How To Buy Bitcoin In South Africa

You can buy and sell Bitcoin in South Africa through a reputable Bitcoin exchange. Access the exchanges via your personal computer or Smartphone using the relevant mobile app.

Once you have signed up for an account and it is verified, you need to obtain a Bitcoin wallet which you use for your Bitcoin transactions.

It’s possible to transfer funds from any of the major financial institutions in South Africa to a Bitcoin exchange and you can start trading as soon as the funds are cleared. You have the choice of keeping your bitcoins in the exchange or transferring them to your personal Bitcoin wallet.

Ways to by bitcion in South Africa

Buy Bitcoin using a Bitcoin exchange

Do your research and select a Bitcoin exchange that is regarded as reliable, secure and trustworthy. 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. Bitcoin exchanges are regarded as the safest and most secure way to buy and sell Bitcoin and other cryptocurrencies such as Ethereum.

Buy Bitcoin with a credit or debit card

It’s possible now to buy Bitcoin using a credit or debit card. You still need to go through a reputable Bitcoin exchange such as Luno where you add your card details in the system and transfer money electronically once the card details have been verified. Credit card fees apply which makes it a slightly more expensive way to buy Bitcoin.

Use a BTM/VTM (Bitcoin ATM)

There are not many BTMs in South Africa currently but they are available in some of the major cities. This is a vending machine that works in much the same was as an ATM. You need to have a Bitcoin wallet loaded on your Smartphone which generates a QR code that the BTM reads. You can use a BTM to deposit funds to purchase Bitcoin but you can’t use a BTM to withdraw money earned from selling Bitcoin.

Get paid in Bitcoin

Bitcoin is growing in popularity as a payment method for goods sold and services rendered. Money owed is paid into a Bitcoin wallet which you obtain through a reputable exchange such as Luno. The most popular payment gateway provider for Bitcoin transactions is PayFast. This facility allows people to pay in Bitcoin which is then converted to Rands.

Join a Bitcoin trading community site

There are a few reputable cryptocurrency platforms that provide you with the opportunity to connect with people who are buying and selling Bitcoin privately. You can trade through a reputable website or meet in person and pay cash for the purchase. Be careful of falling victim to a Bitcoin scam.

Mine Bitcoin

Many South Africans have got into the complex process of mining Bitcoin. This is largely done through Bitcoin syndicates as massive investment in the processing technology is required for Bitcoin mining. Bitcoin mining involves securing the network and verifying transactions and successful miners are paid in Bitcoin. It’s not hugely profitable but if you’re technologically inclined, you’ll find the process fascinating.

Luno is one of the most popular and trustworthy Bitcoin exchanges in South Africa so let’s look at their process as an example of how to set up an account and start trading in Bitcoin.

Luno is a digital platform where you can buy, sell, store and trade Bitcoin and Ethereum. Through Luno, you can buy Bitcoin using fiat money electronically transferred from your bank account and you can sell your Bitcoin and transfer the money directly to your bank account.

Steps that you guide to buy a bitcion in South Africa

Step 1: Sign up for an account with Luno

Sign up for a free Luno Wallet via the web, iOS, or Android and follow easy instructions to register, set up your profile and redeem the promo code.

You sign up by using your personal/business email address and password. Input the latter and then go to your email inbox to pick up a confirmation email sent to you by Luno.

Select ‘Confirm email address. You are then taken back to the Luno website.

Select ‘Continue’. You are now registered for a Luno account.

Step 2: Verify your account

Select ‘Settings’ in the menu bar

Select ‘Upgrade’ to link to the Personal details page

Complete the steps by adding your details. This involves submitting digital copies of your ID, proof of residence and bank statement.

When your personal details have been verified by Luno, your account will be upgraded from Level 0 to Level 1, 2 or 3 depending on the deposit and withdrawal level you specify.

Level 0: your account and personal details have not yet been verified

Level 1: your account is verified and limited to a total of R15 000 for deposits and withdrawals

Level 2: your account is verified and limited to R50 000 for deposits and withdrawals

Level 3: your account is verified and no limit is set for deposits and withdrawals

Step 4: Buy Bitcoin with ‘Instant Buy’

The ‘Instant Buy’ feature on Luno is the fastest and easiest way to buy Bitcoin in South Africa. However, there is a fee for this facility so it does cost you more. A cheaper option is to place a ‘Buy order’ through Luno.

Select the ‘Buy/Sell’ button on the Luno screen. You are able to switch between Bitcoin (BTC) and Rand to transact. Use BTC to indicate the amount you want to buy; and ZAR to indicate the amount you want to spend.

Select ‘Buy’ to complete the order.

Step 5: Place a ‘Buy Order’ on the exchange to buy Bitcoin

Select ‘Exchange’ to go through to the ‘Buy Order’ feature.

Select ‘Place Order’ to activate a ‘Buy Order’ request where your order to buy will be matched by a person’s order to sell.

Any outstanding amount that is not matched in a ‘buy/sell order will remain in your account and is available to be matched with other ‘buy/sell orders’ until the whole amount has been spent.

Select ‘Place Buy Order’ when you are ready to buy the Bitcoin. When you have confirmed the transaction, your Bitcoin and ZAR balance will be updated. The BTC indicates how much Bitcoin you have purchased and ZAR indicates how much you spent.