Invest in Bitcoin in South Africa – Beginner’s Guide

As the world’s first cryptocurrency launched in 2009, starting with pennies and reaching a peak of $66,000 in 2021, Bitcoin has become the most popular digital currency. It is still the most important cryptocurrency on the market. Many people invest in Bitcoin because the transactions are usually very fast and completely secure. In addition, it does not put the investor’s capital at risk because it is an asset that is very safe to invest in.

Listed below is a guide that will provide you with relevant step-by-step details about how to invest in Bitcoin in South Africa.

How to Invest in Bitcoin in South Africa?

The following part covers the steps needed to open a Capital.com account and begin investing in bitcoins within the platform.

Capital.com is a broker of CDF that enables people to trade. Therefore, it is very important to become familiar with the broker and the platform.

Step 1: Open an Account with OKX

To begin, go to the platform’s website and click on the “Trade Now” button in the top right-hand corner. Next, you need to fill in a valid email address and a strong password to apply. In addition, you can link your existing Facebook, Google, or Apple account to begin the registration process.

During the registration process, you will need to provide some personal information.

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

You must upload a valid ID to verify your account. In addition, you will need a driver’s license or passport to prove your identity and a recent statement of a bank account or utility bill.

Step 3: Deposit Funds

When the documents mentioned above are uploaded and your account has been verified, the platform will ask you to make a deposit. Among the payment methods are:

• Debit cards.
• Credit cards.
• South African bank transfers.
• Other third-party channels like Neteller and others.

There is no minimum deposit. After that, you will have the freedom to buy Bitcoins in over 3 000 companies from several international exchanges.

Step 4: Invest in Bitcoin

Now that your account has been established, verified, and funded, you are ready to invest in bitcoin! First, you have to search on the OKX dashboard and select bitcoin. It is important to mention that Capital.com deals in bitcoin derivatives 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.

Why invest in Bitcoin?

If you consider investing in Bitcoin, you need to know why people are choosing Bitcoin as their first-choice cryptocurrency in South Africa and why they are interested in investing in it.

Transparent currency 

Bitcoin transactions are public and transparent, and the identity of users behind transactions remains hidden by default. Using this method, you can transact at your own pace without disclosing confidential financial information to the seller.

Decentralized issuance system

Any government or central bank cannot regulate the value of bitcoins. Therefore, there is no interference from third parties. This means that anyone cannot take your coins, charge you, or demand them because you completely control your Bitcoins.

Lowest inflation risk

Three major factors make bitcoin deflationary: the limitation on the total number of coins intended for circulation, the reduction of the bitcoin issuance rate, and its hoarding. This means over time, the value of this cryptocurrency tends to increase steadily

Security

The security of Bitcoin transactions is ensured by military cryptography. There is no way to falsify bitcoins. As a result, cryptocurrencies such as Bitcoin may ultimately represent a significant step toward securing local and global financial systems.

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.

Where can you buy Bitcoin in South Africa?

To buy bitcoin in South Africa, you should determine which trading platform best suits your needs. To help you find the best bitcoin brokers and exchanges, we have prepared a list of the top five, including their features

1. OKX- One Of The Most Innovative Platforms To Invest In Bitcoin

To invest in Bitcoin, one of the best currencies on the market, you can do so using the OKX platform. Here you can not only invest in Bitcoin, but you can also use this crypto for betting, generating returns, and making loans.

It is a platform that has been active since 2017 and can be used by inexperienced traders and Bitcoin investment experts. OKX has all kinds of educational material for beginners to make them feel more confident and succeed in Bitcoin investments.

The commissions on OKX can be considered low for investments. However, it should be kept in mind that there are multiple commissions due to the different negation tools available on the platform, as can be the currency and the associated volume.

OKX fees:

Your money is at risk.

2. Capital.com – Overall Best and Cheapest Place to Buy Bitcoin in South Africa

Capital.com is a CFD broker with an international presence founded in 2016. It earns income by trading 2,000 assets, while no commissions are charged. We recommend that you start by buying Bitcoin at Capital.com if you want to learn about the world of cryptocurrencies. It also is a safe broker for South Africans to trade with.

One special feature of this platform is its demo version and many learning sources for beginners. You can make your investments in bitcoin without having to risk your money until you have access to real-time trading.

Capital.com requires a minimum deposit of just $20, which can be made using multiple payment methods. After that, you can start investing in Bitcoin.

Capital.com fees

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.

3. Binance - Best Crypto Exchange for New Coins

Binance lets you buy, sell, and trade cryptocurrencies online. It was founded in Hong Kong in 2017 by Changpeng Zhao. Chart types, trading features, and dashboards are available on Binance's desktop and mobile. Although complicated to use, the interface is complete, and their selection of assets is unparalleled;

Their commissions are among the lowest. You can reduce this further by trading larger volumes or holding Binance Coin (BNB). In addition, it starts with just 0.1% per slide.

You can purchase Bitcoin in several ways. More than 54 payment methods are available. Some of the most recommended are buying Bitcoin with a Bank Transfer credit card, changing other cryptocurrencies for bitcoin, or buying Bitcoin directly from another individual in person or online under your conditions.

Binance fees

Your money is at risk

4. Coinbase - Great Beginner Platform for Crypto South Africa

In 2012, the company was founded to enable anyone and everyone to send and receive bitcoins securely. Coinbase may be a good choice for first-time traders since the platform is reliable and user-friendly.

You can buy Bitcoin with a debit card or bank account, as well as PayPal, as you prefer. Additionally, it provides a platform where you can purchase Bitcoin from anywhere globally, including South Africa.

Over 150 cryptocurrencies are available to choose from. There is no minimum deposit for an account, but a 1.49% commission is also charged on Coinbase to buy and sell it.

Coinbase fees

Your money is at risk

5. Crypto.com - Fast and Secure Cryptocurrency Exchange

Crypto.com was founded in 2016, making it one of the fastest and most secure cryptocurrency exchanges in South Africa. Crypto.com's minimum investment per transaction at Crypto.com is 1 USD and integrates extensively with decentralized finance (DeFi).

This exchange offers over 250 different currencies, reasonable fees, and discounts for those who own Crypto.com Coin (CRO) at a significant stake.

It is recommended for those who feel confident managing a financial account through a mobile app and those with intermediate cryptocurrency knowledge and experience.

Crypto.com fees

Your money is at risk

6. Luno - Fast Growing Crypto Exchange Platform South Africa

Luno was founded in 2013 to make the financial system more open, efficient, inclusive, and easily accessible to everyone – whoever and wherever you are.

Luno focuses on developing countries, which have been excellent adopters of cryptocurrency, like South Africa, using a cryptocurrency wallet and comply with the same AML and KYC regulations your local bank does.

The platform is beginner-friendly, so it is perfect if you are starting in the investments of Bitcoin and want to learn more about it.

Luno fees

Your money is at risk

Invest in Bitcoin South Africa - Fee Comparison

What is Blockchain?

Blockchains create a consensus on the network about which transaction will prove valid and confirmed by the user. It is a public record of all Bitcoin transactions in chronological order. The purpose of this feature is to verify the permanence of Bitcoin transactions and to prevent double-spending.

This allows Bitcoin wallets to calculate their spendable balance to verify new transactions. A key aspect of this system is to make it difficult or impossible for any changes, hacks, or cheats as they are reinforced with cryptography.

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 to know before you buy Bitcoin

Addresses are anonymous

Every bitcoin transaction is recorded permanently on the public ledger, allowing anyone to view your balance and transaction history. Still, You cannot use your address to identify you on the ledger. Transactions can only be linked to your identity by people who know your address.

Price volatility

Throughout its history, Bitcoin has proved to be a very volatile asset. As a result, Bitcoin's price may fluctuate unexpectedly and dramatically, sometimes in a short time.

A good example of the volatility of Bitcoin would be that it was $29,000 at the start of 2021, reaching $41,000 on January 9, and then settled at about $35,000 by January 13. Bitcoin's price is determined by its demand, supply, market news, and events.

Transparency

Due to its underlying distributed ledger technology (blockchain), Bitcoin is one of the earth's most transparent payment methods. Whenever a Bitcoin is bought and sold, it is immediately entered into the blockchain for everyone to see.

Widely accepted

You could use Bitcoin to purchase goods and services similar to your fiat currency. Ultimately, several major corporations accept it as a legitimate form of payment.

Bitcoin Price Forecast 2023

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.

Data from 2021 shows that Bitcoin doubled in value and hit another all-time high of more than $ 66,000. Despite its volatility, Bitcoin remains one of the most popular cryptocurrencies. In several projections, this cryptocurrency will continue to increase in the next years.

According to forecasts, its value will increase by 100% by 2023. Based on expert opinions, this cryptocurrency is expected to exceed the value of $100.000.00. In 2023, bitcoin will be a dominant asset class since it outperforms more traditional investments. The stock market is experiencing a consolidation period. Also, a growing number of big companies are investing in Bitcoin or accepting it as a form of payment, such as Paypal, among others.

Is Bitcoin a Good Investment?

Historically, Bitcoin has been considered a reasonable investment based on its characteristics mentioned above. In addition, due to blockchain technology, it is impossible to duplicate transactions or make fake bitcoins.

Review some of the following factors to define your decision to invest in Bitcoin instead of another cryptocurrency.

Transactions are fast, safe, and available 24/7

Bitcoin does not have centralized management so you can trade Bitcoin at any convenient time. In addition, transactions are fast and 100% secure, so users are not at risk when they pay with Bitcoin. This is because it is a very safe asset to invest in.

Liquidity

One of the most liquid investments is Bitcoin. As a result, your prices will be better and transactions faster. In addition, traders and platforms deal in Bitcoin and enable it to be converted into other cryptocurrencies or traditional currencies such as the dollar or euro.

Deflationary

Bitcoin's value is continuously increasing. As a result, companies do not have to circulate unsold coins to the market, and you can maximize your profit.

Bitcoin vs. Other Investments

Even though Bitcoin has a lot of support and growth on the market, it is not the only cryptocurrency today. Currently, there are over 8000 cryptocurrencies, but not all of them are good investments for you.

If you want to invest in other cryptocurrencies in South Africa, you might consider those with a good forecast for the future like Ethereum, Tether, BNB, among others. That is why you need to research the market before considering other options.

Additionally, you can invest in other options to earn profits like ETFs, CFDs, Funds, futures, and even stocks. With time and experience, you can diversify your portfolio with the best investment strategy

How to Invest in Bitcoin in South Africa - Pros & Cons

There might be queries or questions about Bitcoin. For example, people are unsure whether to purchase it in South Africa. Still, in today's market, there are many brokers, exchanges, and platforms that may help you earn money online so that you can invest in Bitcoin very quickly and easily.

Now you may be wondering how to go about this process, and that's why we recommend Capital.com for investors interested in Bitcoin (BTC) like you.

• Become a member of Capital.com by clicking the "Trade Now" button and providing the required documentation while you create your account.
• Select your preferred payment option, among which you can find credit cards, debit cards, and bank transfers in South Africa, in addition, to other third-party channels.
• To locate Bitcoin (BTC), search Capital.com dashboard and select it from the search bar.
• Depending on your forecast of future prices, execute the order by pressing the graphic or the button to buy or sell Bitcoins. It is also possible to set up your order automatically.

How to Store your Bitcoin in a Secure Wallet?

Bitcoin wallets work like physical wallets on the Bitcoin network. However, wallets contain your private keys, used when spending bitcoins allocated to them in the blockchain. It shows you the total amount of bitcoins it owns and allows you to send a specific amount to anyone.

Our money needs to be protected by security measures. Therefore, our recommendation for bitcoin wallets is to use safe and reliable platforms listed below.

Coinbase Wallet

The Coinbase wallet is secure and follows best practices for safeguarding digital money. In addition, it has more than 4000 assets, and many DApps are supported.

It is convenient and easy to use with the safest utility, making it one of the best cryptocurrency wallets.

This wallet is well-tested and provides great support. It also can be used by digital currency experts as well as beginners. Although the wallet supports a limited number of digital currencies, You can also use it with fiat currencies. You can install it on both iOS and Android.

Binance Exchange Wallet

There are 53 blockchains and over 1 million assets supported by the Binance Trust Wallet. In addition, it has developed a decentralized application search engine that lets you find the best DApps on the Internet without leaving the platform.

Binance Trust Wallet lets you stake your digital assets and offer you great interest rates on an annual basis.

Luno Wallet

This wallet is used mainly in emerging markets and can be converted into local currencies through its network. Also, it provides two-factor authentication.

It is one of the easiest and most navigable cryptocurrency wallets because it is designed intuitively.

Compare South African Bitcoin Exchanges

Is Bitcoin Mining a Better Investment?

Bitcoin Mining consists of making computers do mathematical calculations for the Bitcoin network to confirm transactions and increase the integrity and security of buyers or sellers. It is a different way of investing in Bitcoin and earning money.

Even though there are companies that perform this process like AntPool, Discusfish/F2pool, or BitFury, it can also be done by individuals, or you can also join a 'pool', which is a group of miners, so you will be able to collect transaction fees for transactions they confirm called rewards.

It's not as simple as it seems when it comes to mining; Bitcoin miners are now required to use special tools due to the excessive congestion on the blockchain. As a result, you will have to invest in expensive equipment and applications and use a great deal of electricity.

Bitcoins are best earned through investing in them. You can start with however much money you have since they are less expensive and laborious than mining, and you do not have to invest a lot of money in equipment.

Is Bitcoin Staking a Better Investment?

The process of stacking involves locking up cryptocurrencies to earn rewards and interest. As a result of staking, you can earn some additional tokens and voting rights. By participating in a blockchain's operation, staking is similar to mining, but it only requires cryptocurrency capital instead of mining hardware;

you can use a cryptocurrency wallet or cryptocurrency exchange to stake your coins

You cannot earn money by staking Bitcoin due to its PoW consensus model. You need a Cryptocurrency with a PoS model to realize this process.

Taxes and Regulations Regarding Bitcoin in South Africa

The South African government is increasing crypto regulation; cryptocurrencies such as Bitcoin are considered "assets of an intangible nature" by the South African Revenue Service (SARS), which taxes them accordingly.

SARS considers cryptocurrency trades bartered transactions taxed as capital gains (18%). To calculate gains, subtract the fiat value of Bitcoin A at the time of purchase from the fiat value of Bitcoin B at the time of the trade, then you apply the corresponding tax. Remember that profits and losses must be declared when filing your tax returns.

This is why SARS sends out audit letters to taxpayers and contacts crypto exchanges to get information about them. It is recommended that you consult a tax expert to assist you in filing your taxes with SARS so that there are no unforeseen consequences. Experts will help you estimate your Bitcoin asset profit or loss for the tax year and support your disclosures to SARS.

Conclusion

As the pioneer of cryptocurrency, Bitcoin is backed by its reliability and trajectory and has great project growth rates in the next few years. Therefore, investors who want to generate profit by buying bitcoin in South Africa can do it; it is a fast, simple, and available option, as we mentioned in this article.

Our recommended broker Capital.com allows you to buy Bitcoin in South Africa without paying any commissions, inactivity, or withdrawal fee. So, what are you waiting for? Click on the link below and start investing in bitcoin today!

Capital.com – Best Crypto Platform to Invest in 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.

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