Buying Bitcoin in most countries, including South Africa can be a somewhat difficult process for users who have not purchased Bitcoin before. South Africa has accepted Bitcoin with open arms after having some issues with its currencies stability.
This is where Bitpremier comes in, as this guide will teach you how to purchase Bitcoin in South Africa with all payment methods.
Luno is an extremely trustworthy exchange backed by major big players in the cryptocurrency space such as Coindesk. Their services include a variety of payment methods, extremely low transaction fees, a beautiful trading interface, and custodial cryptocurrency wallets.
For payment methods, Luno allows bank transfers (EFT, GIRO), credit card, debit card, and more. In terms of transaction fees, Luno offers 0% transaction fees when a limit order is placed. For market orders, expect around a 1% fee.
Luno has several verification tiers allowing for different weekly and monthly buying limits.
In addition to the ZAR, Luno offers the following pairings.
Next up, is Coinmama, a popular Bitcoin and cryptocurrency brokerage. What makes Coinmama different than most on this list is the fact that it is a brokerage. With their service, Coinmama allows users to purchase Bitcoin directly from them, not another user.
Because the exchange is a brokerage, there are no custodial wallets. This means, that you must own a valid Bitcoin wallet address before using Coinmama. If this is a problem, keep reading our list to find an exchange that better suits you.
For payment methods, Coinmama specializes in credit card and debit card transactions. Expect around 5.5% fees when using a card to purchase cryptocurrency on Coinmama.
CEX.io is another fantastic option for purchasing Bitcoin and other cryptocurrencies with a variety of methods. The exchange has been in the space for several years, and are based in London.
Cex.io’s fees are a bit unclear, and often include premiums on the price of cryptocurrencies. This means that CEX.io makes money by selling the currency to you at a higher price than the going rate. At the end of the day, it doesn’t matter if you are paying a fee or a premium, you still end up with the same amount of Bitcoin.
Virwox is probably the most unique exchange mentioned here in that it allows you to purchase Bitcoin with Skrill and Paypal. Typically, this isn’t possible as these services allow transaction reversibility (Bitcoin doesn’).
Virwox gets around this by using a middle virtual currency called Second Life Lindens from the game second life. Don’t worry about holding this currency as you are exchanging it instantaneously for Bitcoin.
Bitcoin ATM’s are another viable option for purchasing Bitcoin. They often allow cash as a payment method, making them great for more private transactions.
In terms of fees, Bitcoin ATM’s can be a bit pricey. Expect around 10% fees when a Bitcoin ATM is used.
To find a Bitcoin ATM near you, check out CoinRadar. Here’s a link to CoinRadar displaying all of the known Bitcoin ATM’s in South Africa.
Bitcoin Acceptance in South Africa
Bitcoin is the leading cryptocurrency among hundreds of digital currencies available on the cryptocurrency market, and has stayed at the top since it was first created and published on the cryptography mailing list as an ”electronic currency eligible for payments and transfers.”
Bitcoin has come a long way since then and has gone far from being an electronic payment to being many things, including being an incredible store of value. Thus if you are yet to get your hands on Bitcoin in South Africa, you are definitely not late to the party.
The rate of adoption of Bitcoin (BTC), and other cryptocurrencies in South Africa has risen rapidly over the past five years, and you shouldn’t worry that you are alone; South Africa competes well with European countries in terms of Bitcoin awareness and adoption.
A study conducted by one of the leading crypto exchange in SA, Luno, revealed that South Africa leads many European countries in crypto adoption.
According to the study which compared to SA to countries such as Germany, Italy, and Indonesia; 69 percent of respondents from South Africa showed awareness of Bitcoin, and almost 30% are holders of BTC or other cryptocurrencies.
This very well dwarfs numbers posted by Germany of 49% and 9% respectively, and France which showed 37% awareness and conceded 19 percent possession. Thus, South Africa is a buzzing haven for Bitcoin.
Is Bitcoin Legal in South Africa?
The simple answer is YES; Bitcoin is legal in SA. There is no explicit law banning the use of cryptocurrencies in the country. Although the current cryptocurrency plane is SA is unregulated, the government has made specific steps to offer as much legal support as possible.
For example, you should know cryptocurrency trade is also subject to taxation laws in South Africa. It is thus advisable for a cryptocurrency trader in the country to hire a professional tax consultant to ensure they are tax compliant.
Since cryptocurrency earnings might be subjected to tax in South Africa, can you get legal recourse if the need arises? Probably no. South African Reserve Bank (SARS) has made it a point to warn its citizens that they are at their own risks should they trade Bitcoin or other cryptocurrencies. The government is, however, working on a legal framework to support virtual assets in the country.
And there you have it! A full guide on the history of Bitcoin in South Africa, and all of the possible methods for purchasing Bitcoin in South Africa.