The cryptocurrency market has a capitalization of over 2.08 USD trillion and is forecasted to grow at a compound annual rate of 12.8% through 2030. This advancement was driven by the dominance of mining and cryptos’ demands in international remittances.
This ballooning number undoubtedly entails the profitable opportunities of crypto trading, especially now that generating passive income is becoming a new normal in South Africa. However, choosing the best cryptocurrency exchange in South Africa can be challenging with the various platforms available.
We’ve reviewed five platforms to find the best cryptocurrency exchanges in South Africa in 2024. This article will walk you through each crypto exchange’s offered features, security, regulations, and available crypto assets.
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5 Best Cryptocurrency Exchanges in South Africa in 2024
Opening an account with a cryptocurrency exchange is the first step to start investing in the crypto market. Here are the five best cryptocurrency exchanges in South Africa in 2024.
Binance
Available crypto assets: 385
Regulation: FCSA
Binance is the largest cryptocurrency exchange in the world, not just in South Africa. It’s known for having its own blockchain technology, Binance Smart Chain (BSC). Moreover, Binance Coin (BNB)—the exchange’s native digital coin—can be traded in the crypto market.
BNB was initially used as a token in the crypto exchange. Now, BNB has a market capitalization of $4.5 billion, making it among the largest cryptocurrencies today.
The Peer-to-peer (P2P) crypto platform allows South African users to convert their ZAR to BNB quickly, securely, and without added conversion fees. Then, South African investors will then use the converted BNB to trade the 385 crypto assets in Binance.
The seamless withdrawal process for South African local banks makes Binance a better choice for South African investors. South African crypto investors can withdraw ZAR directly to their local bank accounts.
With the Binance Earn program, users have another option to earn in addition to their crypto holdings. This program provides Binance users with access to flexible savings, locked savings, and a few other products.
Coinbase
Available crypto assets: 241
Regulation: FSCA
Coinbase works best for South African crypto traders who are new to investing. It’s credible due to its adherence to regulatory agencies. To cater to South African traders, Coinbase’s operation follows the regulatory practices of South Africa’s Financial Sector Conduct Authority (FSCA).
New crypto traders also prefer this cryptocurrency exchange due to its extensive selection of educational trading resources, including the basics of the crypto market, trading tips and tutorials, and the ability to chart 241 crypto assets.
However, the downside of using Coinbase is its USD-only payment policy. Since Coinbase only accepts payment transactions in USD, investors must convert their ZAR to USD before buying an asset in Coinbase, which makes it more costly due to the conversion fee.
Bybit
Available crypto assets: 1,300
Regulation: FSCA
At Bybit, a South African crypto trader can access derivatives cryptocurrencies. It’s an excellent choice for experienced traders looking for an extensive selection of crypto assets. By offering 1,300 assets on its platform, South African traders can access popular and profitable cryptocurrencies. This includes the 18 largest cryptocurrencies per market capitalization, including Bitcoin, BNB, Dogecoin, Ethereum, Solana, Tether, and Shiba Inu.
Bybit boasts security. The platform integrates two-factor authentication to ensure only authorized users access the crypto holdings. Moreover, the exchange’s private keys are kept in cold storage. Unlike other crypto exchanges, this platform hasn’t been hacked.
Kraken
Available crypto assets: 230
Regulation: US FinCEN and UK FCA
Kraken offers a secure trading environment with strong security features and low trading fees. With its crypto charting and real-time market tracker feature, it has become popular for South African investors looking for an alternative to Binance.
While the platform supports 222 crypto assets, South African traders may find the lack of direct ZAR payment options a drawback.
Although ZAR isn’t a supported currency in Kraken, South African traders can still buy cryptocurrencies using their ZAR through card and online payment, including Apple and Google Pay. However, once deposited, Kraken will convert ZAR into USD.
Crypto.com
Available crypto assets: 160
Regulation: FCSA
Crypto.com is the best pick for new crypto traders looking for a simple and safe way to buy and sell cryptocurrencies. Its intuitive web-based and mobile application interface makes crypto trading and charting less complicated.
What makes crypto.com popular is its extensive ecosystem. A crypto.com user can access Visa crypto card, staking opportunities, and its popular trading educational resources.
However, this crypto exchange’s fee is more expensive than the other four above.
What Is Cryptocurrency Exchange?
A cryptocurrency exchange is a platform where individuals can buy and invest in various cryptocurrencies, such as Bitcoin, Ethereum, Tether, Solana, and many more. It functions similarly to stock exchanges, where investors trade the stocks of publicly listed companies.
Crypto exchanges were developed to accommodate investors worldwide; thus, most exchanges work in a digital marketplace.
There are two types of crypto exchange that you should be aware of, which are:
- Centralized crypto exchange: Managed by any corporation, such as a brokerage or a crypto company. The company takes control of every crypto transaction within the platform.
- Decentralized crypto exchange: Not controlled by any authority. Transacting on these exchanges ensures that your holdings are kept safe and running because the fundamentals of any company do not influence them.
Note: Before, investors could only receive cryptocurrencies by either taking part in its mining process or through P2P transactions.
Choosing the Best Crypto Exchanges in South Africa
Here are the three common considerations when looking for a crypto exchange in South Africa. It includes the exchange’s regulation or registration, fees, and the assets it offers.
- Regulation: All financial service providers must be registered with at least one financial regulator. This ensures that their operations align with the financial regulations of a particular country.
- Fees: The brokerage fee should be among your main considerations when choosing which crypto exchange to use. This ensures that your choice aligns with your overall financial goals.
- Supported Assets: Available assets differ from one crypto exchange to another. Make sure you open an account with a crypto exchange that provides access to the crypto asset you want to trade.
Nothing beats the word of mouth! The best way to find the best crypto exchanges in South Africa is by joining an online trading community and learning from the first-hand experiences of the members. In CommuniTrade, you can tap on the member rating and reviews on different crypto exchanges in South Africa.
Is Cryptocurrency Legal in South Africa?
Yes, cryptocurrencies are now legal in South Africa.
In 2022, the Financial Services Conduct Authority (FSCA) declared that crypto assets shall be considered as tradeable financial securities. Following this was the requirement for all the crypto exchanges’ operations to be subjected to South Africa’s Financial Advisory and Intermediary Services Act (FAIS).
As of March 2024, there are 59 approved operating licenses for crypto businesses, with at least 262 more still being processed.
Frequently Asked Questions
Are Cryptocurrencies Taxed in South Africa?
Upon its regulation in South Africa, the South African Revenue Service (SARS) declared that Crypto Assets & Tax | South African Revenue Service (sars.gov.za) should be subjected to taxation.
How to Buy Cryptocurrency in South Africa?
To buy a cryptocurrency in South Africa, you first need to look for the best cryptocurrency exchange. By the best, it should fit your trading abilities and overall investment goals.
Next, you must create an account with your choice’s crypto exchange and deposit funds into it. Choosing an asset to buy should follow an elaborate approach to ensure alignment with your risk tolerance, including comprehensive research and market monitoring.
