In the last couple of years, we have heard so many things about Bitcoin. Investors call it digital gold, an investment, a store of value, the future of our currency, the revolution of payment, and so forth. The best indicator for these attributes is the current price of Bitcoin, a whopping $50,000. No wonder why people are rushing to buy bitcoin in South Africa.
Buying bitcoin for some people can be intimidating. The thought of how to go about it, where to buy it, and the fear of being scammed are some of the challenges newbies face.
You don’t have to worry about any of the aforementioned challenges. In this article, we will be digging into the several options you have to buy bitcoin in South Africa.
There are presently five major ways to exchange Rand for bitcoin. We will look at the options one after the other and review their advantages and disadvantages.
1. P2P Exchanges
The first way to buy BTC is through a P2P Exchange. It is the most common method people use to buy bitcoin. Peer-to-Peer exchanges are platforms that bridge the gap between buyers and sellers by providing a marketplace for both buyer and seller to meet and make transactions.
The most popular P2P platform for trading bitcoin in South Africa is Remitano. On Remitano, you set your price rate and the amount of bitcoin you want to buy and wait for interested sellers, while the Remitano Escrow system ensures that both parties fulfil their end of the trade. The transaction fees are usually very low for P2P and range from 0 to 1%. Remitano P2P is suitable for newbies and expert traders, thanks to the unique and friendly user interface.
- The transaction rates are usually very low.
- They are simple to use.
- They are a decentralized market, it makes use of software to connect buyers and sellers.
- It offers good liquidity, and it is a nice option to easily change your South African rand to bitcoin.
- Most require personal information and offer very little anonymity.
- Finding buyers and sellers can sometimes be stressful especially when you are buying a small amount.
2. Traditional Exchanges
The second way to buy bitcoin in South Africa is the traditional crypto exchanges. They are digital market places where people buy and sell bitcoin. Some examples of exchanges are the Binance, Huobi Global, Lykke, F-change, etc. in these platforms the price of bitcoin is fixed.
These types of exchanges are also called spot exchanges. They allow users to trade one cryptocurrency for another, buying and selling coins and exchanging fiat into crypto assets.
On spot exchanges, traders use to trade other crypto assets against BTC to profit from the volatile nature of the crypto market. Spot exchanges are more suitable for traders and may seem intimidating for newbies. Since they allow users to also buy bitcoin with fiat, the process will be intuitive. Moreover, there is nothing hard about crypto trading, a little research will teach you basic things about the craft.
a) It is easy to use.
b) Some require little information from you.
c) They allow high varieties of fiat, almost all currency is available.
a) Most are usually slow.
b) Exchanges rates are sometimes high.
3. Bitcoin ATMs
Bitcoin ATM is the third method people use to buy bitcoin. South Africa has 7 bitcoin ATMs, which is the highest in Africa. BATM is undisputedly one of the easiest and fastest ways to buy Bitcoin.
Most of the BATMs in South Africa only allow users to buy bitcoin with fiat. You can convert your Rand to BTC using these ATMs. Transaction fees on BTAMs are on the high side with an average fee of 8-14% per transaction.
Also, you can withdraw up to 5000 rands without ID verification. KYC verification will allow you to buy bitcoin worth 100 million SA rands at a go.
- Fast and time-saving.
- Easy and very efficient.
- Transaction fees are usually very high.
- They are not available everywhere.
Brokers are like our conventional retailers that buy goods in bulk and sell to people in bits or units. Bitcoin brokers buy bitcoin from exchanges in large amounts and sell to interested individuals. This method is mostly preferred by people who aren’t technology savvy. All you do is pay an agreed amount and give the broker your wallet address so that he can transfer the agreed bitcoin to you.
- The transaction is mostly physical.
- Highly efficient.
- Brokers set the price and rate.
- There’s a high tendency of falling into the hands of scammers.
5. Debit/Credit Cards
The card is the last we will be looking at. It is a widely used way to buy bitcoin. It is available across all countries and regions of the world.
The cards used in this method include debit cards, credit cards, vouchers, and gift cards, etc. They are very fast and hassle-free. Platforms like Binance, Remitano, Huobi, and so many exchanges integrate cards to their platforms. However, without using any other platforms, you can’t buy BTC directly into your wallet with those cards.
- Requires no stress.
- Accessible to everyone.
- It is available on many platforms
- High transaction rates.
The adoption of bitcoin is increasing and accessibility to cryptocurrency is on the rise. It is now easier to buy bitcoin, own it, and sell it in South Africa than it was 5 years back. These are the ways you can buy bitcoin presently. You have to select your choice based on safety, ease of use, and transaction fees.
However, make sure you conduct extensive research on any platform you plan to buy bitcoin to avoid falling for scammers.