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Starting a Bitcoin trade in South Africa, it is important to know which platform is the most suitable for your needs. Consequently, we compiled a list of the best brokers and exchanges with general information, fees, pros, and cons so that you can make an informed decision.

As a result of the current growth of Bitcoin since its creation in 2009, reaching a value of $66,000 in 2021 and with a current market cap of $734 billion at the time of writing, influenced many people. Therefore, according to experts, they are deciding to trade since it is a good investment and can be profitable in the next years.

In the following guide, you will find all the relevant information like advantages, risks, and strategies you need to know to how to trade Bitcoin in South Africa safely and reliably.

In This Guide

How to Trade Bitcoin in South Africa in 2022 – Step by Step Guide

Capital.com is a CFD broker that enables people to trade cryptocurrencies such as bitcoin that we recommended.

The following information will help you get to know the broker and the platform to start trading bitcoins within this platform.

Step 1: Open an Account with Capital.com

First, click on the ‘Trade Now’ button in the top right corner of the Capital.com website to begin. The second step is to enter a valid email address and a strong password. Also, if you have an Apple, Facebook, or Google account, you can link those accounts during registration.

Registration requires that you provide some personal information to verify your identity.

how to trade bitcoin

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 2: Upload ID

To verify your account, you will need to upload a valid ID. For example, a driver’s license or passport can serve as proof of identity, along with a recent bank statement or utility bill.

how to trade bitcoin in south africa

Step 3: Deposit Funds

When you upload the documents mentioned above and have verified your account, the platform will ask you to make a deposit. Capital.com offers a wide range of payment options like debit cards, credit cards, South African bank transfers, and other third-party channels, such as Skrill.

In Capital.com, you can start trading bitcoin in over 3000 companies from several international exchanges listed after you deposit $20, €20, or £20, depending on the currency you choose.

how to trade with bitcoin

Step 4: Trade Bitcoin (BTC)

Now that your account has been verified, funded, and established, you are ready to trade. So, when you go to Capital.com, you must type Bitcoin (BTC) in the search bar and begin to trade.

Notice that Capital.com deals with bitcoin derivatives (CFD) in South Africa.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Bitcoin (BTC)?

how to trade bitcoin on lunoBitcoin was created in 2009 as the first decentralized currency that uses Blockchain technology (chain of blocks). Due to its maximum supply of 21 million coins worldwide, it has a special deflation and volatility feature.

Due to these features, bitcoin reaches its maximum value of $66 000, a current market capitalization by this date of $734 billion, and around 76 million people are investing in it. That is why experts predict that the value of this cryptocurrency will exceed $100.000.00 in 2022.

By using peer-to-peer technology, bitcoin operates without a central authority or banks. Instead, the network manages transactions and issues bitcoins collectively. That is why Bitcoin is incredibly popular and has triggered the launch of hundreds of other cryptocurrencies. Also, a growing number of big companies are investing in Bitcoin or accepting it as a form of payment, such as Paypal, Microsoft, among others.

Compared with other cryptocurrencies, Bitcoin has the special distinction of being a Proof of Work currency instead of a Proof of Stake currency. So to perform algorithm calculations in the blocks, the role of miners is necessary with advanced software and ASIC technology.

Nowadays, as a result of this coin’s success, many brokers, exchanges, and platforms show you how to trade bitcoin in South Africa like Capital.com and give you all the necessary information to become a trader of Bitcoin.

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Other Types of Bitcoin Asset

Now that you’ve learned about bitcoin and are interested in investing in this coin. We will take a look at other bitcoin options that might be interesting to you and learn more about them.

Bitcoin ETFs

An EFT or Exchange-Traded Fund is a portfolio of assets traded on stock exchanges. Investors can purchase shares of an ETF without actually acquiring the underlying assets. In this way, investors have the opportunity to invest in a wide range of assets, markets, and sectors without buying individual stocks.

Bitcoin EFT is called ProShares Bitcoin Strategy (BITO). The first U.S. bitcoin-linked ETF provides investors with liquid, convenient, and transparent exposure to bitcoin returns. A primary objective is to achieve capital appreciation by managing exposure to bitcoin futures contracts.

It was launched in October 2021. The fund attracted more than $1 billion in assets in its first few days, making it one of the most heavily traded ETFs ever.

Bitcoin Funds

Bitcoin Fund is the same as Bitcoin ETF mentioned above. Unfortunately, there are currently no ETFs that you can use to purchase Bitcoin directly, but there are options.

Bitcoin ETF (BITO) is a recent ETF launch that attempts to track Bitcoin using Bitcoin futures contracts. There are other options but with a mixed fund like BITW (60% Bitcoin and 40% on other cryptos), BITQ (Bitcoin and crypto stocks), and BTF (Bitcoin futures from a crypto investment firm)

Bitcoin CFDs

The Bitcoin CFD (Contracts for Difference) are instruments with prices determined by the difference between an underlying asset’s entry price and exit price. It offers traders the opportunity to trade bitcoins without owning them. Instead, the dynamic is to reach an agreement with your broker. In this case, we recommend Capital.com.

The advantage of Bitcoin CFD trading is that you can trade with leverage or collateral. In other words, it is not necessary to deposit the full value of the position. In addition, since your money is not tied to a single trade, you can use it for other investments.

In contrast to organized markets, Bitcoins CFDs are traded on private markets between trusted parties and allow you to trade on margin to multiply your profits.

Bitcoin Futures

As their name implies, Bitcoin futures are speculative trades that speculate on the future value of an asset. The objective is to predict whether the price of the Bitcoin will be higher or lower when the contracts expire, similarly to a futures contract for a commodity or stock index.

Futures are easily accessible; they offer many advantages over owning digital currencies, like operating in a regulated market. For example, you can trade them for long or short periods without restriction. In addition, the Bitcoin futures are cash-settled, so a Bitcoin wallet is not required.

Advantages of Trading Bitcoin

how to trade bitcoin for profit

Approximately more than 9000 types of cryptocurrencies have been created since the creation of Bitcoin in 2009, so the question arises. What advantages can I gain by investing in Bitcoin rather than another cryptocurrency?

It is essential to know about some of the advantages if you are thinking about investing in bitcoin.

Great Liquidity

Bitcoin is regarded as one of the most liquid investments. As a result, your prices will be more competitive and more efficient transactions. Bitcoin is in high demand in the market, and due to all the exchange sites, all over the internet, it has become very easy to convert bitcoins into cash.

Prices of Bitcoin fluctuate constantly, so you must take that into account to be profitable after you sell your investments. Studying the bitcoin market and recognizing when the currency rises will help you make more money from your trades.

Bitcoin’s price is determined by its demand, supply, market news, and events. In 2021, it reached $66 000.

Great potential for growth

Bitcoin has excellent growth potential in the future due to the limited number of bitcoins on the market and the deflation that follows. Therefore, this cryptocurrency is in high demand, and considering the current growth rate, its price is expected to rise soon.

If you are trading bitcoins, your profits are almost certain to increase because the value of Bitcoin is not going to decline for at least the next years. Although investing is subject to ups and downs, it will always exhibit high levels of growth on a broader scale.

By this date, the market capitalization of bitcoin is $734 billion, and around 76 million people are investing in it due to its benefits.

Transparency and anonymous addresses

Bitcoin is one of the most transparent payment methods because of its distributed ledger technology (blockchain). Every time a Bitcoin is bought or sold, it is immediately entered into the blockchain (a public record of all Bitcoin transactions in chronological order)

Even though everyone can see the transactions, there is no way of knowing which transactions belong to them because addresses are anonymous unless they are known and shared from user information.

Risks of Bitcoin Trading

As a new trader learning Bitcoin, you should be aware of certain risks before trading to protect your funds and trade wisely.

Lack of regulation

Bitcoin is a self-regulated currency that is not controlled or backed by any government or authority in South Africa. That is why no one is responsible for its issuance.

The same guarantees and protections that apply to financial products are not defined to Bitcoins. In addition, no central bank or other public authority supports cryptocurrencies, and customer protection mechanisms do not protect them.

It is not illegal to trade Bitcoin, but South Africa needs specific regulations to govern the market for this asset class.

Volatility

In short periods, the price of Bitcoin can fluctuate dramatically and unexpectedly. Depending on your trading strategy, it can be a positive or negative experience for you.

The management of this feature is a common occurrence across all cryptocurrencies. You have to know how the market moves so you can make the right trades at the right time and place and trade bitcoins with leverage.

Irreversible payments

Be cautious when investing in bitcoins. The reasons for this are that transactions require time to be confirmed and executed, and secondly, they are irreversible once concluded.

It is not possible to refund bitcoin transactions. Therefore, it is a good idea to double-check each step and figure and make sure all is correct.

Can You Trade Bitcoin in South Africa?

how to trade with bitcoin in south africa

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

There are several ways to purchase Bitcoin today in South Africa, including exchanges, brokerages, crypto wallets, and electronic wallets. Bitcoin is the best known and longest established currency, so it is easy to access it.

With Capital.com as our recommended broker regulated by FCA, Cyprus Securities, and Exchange Commission, you can start trading Bitcoin anytime you want from South Africa, as the platform is available 24/7. Furthermore, this platform is attractive because you can access diverse educational resources and contains detailed and comprehensive guides for beginner users.

Using this platform, you can start trading without paying any commissions, inactivity, or withdrawal fee. Also, open a demo account to learn more about Bitcoin investing.

Bitcoin Trading Strategies

Calculate a reasonable investment amount

When you trade, you must invest a set amount of money; there is no maximum or minimum amount. However, it has to be money you are willing to lose in the worst-case scenario.

Since Bitcoin is quite volatile, you should only invest your excess funds. Considering that, like any investment, there is a risk index, we do not recommend acquiring loans to banks or institutions.

As you gain experience and study cryptocurrencies, it is better to start with a reasonable amount of money in excess, so you won’t lose important money that you use daily.

Trade rationally, not emotionally

It is aware of some of the risks of trading Bitcoin. Don’t let a price increase influence your decision to invest your money rapidly. Due to volatility, the next day’s price could fall.

The key to operating in the market is education. The trading industry is complex, with theoretical and technical foundations that need to be understood to understand market behavior fully. In this way, you can interpret the behavior of bitcoins and design strategies that lead to profits.

You can start searching at Capital.com, where you can find all the information you need to ensure a profitable strategy and trades due to the abundance of educational resources.

Making a trading plan

It would be best if you defined a trading plan that is profitable to manage your money properly. This guide is for beginners, but we will mention some strategies you can learn over time like Interday Trading, Swing Trading, Scalping, Trend Trading, Position Trading, and others.

If you have enough data and trading records, you should adjust and adapt your methods. As you gain trading experience, your trading strategies should evolve according to your trading plan.

Study and learn more about each one to choose the one that suits your necessities and experience.

Best Platforms to Trade Bitcoin in South Africa

To trade bitcoin in South Africa, you need to determine the best trading platform for your needs. The top five bitcoin brokers and exchanges we recommended are listed below, including their features, fees, pros, and cons.

1. Capital.com – South Africa’s Best and Cheapest Bitcoin Exchange

learn how to trade bitcoinCapital.com is an international CFD broker established in 2016. Clients trade in a secure and well-regulated environment. In addition to complying with two regulators, the broker operates transparently.

Demo versions and learning resources are special features of this platform. In addition, you can invest in cryptos and Bitcoin without risking your money until your account is ready for real-time trading.

how much do you need to trade bitcoin

You can speculate on the future price movements of over 4,000 shares on Capital.com and find unique investment opportunities with more than 75 technical indicators and customizable charts.

It takes just $20 to open an account with Capital.com, which accepts multiple payment methods. Once the payment has been completed, you can start trading Bitcoin in South Africa.

Capital.com fees

Fee Amount
Stock trading fee Spread. 1.83 pips for Amazon.
Forex trading fee Spread. 0.6 pips for EUR/USD.
Crypto trading fee Spread. 100 pips for Bitcoin/USD.
Inactivity fee Free
Withdrawal fee Free

Pros:

  • Providing competitive spreads across over 3000 markets
  • Integration with MetaTrader 4 trading platform
  • Feel free to try the perfect demo account
  • Regulations come from the FCA, Cyprus Securities Commission, and Exchange Commission
  • Forex CFDs with low fees and commission-free real stocks
  • Various educational resources are available
  • The company accepts a variety of payment methods
  • A user-friendly platform
  • Withdrawals and inactivity fees are not charged
  • Provides excellent customer service

Cons:

  • The web platform does not support price alerts
  • There are only CFDs and real stock options available

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Binance - The Best Crypto Exchanges for New Coins

how to day trade bitcoinBinance was founded in 2017 by Changpeng Zhao in Hong Kong and now is the largest trading exchange in terms of volume worldwide. The interface is complicated to use, but it is complete, and it has a wide variety of assets.

They have some of the lowest commissions in the market. You can reduce these fees even further by holding Binance Coin (BNB) or trading larger volumes. In addition, sliding fees start at just 0.1%.

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There are more than 54 payment options available. For example, you can buy bitcoin with a credit card via Bank Transfer, exchange other cryptocurrencies for bitcoin, or buy bitcoin directly from another individual online or in person.

Binance fees:

Fee Amount
Crypto trading fee Commission, starting from 0.1%
Inactivity fee Free
Withdrawal fee 7.50 ZAR

Pros:

  • Cryptocurrency savings accounts are available
  • Security is an important concern to the company and constant innovation.
  • The company accepts a variety of payment methods
  • Binance charges transactions at a rate of 0.1%
  • Binance Coin (BNB) provides a 25% discount on fees
  • Using liquid markets as a central exchange

Cons:

  • Cryptocurrency trading options are limited
  • This platform is too complex for inexperienced traders
  • It is not a decentralized exchange

Your money is at risk

3. Crypto.com - Cryptocurrency exchange with fast and secure transactions

how to trade bitcoin into cashFounded in 2016, Crypto.com is one of the fastest and most secure cryptocurrency exchanges in South Africa. The exchange offers over 250 different currencies, reasonable fees, and discounts for customers who own a significant amount of Crypto.com Coin (CRO).

It is a great choice for users with intermediate experience with cryptocurrencies and who feel confident managing a financial account on a mobile app. They also offer a DeFi wallet and 14% a year from stablecoin staking.

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Crypto.com fees

Fee Amount
Crypto trading fee 0.04% maker and taker fees
Inactivity fee Free
Withdrawal fee According to the currency withdrawn. 0.0004 for BTC

Pros:

  • The Crypto.com Visa Card gives you up to 8% back on your purchases.
  • Staking stablecoin on our platform produces 14% annual returns
  • Competitive rates, transparency, and discounts
  • Crypto.com makes it easy to convert fiat currency to cryptocurrencies for free
  • It's now possible to shop in the NFT marketplace
  • The website offers multiple DeFi integrations

Cons:

  • A lack of resources for education
  • Unsatisfactory customer service

Your money is at risk

4. Kraken - South Africa's Largest Crypto Exchange

how to trade bitcoin Kraken was founded in 2011 in San Francisco, one of the first cryptocurrency exchanges in the United States. Therefore, it has become one of the top five cryptocurrency exchanges.

Crypto traders can access live crypto prices, 66 cryptocurrencies, and major cryptocurrencies on the site. In addition, staking cryptocurrencies is also available to earn more money with what you hold.

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Unlike most other platforms, it allows traders to trade futures of cryptocurrencies. Kraken is also easy to use and offers high margins depending on the user's currency.

Kraken fees

Fee Amount
Crypto trading fee  

1.5% fee for any other crypto or FX pair

Inactivity fee Free
Withdrawal fee Flat fee depending on the coin; 0.00002 BTC for Bitcoin

Pros:

  • Low prices in comparison to competitors
  • It can be used even by beginners
  • There is a $10 minimum deposit required
  • Account information is encrypted at rest at the system and data levels
  • There are more technical tools in Kraken Pro Advanced
  • A majority of the deposits are kept in highly secure offline cold storage

Cons:

  • Deposits and withdrawals are limited
  • There are higher fees if you do not use Kraken Pro

Your money is at risk

5. Luno - Fast Growing Crypto Exchange Platform South Africa

how to trade with bitcoinLuno was launched in 2013 to make financial systems open, efficient, inclusive, and easily accessible to all people, no matter where they are located.

The Luno crypto exchange has set up an office in South Africa and is a regulated financial service provider in the country. The platform is beginner-friendly, so it is perfect to learn about Bitcoin tradings.

Your funds are safe as the platform is registered with the Financial Intelligence Centre of South Africa (FIC).

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Luno fees

Fee Amount
Crypto trading fee 0% maker fee and 0.1% taker fees
Inactivity fee Free
Withdrawal fee Free for standard ETF withdrawal.20 ZAR for an Express withdrawal to all banks other than Standard Bank.

Pros:

  • You can share email payments for free in fiat and crypto
  • Top cryptocurrencies available on the South African market
  • An intuitive crypto trading platform for beginners
  • Crypto savings offer a reasonable rate of interest
  • Trustworthy and reliable worldwide exchange service

Cons:

  • The use of margin lending or advanced trading tools is not allowed
  • There are only a limited number of cryptos available

Your money is at risk

How to Trade Bitcoin in South Africa - Fee Comparison

Platform Crypto trading fee Inactivity fee Withdrawal fee
Capital.com Spread. 100 pips for Bitcoin/USD. Free Free
Binance Commission, starting from 0.1% Free 7.50 ZAR
Crypto.com 0.04% maker and taker fees Free According to the currency withdrawn. 0.0004 for BTC
Kraken 0.9% fee for USD to any stablecoins,

1.5% fee for any other crypto or FX pair

Free Flat fee depending on the coin; 0.00002 BTC for Bitcoin
Luno 0% maker fee and 0.1% taker fees Free Free for standard ETF withdrawal.20 ZAR for an Express withdrawal to all banks other than Standard Bank.

Conclusion

The value of bitcoin is increasing every day in the global marketplace. As a result, people are becoming more aware of the benefits of trading in this cryptocurrency for all the benefits it generates in short periods due to its volatility and positive growth projections supported by the market and experts.

Trading bitcoin in South Africa is a fast, simple, and available option, as mentioned in this article. Consider that market research and analysis can produce huge returns on investment despite the volatility of bitcoin.

Capital.com, our recommended Bitcoin CFD broker in South Africa, lets you trade Bitcoin without paying commissions, inactivity fees, or withdrawal fees in more than 6500 markets. Feel free to try the perfect demo account on this platform

Click on the link and become part of more than 300,000 operators who choose to trade with Capital.com!

Capital.com – Best Platform to Trade Bitcoin in South Africa

how to trade bitcoin for profit

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What are the best Bitcoin trading platforms in South Africa?

If you are looking for a regulated, secure, and easy-to-use platform in South Africa, we recommend Capital.com. With this broker, you will trade with ease, achieve competitive spreads, and generate profits.

Can I trade Bitcoin ETFs in South Africa?

BITO is still very new to the market, but there are a few options depending on what broker you use. First, you have to compare brokers with access to US Stocks and open your account. Capital.com, for example, allows you to buy and trade Bitcoin ETFs in South Africa.

How to learn to invest in Bitcoin?

There is available information on the web or with courses, but if you seek reliable information, we recommend you visit Capital.com. It provides a variety of educational resources you can access for further information. Beginners and advanced users will find detailed and comprehensive guides in it. You can also create a demo account to learn more about Bitcoin investing in detail on this platform.

Is Bitcoin a good buy?

Many individuals and companies are currently investing in Bitcoin as it is a stable, rising, and secure currency with a good growth forecast during the next years. Based on the information in this article and with your commitment to learning more about this subject, buying bitcoins these days is a wise decision.

Is Bitcoin trading illegal in South Africa?

At the time of writing, the Reserve Bank of South Africa and the Financial Sector Conduct Authority do not establish buying or trading bitcoin regulations. However, you must consult a tax professional to report your taxes to SARS. Even though Bitcoin is not yet regulated, it is legal to buy it in South Africa through wallets, exchanges, or brokers.

How much money do you need to trade Bitcoin in Capital.com?

Your investment amount will depend on your budget and your willingness to spend. You can get started with a minimum deposit of $20. Over time, you will better understand this cryptocurrency and the platform. A good starting point is $50 to $80, so you can see the results.

About Alejandra Martinez
About Alejandra Martinez

Multimedia designer, specializing in communication and English-Spanish translation. Interested in economics, history, literature, and geopolitics.

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