What is Bitcoin?
Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for third-party involvement in financial transactions.
It is rewarded to blockchain miners for the work done to verify transactions and can be purchased on several exchanges.
What Is The Best Way To Buy Bitcoin 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 3: Deposit money into your account
When your account has been verified, you are able to immediately deposit money into the account and buy Bitcoin. When your deposit has cleared in your Luno account, it will show up in the digital wallet.
Select ‘Wallets’ to make a deposit.
Select ‘Deposits’ at the bottom of the wallet link.
Select your preferred bank from the list of main banks in South Africa listed on the site.
Select ‘Next’ to instruct Luno on how much money you will deposit into your account.
A reference number will appear on the screen. You need this reference number as well as the Luno banking details to proceed with making a deposit. Use the Luno banking account and reference number (beneficiary reference) to do an electronic transfer from your regular bank account to your Luno bank account.
The funds you transfer will appear in your Bitcoin wallet once they have been cleared. This usually takes 2 working days. Once the funds appear in your Bitcoin wallet, you can buy Bitcoin.
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.
Where to Buy Bitcoin In South Africa (Use Yellow Card)
You can simply buy Bitcoin in South Africa with Yellow Card. Yellow Card is a well-known and reliable Bitcoin exchange in South Africa. It is a digital platform to trade, sell, store, and buy Bitcoin.
With the Yellow Card, you can buy bitcoin with fiat money electronically transferred from your bank account, as well as sell your bitcoin and receive the proceeds directly in your bank account.
Buying Bitcoin in South Africa is a simple process that requires no prior investing experience. Simply open an account with a reputable exchange that accepts debit/credit card payments. You can then keep your BTC tokens in a crypto wallet until you’re ready to cash out.
Is Bitcoin legal in South Africa?
As of the end of 2019, South Africa’s strict regulatory laws governing cryptocurrency trading were largely non-existent.
Today, many still fear when the name “cryptocurrency” is mentioned, but you don’t have to anymore. Selling and buying Bitcoin is legal in South Africa, but it is not fully regulated.
While the South African Reserve Bank (SARB) says that bitcoin does not meet the country’s legal tender definition, many people are still trading cryptocurrencies because of their many benefits.
While crypto trading is risky and unregulated in South Africa, the government is working on new laws to protect citizens. The SARB has now stated that any profits from these trades are taxed, so you should check if you are crypto-tax compliant in South Africa.
Is it legal to buy and sell Bitcoin in South Africa?
Yes, it is legal to buy and sell Bitcoin in South Africa. The South African Reserve Bank (SARB) has issued warnings regarding the risks associated with trading in Bitcoin but there is no actual ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation.
Cryptocurrency trading in South Africa is currently unregulated but the government is working on a new regulatory framework to control the cyber-banking industry.
Which Bitcoin wallet is best in South Africa?
eToro – Across all important metrics, we found that eToro is the best crypto wallet for South African traders. The wallet is backed by a regulated brokerage that supports over 90 crypto assets.
South African traders can buy their chosen crypto for just $10, and the tokens will be transferred to the eToro web wallet.