How To Start Trading Bitcoin In South Africa

How To Start Trading Bitcoin In South Africa

What is bitcoin trading?

The aim of bitcoin trading is to buy bitcoin when its price is low and sell bitcoin when its price is high. To really break it down, buying bitcoin at a low price means that you pay a low amount of fiat currency, such as dollars or euros, for a high amount of bitcoin.

How To Start Trading Bitcoin In South Africa

1. Join a Bitcoin Exchange

First, you’ll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. There’s no official “Bitcoin” company because it’s an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the middlemen of cryptocurrency investing, like a stock brokerage.

If you decide to purchase from an exchange, you’ll have to decide which exchange you want to buy from. Here are a few of the most popular options:

  • Coinbase: A very popular crypto exchange that insures losses in the event of a security breach or fraudulent transfers
  • Binance: Founded in 2017, Binance is a crypto exchange with a strong focus on altcoins
  • Kraken: This San Francisco-based exchange allows you to invest in Bitcoin using various currencies from around the world
  • Gemini: Launched in 2015 by Cameron and Tyler Winklevoss, Gemini offers services for casual and veteran Bitcoin investors with different user interfaces and fee structures for both
  • Bitfinex : The longest-running cryptocurrency exchange that’s optimized for advanced traders and lenders (unfortunately, Bitfinex doesn’t currently accept US customers)

As you might have guessed, choosing a Bitcoin exchange is becoming more difficult for investors as more options begin to popularize. Find everything you need to know about Binance vs. Coinbase and start investing, today.

2. Get a Bitcoin Wallet

When you purchase a coin, it’s stored in a “wallet,” which is where all your cryptocurrency is stored. There are two types of wallets you can get: a “hot wallet” or a “cold wallet.”

A hot wallet is a wallet that’s operated by either your cryptocurrency exchange or by a provider. Some exchanges will automatically provide you with a hot wallet when you open your account. In any case, hot wallets are convenient because you’ll be able to access your coins through the internet or a software program.

Some notable hot wallets are:

However, hot wallets are not the most secure form of coin storage. If the hot wallet provider is hacked, then your coin information may be at risk.

A cold wallet is the safest storage method for your coins. A cold wallet is an actual piece of hardware that stores your coins, usually, a portable device that’s similar to a flash drive. Most cold wallets cost between $60 to $100. Some popular cold wallets are:

  • Trezor
  • Ledger Nano

If you’re only going to purchase small amounts of coin, then you might be fine using a hot wallet with an insured crypto exchange. But if you’re going to be trading large amounts of coin, then a cold wallet would be well worth your investment.

3. Connect Your Wallet to a Bank Account

When you’ve obtained your wallet, you’ll need to link it to your bank account. This enables you to purchase coins and sell coins. Alternatively, your bank account may be linked to your cryptocurrency exchange account.

4. Place Your Bitcoin Order

Now you’re ready to purchase Bitcoin. Your cryptocurrency exchange will have everything you need to buy. The big question is, how much Bitcoin should you purchase?

Some coins cost thousands of dollars, but exchanges often allow you to buy fractions of a single coin—your initial investment could be as low as $25.

Investing in Bitcoin is very risky, and it’s important that you carefully determine your risk tolerance and review your investment strategy before you purchase any Bitcoin. We’ll go over this in the next section.

5. Manage Your Bitcoin Investments

After you’ve purchased bitcoin, you can:

  • Use your coins to make online transactions
  • Hold your coins for a long period in the hopes it’ll appreciate in value
  • Perform day trading with your coins—that is, buying and selling coins with other Bitcoin owners, which can be facilitated on the cryptocurrency exchange

Your cryptocurrency exchange will provide you with everything you need to buy and sell coins.

Frequently Asked Questions (FAQs)

Where can I trade Bitcoins in South Africa?

Binance – Best Bitcoin Exchange South Africa With Low Fees

In terms of client accounts and trading volume – Binance is the largest exchange globally.

Which Bitcoin wallet is best in South Africa?

Top 3 bitcoin wallets in South Africa

  1. Exodus. Exodus is a free software wallet that you can download and install on your computer or smartphone.
  2. Nano X. The Nano X is simple to operate, supports over 1000 currencies and tokens, and can be controlled both from your phone and your computer.
  3. Trezor One.

Is there Bitcoin ATM in South Africa?

Of that minimal percentage throughout Africa, South Africa has the largest amount of Bitcoin ATMS located in four of the country’s biggest cities, namely Pretoria, Cape Town, Johannesburg and Nelspruit.

How much money do you need to start trading Bitcoin?

How much money do I need to start investing in cryptocurrency? In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $10. Other crypto trading apps might have a minimum that’s even lower.

Does FNB accept Bitcoin in South Africa?

“As per the exchange control regulations, the purchase of cryptocurrency will no longer be allowed, and all international Debit and/or Credit Card transactions will be declined.

Is Luno registered in South Africa?]

Luno Proprietary Limited (Registration No.2013/075107/07) is registered with the Financial Intelligence Centre, under registration number AI/130605/00024.

How do I cash Bitcoins in South Africa?

How do I cash out my Bitcoin in South Africa? To do this, withdraw your BTC from the cryptocurrency exchange and send it to your Luno BTC wallet address. You can then sell your BTC for rand, which will be stored in Luno’s rand wallet – which you may withdraw from into your local bank account.

How does Luno work in South Africa?

The buyer goes to the Luno Exchange, makes a local currency deposit – the money to be used to buy BTC. The buyer can now do one of two things: They can match the existing order (pay the 215,000 ZAR for 1 BTC). This is called a taker order as they’re taking liquidity away from the Luno Exchange.

What is the minimum deposit for Luno?

The Minimum Threshold is USD10.00, or its equivalent in any applicable Supported Cryptocurrency calculated on the day on which the liquidation is performed.