Though cryptocurrency is a risky and volatile investment, over 5.8 million South Africans own cryptos, specifically Bitcoin (BTC). It is by far the most popular cryptocurrency, with 79% of crypto owners in South Africa holding BTC. While BTC isn’t the best crypto for short-term trading, traders prefer to look at its benefits, like greater liquidity which makes it the optimal choice.
If you’re interested in joining the majority and buying Bitcoin in South Africa, this Crypto in Afrika guide is all you need. Learn everything here, from where to buy the most profitable cryptocurrency in South Africa in 2023 and tips on storing your crypto.
What is Bitcoin?
In the world of cryptos, Bitcoin reigns supreme. This is because BTC is the first cryptocurrency ever made. The BTC blockchain launched in January 2009 when the genesis block for the first-ever mined crypto was created. Back then, BTC didn’t have value; only a few people knew about it.
After many years, this virtual currency is now used in different transactions as an alternative payment method to fiat money. You can use it to pay for services, personal goods and online casinos.
However, Bitcoin is mostly used for trading and investing. Traders exchange it for other cryptocurrencies to profit from the difference during price changes. On the other hand, investors buy Bitcoin in bulk and leave it to appreciate for a long time, like stocks.
When is the best time to buy Bitcoin in South Africa?
Crypto is a volatile market, meaning digital asset prices fluctuate quickly. Time is of the essence here, so your trading decisions should be quick. Thus, you should buy Bitcoin at the ideal time: when the price is low.
This makes it more affordable and allows you to profit once it increases again. When Bitcoin’s price dips, it’s an opportunity to buy more before the price rises, and it becomes too expensive to buy again. That’s why there’s no reason to fear price dips. You can still profit during a crypto bear market in South Africa.
Steps on Buying Bitcoin in South Africa
To buy Bitcoins in South Africa, you need a wallet and a Bitcoin exchange. Once you have those, you’re only a few steps away from purchasing BTC. Know how to buy Bitcoins in South Africa below:
- Create a Bitcoin wallet. Choose from two types: hot/online or cold/offline wallets.
- Pick your preferred Bitcoin exchange or P2P marketplace.
- Create an account and finish the registration process, including verification.
- Deposit funds into your exchange account.
- Indicate the number of BTC you want to buy.
- Check your bought BTC in your wallet. You can then trade it, use it as payment or leave it in your wallet.
How to buy Bitcoin with South African rand
Not all exchanges accept the South African rand for trading. But now, local traders can buy Bitcoin with rand in two ways: through Bitcoin ATMs and peer-to-peer (P2P) platforms. They can also transfer funds abroad without paying high fees through these exchanges.
Through Bitcoin ATMs
In Cape Town, Johannesburg and Pretoria, you can purchase BTC with cash using a specialised Bitcoin ATM. These offer an easy way to buy Bitcoin without going online. However, Bitcoin ATMs offer high fees, up to 6% per transaction.
To buy cryptocurrency through a Bitcoin ATM, follow the steps below:
- Choose ‘Buy Coins’ on the ATM screen.
- Select the fiat currency and enter the amount you want to spend.
- Enter your mobile number for verification and input the verification code.
- Choose whether to process the trade as a paper transaction or transfer the money directly to a wallet after you deposit funds.
- If you choose the latter, generate a receiving QR code from your Bitcoin wallet and put it in front of the machine for scanning.
- Insert the cash into the machine and get the printed receipt. Check if you’ve received your purchased Bitcoins from your wallet.
Use P2P exchanges
Using a P2P platform, you can find someone who will exchange BTC for cash directly. Here’s how to do it:
- Choose a P2P exchange and go to the Buy BTC page.
- Browse the sell orders and pick which matches the amount you want to buy.
- Decide your currency and payment method.
- Complete the payment process according to the seller’s terms and provide a receipt. Your buy order status will be pending in escrow until then.
- Once the payment has been processed, you’ll receive your crypto.
Settling transactions in person or without escrow services carries high risks. So, choose a platform that provides escrow services and facilitates online trades before depositing your bank account. Buy Bitcoin in South Africa through famous P2P services such as Paxful, Remitano and Binance’s P2P platform.
Where to buy Bitcoin in South Africa
Now that you know how to buy Bitcoin, it’s time to find a crypto exchange. If this is your first time purchasing cryptocurrency, look for reputable exchanges where you can buy, sell and trade Bitcoin with South African Rands through brokerage or marketplaces.
You’ll find many options in South Africa with those requirements alone, so we listed your top choices. Here are the best crypto exchanges in South Africa for 2023:
- Luno
Luno is one of the most straightforward Bitcoin exchanges you can use, making it ideal for beginners. Its navigable UI ensures that users can buy BTC easily. More than 10 million people, including South Africans, already trust Luno.
In terms of crypto storage and account security, Luno has high-security standards. It offers some of the best protections, like 2FA and SSL, so you can rest assured that your data and funds are safe.
| Pros | Cons |
| Beginner-friendly platform | Limited features are available |
| Offers top-notch security measures | Not for advanced traders |
| Has educational content for crypto news | Low liquidity |
| Supports credit card and bank transfer |
- VALR
VALR is a South African exchange trusted by thousands of South Africans because of its highest level of security and transparency. Aside from over 60 crypto assets, it has three types of trading: simple, advanced and auto-buy, fit for all kinds of traders. Also, VALR strives to offer its users ways to quickly connect their bank accounts to buy digital assets.
| Pros | Cons |
| Free-of-charge transactions | Limited features are available. |
| Available for iOS and Android | Limited fiat deposits |
| Easy to use |
- Binance
Binance is the world’s leading crypto marketplace and largest digital asset exchange. It handles most cryptocurrency transactions worldwide, making it highly liquid and trustworthy.
People love this platform because it offers high-security rankings and low fees transactions. It keeps its digital assets in a cold wallet, which limits the attack from hackers. Moreover, they use 2FA, security notifications and a real-time monitoring system.
| Pros | Cons |
| Offers extra features for trading | Not beginner-friendly |
| Large crypto coins available | No built-in wallet |
| Low fees | Under scrutiny by governments |
| Offers effective security measures |
- Kraken
What sets Kraken apart from other crypto exchanges is its worldwide availability. South African traders can choose from its list of 185 coins and enjoy fast transactions thanks to its high liquidity.
Kraken is committed to bringing transparency and safety to its users. Its servers are regularly checked to ensure the safety of its users and their digital assets.
| Pros | Cons |
| Simple user interface | Limited payment methods |
| High liquidity exchange | Accepts few fiat currencies |
| Low fees for advanced users |
- Gemini
Crypto exchange Gemini is perfect for beginners who want to buy, sell or trade BTC because of its educational content. You can easily learn how crypto and their platform work so you can trade quickly. It is regarded as one of the secured exchanges as it has never been hacked or reported any losses.
| Pros | Cons |
| Simple user interface | Fees can be high |
| Beginner-friendly | Limited customer service |
| Earn interest in digital assets | |
| Has mobile app available for iOS and Android |
How to store your Bitcoin securely
After buying BTC, you should store it securely. The best way to do that is by using a digital wallet. There are different digital wallets, including hardware, mobile and desktop wallets. Each wallet serves a different purpose depending on the type of user you are and your preferences. Check out the top Bitcoin wallets you can trust below:
Use a hardware wallet
Although hardware wallets lack convenience, they are the safest options for most crypto traders since they are not connected to the internet, safe from cyberattacks. An example of this is Ledger, which is considered the most popular wallet of all. After buying Bitcoin from an exchange, transfer them to your hardware wallet for secure storage.
Use a mobile wallet
Mobile wallets are apps that store your private keys on your mobile device. Also, it allows users to receive and send BTC easily. Exodus and Mycelium are popular mobile wallets. You can get these wallets on Google Play Store and the App Store.
Use a desktop wallet
Desktop wallets store and manage your private keys on your computer securely. The best example of a desktop wallet is Electrum, the first BTC-only desktop wallet worldwide. Electrum has been in the industry since 2011, so traders can trust this platform.
Buy Bitcoin now and join millions of crypto owners
Bitcoin may impose risks because of its volatility, but it is still one of the best ways to earn income. Now that you know how to buy Bitcoin in South Africa, you can start your crypto journey and trade crypto in Africa. You can use trusted platforms such as Binance, Kraken and Gemini to begin your Bitcoin buy-in South Africa experience.
How to buy Bitcoin in South Africa FAQs
Is it legal to buy Bitcoin in South Africa?
Yes, buying BTC in South Africa is legal.
Is Bitcoin a good investment?
BTC is a risky investment because of its price fluctuation. It can increase in price just as it can decrease. This type of investment is good for those who won’t lose even if Bitcoin’s price drops.
Which app is best to buy Bitcoin in South Africa?
You can buy BTC using Kraken, Binance and Gemini. They are the leading crypto exchanges worldwide and in South Africa.
What is the fastest and easiest way to buy Bitcoin in South Africa?
The fastest and easiest way to buy BTC is through reliable crypto exchanges like Kraken, which has a simple interface perfect for beginners.
What is the minimum deposit for Bitcoin?
The minimum deposit for BTC depends on your exchange and payment method.
How can I buy Bitcoin in South Africa?
You can find the best way to buy BTC using crypto exchanges, Bitcoin ATMs and P2P platforms in South Africa.
