What is a Bitcoin ATM?
A Bitcoin ATM isn’t quite what it sounds like. Many think of ATMs and immediately see Automated Teller Machines, which have been with us since the late 1960s.
Bitcoin ATMs are similar to traditional ATMs in that they are automated machines facilitating Bitcoin transactions without human interaction. Where a regular ATM allows you to connect to bank accounts, a Bitcoin ATM allows you to perform blockchain transactions.
Where Can I Find Bitcoin ATM In South Africa?
Bitcoin ATMs in Pretoria
Pretoria hosts two Bitcoin ATMs. They are not very far from each other. One is located at Saverite Florauna, while the other is at Euro Mini Liquors, both located on Brits Road.
Bitcoin ATMs in Johannesburg
Johannesburg plays host to three Bitcoin ATMs. Two are located in the Sandton area. One is at Sandton City Mall, while Lonehill shopping Centre hosts the other Sandton Bitcoin ATM. The third Johannesburg Bitcoin ATM is located at the Cube, Bryanston, not too far removed from Sandton.
Bitcoin ATMs in Cape Town
Cape Town has four Bitcoin ATMs at the time of writing. Two of these are located at 38 Whale Street. You will find the other two Cape Town Bitcoin ATMs at AnkerPay near the Waterfront and Willow Bridge in Bellville.
Bitcoin ATMs in Durban
Durban hosts six Bitcoin ATMs. They are pretty well spread out. You will find them in Hillcrest Corner Mall, WaterCrest Mall, Westville Mall, Umlazi Mega City and the Musgrave Centre.
Bitcoin ATM in Pietermaritzburg
There is one Bitcoin ATM in Pietermaritzburg. You will find it at the Liberty Midlands Mall in the Woodlands suburb.
Bitcoin ATM in Port Elizabeth
There is one Bitcoin ATM located in Port Elizabeth. The Bitcoin ATM can be accessed at Summerstrand Village Centre located in Summerstrand.
Bitcoin ATM in Stellenbosch
Finally, Stellenbosch has a single Bitcoin ATM. The Eikstad Mall in central Stellenbosch hosts the Bitcoin ATM.
How does a bitcoin ATM work?
We’ll mainly look at the buying of cryptocurrency on a Bitcoin ATM. To buy cryptocurrency, one simply needs to choose the currency and indicate how much they wish to purchase. The ATM will factor in fees, which can go as high as 6% per transaction in South Africa.
After depositing the correct amount, the ATM will provide the choice of transferring the currency directly to a wallet or processing it as a paper transaction. To load the cryptocurrency purchased to a wallet, you will receive a QR code which you scan with your wallet app. If you select a paper purchase, you will receive a printout with details for retrieving the cryptocurrency purchased.
In addition to the fees levied on users, some limits apply to using Bitcoin ATMs. Most machines have a limit of ZAR24500 (US$1430) per transaction. This is just ZAR500 under the exchange limit in South Africa, allowing individuals to transact up to ZAR25000.
Any transaction above ZAR25000 would need to be reported to the Financial Intelligence Centre. Some machines will allow more than ZAR25000, the highest being ZAR 50500 but these are firmly the exception rather than the rule. Be prepared to go through an identity check when using a Bitcoin ATM.
What is the easiest way to buy Bitcoin in South Africa?
One of the easiest ways to buy BTC with cash in South Africa, apart from P2P marketplaces, is through a Bitcoin ATM. These machines allow you to purchase electronic coins using fiat currency like the South African Rand.