a trustworthy cryptocurrency exchange.

  • 3

    Create an account. After choosing a reliable exchange, go ahead and create an account on the exchange of your choice.

  • 4

    Verify your identity. Get your identity credentials ready, including a passport or South African ID, and follow the exchange's verification guidelines.

  • 5

    Deposit funds. As soon as the verification is completed, it’s time to deposit South African Rand into your exchange account. Check the deposit options available and go with any that is best for you.

  • 6

    Place an order. Visit the trading section after your deposit has been approved and choose Bitcoin from the list of cryptocurrencies available.

  • 7

    Secure your Bitcoin. Go ahead and move the Bitcoin you just bought into your safe wallet.

  • 8

    Consider additional security measures. Using features like two-factor authentication and strong passwords, you can improve the security of your wallet and account.

  • 9

    Stay informed. Stay updated with the most recent changes in the cryptocurrency space, as well as the best approaches for safeguarding your assets.

  • 10

    Use caution. You have to be cautious, avoid sharing your personal information or private keys with anyone, and use only reputable exchanges.

How to buy Bitcoin with PayPal

  • 1

    Sign up for PayPal. To get started, you will need to create a PayPal account before you can buy Bitcoin. Go to the PayPal website and sign up for an account if you haven't done so already.

  • 2

    Click on Buy and Sell. Proceed to the Buy and Sell section of your PayPal account after logging in to see your cryptocurrency options.

  • 3

    Click on Bitcoin and Buy. From the list of available digital currencies, choose Bitcoin and proceed to buy.

  • 4

    Enter the amount of BTC you want to buy. You will now have to enter the desired amount of Bitcoin you want to buy.

  • 5

    Select your payment method and click next. Here, you have to select the payment option that best fits you and click next. This may involve linking your credit or debit cards or a bank account.

  • 6

    Check the conversion rate and transaction fee. Finally, check the current conversion rate as well as any related transaction fees before confirming the purchase.

How to buy Bitcoin with a credit card

  • 1

    Open an account. First, register for an account on a trustworthy cryptocurrency exchange that accepts credit card purchases.

  • 2

    Deposit funds with a credit card. Go to the exchange's deposit section after setting up your account and select a credit card method to make the deposit.

  • 3

    Choose your cryptocurrency. After making deposits, you have the option to purchase Bitcoin (BTC) as your chosen cryptocurrency.

  • 4

    Pay and receive your crypto. Indicate the desired quantity of Bitcoin to be purchased, then finalise the transaction.

Other options for buying Bitcoin in South Africa

  • 1

    Bitcoin ATMs. With the help of physical Bitcoin ATMs, you can purchase Bitcoin with cash or credit/debit cards, and in South Africa, they are becoming easier to reach, especially in the cities.

  • 2

    P2P Exchanges. South Africans can buy and sell Bitcoin directly from each other using peer-to-peer (P2P) platforms, like Binance P2P.

  • 3

    Mainstream Brokerages. Some mainstream brokerage platforms have started offering cryptocurrency trading services alongside traditional assets in South Africa, like Robinhood

Where to store Bitcoin

Once you've bought Bitcoin, another crucial consideration is where you'll store it. Fortunately, depending on your requirements, you'll have various options that each has benefits and drawbacks.

These options are:

Custodial wallet

Typically, when you buy Bitcoin through an exchange by following the steps mentioned earlier, the exchange will store it in a custodial wallet. As the name implies, this means someone else holds your Bitcoin for you. From this custodial wallet, you can then transfer your Bitcoin to another wallet. Keep in mind, however, there are some exchanges that don't allow this. One of the benefits of a custodial wallet is that it's convenient, and you can access your Bitcoin easily. Another benefit is that using a custodial doesn't require much work. The main drawback of these wallets is that you rely on the security measures of a third party to keep your Bitcoin safe.

Hot wallet

A hot wallet is an application that allows you to store your Bitcoin online. For this reason, they're also called software wallets. These applications are available as desktop or mobile applications, with some being available as web applications. Compared to custodial wallets, hot wallets offer a major benefit in that they give you control over your Bitcoin. Apart from this, they also offer several other benefits. For one, they're relatively easy to use, and you can transfer Bitcoin from the exchange to your hot wallet relatively quickly. Another benefit is that these wallets are almost always free. The obvious drawback of cold wallets is that they're connected to the internet. As such, they're prone to hacking and can still pose security risks.

Paper wallet

It's important to remember that a crypto wallet does not store physical cryptocurrency but rather the private keys of the wallet. As such, you can use physical paper as a Bitcoin wallet. The main benefit of paper wallets is that they provide increased security compared to software and custodial wallets. Another benefit is that these paper wallets are completely free. The major drawbacks of paper wallets are that they're not exactly user-friendly and can get lost.

Cold wallet

For the most secure crypto storage, cold wallets are the best solution. The cold wallet, also commonly referred to as hardware wallets, are offline wallets. As such, they're devices that connect to your computer and allow you to send and receive Bitcoin. At all other times, your Bitcoin is held offline. This eliminates the risk of hacking and makes these wallets extremely secure. Moreover, because these wallets work with a recovery phrase, you can access your Bitcoin even if you lose the wallet.

As mentioned earlier, depending on your requirements, you'll need to choose a wallet that meets your needs. For example, if you want to store a large amount of Bitcoin, a cold wallet will be the best choice. This is simply because of its increased security.

Conversely, if you use Bitcoin daily to transact, a custodial wallet or hot wallet might be better because they're quicker and more convenient to use. Ideally, you can consider storing a small amount of Bitcoin in a custodial or hot wallet and your Bitcoin savings in a cold wallet.

How can I use Bitcoin in South Africa?

There are several ways you can use Bitcoin in South Africa. These ways include everything from retailers that accept Bitcoin as payment to Bitcoin investments.

Let's look at some examples:

  • Bidorbuy. Bidorbuy is one of South Africa's leading online marketplaces that gives customers the ability to buy and sell almost anything online. The platform also allows customers to buy goods directly or in online auctions.

  • Zasstra. Zasstra is a well-known South African retailer that sells tablets, phones, accessories, and other electronic devices and gadgets.

  • Baseline Skate Shop. Based in Cape Town, Baseline Skate Shop is one of South Africa's leading skateboarding and streetwear retailers.

  • Bitrefill. Bitrefill gives customers the ability to buy gift cards or mobile airtime quickly and easily using Bitcoin.

  • Digiwallets. Digiwallets is an online retailer that sells a variety of hardware wallets.

  • Revix. Revix is a dedicated cryptocurrency investment platform. It gives customers the ability to invest in a variety of cryptocurrency investment products.

In addition to these South African companies, you'll also be able to spend Bitcoin at well-known international retailers and vendors like:

  • Expedia

  • ExpressVPN

  • Namecheap

  • NordVPN

  • Shopify

Is Bitcoin legal in South Africa?

Buying and selling Bitcoin in South Africa is perfectly legal. This means you can buy and sell Bitcoin freely. In fact, according to the South African Reserve Bank, it does not oversee or supervise the cryptocurrency landscape.

Also, when it comes to regulation, there are no specific regulations dealing with cryptocurrencies, although regulations are planned for the future. However, there are some aspects to take note of.

For one, although cryptocurrencies are not regulated, South African exchanges and intermediaries need to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This means that South African exchanges like Luno need to have strict identity verification processes in place.

Another thing you should consider is that the South African Reserve Bank has strict regulations regarding the international transfer of funds. For example, Exchange Control Regulation 10(1)(c) prohibits buying Bitcoin on a South African exchange and transferring it to an offshore-based exchange. It does, however, seem that buying crypto assets from an offshore exchange is not affected by this regulation.

Is Bitcoin trading taxable?

Another question you should consider when it comes to trading with or investing in Bitcoin in South Africa is: Do you need to pay tax?

The simple answer is that you will be liable for tax when trading with or investing in Bitcoin. As such, depending on your circumstances, you’ll need to pay either income or capital gains tax. This is because the South African Revenue Service defines cryptocurrency as an asset and a financial instrument.

As an investor, you'll need to pay capital gains tax when you dispose of your Bitcoin. Here, a disposal can generally be when you sell your Bitcoin for a fiat currency. It can also be when you swap your Bitcoin for another cryptocurrency.

To illustrate how capital gains tax works in South Africa, let's look at a simple example. Let's say you bought Bitcoin to the value of R20,000 a few years ago, and you sell it now for R100,000. Your capital gain will then be R80,000.

In terms of South African tax law, you don't have to pay tax on the first R40,000 of your gain. Also, 40% of the remainder above this exclusion is taxable. In other words, you'll need to add R16,000 to your annual taxable income. So, if your marginal tax rate is R35%, you'll pay 35% tax on your capital gain.

Conversely, if you earn an income from trading with or mining Bitcoin, you'll pay income tax on this income. If you earn R50,000 in income from these activities in a year, you'll then need to add it to your annual taxable income. This income will then be taxed at your marginal tax rate.

Top 10 best Altcoins

Considering everything mentioned above, Bitcoin can be an excellent investment. As such, you can earn attractive returns when you trade with and invest in it, especially if you're able to buy and sell at the right times.

However, as also mentioned, Bitcoin can be very volatile. This means you could see significant up and down movements in its value. Sure, volatility could lead to substantial profits, but you can also lose a lot of money.

As a result, it could be a good idea to consider other cryptocurrencies as possible investments or trading instruments. Fortunately, we can help. Our team of experts has compiled a table of the best altcoins you can invest in or trade with. These recommendations are based on criteria like performance technology, and popularity among investors.

Ultimately, when using this table, you'll be able to find some of the best Bitcoin alternatives. You could also use this table to choose altcoins that you can invest in together with Bitcoin. If you do this, you'll be able to properly diversify your portfolio and limit your risk.

Cryptocurrency Industry Current price 1y return 1m Return Total score

Binance Coin (BNB)

Cryptocurrency exchange

214.40$

-20.74%

1.88%

9.5

Invest

Cardano (ADA)

Blockchain platform

0.25$

-54.21%

-4.31%

9.2

Invest

Ripple (XRP)

Payments

0.52$

27.90%

-0.63%

9

Invest

Dogecoin (Doge)

Payments

0.06$

9.13%

0.16%

8

Invest

Polkadot (DOT)

Blockchain platform

4.14$

-38.64%

-6.75%

8

Invest

LItecoin (LTC)

Payments

64.55$

23.28%

-3.72%

7.6

Invest

Stellar (XLM)

Payments

0.12$

5.63%

-6.54%

7.5

Invest

Uniswap (UNI)

Decentralised exchange

4.36$

-20.14%

-8.81%

7.4

Invest

Tron (TRX)

Blockchain platform/Media

0.08$

35.39%

11.71%

7

Invest

IOTA (MIOTA)

Internet of Things

0.15$

-51.41%

3.63%

6.9

Invest

Where can I use crypto in South Africa?

  • 1

    Investment tool. Many South Africans buy and hold digital currencies, aiming for potential long-term growth.

  • 2

    Means of payment. In South Africa, an increasing number of businesses and internet merchants now accept cryptocurrency payments for goods and services.

  • 3

    Remittances. For South Africans who work overseas and want to send money home, cryptocurrencies can be a convenient and economical way to transfer money.

  • 4

    Access to financial services. They give South Africans an alternative to bank accounts, empowering them to manage and access their money.

FAQs

Which app can South Africa buy Bitcoin?

South Africans can buy Bitcoin through various apps, such as Bybit, Binance, and Kucoin. Choose an app that suits your preferences and offers the features you need from the article above.

Which bank accepts Bitcoin in South Africa?

In South Africa, First National Bank (FNB) and Standard Bank approach cryptocurrencies with caution but openness. These banks permit transactions with cryptocurrency exchanges compliant with Financial Sector Conduct Authority (FSCA) regulations.

What is the best website to buy Bitcoin in South Africa?

There are several factors to consider when selecting the best website to purchase Bitcoin in South Africa. But popular cryptocurrency options include Kucoin, Bybit, and Binance. Choose the one that fits you.

Is Binance legal in South Africa?

Yes, crypto giant Binance operates globally, including in South Africa, making it a popular choice for both advanced and new crypto investors.

Team that worked on the article

Winnifred Emmanuel
Contributor

Winnifred Emmanuel is a freelance financial analyst and writer with more than 4 years of experience working with financial websites and businesses. Commodities, Forex, stock markets, and cryptocurrency are Winnie's areas of expertise. In 2022, she started writing for the Traders Union website. At Traders Union, Winnie is involved in thorough assessment of brokerage firms, and creating instructive articles on finance while also analyzing trading methods and indicators. Additionally, Winnie conducts in-depth analysis of the stock, cryptocurrency, and Forex markets.

Winnie believe anything is possible.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.