How to Buy Bitcoin in South Africa - Beginner's Guide (2024)

How to Buy Bitcoin in South Africa - Quick Guide

Can’t wait to buy Bitcoin? Do so now using the steps below.

Choose a platform

The platform you pick should work specifically in South Africa. We recommend Binance, but you can use anyone on our list as they are all regulated and licensed to operate in the country.

Create, pass KYC, and fund your account

Create a new account by inputting your email, name, contact information, and other details in the sign-up form. After creating an account, pass KYC by providing personal details, a verifiable ID, and proof of address documents. Next, fund your account using a suitable method available. Virtually all exchanges support credit cards.

Buy Bitcoin

Navigate to your account’s explore or discover page and search for Bitcoin. Depending on the platform, you may see tickers like BTC/ZAR or BTC-USDT. Purchase Bitcoin by swapping or trading on the trading terminal.

Where to Buy Bitcoin in South Africa?

1. Binance – Best Overall Option

Binance is a global crypto exchange with 180 million users worldwide, 700+ listed cryptos, an NFT marketplace, support for multiple payment methods, cheap transaction fees, and a peer-to-peer payment marketplace. As such, it is easily our first choice for buying Bitcoin in South Africa.

We like the exchange because its size allows it to keep trading fees low. Binance charges one of the lowest trading fees at 0.10% per trade on the spot market. If you use the direct convert option, you don’t pay any fees and get a guaranteed market lock-in price at the execution point.

Holding any amount of BNB, the exchange’s native crypto, on your account balance can reduce your trading fees by up to 25%.

While this guide focuses on Bitcoin, you can buy at least 599 other cryptos, participate in launchpools to get new cryptos on the ground floor, and even trade crypto futures using leverage.

To begin using Binance, create an account, pass KYC by submitting a valid government ID and proof of address document like a utility bill, and deposit funds. Binance supports ZAR deposits using credit cards and bank transfers; you can link your bank and buy Bitcoin with a bank account.

Transfer fees include a 1.40% online banking charge for deposits and a 20 ZAR withdrawal fee.

Alternatively, you can use Binance’s global peer-to-peer (p2p) marketplace, which supports over 100 payment methods and connects users in various countries. Using the p2p market, you can buy Bitcoin with PayPal, Skrill, Neteller, and other payment methods.

Pros

• Low minimum trade volume of $10 (or equivalent in ZAR)
• Supports bank account transfers
• Direct convert feature is free
• Spot trading fees are low at 0.10%
• Offers fee discount opportunities
• Has a mobile app
• 24/7 live chat and email support

Cons

• Could be overwhelming for beginners

2. VALR – Largest Local Crypto Exchange

VALR is a South African-based exchange that has grown to become the largest in the region. Its 500,000 users have access to 75+ cryptos and payment methods tailored to the country.

We like VALR because it is a native South African exchange. This means that buying Bitcoin in South Africa is more accessible than many other global exchanges that maintain local footprints.

Armed with a licence as a financial services provider from the Financial Intelligence Centre, VALR allows its users to fund their accounts by transferring funds from their South African bank accounts, buy crypto using a credit card, use PayPal to buy cryptos, and use mobile solutions like Apple and Google Pay.

Credit card deposits cost 3.9% of the transaction volume, while bank transfers are free. Normal withdrawals are free for the first 30 requests per month, after which an 8.5 ZAR fee is imposed. Instant withdrawals cost 30 ZAR to all banks except Standard Bank.

Once your account is funded, you can trade on the Pro platform at 0.10% for crypto-fiat pairs (like BTCZAR) and 0.05% for crypto-crypto pairs (like BTCUSDT). For a comprehensive list of fees, visit the exchange’s charges page.

To begin trading with VALR, sign up for an account, pass KYC, and deposit funds.

Pros

• Supports local bank transfers
• Competitive trading fees
• Supports automated buys
• Has a mobile app
• Chatbot and email support
• Crypto selection is robust for a local exchange

Cons

• No free direct conversions
• No p2p marketplace

3. OKX – Best Exchange with Web3 Features

OKX is a global crypto exchange that is leading the charge for the best Web3 integrations. It is known for its Web3 wallet, which is widely integrated with various crypto applications and NFT marketplaces.

We like OKX because of its suite of exchange and trading features, low trading fees, straightforward deposit and payment methods, and earn products that allow users to generate returns on cryptos after they buy them.

You can fund your OKX account in two major ways: buy crypto with a credit card using the express method or buy crypto utilising many payment methods on the p2p market, which supports 900 local payment methods and over 100 currencies, including ZAR.

When you buy crypto, you can convert it to Bitcoin or any other crypto of your choice at prevailing market rates using the direct convert feature. This feature is free and guarantees an exchange rate at the point of conversion (i.e., it is not prone to slippage).

Alternatively, you can use the spot trading terminal to buy Bitcoin at your chosen price. For regular users, trading fees are between 0.08% to 0.10%, i.e., users with 30-day trading volumes below $100,000 or OKB balances below 100 (OKB is OKX’s native crypto).

Trading fees decrease with increased 30-day trading volume and a growing OKB balance.

To use OKX, sign up for an account, pass KYC and deposit funds. Once you’re all set up, you can swap between cryptos from a list of 350+ cryptos.

Pros

• Support for up to 30 fiat currencies, including ZAR
• 24/7 live chat and email support
• Free direct conversions
• Low transaction fees
• Has a mobile app
• Supports local payment methods via p2p marketplace

Cons

• No support for bank transfers

4. Kucoin – Largest Coin Selection

Kucoin is a global crypto behemoth with a user base of over 30 million users, availability in over 200 countries, a selection of 700+ cryptos, and a daily trade volume of $1.07 billion, indicative of the exchange’s deep liquidity.

We like Kucoin because of the suite of services it offers users worldwide, starting with its options for buying Bitcoin in South Africa. For instant buys, Kucoin supports credit cards with the ZAR. You can choose from a long list of cryptos and buy them on the spot using the express method. If you’d rather deposit ZAR in your account, you can use the bank transfer method.

Other deposit methods include a p2p marketplace that supports over 15 payment methods and third-party payment methods like Banxa and Simplex. However, note that Kucoin’s p2p market is not the deepest or broadest.

Once you fund your account, you can convert cryptos like USDT to Bitcoin using the free direct convert feature, which can convert amounts as small as $1 at the prevailing market price. Alternatively, you can use the spot trading terminal to buy Bitcoin at a desired price that is above or below (ideally below) the prevailing market price.

Trading fees on Kucoin are capped at 0.10% for spot trades for regular users or accounts with KCS balances below 1,000 (the exchange’s native crypto) and 30-day trading volumes below $3 million. Fees decline for accounts with increasing KCS balances and 30-day trading volumes above $3 million.

To start with Kucoin, sign up for an account, pass KYC, and deposit funds.

Pros

• Low trading fees
• Has a mobile app
• 24/7 live chat and email support
• Supports credit cards and bank transfer deposits
• Wide crypto selection (700+)
• Free direct conversions

Cons

• Limited p2p market

5. Bitget – Best Option for Local Mobile Money Payments

Bitget is another crypto exchange that logs impressive trading volumes, is expanding its global reach, and offers a comprehensive suite of trading and investment features for users of all levels, from beginners to veterans.

We like that the exchange supports four main methods for buying Bitcoin in South Africa. The fastest method is credit/debit cards, which allow you to buy and sell cryptos between 276 ZAR and 183,700 ZAR instantly.

The second method is the p2p exchange, which could support multiple local payment methods and is free to use. However, as of this writing, bank transfer is the only payment method listed.

The third is the quick buy method, which supports e-wallet solutions like PayPal, Skrill, and Neteller and supports purchases between 170 ZAR and 599,133 ZAR.

Finally, the third-party option relies on providers like Banxa, Simplex, and MoonPay to provide brokerage services. The merchants support mobile payment methods like Google Pay, Momo mobile money, and bank cards. The buy limits are 1,200 ZAR and 10,000 ZAR.

Once your account has been funded, you can use the convert feature to swap between cryptos instantly at prevailing market prices. Transaction limits are between 0.1 USDT and 10,000 USDT, at least for USDT to BTC conversions.

Alternatively, you can use the spot trading terminal to buy Bitcoin at more desirable prices. Spot trading fees are capped at 0.10% for users who do not hold BGB (the exchange’s native crypto) on their balances or users with 24-hour withdrawal volumes below $3 million.

To begin using Bitget, sign up for an account, pass KYC, and deposit funds.

Pros

• Low transaction fees
• 24/7 live chat and email support
• Wide crypto selection (500+)
• Has a mobile app
• Free direct conversions
• Supports e-wallets like PayPal and mobile money solutions like Momo

Cons

• No ZAR trading pairs

Buy Bitcoin in South Africa - A Step-by-Step Guide

Step 1: Create a Binance account

Navigate to the Binance website, enter your email or mobile number in the input field at the Homepage’s centre, and click Get Started. Alternatively, click Sign Up at the top right of the homepage and fill out the signup form with your email address and a password or use your Google account or Apple ID to sign up.

Step 2: Upload your ID and proof of address

Next, you must complete KYC by uploading your ID and proof of address documents. If you signed up using an email, click on the link in the confirmation email to start. The process will go smoothly if you already have the required documents.

Step 3: Fund your account

Once your account is up and running, fund it by sending cash via a bank deposit through a linked bank account, purchasing crypto directly using a credit card, or depositing crypto to a provided wallet address.

Step 4: Buy Bitcoin

You can buy Bitcoin directly with ZAR using the Buy Crypto option mentioned above. Alternatively, you can deposit ZAR to your account and use the Direct Convert feature to buy Bitcoin at prevailing market rates or the Spot trading feature to buy Bitcoin at a desired price.

What Is Bitcoin & How Does It Work?

Bitcoin is a decentralised network built on a blockchain that records transactions in an immutable way, i.e., in a way that cannot be changed. It is also the name of the cryptocurrency native to the Bitcoin blockchain.

A blockchain is a ledger of transactions maintained by several computers in various locations worldwide.

These computers are owned by different people. Each one maintains a full copy of all transactions so that if one (or even a few) goes offline, the others are not affected, and the network is unharmed. These computers are called nodes, and currently, 18,000 of them run the network.

Every 10 minutes, all computers race to solve a hard cryptographic puzzle using an iterative process, so computers with more CPU cycles (i.e., are more powerful) stand a better chance of solving it first.

When a node solves the problem, it can process all transactions made on the Bitcoin network in the last 10 minutes and is rewarded with a certain amount. Currently, the reward is 3.25 BTC.

When the node processes all transactions made within the last 10 minutes, all other nodes inspect the block of transactions, and if everything checks out, it is added to the chain of other transaction blocks that have been processed.

To ensure that the rewards given to the nodes that keep the network running are valuable, the network requires anyone who wants to use it to get Bitcoin, creating supply and demand.

Is Bitcoin Regulated in South Africa?

Bitcoin is viewed as a financial product in South Africa. As such, it is under some regulation under the Financial Sector Conduct Authority (FSCA), and crypto exchanges that wish to operate within the country must obtain a license and adhere to KYC and AML guidelines.

Bitcoin’s regulatory status also trickles down to the tax charged on crypto transactions. The South African Revenue Service (SARS) classifies cryptocurrencies as intangible assets and taxes them using a framework similar to that of physical assets.

For example, capital gains from crypto sales in South Africa are taxed at the capital gains rate of 18% minus a 40,000 ZAR exclusion. This means that the first 40,000 ZAR made from capital gains is excluded from tax, and 40% of the remaining gains are subject to the capital tax rate.

Is Bitcoin a Good Investment for People in South Africa?

Deciding whether Bitcoin is a good investment option is a personal choice; however, we can help you make the right decision by laying out the benefits and risks of buying Bitcoin in South Africa.

Profit Potential

The most compelling reason for investing in Bitcoin is its profit potential, proven over its 10+ years of existence. Thanks to its limited supply and growing acceptance, Bitcoin’s price has only grown over the long term and is projected to keep growing as more people become aware of its benefits.

Decentralisation

Bitcoin is decentralised, meaning that any singular entity, such as banks or the government, cannot control it. As such, it is censorship-resistant, which is great, especially for regions with shifting regulations.

Portable Money

Due to the Bitcoin blockchain’s global network, cryptographic encryption, and decentralisation, Bitcoin can easily be transferred across borders without needing approvals from government entities or institutions.

Users can use Bitcoin in any country or location, provided they have an internet connection.

Store of Value

Bitcoin is called digital gold because it is also being used as a store of value in the digital world, thanks to its provably scarce supply and growing demand. Investors who got into Bitcoin as recently as a year ago (2023 as of this writing) have made significant returns.

Bitcoin’s historical data shows it returns multiples of investors’ capital over the years.

Liquidity

With a daily trading volume of $30 billion, Bitcoin is the most liquid cryptocurrency. Depending on your exchange, you can easily swap it for cash, stablecoins, or other cryptos. Bitcoin’s liquidity also buttresses its viability as a store of value, as you can easily convert to cash when needed.

Risks of Buying Bitcoin

Volatility

Bitcoin is volatile and can swing relatively widely compared to other asset classes. As of writing, its price is $70,000. Three months ago, it was around $46,000, and three months before that, it was around $33,000.

Investors who use Bitcoin as a value store may have issues redeeming their value in short time frames.

Risk of Loss

Where Bitcoin is concerned, losses come in two verticals: losses due to market and technological reasons.

Depending on the market cycle, you could suffer losses from investing in Bitcoin if you sell before recouping your capital. For example, an investment in Bitcoin in November 2021 would have lost 71% of its value by June 2022, and investors would have to hold until March 2024 to recoup their capital.

While Bitcoin has a history of returning gains over the years, buying at the wrong time, like at a bull market top (November 2021), could erode your capital and keep you waiting for years to recoup it.

Technological loss includes losses due to user errors in using blockchain technology, like sending Bitcoin to the wrong wallet address or forgetting your seed phrase.

According to a study by Chainlysis, a blockchain analysis firm, around 20% of all Bitcoin are lost forever. Lost private keys and transactions involving the wrong address are typical instances of user error.

What Payment Methods Can I Use to Buy Bitcoin in South Africa?

South Africa is a developing economy with modern infrastructure and banking standards. As such, the country supports several popular payment methods worldwide, many of which can be used to buy crypto. We explore the most popular ones below.

Credit/Debit Cards

Credit/debit cards (commonly called bank cards) are the most widely accepted payment method because they are globally available and one of (if not the fastest); however, they are also the most expensive.

You can use a Visa or Mastercard card to purchase Bitcoin on all the exchanges listed in this guide; however, be aware of the fees.

For example, Binance charges between 1.8% and 2.0% for credit card transactions, while VALR, which is local, charges 3.9%.

PayPal

PayPal is one of the most popular e-wallet and payment platforms in the world. It operates in over 200 countries, including South Africa. Crypto exchanges like Binance, VALR, and Bitget support PayPal as a deposit or payment channel for direct purchases.

Some exchanges do not support PayPal directly but allow it as a payment method in their p2p marketplaces. Binance is an excellent example of this.

Neteller

Neteller is another popular e-wallet that is accepted as a payment method in 103 countries. Exchanges that accept PayPal usually accept Neteller, which, in our experience, offers friendlier policies to African countries.

Similar to PayPal, you can buy Bitcoin with Neteller on exchanges that accept digital wallets as a payment method. If an exchange doesn’t list Neteller, check for a p2p market. Chances are Neteller will be one of the accepted payment methods.

Skrill

You can buy Bitcoin with Skrill on multiple exchanges. It is in the same category of payment methods as Neteller and PayPal, although it shares more similarities with the former than the latter.

The Skrill app also supports native crypto trading, although we recommend sticking with native cryptocurrency exchanges. They usually have a wide selection, offer more services, and charge lower fees.

Bank Transfers

Bank transfers are a popular way to buy cryptocurrency, especially for local exchanges that can easily integrate with local payment methods. This is the case with VALR, which allows users with Standard Bank accounts to fund their accounts instantly.

International bank transfers may be costly and time-consuming, usually taking 2 – 5 business days, so it is best to use bank transfers only for local transactions.

For example, Binance charges 1.40% for online bank transfers, while VALR does not charge as it is a local exchange.

Mobile Money

Mobile money payment methods include Google Pay, Apple Pay, and the South African Momo payment method. While Google and Apple Pay require Google accounts and Apple IDs, Momo only requires a SIM card.

Ways to Invest in Bitcoin in South Africa

You can invest in Bitcoin in South Africa in various ways, which plays out as strategies to increase your Bitcoin holdings over time. Some major ones include:

Buy and Hold BTC

The buy-and-hold strategy is the easiest way to invest. As the name implies, it involves buying and holding Bitcoin for as long as possible. The strategy is predicated on Bitcoin’s price history, which shows that the coin increases in value over long periods.

You’ll need a safe way to store Bitcoin for long periods to buy and hold. While centralised exchanges like the ones covered in this guide are great options for buying, they are not usually suitable for long-term storage. You’ll need a crypto wallet to store your Bitcoin. The best crypto wallets are usually cold wallets that store your private keys offline.

Trade Bitcoin

Trading involves speculating on asset price movements and executing buy or sell positions accordingly. It can be very lucrative but also very risky and is not usually classified as investing, as an overwhelming percentage of traders are unprofitable (statistics show that 80% – 99% of day traders are unprofitable).

Nonetheless, if you have the skill, you can make money trading Bitcoin, a very liquid asset with billions in daily trading volumes.

Mine / Stake Bitcoin

Mining Bitcoin is the process of processing transactions and adding blocks to the Bitcoin blockchain. Miners receive 3.25 BTC for each block of transactions they add to the blockchain.

While mining can be profitable, it requires considerable startup capital. You’ll need a miner, a specialised device with high computation power, as regular computers (even some high-powered gaming systems) do not have the juice to mine blocks successfully.

You’ll also burn through a fair amount of electricity as your miner must be on and constantly running. Because you must always be connected to the Internet, you’ll need to budget for the Internet.

These startup costs do not guarantee profitability, as you could run your miner for days before being able to mine a block.

Staking Bitcoin is a growing niche thanks to the rise of Bitcoin sidechains like BOB and Merlin. You can earn a yield by staking your Bitcoin, which is much easier than mining.

Should I Buy Bitcoin Now? - Things to Consider Before You Buy BTC in South Africa

Before buying Bitcoin in South Africa, you must know all the conditions attached to your purchase. The situation created by these conditions will help you determine whether Bitcoin is a good investment at this time.

Bitcoin Fees

Bitcoin fees include all the associated costs of buying and storing Bitcoin. It includes the cost of funding your crypto exchange account, converting fiat to crypto or buying crypto directly with a payment method, and the withdrawal cost for people who withdraw to a decentralised blockchain wallet.

Bitcoin Regulations in South Africa

Before buying Bitcoin, you must be aware of regulations that may impact the legality of your holding it or your ability to transfer or pay for it (in cases where banks are banned from processing crypto-related transactions).

In South Africa, Bitcoin is recognised as an intangible asset that attracts taxes on gains. You can buy it, trade it, hold it, mine it, and stake it as long as you pay taxes on gains from these activities. To learn more, visit the Is Bitcoin Regulated section of this guide.

When to Buy Bitcoin?

Ideally, the best time to buy Bitcoin is before a bull run, but how do you know when that is? The crypto market moves in four-year cycles, consisting of two bullish years and two bearish ones. Hence, the best time to buy is at the end of the bearish leg.

The Bitcoin halving is usually a catalyst for the bull run and can be used as an indicator of when the bullish leg of the cycle is about to begin.

Bitcoin Price and Price Prediction

Bitcoin’s current price is $69,700 as of writing, after starting the year around $42,000. Analyst price predictions place Bitcoin around $120,000 at the height of the bull run, which is expected to run from 2024 – 2025.

Buying Bitcoin Safely in South Africa

To buy Bitcoin safely in South Africa, you must be aware of the technological risks involved. Crypto wallets usually have private keys and seed phrases required to sign transactions and restore wallets.

Because these wallets are decentralised, there are no account recovery features like the famous “Forgot my password” feature seen on most sites. Users who lose their seed phrases cannot restore their wallets if they ever change devices.

Also, being careless with your seed phrase, like taking a picture on a shared device, could lead to others using your seed phrase to access your wallet and move funds.

Financial safety is another consideration when buying Bitcoin in South Africa. Only invest what you can afford to lose, especially if you intend to trade or mine Bitcoin.

Final Thoughts

We explored the best ways to buy Bitcoin in South Africa and chose the Binance exchange as one of the best and easiest ways, thanks to its support for multiple payment methods, the South African ZAR, deep liquidity, low trading fees, and global p2p marketplace.

However, if Binance is unfeasible, any of the other four exchanges are great options. VALR provides a local touch and supports free local bank transfers, OKX supports credit cards, and Kucoin supports a range of express methods.

To buy Bitcoin in South Africa right now, scroll up to our walkthrough to get started.

Methodology - How we picked the best platform to buy Bitcoin in South Africa

We decided on the best platforms by first testing them individually. Our assessment criteria include fees, deposit and withdrawal methods, reputation, credibility, security, ease of use, trading features, coin selection, and competitive edge.

The platforms listed on this page are ones that we found to be the best at the features we listed them under, e.g., the largest coin selection. All platforms have a track record of providing value to users.

To learn more about how we test and choose platforms, visit our why trust us and how we test pages.