What is Ethereum?
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform.
Among cryptocurrencies, Ether is second only to Bitcoin in market capitalization. Ethereum was conceived in 2013 by programmer Vitalik Buterin.
How To Buy Ethereum In South Africa
Buying Ethereum (ETH) is a relatively simple process to follow. You just need some photo ID to create an account on a platform that sells it, then link a payment method to buy it with, like a bank account or debit card. Credit cards are another common way to buy ETH, and we have a separate guide for buying ETH with a credit card.
Cryptocurrency exchanges are the main way people buy Ethereum and other cryptocurrencies. Don’t worry, while the technology behind Ethereum is complex, Finder has all the information you need to buy ETH. The process is the same for buying other cryptocurrencies, so it will be easy to buy crypto assets and tokens and have a diverse portfolio. You are not locked in to buying a lot or a little of Ethereum, it’s completely up to you how much you spend.
Step 1: Choose where to buy
The first step is to choose a cryptocurrency exchange to buy ether. An exchange acts as a broker service for users that wish to turn fiat currency or other cryptocurrencies into ETH. There are many cryptocurrency exchanges in the world, and a full comparison list can be found on Finder’s Cryptocurrency Exchange page. Generally speaking though, users will pick an exchange that works best for them in terms of fees, coins and services offered, and location.
To purchase Ethereum, you will need to choose an exchange that accepts payment in South African Rand.
Some of the most popular exchanges that accept multiple fiat currencies are Crypto.com, Binance, and Kraken.
- They all have a wide array of crypto assets and high trading volume.
To help you pick an exchange, consider the following:
- Fees: Purchase and sale of crypto assets incurs fees that can add up over time. Paying with a credit card tends to be the most expensive option, due to it being considered a cash advance in many cases. Keep an eye out for exchanges with free payment methods like a bank transfer. Look for exchanges with low trading fees, zero deposit fees for fiat and crypto, and cheap or covered withdrawals.
- Coins: You want some ETH, but have are there other coins and tokens you want to purchase too? If you want to diversify your portfolio, look for an exchange with other assets of interest. If you’re just buying Ethereum, choose an exchange that has the lowest fees and best security. If you want to trade other cryptocurrencies, then find a platform that fits those needs.
- Location: All regulated cryptocurrency exchanges must comply with local laws and regulations for their accepted customers. Some exchanges are unavailable in certain countries or states. Be cautious with exchanges located in foreign tax-havens with weak consumer laws and unregulated exchanges.
Step 2: Create an account
Once you have selected an exchange to purchase Ethereum from the table above, you will need to register.
- You can sign up for an account by selecting the Go to site button.
- This will take you to the account creation page, where you can fill in your details, starting with your name and email address.
- You will then need to verify your identity and address, which is part of a process called Know Your Customer (KYC), which is a legal requirement for most exchanges in South Africa.
- To do this, you will need a photo ID and a copy of a recent bank statement or utility bill that has your address on it.
- KYC is typically approved instantly, although in some cases, you may have to wait a few days before your account is verified.
- Once your account is approved, you will need to choose a payment method to deposit funds into your account before you can make any purchases.
Step 3: Fund your account
You will first need to deposit money into your exchange account to buy Ethereum. Some exchanges may accept registration without KYC but will require you to complete it when you go to fund an account with fiat or buy Ethereum with a card.
To buy Ethereum, there are various ways to deposit funds into an exchange account. Every method will have different wait times before payments are deposited, which can range from instant to multiple days.
Exchange will accept different forms of payment for deposits, and there are often UK-specific methods. Funding methods include:
- Bank/wire transfer
- Credit/debit card
- PayPal
- SWIFT
- SEPA
- ACH
Step 4: Buy Ethereum
Navigate to the markets section on your chosen exchange to find your desired Ethereum pairing. Look for the section on buying ETH, and type in the amount of the paired cryptocurrency you want to spend or the amount of ETH you want to buy.
- Note: Carefully review your transaction details, including the amount of Ethereum you’re buying and the total cost of the purchase, before completing the transaction.
Some cryptocurrency exchanges only offer one way to purchase cryptocurrency while others give you a few options. The most popular methods of purchasing Ethereum are instant buy and the spot market.
Instant buy/market order
Most exchanges offer the ability to buy high volume cryptocurrencies like Ethereum instantly, and this is one of the fastest ways to purchase ETH. Simply enter the amount you would like to purchase in ZAR and the exchange will calculate the equivalent amount of ETH, according to the market rate.
Buying cryptocurrency via the instant buy method is generally more expensive than on the spot market as there is usually an extra exchange fee added on top of the market price. This can be a simple way to purchase cryptocurrency for beginners but it’s important to be aware of the extra costs involved, especially if using this method with a linked credit card as fees add up.
Spot market
The spot market is offered on the majority of exchanges and is the most common way to buy and sell any crypto asset or tokens. There are a few different ways to buy cryptocurrency on a spot market, but market buys and limit orders are the most common.
A market buy is similar to an instant buy, but without the added fee charged by the exchange for brokering the deal. There is still a trading fee, but it is less than for instant buy.
A limit order means placing an order for Ethereum at a set price and amount of ETH. The order is filled as other users sell their assets through a selling limit order or market sale at the price set. Trading fees for a limit order are less than for a market buy.
Where to Buy Ethereum in South Africa?
Step by Step Guide
We’ve reviewed what we see as the best places to buy Ethereum South Africa given their fees, features, and overall experience. These five platforms should be an answer to most looking where to buy Ethereum.
1. Capital.com – Best Place to Buy Ethereum South Africa
Perhaps the best place to trade Ethereum in South Africa is on the Capital.com platform. For most use cases, Capital.com will be of extreme value with its contract for difference (CFD) trading features, low spreads, and zero commissions. It’s quick and easy to create an account, so the barriers to entry are low
Aside from being an easy-to-use platform to buy and sell Ethereum and other cryptos, Capital.com is also one of the best forex trading platforms as well. Other instruments offered are stocks, commodities, and indices.
If you’re new to the crypto sphere and still learning how to buy Ethereum South Africa, then Capital.com also offers a demo account to help beginners out. The demo account allows you to start trading and familiarising yourself with the platform without having to spend any actual money. When you’ve gained enough confidence to buy Ethereum with actual funds, then that’s when you switch to the live account.
Fund your Capital.com account and buy Ethereum with a credit card, debit card wire transfer, and more. The minimum deposit on the platform is $20.
Capital.com fees
| Fee | Amount |
| Stock trading fee | Spread. 1.83 pips for Amazon. |
| Forex trading fee | Spread. 0.6 pips for EUR/USD. |
| Crypto trading fee | Spread. 100 pips for Ethereum/USD. |
| Inactivity fee | Free |
| Withdrawal fee | Free |
Pros:
- Access to thousands of share CFDs with 0% tight spreads
- Integration with MetaTrader 4 trading platform
- Access to Investmate educational trading app
- More than 75 technical indicators
- Access to a demo account
- Regulated by FCA, and Cyprus Securities and Exchange Commission.
- Wide range of payment options including credit cards and debit cards, Apple Pay, and bank transfers
- Broker with NASDAQ exchange as well as NYSE and other global markets
Cons:
- Can’t set price alerts on the web platform
- Only CFD and real stock available
2. Binance – Best Crypto Exchange for New Coins
Another great platform that actually has its own coin based on the Ethereum network is Binance, the best crypto exchange for new coins and for investing in Ethereum. With access to over 500 cryptocurrencies and virtual tokens, the Binance platform is a great place not only for learning how to buy Ethereum South Africa but other coins as well.
As one of the largest centralized crypto exchanges, Binance also offers a great crypto wallet perfect for those looking to invest in Ethereum. However, the platform also has a very technical interface perfect for day trading Ethereum with high levels of leverage.
f you’re looking to buy Ethereum with Bitcoin, you can do so as well on Binace through the peer-to-peer crypto exchange or the ETH/BTC crypto pair on the site. The minimum limit for buying Ethereum on Binance (through Simplex) is 500 ZAR for Visa or Mastercard.
Binance fees
| Fee | Amount |
| Crypto trading fee | Commission, starting from 0.1% |
| Inactivity fee | Free |
| Withdrawal fee | 7.50 ZAR |
Pros:
- Hundreds of billions in trading volume per day
- Highly liquid markets as a central exchange
- Provides support for hundreds of cryptocurrency pairs
- Bank cards available for deposit options at almost instant speeds
- Commissions start at just 0.1% per slide
- Earn 25% discount when using Binance Coin (BNB) for fees
- Earn from cryptocurrency holdings – based on the Binance Earn review
- Provides cryptocurrency savings accounts
Cons:
- Not yet regulated in South Africa
- Not a decentralised exchange
3. Coinbase – Great Beginner Platform for Crypto South Africa
Designed with beginners in mind, Coinbase is an online crypto exchange with an easy-to-use platform and 50 different cryptocurrencies to trade.
Available in over a hundred countries, Coinbase offers a secure platform where you can buy Ethereum and store it safely.
Coinbase is one of the most established exchanges out there, having launched all the way back in 2012. It’s also a great place to learn how to buy Ethereum South Africa due to the many educational resources readily available. Furthermore, the Coinbase crypto wallet offers support for over 4,000 crypto assets and decentralized applications.
If you’ve ever thought to yourself where can I buy Ethereum as a beginner, it’s worth considering Coinbase. However, note that the commissions would start at 0.5% for lower volumes.
Coinbase fees
| Fee | Amount |
| Crypto trading fee | Commission, starting from 0.50% |
| Inactivity fee | Free |
| Withdrawal fee | 1.49% to a U.S. bank account |
Pros:
- Over 100 tradable cryptocurrencies
- Great for beginners
- Easy-to-use platform
- Registered as a Money Services Business with FinCEN
- Tons of crypto-related educational resources
- 24/7 live phone support
- Supports debit cards and bank transfers
- Top-rated mobile app
- Offers a crypto asset wallet
Cons:
- Limited trading tools
- No copy trading or social trading features
- Crypto only – unable to invest in other assets like stocks
Top 5 Exchanges to Buy Ethereum in South Africa
The second-largest cryptocurrency by market cap, ether (ETH), has become a popular addition to bitcoin in many digital asset portfolios. In this guide, you will discover a list of five exchanges that enable you to buy Ethereum in South Africa in 2021.
Coindirect
Coindirect is the first cryptocurrency exchange on our list where you can buy Ethereum in South Africa. Founded in 2017, Coindirect allows users to buy and sell more than 40 cryptocurrencies like BTC, ETH, USDT, XRP, and LTC using their local currencies.
Features:
- Mobile app available for Android and iOS
- Coindirect is available in other African countries such as Nigeria, Burkina Faso, and Kenya
- Offers a ZAR to ETH calculator
- No additional fees on EFT transactions
Luno
Leading crypto exchange Luno is one of the top exchanges to buy Ethereum in South Africa. On this platform, you can buy ETH instantly with ZAR or you can place an ETH buy order at your desired price. Besides ETH, Luno also supports BTC and BCH.
The payment method you can use to buy ETH in South Africa on Luno is electronic funds transfer (EFT). Luno accepts rand deposits from several South African banks such as Nedbank and Absa.
Features:
- Offers an Android and iOS app
- The platform has a ZAR to ETH calculator
- EFT transactions are free
- Luno is also available in Zambia, Uganda, and Nigeria
iCE3X
iCE3X is another exchange to buy ether in South Africa. The exchange accepts ZAR deposits through bank transfers. Some of the accepted banks include Absa, Nedbank, Standard Bank, and Capitec.
iCE3X supports ETH, BTC, BCH, LTC, XRP, among other cryptocurrencies. You can purchase ether instantly or through a buy order.
The exchange was launched in 2013.
Features:
- A ZAR to ETH calculator is available
- The exchange offers an Android app
- No fees for ZAR deposits made through EFT
- The platform is also available in Nigeria
VALR
You can also buy Ethereum in South Africa on the Johannesburg-based exchange VALR. The exchange allows users to buy Ethereum instantly or through a buy order. To purchase ETH, you can deposit rand via EFT from any South African bank.
VALR supports over 50 cryptocurrencies including ETH, BTC, BCH, LTC, and XMR.
Features:
- Android and iOS mobile app
- ZAR to ETH calculator
- The platform is only available in South Africa
- Rand deposits are free
OVEX
Finally, you can also purchase ETH on the Cape Town-based crypto exchange OVEX. Established in 2017, OVEX enables users to buy ETH instantly or through a buy order.
To buy ETH, you need to first purchase BTC using rand. Once you have BTC in your wallet, you can then buy ether. OVEX supports more than 20 cryptocurrencies, such as BTC, ETH, LINK, ADA, QTUM, and TRX.
Features:
- Only available in South Africa
- It offers a crypto calculator
With more and more crypto exchanges accepting rand deposits, buying Ethereum in South Africa is becoming increasingly more convenient.
If you are a South African investor who wants to buy bitcoin, check out our guide to South African bitcoin exchanges.
Buying Ethereum Safely
In this section of the Ethereum how to buy guide, we show you how to buy Ethereum South Africa safely. Decentralized currencies like Ethereum and other cryptos are designed so that it’s virtually impossible for data to be manipulated on the networks. This means that most platforms innately have a high level of security.
However, the security of a blockchain hasn’t stopped scammers and hackers from getting crypto from others. A lot of sites offer to increase your cryptocurrency or try scamming you by promising free cryptocurrency. Be careful and follow the rule of thumb – if it’s too good to be true, then avoid it. It’s better to stick to regulated and known platforms.
That being said, it’s worth highlighting that where to buy Ethereum will also affect your trading safety. Look for secure, licensed, and tried-and-tested crypto exchanges or trading platforms. Signs of good brokers or platforms are ones that have multiple security measures like two-factor authentication and cold storage that greatly restrict potentially malicious actions.
Risks of Buying Ethereum
As mentioned in the last segment, there are several ways that you can lose the Ethereum that you buy and it’s important to practice diligence in buying the cryptocurrency.
There are also other risks in buying Ethereum, mainly due to its volatile nature. Ethereum, much like any other cryptocurrency, is considered highly volatile – prone to sudden price fluctuations. Crypto derivatives trading involves significantly high risks especially using leverage in Ethereum positions.
High volatility and leveraged trading often don’t mix well and can lead to accounts being margin called in events of price spikes. Make sure to practice responsible trading and proper risk management when buying Ethereum. These concepts are important when learning how to buy Ethereum South Africa.
Selling Ethereum
We may have talked and shown you a lot about how to buy Ethereum South Africa, but now we’ll discuss selling Ethereum. Generally, you’d want to sell your Ethereum after buying it previously in a crypto exchange or trading platform. To do this, you simply have to close your positions on the coin.
Alternatively, many platforms also offer shorting positions on Ethereum. Shorting Ethereum basically means that you’re betting on the price of the cryptocurrency to go down.
If you open a short position and Ethereum’s price does drop, you’ll earn from it. A lot of research and due diligence is recommended before shorting an instrument as this involves virtually infinite risk.
How to Buy Ethereum with PayPal
PayPal customers based in the US can actually buy, sell, hold, and pay 4 cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. If you’re wondering how to buy Ethereum South Africa with PayPal, it’s worth noting that the company does plan on issuing this feature to other countries soon.
If you’re based in South Africa with a PayPal account and wish to still buy Ethereum via PayPal, you can find a crypto exchange or trading platform that accepts PayPal as a deposit option.
How Much Does It Cost to Buy Ethereum?
Before we show you how to buy Ethereum South Africa, you should understand first that Ether can be split into smaller denominations known as a weis and gweis. One Ether is equivalent to one quintillion weis which is also equivalent to one billion gwei. So even though purchasing one whole Ether would cost around 35,000 ZAR these days, you can still purchase parts of Ether for their respective fractional price.
As this is the case, the minimum cost for buying Ethereum will all depend on the trading platform or crypto exchange that you’re using. For example, on Capital.com, you can trade Ethereum with just a little over 1 USD. The position is even leveraged 20:1, meaning the Ethereum position is worth over 20 USD.