Using cryptocurrency has a benefit: self-custody, where people protect their digital assets themselves. Bitcoin and other major cryptocurrencies have consistently grown in value, making them appealing investments in South Africa. Many reputable crypto exchanges are available for those interested in investing or trading.
Recently, South Africa has increased regulation of the cryptocurrency industry. With numerous options, beginners may find it challenging to choose the right exchange. Experts have ranked the best cryptocurrency exchanges in South Africa. They have done this based on factors such as regulation, user experience, assets, deposit methods, and fees to help you make an informed decision.
Best crypto exchanges in South Africa
If you’re looking for the best crypto exchange in South Africa, experts recommend considering these top platforms for your cryptocurrency trading needs.
- ByBit – a global cryptocurrency exchange with no KYC requirements, ideal for derivatives trading and NFT fans. Offers top security and transparency.
- OKEX – focuses on the South African market, offering user-friendly deposit options and strict security measures for a safe trading environment.
- Binance – a well-regarded exchange known for regulatory compliance, security, and low fees. Provides access to a wide range of crypto assets and a user-friendly platform.
- Huobi Global – an exchange with a significant global presence, including South Africa. Offers trading bots, South African language support, and a diverse range of assets.
- KuCoin – ideal for South African altcoin traders, with access to over 500 cryptocurrencies, a user-friendly interface, and strong security measures.
These exchanges cater to various trading preferences and provide access to a wide array of cryptocurrencies for South African investors.
Purchasing cryptocurrency
To purchase cryptocurrencies in South Africa, follow these steps using an exchange like Binance, as explained by experts:
- Create an account: begin by registering on the Binance website. If you don’t already have an account, you can effortlessly set one up.
- Choose payment method: once logged in, go to the main menu and select “Buy crypto” to purchase cryptocurrency using your credit or debit card.
- Set your budget: specify the amount of crypto you want to buy, along with your preferred currency and the spending amount.
- Enter card details: select Visa/Mastercard, provide your card information, and enter your billing address.
- Verify your order: click “Continue” to confirm your order. You’ll be redirected to your bank’s OTP transaction page to authenticate and authorize the payment.
Bitcoin investment in South Africa
Investing in Bitcoin comes with pros and cons, according to analysts:
Pros
- Bitcoin acts as a safeguard against currency devaluation caused by inflation, making it a reliable option.
- It’s considered a store of value, often called “digital gold,” with a steadily increasing value.
- Bitcoin has outperformed other assets like the NASDAQ 100 in the past decade, offering substantial returns for long-term investors.
Cons
- Bitcoin is known for its extreme price volatility, making it a risky investment.
- Cryptocurrencies like Bitcoin lack government regulation, posing risks for investors until regulation is established.
Crypto taxation in South Africa
Cryptocurrency investments in South Africa are taxed. Any income from crypto activities like mining, staking, airdrops, and hard forks is considered income and taxed at 45% if kept in the revenue account. If you plan to hold the income long-term, a capital gains tax rate of 18% applies. Analysts suggest South African investors consult with cryptocurrency tax professionals to understand and comply with the complex tax laws.
Conclusion
Cryptocurrency offers self-custody and the opportunity for investment growth in South Africa. Experts have reviewed and ranked the best crypto exchanges in the country. These recommended exchanges cater to various preferences and provide access to a wide range of cryptocurrencies.
