By Frank Martin (MoneyAmped.com)
Are you in South Africa and planning to buy your first Bitcoin? Well, this guide is tailored for you. Keep reading to learn where and how to purchase this digital asset while in that country.
Is Bitcoin Legal in South Africa?
Yes! The South African government recognizes BTC as a legitimate investment asset, allowing citizens to invest and use it to make daily transactions.
Regarding regulations, South Africa provides a clear regulatory framework that guides crypto service providers and protects investors. This has accelerated adoption in the country, with a recent study indicating that at least 19% of the adult population owns crypto.
What to Consider Before Purchasing Bitcoin in South Africa
Now that you know buying BTC in South Africa is legal, it’s time to understand what you need to do before acquiring your first coin. Here are some factors to consider:
Choose Your Ideal Bitcoin Wallet
Picking the right wallet to store your Bitcoin is vital. Considering the rising cases of cyber attacks, you want to maintain your BTC in a wallet that prioritizes security.
There are three types of wallets to choose from. They include:
Exchange wallets: These are provided by centralized crypto exchanges. Given their ease of use, exchange wallets are ideal for beginners. However, since exchanges control the keys of these wallets, users have limited authority over their Bitcoin. Moreover, if an exchange files for bankruptcy, you are unlikely to access your BTC.
Software wallets: Top software wallets like Electrum and Trust Wallet allow users to become custodians of their Bitcoin, eliminating the need to rely on exchanges to maintain their funds. The downside of these wallets is that they are constantly attacked by cybercriminals, putting your BTC at risk.
Hardware wallets: If you wish to store your Bitcoin offline, consider buying a hardware wallet. That way, you can reduce the risk posed by hackers. However, these wallets are not cheap, making it difficult for many to access them.
Select the Right Platform to Purchase BTC in South Africa
As of January 28th, 2025, South Africa’s Financial Advisory and Intermediary Services Act has licensed over 50 crypto service providers to operate in the country. This offers a wide range of options for those who wish to buy Bitcoin.
Here are some of the platforms allowing users in South Africa to buy Bitcoin:
Luno: This globally recognized crypto exchange lets South African users acquire Bitcoin at a competitive fee. Moreover, its interface is user-friendly, thus making it easy for beginners to navigate.
Valr: Since its inception in 2018, Valr has been offering top crypto services that meet the needs of both experienced and novice traders. Furthermore, its user-friendly interface lets users swap their South African Rand for Bitcoin quickly.
OKX: Besides Bitcoin, OKX allows South Africans to purchase over 300 other cryptocurrencies hassle-free. The exchange’s global reputation makes it popular among investors who value the safety of their funds.
How to Acquire Bitcoin in South Africa
After picking a Bitcoin wallet and the platform for buying BTC, you can go ahead and make your first Bitcoin purchase. Here is the buying process to follow:
Register an Account
For the purposes of this guide, we will use OKX to demonstrate how to purchase BTC in South Africa. That said, go to Okx.com and click ‘Sign Up’ to create an account. Your email address or phone number will be required. After that, verify your identity to access all the features on the OKX exchange.
Fund Your OKX With USDT
You can deposit USDT into your OKX account from an external source or buy with South African Rand using your credit/debit card.
Purchase Bitcoin
Once funds have arrived in your OKX account, press ‘Trade’ and then ‘Spot.’ Next, find the BTC/USDT pair and create a buy order by entering the USDT amount you want to use to buy Bitcoin. After that, hit the ‘Buy’ button and wait for OKX to deposit your BTC into your account.
You can then transfer the acquired BTC to a self-custody wallet to have complete authority over your funds.
