The Bitcoin Hype in South Africa
Ever since the cryptocurrency craze started to spread throughout the world, Bitcoin trading has been one of the most talked about subjects in international trading circles. The phenomenon, which has swept across Europe, Asia and North America, appears to have infiltrated Africa, South Africa. Since early 2018, South Africa, Africa’s second largest economy has experienced a massive surge in Bitcoin usage, a trend which continues to this day despite the instability of the crypto-market.
The Major Reasons Why Bitcoin is so popular in SA
There are many factors that can be attributed to the sudden growth of cryptocurrency traders and users in the country. A lot of them have to do with the poor performance of the national currency, the RAND. At the time of writing, the RAND, which stands at 0.073 United States Dollars has struggled for the most part of 2018, especially in June 2018 when the currency hit a six-month low. This triggered massive selloffs in emerging markets, as traders started to lose confidence, with the RAND steadily depreciating in value.
The situation is not helped by the overall condition of the South African economy as well as the political instability the country is in ahead of elections. All these factors combined have forced many South Africans to divert their investments towards cryptocurrency, Bitcoin.
The Current Scenario in South Africa:
Cryptocurrencies have been embraced by South African citizens in large numbers, as more and more online trading platforms and cryptocurrency exchanges started infiltrating the market. The country is home to one of the first cryptocurrency ATMs in the world, with several companies such as Luno and Paxful allowing users to buy and sell Bitcoin. Additionally, South Africa has been ranked as the country with the highest number of searches for Bitcoin in the past on multiple occasions.
However, Bitcoin isn’t the only currency gaining traction in the country, with many traders attempting to diversify their crypto-trading portfolio, investing significantly in tokens such as Litecoin, Bitcoin Cash, Ripple etc. There are many reputed trading platforms which offer both forex and cryptocurrency trading options to South African citizens.
Crypto Currency trading options in South Africa
Due to the complications and uncertainty when it comes to the South African Economy, traders have flocked towards cryptocurrencies for the hope of achieving better returns. Since cryptocurrencies are de-centralized in nature, many people have faith in their value over national currencies which are controlled by a centralized authority.
Thus, as a South African trader, you must dedicate a significant portion of your time towards researching. Luckily, there are South African trading websites, which can give you a fair idea about the most reliable exchanges and platforms along with more information’s about crypto trading in South Africa. IQ Option and AVA Trade are examples of such platforms.
Buying Bitcoin and Other Cryptocurrencies in South Africa:
There are two main sources from where South African citizens can acquire Bitcoin and other cryptocurrencies in a legally compliant manner. They are explained below.
- Using P2P Markets: A relatively newer addition to the cryptocurrency market, peer-to-peer marketplaces refer to virtual market places where users can interact and acquire cryptocurrencies. For instance, in the platform, buyers who are seeking to acquire Bitcoin with a credit or debit card are linked with people who want to purchase products from restricted websites with no Bitcoin support.
- Using Crypto-Exchanges: There are many cryptocurrency exchanges and platforms such as IQ Option and Coinbase, which offer a simple way to buy and exchange Bitcoin using fiat currency.
Thus, the cryptocurrency craze entering South Africa can be attributed to a mix of many different factors and important events. With a growing cryptosphere with an excess of 2000 tokens to choose from, the future for crypto-trading in South Africa looks bright indeed.