February 25, 2024

Guide for Bitcoin Trading in South Africa

February 25, 2024


Bitcoin is a groundbreaking digital currency that has taken the world by storm. It’s also become a top choice for many South Africans looking to diversify their investment portfolios.

Let’s explore the dynamics of Bitcoin trading in South Africa and learn where you can buy this alternative investment opportunity.


About Cryptocurrencies in South Africa

Bitcoin is often referred to as the flagship cryptocurrency among other crypto coins, as it’s the world’s first cryptocurrency. In addition, Bitcoin typically is the first digital currency most new investors will buy when starting their investment journey in cryptocurrencies. Once these newbie investors are comfortable in their trading abilities, they venture on to other crypto assets.

In South Africa, there are several cryptocurrencies available, including Ethereum, Ripple, and Litecoin. Each coin boasts its own unique features, offering investors various cryptocurrency trading options to diversify their portfolios and capitalise on market opportunities.

Bitcoin trading in South Africa has grown exponentially over the years, including other crypto assets. Recent data from the Financial Sector Conduct Authority (FSCA) shows that 5.8 million people in South Africa own cryptocurrency assets. This results in nearly 10% of the South African population that owns digital currency. The FSCA also expects 43% of the South African population to own crypto by 2030!

Cryptocurrency Exchanges

A cryptocurrency exchange is similar to the stock exchange, in that it’s used to facilitate the buying and selling of various digital currencies like Ethereum, Bitcoin, etc. An example of a cryptocurrency exchange is CMTrading, which functions as a digital marketplace on your Bitcoin trading South Africa app or desktop PC.

The FSCA and the South African Reserve Bank (SARB) regulate the crypto market in South Africa. This protects investors and ensures cryptocurrency exchanges adhere to compliance standards. To determine if a South African exchange is legit, look for the FSP number on their website.

So before you begin Bitcoin trading in South Africa, ensure the exchange is registered with the FSCA.

A good cryptocurrency exchange will also have a wide range of educational tools available for its users. These can include educational guides, industry and market-related news, webinars, demo trading accounts, trading tips, etc.

Cryptocurrency Exchanges

Crypto Assets

Bitcoin is not the only crypto asset in South Africa. There are several other crypto assets available for trading, such as:

  • Litecoin
  • Ethereum
  • USDC
  • Bitcoin Cash
  • Avalanche,
  • Solana

By investing in various crypto assets, you can diversify your portfolio and mitigate risk. This is especially true if you invest in other asset classes, such as stocks, bonds, and commodities.

Cryptocurrency Trading Options

Several cryptocurrency trading options are available in South Africa, such as spot trading and derivatives trading.

Spot trading is when you buy and sell Bitcoin at the going rate on the market. The main goal of spot trading is to make an instant profit from a transaction. So when you make a trade, your transaction is finalized “on the spot.” Trading in this way means the payment and delivery of the Bitcoin happens simultaneously.

Derivatives trading takes place on platforms like CMTrading that offer leverage and futures contracts. By using this trading option, you can profit from small price movements. Derivatives trading is more complex and takes skill, so practise on a demo account before you trade live.

Another cryptocurrency trading option is margin trading. Margin trading is when traders can maximise their profits on a volatile market by leveraging their positions.

The South African crypto market offers traders a plethora of opportunities, so do your research and choose the best trading option for you.

Protecting Your Crypto with Bitcoin Wallets

Before you begin buying and selling Bitcoin, it’s essential to have a Bitcoin wallet. A Bitcoin wallet is a digital wallet where you can store, buy, and sell Bitcoins. In addition, Bitcoin wallets are highly secure and encrypted, which only you can access.

These cryptocurrency wallets are similar to a wallet in your back pocket that holds your cards and physical cash. The only difference is that a Bitcoin wallet is digital, securing your digital currency.

There are various types of cryptocurrency wallets for you to choose from:

  • Hardware Wallets: These are used to store private keys offline. Access your Bitcoin by connecting your hardware wallet to a device.
  • Desktop Wallets: Desktop wallets function as your address for sending and receiving Bitcoins. You can also store a private key with a desktop wallet.
  • Mobile Wallets: A mobile wallet is a Bitcoin trading South Africa app where you can access your Bitcoin on your mobile device. You can also access your funds anywhere in the world using a mobile wallet.
  • Online Wallets: Online wallets can be accessed anywhere as they are online. When choosing an online wallet, ensure you do so with caution as your private keys get stored online.
  • Paper Wallets: Your Bitcoin is stored offline with a paper wallet. Your public and private keys are stored on this physical piece of paper, typically through QR codes.

Transactions are fast and secure using Bitcoin wallets, making investing a simple process. However, ensure you keep your Bitcoin wallet secure by following these easy steps:

  • Use a strong password: Choosing a strong password that has a combination of letters, numbers, and symbols will make it harder for hackers to try and access your Bitcoin wallet.
  • Two-factor authentication: This is an extra layer of defence to protect your account. All you will need is a mobile number or email address to link to your account.
  • Avoid public WIFI: Public WIFI exposes your data to various threats due to a lack of encryption. You can protect your Bitcoin wallet by using a VPN when using public networks.
  • Update software: Ensure all software and operating systems are up-to-date on your mobile device or desktop computers. This ensures you have the latest security features and bug fixes to reduce any type of exposed risk.

Where to Buy Bitcoin in South Africa

Where to buy Bitcoin in South Africa is not as difficult as it may seem. There are several cryptocurrency exchanges that allow traders to buy and sell the digital currency. CMTrading is one of the trustworthy exchanges that have Bitcoin, Litecoin, and Ethereum available for purchase and for Bitcoin trading South Africa withdrawals.

In addition, you will have access to 24/7 trading if you open a MetaTrader account through CMTrading!

Buying Bitcoin is a simple and quick process:

  • Create a new account on CMTrading.
  • Use your debit card for Bitcoin in South Africa to deposit funds into your Bitcoin wallet or trading account.
  • Choose Bitcoin to purchase the digital currency.
  • Complete the transaction by choosing the amount you want to spend in ZAR, purchase the Bitcoin, and finalise the transaction.

Once you have created your new account and bought Bitcoin, you must do your due diligence with trading. This includes doing enough research before each trade, keeping up to date with industry news, practising on a demo account, and avoid trading with your emotions. By including these practices into each transaction, you will ensure you make informed decisions and prevent unnecessary losses.

Which Banks Works with Bitcoin in South Africa

Although Bitcoin is a decentralised currency, they can be traded in South Africa. There are three banks in South Africa that work with Bitcoin currently. These banks each provide their own transaction policies and procedures.

The following banks works with Bitcoin in South Africa:

  • Standard Bank: partnered with Binance to offer over 350 cryptocurrencies
  • First National Bank (FNB): partnered with Binance to offer over 350 cryptocurrencies
  • Capitec Bank: partnered with Bybit to offer over 400 cryptocurrencies

Use of Debit Card for Bitcoin South Africa

While not all banks work with Bitcoin, you can still use your debit card from other banks to purchase Bitcoin and other cryptocurrencies from these three banks. However, it’s best to use debit cards that are issued through major banks, or through international payment systems like Skrill.

Be prepared to pay transaction fees each time you use your debit card for Bitcoin in South Africa. Transactions that may incur fees include buying and selling Bitcoin. There may also be a minimum and maximum buy limit on your debit card per transaction.

Ensure you read through the trading platform’s terms and conditions and fee schedule to understand what costs may incur on your bank account.

Bitcoin Trading South Africa Withdrawal

In addition to buying Bitcoin, you can also withdraw your Bitcoin funds in South Africa. Typically, you will need to select the withdrawal option on your trading account, choose which bank account you would like to withdraw the funds into, and confirm the transaction. The trading platform will instantly convert your Bitcoin into ZAR and transfer the funds to your bank account.

You must remember that normal tax rules apply to your crypto asset profits and losses. These need to be declared each year as part of your taxable income.

Start Your Bitcoin Trading in South Africa Today!

Now that you know where to buy Bitcoin in South Africa, you can begin your investment journey and profit from successful trades! Remember that these transactions, including Bitcoin trading South Africa withdrawals, can be executed on your Bitcoin trading South Africa app or desktop computer.

Sign up for your Bitcoin trading account here.



Guide for Bitcoin Trading in South Africa

Malise Holder

Malise Holder is a writer whose primary focus is finance and the wonderful world of business. Malise has over 15 years of experience in the finance industry and has been writing and researching about finance for over four years. A resident of Johannesburg, South Africa, Malise enjoys traveling the world, an early morning cup o’ Joe, and catching up on the latest news.

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Trading involves a significant risk of loss and is not suitable for all investors. It’s important to understand the risks and seek advice from an independent financial advisor if necessary.

The information provided here does not constitute investment advice.



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