How to buy bitcoin in South Africa
How to buy bitcoin in South Africa
If you are new to the cryptocurrency world and you live in South Africa and don’t know how to buy bitcoin in South Africa then this article will teach you how you can buy bitcoin in south africa.
Things you’ll need before buying bitcoin :-
- Bitcoin Wallet
Storing your Bitcoin in a digital wallet is important in order to keep your coins safe.
- Find an exchange
You can buy bitcoin from a cryptocurrency exchange. There are a lot of exchanges in the market. The best exchange to buy bitcoin in South Africa is LUNO.
Luno is an extremely trustworthy exchange backed by major big players in the cryptocurrency space such as Coindesk. Their services include a variety of payment methods, extremely low transaction fees, a beautiful trading interface, and cryptocurrency wallets.
Step by step guide to buy bitcoin in south africa :-
Step 1:Create an account on Luno
Sign up using your email adress and password. Confirm your e-mail by checking mail box.
You will also get a free Luno Wallet via the web, iOS or Android.
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 which 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.
Step 3: Deposit money into your account
When your account has been verified, you will be 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 you 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.
IS IT LEGAL TO BUY BITCOIN IN SOUTH AFRICA?
Yes, it is legal to buy Bitcoin in South Africa. The South African Reserve Bank (SARS) 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 unregulated for now but the government is working on a new regulatory framework to more stringently control the cyber-banking industry.
Also Check: What is bitcoin and how does it work
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