How to buy Bitcoin in South Africa (Legally) ☑️ Step by Step Guide (2024)

You can buy and sell Bitcoin in South Africa through a reputable Bitcoin exchange. Access the exchanges via your personal computer or Smartphone using the relevant mobile app.

Follow our step-by-step guide on how to buy Bitcoin legally in South Africa (Updated 2023) Once you have signed up for an account and it is verified, you need to obtain a Bitcoin wallet that you use for your Bitcoin transactions.

👉Open a FREE Luno Bitcoin account here >>>> Click Here

A Quick Overview of How To Buy Bitcoin:

✔️Is it legal to buy and sell Bitcoin in SA?
✔️6 Ways to Buy Bitcoin in SA
✔️Bitcoin exchanges in SA
A step-by-stepguide to buying Bitcoin in SA?
How to get a Bitcoin promo code
How to get a Bitcoin Wallet Address
Bitcoin in SA
Is Bitcoin legal in SA?
Regulations Governing Bitcoin in SA

It’s possible to transfer funds from any of the major financial institutions in South Africa to a Bitcoin exchange and you can start trading as soon as the funds are cleared. You have the choice of keeping your bitcoins in the exchange or transferring them to your personal Bitcoin wallet.

Is it legal to buy and sell Bitcoin in South Africa?

Yes, it is legal to buy and sell Bitcoin in South Africa. The South African Reserve Bank (SARB) has issued warnings regarding the risks associated with trading in Bitcoin but there is no actual ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation.

Cryptocurrency trading in South Africa is currently unregulated but the government is working on a new regulatory framework to control the cyber-banking industry.

6 Ways to buy Bitcoin in South Africa

Buy Bitcoin using a Bitcoin exchange

Do your research and select a Bitcoin exchange that is regarded as reliable, secure, and trustworthy. Bitcoin exchanges such as Luno allow you to deposit fiat funds from a bank account into a Bitcoin wallet to transact in the digital currency. Bitcoin exchanges are regarded as the safest and most secure way to buy and sell Bitcoin and other cryptocurrencies such as Ethereum. There are 3 notable exchanges in South Africa: Luno, Varl and Altcointrader.

Buy Bitcoin with a credit or debit card

It’s possible now to buy Bitcoin using a credit or debit card. You still need to go through a reputable Bitcoin exchange such as Luno where you add your card details to the system and transfer money electronically once the card details have been verified. Credit card fees apply which makes it a slightly more expensive way to buy Bitcoin.

Use a BTM/VTM (Bitcoin ATM)

There are not many BTMs in South Africa currently but they are available in some of the major cities. This is a vending machine that works in much the same way as an ATM. You need to have a Bitcoin wallet loaded on your Smartphone which generates a QR code that the BTM reads. You can use a BTM to deposit funds to purchase Bitcoin but you can’t use a BTM to withdraw the money earned from selling Bitcoin.

Get paid in Bitcoin

Bitcoin is growing in popularity as a payment method for goods sold and services rendered. Money owed is paid into a Bitcoin wallet which you obtain through a reputable exchange such as Luno. The most popular payment gateway provider for Bitcoin transactions is PayFast. This facility allows people to pay in Bitcoin which is then converted to Rands.

Join a Bitcoin trading community site

There are a few reputable cryptocurrency platforms that provide you with the opportunity to connect with people who are buying and selling Bitcoin privately. You can trade through a reputable website or meet in person and pay cash for the purchase. Be careful of falling victim to a Bitcoin scam.

Mine Bitcoin

Many South Africans have got into the complex process of mining Bitcoin. This is largely done through Bitcoin syndicates as massive investment in the processing technology is required for Bitcoin mining. Bitcoin mining involves securing the network and verifying transactions and successful miners are paid in Bitcoin. It’s not hugely profitable but if you’re technologically inclined, you’ll find the process fascinating.

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Bitcoin exchanges in South Africa

The two oldest exchanges in South Africa that have stood the test of time and can be trusted with Bitcoin transactions are Luno and ice3X (IceCube). Both exchanges accept deposits from your bank account or card payments. Once the funds are cleared, you can immediately buy or sell Bitcoin through the exchange.

Bitcoin is slowly being accepted by vendors as a method of payment but it’s a long way off from being used for daily transactions. Any customer who is registered with PayFast (payfast.co.za) can accept Bitcoin through the PayFast gateway for a fee and South African Rands are deposited into a bank account.

There are less than 10 Bitcoin ATMs in South Africa but the number is growing. These cash machines have been dubbed BTMS (Bitcoin Teller Machine) or VTMS (Virtual Teller Machine). At this stage, you can use a BTM to deposit funds in your digital account but you can use it to withdraw funds. BTM fees are high, at around 10% per transaction.

Luno regularly updates its list of merchants in South Africa that accept Bitcoin as a method of payment. You can see from the diverse spread of merchants that Bitcoin is becoming more widely accepted in South Africa for regular transactions.

Takealot.com was an early adopter of Bitcoin and allows its customers to use digital currency to buy products on the massive online shopping site. This is done through PayFast which is the instant EFT payment method that Takealot uses. Other large online shopping sites have followed in its lead.

A step-by-step guide to buying Bitcoin in South Africa

Luno is one of the most popular and trustworthy Bitcoin exchanges in South Africa so let’s look at their process as an example of how to set up an account and start trading in Bitcoin.

Luno is a digital platform where you can buy, sell, store and trade Bitcoin and Ethereum. Through Luno, you can buy Bitcoin using fiat money electronically transferred from your bank account and you can sell your Bitcoin and transfer the money directly to your bank account.

Step 1: Sign up for an account with Luno

Sign up for a free Luno Wallet via the web, iOS, or Android, and follow easy instructions to register, set up your profile and redeem the promo code.

You sign up by using your personal/business email address and password. Input the latter and then go to your email inbox to pick up a confirmation email sent to you by Luno.

Select ‘Confirm email address. You are then taken back to the Luno website.

Select ‘Continue’. You are now registered for a Luno account.

Step 2: Verify your account

Select ‘Settings’ in the menu bar

Select ‘Upgrade’ to link to the Personal details page

Complete the steps by adding your details. This involves submitting digital copies of your ID, proof of residence and bank statement.

When your personal details have been verified by Luno, your account will be upgraded from Level 0 to Level 1, 2 or 3 depending on the deposit and withdrawal level you specify.

• Level 0: your account and personal details have not yet been verified
• Level 1: your account is verified and limited to a total of R15 000 for deposits and withdrawals
• Level 2: your account is verified and limited to R50 000 for deposits and withdrawals
• Level 3: your account is verified and no limit is set for deposits and withdrawals

Step 3: Deposit money into your account

When your account has been verified, you are able to immediately deposit money into the account and buy Bitcoin. When your deposit has cleared in your Luno account, it will show up in the digital wallet.

Select ‘Wallets’ to make a deposit.

Select ‘Deposits’ at the bottom of the wallet link.

Select your preferred bank from the list of main banks in South Africa listed on the site.

Select ‘Next’ to instruct Luno on how much money you will deposit into your account.

A reference number will appear on the screen. You need this reference number as well as the Luno banking details to proceed with making a deposit. Use the Luno banking account and reference number (beneficiary reference) to do an electronic transfer from your regular bank account to your Luno bank account.

The funds you transfer will appear in your Bitcoin wallet once they have been cleared. This usually takes 2 working days. Once the funds appear in your Bitcoin wallet, you can buy Bitcoin.

Step 4: Buy Bitcoin with ‘Instant Buy’

The ‘Instant Buy’ feature on Luno is the fastest and easiest way to buy Bitcoin in South Africa. However, there is a fee for this facility so it does cost you more. A cheaper option is to place a ‘Buy order’ through Luno.

Select the ‘Buy/Sell” button on the Luno screen. You are able to switch between Bitcoin (BTC) and Rand to transact. Use BTC to indicate the amount you want to buy, and ZAR to indicate the amount you want to spend.

Select ‘Buy’ to complete the order.

Step 5: Place a ‘Buy Order’ on the exchange to buy Bitcoin

Select ‘Exchange’ to go through to the ‘Buy Order’ feature.

Select ‘Place Order’ to activate a ‘Buy Order’ request where your order to buy will be matched by a person’s order to sell.

Any outstanding amount that is not matched in a ‘buy/sell order will remain in your account and is available to be matched with other ‘buy/sell orders’ until the whole amount has been spent.

Select ‘Place Buy Order’ when you are ready to buy the Bitcoin. When you have confirmed the transaction, your Bitcoin and ZAR balance will be updated. The BTC indicates how much Bitcoin you have purchased and ZAR indicates how much you spent.

How to get a Bitcoin Promo Code

Sign into your Luno account and select ‘Rewards’. – click here

A personal invitation code will appear as well as an instruction to ‘Invite Friends’.

Select ‘Invite Friends’ and the social media platform you’d like to share the invitation on (either Facebook or Twitter).

You can also copy the unique ‘Invite Friends’ link and share it via email, on your personal website or WhatsApp.

If the friend(s) you sent the link to registers an account with Luno, you are rewarded in Bitcoins.

How to get a Bitcoin wallet address

You can generate as many Bitcoin wallet addresses on Luno as you want. Follow these simple steps to obtain a Bitcoin wallet which you need to buy, sell, store and transact the digital currency.

Step 1:

Log into your Luno account

Step 2:

Click on ‘Receive’ if you are accessing Luno from the website

Click on ‘More’ if you are using the Luno mobile app before you can click on ‘Receive’

Step 3:

Select the digital currency you want (Bitcoin or Ethereum)

Step 4

Click on ‘Add address’ if you are accessing Luno from the website

Click on the ‘+’ sign if you are using the Luno mobile app

You will be instructed to label the address you require. Input a relevant name.

Step 5

Click on ‘Create’ and a BTC address will be generated for you by Luno.

A BTC address is a string of 26-35 letters and numbers that identifies your Bitcoin wallet. It begins with either a 1 or a 3 and is case-sensitive. This is the address you provide people who transact using Bitcoin.

Bitcoin in South Africa

South Africa has adopted Bitcoin as an alternative currency on an impressive scale. It’s believed to be largely due to the political and economic uncertainty in the country, where South Africans are looking for an alternative investment option to protect themselves. In particular, one that is not heavily regulated and can be transacted instantaneously.

In fact, Africa as a whole has taken a big interest in Bitcoin as well as other popular cryptocurrencies such as Ethereum and Litecoin. Nigeria and South Africa are ranked as first and second-most heaviest consumers of Bitcoin respectively. A study conducted by Luno revealed that South Africa leads many European countries in crypto adoption.

According to Luno’s study, close to 70% of the South African respondents surveyed were aware of the digital currency trend and almost 30% had bought Bitcoin. This dwarfed awareness and purchase levels in other countries surveyed, such as Germany (49% and 9% respectively) and France (37% and 19% respectively).

Is Bitcoin legal in South Africa?

Buying and selling cryptocurrency in South Africa is legal but it is currently not regulated.

The South African Reserve Bank (SARB) has issued a formal statement that it “does not oversee, supervise or regulate the virtual currency landscape, systems and intermediaries for effectiveness, soundness, integrity or robustness” and has issued a warning highlighting the risks associated with investing in virtual currencies such as Bitcoin and Ethereum.

SARB notes that Bitcoin falls outside of the definition of legal tender and any payments made via Bitcoin in South Africa “may not discharge a debtor of a monetary obligation and purchasers run the risk that their Bitcoin payments are not recognized by South African law”. In short, SARB deems transactions performed to be “at the end-user’s sole and independent risk and have no recourse to SARB”.

SARB further notes that Bitcoin and all other virtual currencies are “not defined as securities in terms of the Financial Markets Act, 2012 (Act no. 19 of 2012) and are not subject to regulatory standards that apply to the trading of securities”.

SARB also issues a warning that any profits made through Bitcoin transactions are subject to taxation.

Regulations governing Bitcoin in South Africa

As of end 2019, strict regulatory laws governing cryptocurrency trading in South Africa were largely non-existent. This stands apart from tax regulations and AML/KYC compliance (AML meaning Anti-Money Laundering and KYC meaning Know Your Customer).

A consultation paper has been drafted by SARB that promises to enforce hefty regulations surrounding Bitcoin exchanges and BTM/VTMs but the country appears to still be a long way from nailing down the specifics. It’s argued that a new regulatory framework will need to be developed as virtual currencies do not fit in with the current regulatory framework.

How to Buy Bitcoin in South Africa – revealed.

We have listed, rated, and reviewed the Best Ways to Buy Bitcoin in South Africa. We showcase which notable exchanges offer Bitcoin in South Africa.

This is a complete listing of The Best Ways to Buy Bitcoin in South Africa.
In this in-depth write-up you will learn:

• How to make money with Bitcoin in South Africa.
• How much is bitcoin worth in South Africa.
• The Best App to Buy Bitcoin in South Africa.
• How to Buy Bitcoin with a Debit Card in South Africa.
• How to Buy Bitcoin with a Credit Card in South Africa.
• The minimum bitcoin investment in South Africa.

and much, much more!

9 Best Crypto Exchanges in South Africa for 2023 – A Comparison

Cryptocurrency – A Definition

A cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network.

9 Best Crypto Exchanges in South Africa (2023)

1. Cerus Markets – Overall, Best Crypto Exchange in South Africa
2. eToro – Overall, the Lowest fees
3. Crypto.com – Leading Crypto Exchange with Low Trading Fees
4. Capital.com – Best Crypto Trading Platform with Leverage
5. Binance – Low Commission Crypto Exchange
6. Coinbase – Leading Crypto Exchange for Beginners
7. Kraken – Bitcoin Exchange With Margin Accounts
8. Luno – Popular Crypto Exchange App
9. VALR – Domestic Exchange to Buy and Sell Crypto

The Legality of Buying Bitcoin in South Africa – Revealed.

Bitcoin is 100% legal in South Africa and all South Africans are at liberty to buy or trade Bitcoin. The Financial Sector Conduct Authority defined crypto assets as “a digital representation of value”. Crypto can be traded, transferred, or stored electronically for purposes of payment, investment, or other forms of utility.

How to Buy Bitcoin in South Africa – A Step-by-Step Guide

To buy Bitcoin all the interested party will need is a smartphone or computer, a stable internet connection, photo identification, and a way to pay.

1. Step 1: Compare Crypto Exchanges in South Africa

The easiest way to buy Bitcoin is from a cryptocurrency exchange as those mentioned in this article. Compare exchanges in order to find a platform with the features best suited like low fees, ease of use, or 24-hour customer support.

2. Step 2: Create an Account with a Crypto Exchange

In order to create an account on an exchange, the user will need to verify their email address and identity.

3. Step 3: Make a Deposit

Once verified, the user can deposit ZAR using the payment method of their choosing – Cryptocurrency, Simplex, Banxa, and XanPool payments are widely accepted.

4. Step 4: Buy Bitcoin

The user can now exchange their funds for Bitcoin. This can be as simple as entering the ZAR or BTC amount they would like to purchase and click “buy”.

Bitcoin Exchanges in South Africa

Choosing the best crypto exchange in South Africa should be done by primarily focusing on the reputation of the platform for security, regulation, and positive user feedback. Our recommended trading platform for crypto with low spreads is XM.com

Cerus Markets

Cerus Markets is a cryptocurrency trading platform that allows users to trade a wide range of digital assets, including Bitcoin, Ethereum, Ripple, Litecoin, and many others. The platform provides a user-friendly interface, low fees, and a variety of trading tools and features.

The platform also offers leverage trading, which allows users to open larger positions than their account balance would normally allow.

Cerus Markets claims to have a strong focus on security, using various measures such as two-factor authentication, SSL encryption, and cold storage for funds. Additionally, the platform is regulated by the Estonian Financial Intelligence Unit (FIU), which adds an additional layer of oversight and protection for users.

Overall, Cerus Markets is a relatively new player in the cryptocurrency trading space, but it has gained a reputation for offering a reliable and secure platform for users to trade digital assets.

eToro

eToro is one of the most widely-used and recognized trading platforms in the world. eToro users can trade more than 70 digital currencies, including a selection of leading altcoins and DeFi tokens.

Crypto.com

Crypto.com is another of the best crypto exchanges in South Africa with a low-fee policy and diversified asset library.

Capital.com

Capital.com is of the best crypto exchanges in South Africa and it allows users to speculate on the future value of over 470+ digital currency pairs without owning the underlying token.

Binance

Binance is home to over 600 cryptocurrencies and 1,000+ trading markets. Binance offers a variety of savings accounts, terms, and yields.

Coinbase

Coinbase is one of the best South African crypto exchanges for Beginners. The fastest payment option to use at Coinbase is a debit or credit card – which will be processed instantly.

Kraken

Kraken offers digital asset trading services and allows users to buy Bitcoin and other cryptocurrencies on a margin of up to 1:5.

Luno

Luno offers an entry-level crypto exchange platform and app that is ideal for first-time investors.

VALR

VALR has a physical presence in South Africa and offers access to over 60 digital currencies – which is inclusive of Bitcoin, Ethereum, XRP, and Solana.

How to Choose the Best Cryptocurrency Exchange

When looking for the Best Cryptocurrency Exchange in South Africa a number of core factors should be considered. Important factors to consider include:

• Safety and Reputation
• Selection of Tradable Cryptos
• Sign-Up Offers
• Fees
• Tools and Features
• Wallet
• Payment Methods
• Customer Service

Conclusion

👉 Now it is your turn to participate:

➡️ Which Crypto Currency Exchange from this list do you intend to test out?

➡️ What was the determining factor in your decision to engage with a certain broker?

➡️ Was it because of the option to buy bitcoin on offer or the Pros and Cons?

👉 Regardless, please share your thoughts in the comments below.

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Frequently Asked Questions

How do I get a bitcoin promo code in South Africa?

The most basic way to receive a bitcoin promo code in South Africa is to visit the registered Crypto Exchanges.

How do I get a bitcoin wallet in South Africa?

Registered Crypto Exchanges in South Africa will make bitcoin wallets available to their account holders.

What is the best App to buy Bitcoin for beginners in South Africa?

Luno offers the best App to buy Bitcoin for beginners in South Africa.

How do I buy cryptocurrency with a debit card?

Research the debit card to determine if it allows crypto purchases and what fees will be charged. Find an exchange that allows crypto purchases with a debit card and fund the crypto account by inputting the debit card information and linking the card to the exchange account.

Frequently Asked Questions

Can I buy less than 1 Bitcoin in South Africa?

Yes, a common misconception among South Africans is that you cannot buy less than 1BTC. You can buy as little as as $30 / R 446 ZAR Bitcoin and you will still be regarded as a Bitcoin owner.

Should I buy Bitcoin?

Bitcoin is a risky and volatile asset; however many investors in South Africa take the risk of buying Bitcoin because of the potential high returns based on Bitcoin’s historical outperformance to the S&P.

What are the Bitcoin wallets mostly used by South Africans?

A large percentage of South Africans (about 75%) prefer to maintain their coins on the exchange where they originally bought it. Top Bitcoin wallets favored by South Africans are: Exocus, Trezor One and Exocus.

Where can I find a Bitcoin ATM in South Africa?

Bitcoin ATMS in South Africa can be located in Pretoria, Johannesburg, Cape Town and Nelspruit

How much money should I invest in Bitcoin?

Many Bitcoin investors in South Africa consider around 5% – 30% of their investment capital to be safe, while there are others that are comfortable with an investment of between 15% – 30%

Is Bitcoin a good investment for beginners?

If you are looking for short-term profit, the high liquidity that is associated with Bitcoin makes it a good investment, but bear in mind that Bitcoin is also a very high-risk investment because of its volatile assets.