How to safely buy and store bitcoin in south africa
There are many people who believe the price will go up ten, hundred or thousandfold in the next few years. Only time will tell, but the momentum, increased transaction rate of people using it, banks and companies investing in Bitcoin and Blockchain are all very good indicators. This is the number one use for Bitcoin at the moment.
Bitcoin attracts a lot of trading activity when there is increased volatility. You might choose to pay with Bitcoin since it is usually faster and more convenient than credit cards. There are thousands of merchants in South Africa and across the world that accept Bitcoin. Bitcoin is a great way to discreetly pay for legal but sensitive things.
Due to the fixed costs involved with credit cards and most types of banking, it has thus far been nearly impossible to pay small amounts of money for things like digital content. With Bitcoin you can send fractions cents, unlocking many new use cases. Only for advanced users.
They can be compared to something like Gmail: This is for advanced users only, but a Bitcoin wallet simply consists of a Bitcoin address and a private key. Hardware wallets are dedicated devices to store your Bitcoin addresses and private keys. Many people use LocalBitcoins , a site that connects local buyers and sellers, where you pay via bank transfer or meet up in person and trade in cash.
There are two Bitcoin exchanges in South Africa: Luno is a really impressive Bitcoin company, and not just by local standards. You can buy Bitcoin from Luno via their website or their smartphone app.
We highly recommend using them if you want to get set up with Bitcoin in a fast and easy-to-understand manner. Never put all your eggs in once basket. Many people are overwhelmed by the high price of Bitcoin. I recommend starting with a few hundred or thousand rand, just to get the hang of it. Bitcoin is really volatile high up-and-down swings in the exchange rate. There are however unique characteristics to Bitcoin that you should know: Bitcoin is Global Bitcoin can easily be sent to a wallet across the room or across the world.
Bitcoin is Cheap The transaction fees levied by card processors for transactions and the settlement fees charged by banks for international transfers are significantly higher than fees for sending bitcoin. Bitcoin is Fast It takes one to two days to receive a bank payment from a different bank, two to five days for a merchant to receive funds from a credit card transaction and up to a week or more for international bank transfers.
The bitcoin market is less established in Africa compared to countries such as the US or Europe. This means there are fewer options available and less information on how to keep your money safe.
The history of bitcoin is littered with scandals and security breaches. Exchange platforms have been hacked and companies have stolen users funds. The bitcoin technology itself is secure, but the companies and third parties managing funds are subject to theft and fraud.
This means you need to be very careful when choosing where to buy and store your bitcoins. Your best bet is to choose companies with a good reputation, and solid security features. Once you have bought your bitcoins, be sure to transfer them to your own wallet.
Bitcoin exchanges are the easiest place to buy and sell. You can use many of them just like you would use a regular bank. Many countries have a local bitcoin exchange that residents can use. If not, then there are a few great international companies that make it easy to buy bitcoins from almost anywhere. The safest way to buy bitcoins is by using the larger international exchange platforms.
Because the industry is so unregulated, it is possible for a company to just run away with your money. Reputation is the most important factor when choosing a company to buy bitcoins from.
Until recently, it was impossible to buy bitcoins with a credit card. People could buy bitcoins, then call the credit card company and ask for a chargeback. As it is difficult for sellers to prove the bitcoins were sent, they would be forced to refund even after the bitcoins were sent.
IO is one of the largest and most trusted international bitcoin exchanges. You can buy, sell, and invest in bitcoin from across the globe, including GBP, which are rarely traded elsewhere. Paypal is an extremely convenient way of making online payments. Unfortunately, you cannot buy bitcoin directly with Paypal.
It is too risky for the seller because of the chargeback problem again and it is actually banned by Paypal. Due to the high risks, bitcoin exchanges, working with the Paypal, have higher transaction fees. There is a workaround, however. They have more info on their FAQ page.
If you live in South Africa, Nigeria, or Kenya, you may be able to buy bitcoins directly through a bank transfer. This is a very popular method around the world, as it can be cheap and relatively safe. Luno used to be BitX. Luno can so far be used from South Africa, Nigeria and Kenya. Ice3X is a South African based company that also runs in Nigeria. For news on bitcoin in South Africa, check out https: The most universal method of buying bitcoins is peer-to-peer.
This makes sense, as bitcoin is a peer-to-peer technology. When buying bitcoins this way, it is essential to use an escrow service.