When considering how to buy bitcoin in South Africa, ask yourself if it does not make more sense to buy this cryptocurrency privately or directly from a seller in South Africa. Bitcoin has seen rapid growth globally over the last two years with millions of unique users making use of some form of digital currency. As with the rest of the world, most of these cryptocurrency users in South Africa are using bitcoin. And you can too – but without the hassle of local or international exchange services.
How to buy bitcoin in South Africa
There are several ways of how to buy bitcoin in South Africa that includes paying via Paypal, with your debit or credit card, buying from a bitcoin ATM or using Mycelium on your cell phone. However, it basically comes down to three options when buying bitcoin in South Africa and not earning or mining it:
• How to buy bitcoin in South Africa from an international exchange
It might seem simple to buy bitcoins at the USD price from a USD based bitcoin exchange, but you might need to cross some hurdles such as buying it using USD, as they will not accept Rand.
Although possible, it remains quite costly, time and effort-wise. Keep in mind the cost of converting to USDs at the bank’s exchange rate. Apart from this it takes some time for the money to arrive at the bitcoin exchange from South Africa. It costs a fee to send it there and you must explain why you are sending it there. Lastly, you have a limit of how much you may send.
The exchange itself will most probably also charge an exchange and withdrawal fee. In the end, this could end up costing more than the bitcoin rate on a local exchange, depending on the circumstances.
• How to buy bitcoin from a local or South African exchange such as Luno or Altcointrader
If you intend to buy from a South African exchange, your first obstacle might be the price of Bitcoin in South Africa. The price of USD bitcoin is generally accepted as the “international” bitcoin price. However, be aware that the market rate on bitcoin exchanges are based on the supply and demand for bitcoin on that service. Thus simply converting the already fluid and constantly changing USD price of bitcoin to Rand will not suffice.
To calculate how much bitcoin you will receive, divide the Rand amount you want to spend by the bitcoin price. Other important factors on exchanges that will affect the outcome of your transaction are exchange fees. These are usually at about 1% of the amount. On certain exchanges a withdrawal fee will be charged. This means that you might end up with a lot less bitcoin than initially planned.
• How to buy bitcoin directly or privately from a seller in South Africa such as leetpro.co.za
It is possible to find potential buyers or sellers online without making use of local or international exchanges. Depending on the circumstances, you might get a better deal.
You can do transactions on sites such as localbitcoins.com, which makes use of escrow or electronic fund transfers. However, be beware of service fees that might be charged in certain cases.
There are also direct sellers like leetpro.co.za who will trade by bank transfers or even cash transactions in person.
Benefits when buying Bitcoins in South Africa from a direct trusted seller like leetpro.co.za
- The buyer and seller can usually complete the transaction within 24 hours
- You have the option to pay cash or by means of electronic fund transfer
- Save on exchange rates, exchange fees, and withdrawal fees
- The transaction can still be private.
Buy cryptocurrency direct from the seller:
Tips when buying Bitcoin privately or directly from a seller
- Ensure you do have a digital currency wallet in case you want to sell on an exchange
- Do some research before buying from any seller and make sure you understand which fees will be deducted and confirm the trade rate.
- Always take the time to consider your best option and even consult a trusted source like leetpro.co.za. Take into account all circumstances such as timeous and costly international transactions. Remember the ever-changing exchange rates and bank fees. Lastly don’t forget about the exchange and withdrawal fees when considering how to buy bitcoin in South Africa.
Also see: Bitcoin 101