How to Buy Cryptocurrency South Africa – Beginner’s Guide.
If you’re based in South Africa and looking to get your hands on a cryptocurrency like Bitcoin, Ethereum, or EOS – the process can now be completed from the comfort of your home.
All you need is a top-rated crypto broker that offers competitive fees and your preferred South African payment.
In this guide, we explain the ins and outs of How to Buy Cryptocurrency South Africa in 2022 . On top of explaining the potential risks and rewards, we also walk you through the process of buying your first crypto-asset online!
How to Buy Cryptocurrency South Africa – Step by Step Guide 2022.
If you already know which cryptocurrency you wish to buy and want to complete the investment process right now – follow the steps outlined below. In doing so, you’ll be able to buy cryptocurrency in South Africa in minutes!
1. Open an Account with Libertex – Pay 0% Commission on Crypto.
Your first port of call will be to open an account with a safe and low-cost crypto broker. We found that Libertex is by far the best option, as you can instantly buy more than 70 different cryptocurrencies CFDs with a debit/credit card or e-wallet without paying a single rand in spreads.
Here, you’ll need to provide some personal information and contact details.
First and Last Name Nationality Home Address Date of Birth Tax Identification Number Email Address Mobile Number.
To complete the first stage of the Libertex registration process, you’ll need to confirm your email address and mobile number.
2. Upload ID.
As heavily regulated cryptocurrency and stock brokers – Libertex will also need to collect a couple of verification documents from you. The good news is that the platform will verify them instantly.
The two documents that you need to upload are:
Valid passport or driver’s license Recently-issued bank account statement or utility bill.
Once you upload the above two documents, you can freely deposit and withdraw funds into and out of your Libertex account.
If you’re wondering how to buy crypto South Africa with a convenient payment method – Libertex has you covered. This is because the platform supports debit cards, credit cards, мубодилаи хуб аст bank transfers, and even e-wallets like you can buy bitcoin with Paypal, Skrill, and Neteller.
4. Buy Cryptocurrency.
As long as you opted for an instantly-processed deposit method (debit/credit cards and e-wallets), the funds will now be situated in your Libertex account. As such, you can proceed to buy cryptocurrency.
First, click on the ‘Markets’ button, which you will find on the left-hand side of the page. Then, click on ‘Crypto’ to view the full range of supported digital currencies that you can buy.
In our example, we are looking to buy Bitcoin, so click on the ‘Buy’ button. In the order box, all you need to do is enter the amount of leverage and choose how many BTC/USD CFDs you want to trade. You can also place a stop-loss order.
Finally, click on the ‘Open Trade’ button to complete your spread-free cryptocurrency CFD investment!
What is Cryptocurrency?
One thing is for sure – although most people in South Africa have at the very least heard of cryptocurrencies like Bitcoin, very few understand what this digital asset class is or how it works. If this sounds like you – it’s absolutely crucial that you do a bit of research before you make a financial commitment.
After all, by buying cryptocurrency in South Africa, you are investing in a highly speculative and volatile asset.
Before we get to the nitty-gritty, let’s start with the basics:
Cryptocurrencies are digital assets – meaning that they only exist in a non-tangible form In most cases, cryptocurrencies are decentralized. This means that no central bank or government owns or controls the technology. Instead, cryptocurrencies are stored on the blockchain – which is like a public account ledger that keeps track of each and every transaction Cryptocurrencies go up and down in value – in a similar nature to stocks.
Now, Bitcoin is still the largest cryptocurrency in terms of market capitalization. It is also the most widely used and holds a status as the de-facto crypto-asset of choice.
However, Bitcoin isn’t the only digital currency that people in South Africa are looking to buy. On the contrary, CoinMarketCap tells us that as of early 2021 – there are more than 8,600 cryptocurrencies that can be bought, sold, and traded online.
However, you are probably best to focus on cryptocurrencies that fall within the top-20 in terms of market capitalization. In doing so, you’ll be able to reduce your exposure somewhat, as these digital currency projects are established.
How Does Cryptocurrency Investment Work in South Africa?
Each and every cryptocurrency in the market has a specific purpose. For example, while Bitcoin was built to challenge the global banking industry, Ethereum is focused on smart contracts. You then have Ripple, which allows financial institutions to send and receive funds in a fast and low-cost environment.
However, riba ya binance cryptocurrency exchange
it is important to recognize that very people in South Africa buy cryptocurrency to engage with the respective project or network. Instead, purchases are made with the view of making money. This means that when you buy cryptocurrency, you are doing so on a speculative basis.
Nevertheless, if you’re wondering how to buy cryptocurrency South Africa to make financial returns, the process works as follows:
Let’s supposed that you invest 3,000 rands in Bitcoin When you make the purchase, Bitcoin is worth $40,000 A couple of years later, Bitcoin is worth $70,000 In percentage terms, this means that your 3,000 rands cryptocurrency investment is now worth 75% more You sell your cryptocurrency back to rands at your chosen exchange.
As per the above, you invested 3,000 rands and made gains of 75%. As such, you sold your investment at a nominal value of 5,250 rands – representing a profit of 2,250 rands.
Crucially, the binance cryptocurrency exchange
market in South Africa is best viewed in the same light as penny shares. Not only is this because crypto asset prices change on a second-by-second basis – but they often do so in a volatile manner.
For example, in the 24 hours prior to writing this guide, the likes of د Binance سکه بيه
Coin and Vechain have increased in value by 16% and 11%, respectively. However, zooming out to the 7-day charts, the same cryptocurrencies have actually dropped in value by 3% and 9%.
As such, you should only buy cryptocurrency in South Africa if you are comfortable with the associated volatility levels.
Why Buy Cryptocurrency?
As noted in the section above, the overarching reason for buying cryptocurrency in South Africa is to make financial gains. This is no different from buying JSE-listed stocks or investing in a mutual fund.
However, to be more specific, South Africans are now considering digital currencies as an investment vehicle for one clear reason – the upside potential. That is to say, cryptocurrencies like Bitcoin and Ethereum have been the best-performing asset classes in recent years, although altcoins such as Tron are really starting to gain momentum.
Cryptocurrencies vs the JSE 40.
When people in South Africa have a bit of spare cash to invest in the financial markets – they often turn to the JSE 40. For those unaware, this is the primary stock market index in South Africa – and it tracks the value of the 40th largest companies that are domestically listed.
This is viewed as a risk-averse way to invest money – as you are diversifying across 40 different stocks from varying sectors and industries. On the one hand, the JSE 40 index has increased by 31% over the past five years. But, in comparison to cryptocurrencies like Bitcoin – these returns are minute.