Bitcoin in South Africa: Everything You Need to Know
Everything you need to know about Bitcoin (BTC) in South Africa. Learn its basics and fundamentals.
Cryptocurrencies are quickly gaining popularity and traction all round the world, including in South Africa. Bitcoin, being the first crypto, and arguably the most popular, has been the staple choice of crypto for many potential holders and investors.
In this article, we’ll be going over briefly about Bitcoin specifically, its fundamentals and also highlight some of its notable features of what makes it such an appealing asset to begin with.
What is Bitcoin (BTC)?
Bitcoin (BTC) is most notably famous for being the world’s first cryptocurrency. In total, there will only ever be 21 million Bitcoins. However, each Bitcoin is made up of 100,000,000 smaller units known as Satoshis or sats. Each of these can also be transacted peer-to-peer over the Bitcoin network.
Bitcoin, in effect, is a form of digital currency and a global payment system at the same time. But, the Bitcoin payment network exists independently of any bank, government, or third party.
Checkout our YouTube video guide on Bitcoin!
Its totally decentralised network means that neither banks nor governments can interfere with Bitcoin payments.
And as a peer-to-peer payment network, Bitcoin makes it possible to settle global transactions in seconds, minus traditional high fees for money transfers.
Then, because only 21 million Bitcoin will ever be in existence, Bitcoin grows scarcer every day. This leads to Bitcoin gradually increasing in value.
Is Bitcoin legal in South Africa?
Bitcoin in South Africa is not illegal. This means that all South Africans are at liberty to buy or trade Bitcoin just like people in most other countries. That being said, Bitcoin does not benefit from official recognition as a form of currency.
Not benefiting from official recognition means that government regulation of cryptocurrencies is almost non-existent.
But, South Africans do still have to pay tax on Bitcoin investment profits. Although we still have a long way to go in terms of cryptocurrency regulations, we are making progress slowly but surely.
See a tax guide on cryptocurrency, Bitcoin and South Africa here.
Why is Bitcoin popular in South Africa?
Bitcoin helps South Africans combat many monetary problems that they are faced with on a daily basis. Here is a list of just a few of these problems:
- Currency devaluation
Currency devaluation is a big problem faced in many countries all around the world, including South Africa. The South African rand has lost over 60% of its value when compared to the dollar over the past few years! In simple terms, this means that the currency we hold as a currency can purchase fewer goods and services.
Bitcoin has a set supply of 21 million coins. This means that Bitcoin is not affected by inflation or hyperinflation because of this unique property. The South African Rand has an annual inflation rate of over 5%, while Bitcoin has an inflation rate of 1.82%, and this will continue to decrease as time goes on.
- Bank the unbanked
Over 11 million South Africans don’t have access to a bank account. By using Bitcoin we could allow for all these people to participate in the economy. Bitcoin is free for anyone to use, all you need is a simple device and an internet connection. Bitcoin also allows people to send money to anyone, anywhere in the world instantly and for a cheap fee. This will allow many people in Africa to easily send money home to family members that live in a different province or country.
Although Bitcoin fixes all these problems, it is still bought by people as a speculative investment. Many believe that Bitcoin will continue to increase in price as time goes on. Just like it has in the past.
It is safe to say that Bitcoin has gained a lot of traction here in South Africa, and it doesn’t look like that will change anytime soon.
Learn more about Bitcoin: Read our in-depth guide on Bitcoin (BTC).
How do I buy Bitcoin in South Africa?
Buying Bitcoin, or any cryptocurrency in South Africa is quick and simple with Easy Crypto. Check out our step-by-step by guide below to see just how easy it is!
Step-by-step process for buying Bitcoin (BTC) in South Africa:
- Sign up or Login
Start off by signing up using your email, Google account, or any of the other options we have available.
If you already have an account with Easy Crypto, welcome! Proceed to login to your account with your credentials.
- Verify your account
To do this you’ll need to submit a picture of your South African ID, passport or drivers license. You’ll be able to start purchasing any cryptocurrency once the documents you submitted have been verified.
For further information, you can visit the Easy Crypto’s account verification guidance with Sumsub.
- Place your BTC order
Select Bitcoin (BTC) from the list of cryptocurrencies that we offer. Take a look at this page for a complete list of crypto we offer.
Then simply enter the amount you will be buying along with an address and then choose one of our payment methods.
You can currently choose between 3 different payment methods when buying cryptocurrency on Easy Crypto.
These include Stitch, Ozow and manual bank deposits. (Based on testing, we found that Stitch tend to be the faster payment method).
Note: Blockchain transaction times may add up to 1 hour until your coins are delivered (depending on network congestion) – which is beyond our control.
And that’s it! Our mission at Easy Crypto is to simplify the crypto experience, making it easy and accessible for anyone in ZA to get into crypto.
Further reading: Be sure to explore our learning Hub for all things crypto, blockchain, and more!
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 12, 2022