Cryptocurrencies have gained a lot of popularity with their inception in 2009, an investment option known worldwide. As a result, traders have been investing in the cryptocurrency market to have profitable trade, but this is possible only if traders analyse the market correctly.
To trade cryptocurrency in South Africa, traders have to first check with the regulations. As of now, there are no regulations imposed by the government of South Africa. However, they are working on digital currency trading and its regulation for legalised trading.
Bitcoin is the first digital currency and has high market value; bitcoin trading in South Africa is legal and could be traded from any part of the country. The article is a detailed bitcoin trading guide that will help the traders of South Africa to invest in the financial markets.
What is Cryptocurrency?
Cryptocurrency is the virtual currency that is traded online; it works on a decentralised system and does not have any interference from the central authorities. Traders use it as a form of investment and payment; the virtual currency is exchanged online for payment of goods and services.
Digital currency operates on cryptography and blockchain technology, which are the best technologies to protect online trading. In cryptography, the traders are verified using algorithms and mathematical formulas. On the other hand, in blockchain technology, the transactions of traders are recorded, making it a ledger for trade.
Blockchain technology allows traders to have a transparent trade by creating blocks online, and traders can cross check the transactions whenever they want. However, these are not represented by the name of the trader; they have the e-wallet number of the traders.
The cryptography technique is for verification of the traders, and it ensures the safety of the traders. The cryptocurrency market is available 24 hours for trade and has a good future scope as per the trend in the financial market. It has several options for trade; some of the significant ones are bitcoin, ethereum, litecoin and dogecoin etc.
What is Bitcoin?
Bitcoin was initiated in 2009 by Satoshi Nakamoto; it is a virtual currency that is based on peer-to-peer technology. The cryptocurrency is one of the most famous trading currencies; it works on a decentralised system, recording the transactions with the blockchain technology.
Trading in the digital currency and bitcoin is highly beneficial as it is backed by the most prominent businessman, Elon Musk. A simple tweet of the tycoon increases the demand and worth of the bitcoins.
The currency could be used for investment and for making payments online, thus having a store value and a payment network at the same time. Traders can invest in bitcoin, but they should check with the market fluctuations and value of the currency. Bitcoin trading in South Africa is legal, and traders can invest freely and increase their profits with the right decisions.
Trading in any field means buying and selling securities to make money. In bitcoin trading in South Africa, traders buy bitcoins online and sell them in the bitcoin network. Traders purchase bitcoins online through cryptocurrency exchange; these are the online platforms that help traders execute their trades in virtual currencies.
There are several exchanges available online to trade in bitcoins and other virtual currencies. In addition, traders can invest in bitcoins through online brokers; they have all the facilities to serve traders with the best trading tools and platforms to invest adequately.
Bitcoin trading in South Africa follows the same process; they can invest through online brokers such as Investby. The broker has trading platforms, analysis tools and several facilities like customer support, dedicated manager, leverage etc., to aid traders for a smooth investment.
The traders have accepted cryptocurrency trading; bitcoin trading in South Africa has been a good source of investment in recent years. Bitcoin traders of South Africa are investing in the virtual currencies as there are no regulations as of now. The traders can invest in bitcoin individually using the various platforms or privately.
Gradually, the trading of digital coins is being accepted in South Africa, but it is still not that close to payment options. For trading Bitcoin or any other cryptocurrencies, traders can invest through Investby. They are the best trading platform to invest in the market with services to make the trade convenient and accessible.
Bitcoin trading in South Africa and other countries is also referred to as bitcoin exchange. The trading of bitcoin could be done in various ways:
- Bitcoin trading in South Africa could be done using debit or credit cards. The traders from South Africa can buy bitcoins online using their online payment cards. They can trade through an exchange or via online brokers. It is a simple process where traders add their card details to the network system and transfer funds online.
Once the transaction is verified, traders can have the bitcoin in their trading account or e-wallet if there’s any. Although, traders should be aware that there might be some charges for using credit/debit cards. Making the trade more expensive for bitcoin trading in South Africa.
- Another way to invest in bitcoins is through a trading community; bitcoin trading in South Africa can use the various communities to invest through the cryptocurrency platforms. Traders can connect with people trading online and trade in the digital currencies. However, traders should be careful as these are risky investments and could turn out to be a scam or fraud.
- The last and a difficult way to invest in bitcoin trading in South Africa is through mining. The mining process is complex, but the people of South Africa show great interest in mining bitcoins for trade. It is a profitable investment process requiring patience and knowledge for trading.
How to invest in bitcoins?
For investing in bitcoin, traders have to be aware of certain steps to trade. Bitcoin trading in South Africa requires a trading account with online brokers like Investby, identification documents, cryptocurrency exchange account, secure internet connection, online payment methods or e-wallets to store the virtual currency.
Bitcoin trading in South Africa is secure using the private key provided by the exchange to trade. The private keys are the secret codes that are to be kept to oneself for the security of the bitcoin traded. Blockchain technology keeps the trade private by showing only the public key of the users, making it a confidential trade.
To buy the bitcoin, traders can follow the steps given below:
- Crypto trading service is the first step for investing in bitcoins; traders choose the service by choosing the exchange, best online brokerage services and the payment options available. With Investby, traders can invest in several cryptocurrencies and trade. The broker is the best option to invest in bitcoins; traders can enjoy a smooth process using the features offered by the broker.
- Bitcoin trading in South Africa could be accessible with Investby as they have a simple process to create an account and trade through the exchange. For opening a trade account, traders register with the broker providing their name, email address and contact details. Thus, opening an account within minutes.
- The next step is to provide the broker with documents and information that they require to verify the trader. Verification of the traders helps brokers to have a secure trade.
- In the fourth step, traders can choose the account type they will require to invest in bitcoins. Investby offers three accounts, namely, silver, gold and platinum. Traders can select one that suits their needs; however, the silver account is designed for beginners, the gold for experienced and the platinum account for the professionals of the market.
- In the following step, traders deposit funds in the account to begin the trade. Traders can invest the initial deposit required by the brokerage account and begin the trade. For this, traders have to connect the trading account with a payment option. It may be a bank account, debit/credit card, e-wallet or other options available with Investby.
- The sixth step is to place an order; bitcoin trading in South Africa requires traders to place an order in cryptocurrency via the brokerage account. Traders can buy bitcoins as per their wish. Investby offers types of orders that could be used to execute the trade. There are limit orders, stop-loss orders, market orders etc. These could be accessed through the trading platforms offered by the broker.
- Step seventh is to store the bitcoin purchased; traders can have e-wallets to store their cryptocurrencies. Bitcoin traders can have their own e-wallets or can use the one provided by the broker. However, having your own e-wallet is more secure. Bitcoin trading in South Africa has all these options for ensuring the security of the trade.
The e-wallets are of two types, hot wallets or cold wallets. Traders can choose the one that suits their needs. The trade requires a good internet connection to have a proper trade execution and security of the digital coins. The hot wallets are bridged to the internet, whereas the cold wallets do not require the internet for storage.
Alternatives to Buy Bitcoins
Bitcoin trading in South Africa could be used with various alternatives; traders can invest through bitcoin ATMs and P2P exchanges.
It is convenient and easy to trade in bitcoins; traders can put cash in the automated machine and buy them. The purchased bitcoin is directly transferred to the e-wallet of the trader. These are a popular mode of investment online, though these are expensive as well.
The ATMs are expensive to purchase, and the fiat currency is converted into digital currency, which also has a charge. Traders have to pay high fees to use the option of ATMs.
The peer-to-peer exchange service is a direct connection between the traders. Traders can put requests on the local bitcoins to buy and sell the bitcoins. For example, bitcoin trading in South Africa could use the local exchange to buy and sell the cryptocurrency. A trader can connect with other traders and directly buy or sell bitcoins in the market.
How to Sell Bitcoins?
Bitcoin trading in South Africa uses the same ways to buy and sell bitcoins. Traders can use ATM’s, exchanges, P2P exchanges and brokers to sell the cryptocurrencies in the market.
For selling the cryptocurrencies, the exchanges may charge a certain fee from the traders. Therefore, a trader should be aware of such charges before investing in the markets.
Is bitcoin trading legal in South Africa?
Bitcoin trading in South Africa is legal; there are no regulations set by the government of the country. However, they are planning to have a set of rules to control trading in South Africa. This would provide them with an idea of the trade and what steps should be taken to increase the trade volume and the profits from the investments in the country.
Why trade Bitcoins?
Trading in cryptocurrencies is highly profitable due to the increase in the demand of the market. Investors prefer the market as it holds a bright future, thus attracting a lot of traders. Bitcoin is the most preferred and invested digital currency of the crypto market; bitcoin trading in South Africa can provide the following advantages:
- Accessibility and liquidity
- No interference from central authorities
- High potential returns
- Volatile market
- No government rules
Bitcoins have been a good source of investment since their introduction; the traders have accepted the digital currency wholeheartedly. The security and transparency provided in the cryptocurrency market with the latest technology make it convenient for traders to invest and earn.
Traders of South Africa can invest in bitcoin to earn high profits, but this requires good market research and trade knowledge. Therefore, traders should first study the market and the value of the instrument in the market before investing.
A trader can invest in several ways in the market, but the most simple is through a broker like Investby. They have services such as:
- Segregation of funds
- Regulated and licensed
- Trading platforms
- Trading instruments
- Technical and fundamental analysis
- News and updates
- Accounts to trade
- Educational materials
- Different languages
- Professional customer support
Is trading bitcoins legal?
Yes, trading bitcoins in South Africa is legal. Traders can invest in the markets through Investby broker and enjoy the facilities and services offered. A trader can legally invest in the cryptocurrency market with the options available online. Moreover, traders can invest through exchanges, ATMs, P2P exchanges, and brokers. It is a good way to utilise the funds and make money.
How to open an account with Investby?
To open an account, traders can follow some simple steps:
- Traders have to register with the broker, Investby.
- It requires a first and last name with contact details and email address.
- Once a trader is registered, they can provide documents, and other information asked for verification of the trader.
- The next step is to choose the trading account and deposit funds to begin the trade.
Why trade Bitcoins?
Bitcoins are the profitable investment of the cryptocurrency market. Traders can invest in virtual currency easily with simple procedures. In addition, traders enjoy the following benefits:
- Accessibility and liquidity
- Latest technology
- Transparency of trade
- No government interference
- Decentralised trading
A trader can have all of the above advantages by investing in bitcoins or other cryptocurrencies.