Digital currencies have taken the world by storm. If you are reading this article, then you are one of those people who have felt its impact on your local economies, in the international business world, and in trade. The future is indeed crypto; you can now perform many different tasks and financial transactions using your crypto wallet. With all the different currencies that exist, Bitcoins are the most popular and the oldest form of cryptocurrency that exists. If you are in South Africa and would like to jump on the crypto train, we are here to provide you with a step-by-step guide to buying bitcoins.
What is bitcoin?
As we mentioned earlier, bitcoin is the oldest form of crypto, dating as far back as 2009. Since it was new and many people didn’t quite understand what it was, it took a while for it to gain popularity. Now, it is a recognized payment method, and it is also precious. Let’s say it is digital gold. Or, to put it in another way, bitcoins are money that you cannot see or touch, but you could be super rich if you have.
Is it legal?
We understand if you think this is too good to be true. It may even sound like a scam. Well, a lot of individuals and even governments felt the same way when bitcoins started gaining roots. But the good news is, bitcoins and cryptocurrency are legal in South Africa. Although there isn’t any law banning the trade, the South African Reserve Bank did warn against the risks associated with the trade. But what investment doesn’t have risk? Crypto trading is legal, and you would be required to pay tax on any profits you make.
How to buy bitcoins?
To lower your risk of losing, you should invest rightly and check all of your options. You want to make sure that you are carrying out the transactions legally and within a safe and secure framework or system. You need to have a bitcoin wallet. Several mobile applications and websites offer you the chance to buy bitcoins, make payments and check your balances.
The most popular method of buying bitcoins in South Africa is by using Luno’s services. With them, you can make payments for bitcoin using money from your bank accounts, and when you sell, you can as well transfer the funds to your bank account. You can also store your coins on their website.
How to buy bitcoins using Luno
Step 1: sign up on Luno
If you are an IOs user, you can download the Luno app from the app store or play store for android users. You can also decide to sign up using the web version. You can register using either of their platforms at no cost.
- To register, simply input your email address and password in the corresponding fields. Luno will send you an email to confirm your account.
- Open your mailbox, and open the email from Luno. In it, there will be a ‘confirm email address’ button highlighted.
- Click on the button and you will be redirected to the Luno website.
- To complete your registration, click on continue.
Step 2: Verify your Luno account
Now that you have registered, you will also need to verify your account. This goes as far as verifying your identity to ensure that you are who you say you are. Go to the settings in the menu and click on “upgrade”. This will require that you add your personal information, including bank statements, proof of residence, and as well as identification documents, and upload digital copies of those documents.
After verification, you will be moved from level zero to another level. The level you are moved to will depend on the deposits that you specified. You are a level 1 if your deposits and withdrawals do not exceed R15,000. If your deposits and withdrawals are limited to R50.000, then you will be moved to level 2. Level 3 is reserved for people who do not have any limits on their deposits and withdrawals.
Step 3: put money into your account.
After signing up and verifying your account, you will be able to make a deposit into your newly created account. You will then be able to buy coins with the money in your wallet.
- To make your first deposit, click on ‘wallets’
- Once the link opens, choose the ‘deposits’ option
- A list of banks will be displayed, select the bank you use from the list.
- When you have done this, click on next and you will be able to specify the amount of money you want to deposit.
- Use the reference number that appears on your screen to make the payment from your bank account to your wallet.
- It will take approximately 2 days for the transaction to be cleared and transferred to your wallet.
Step 4: make your first purchase.
You can make your first purchase by using either of the methods discussed in these steps. You can not purchase without first making a deposit, so ensure that the bank has cleared your deposit before attempting to buy some coins. Use Luno’s instant pay feature to make your first purchase. You will be required to pay a fee for using this feature.
- Click on the ‘buy/sell’ button and indicate the amount you would like to buy or sell.
- To complete your order, click on ‘buy’.
Step 5: make a purchase using a buy order.
If you don’t want to use the instant pay feature, probably because you are trying to avoid the fee, then you can use a buy order to make a purchase.
- Choose the exchange option in the menu bar. Then select ‘buy order’.
- To make a request, select the ‘place order’ option. This order will allow sellers to try to meet your order.
- When you are ready to finalise a purchase, choose the ‘place buy order’ option.
And with those steps, you will be able to conveniently buy and sell bitcoins from your mobile devices and your computer safely and securely.
To make sure your transactions and funds are safely stored, you may want to consider these things:
Store in a wallet
Use wallets such as Luno and others to safely store your coins and perform any transactions online. Wallets have a system that ensures that your funds are safe and cannot be stolen.
Do not have direct dealings with friends.
Most of the time, you want to buy or sell your coin with friends and peers. This isn’t very ideal because you are not quite sure you can trust the person you are dealing with. Since there is no regulatory body or a third party system governing the transaction, the only thing you have to fall back on is trust which sometimes may not be enough.
Also Read: How to Claim From the Road Accident Fund in South Africa
Make sure you have a backing.
To ensure that your funds are safe, use brokers that are regulated and backed by reputable banks. You stand a better chance of carrying out your transactions safely if you have proper backing.
In conclusion, you can make a lot of money legally by getting involved in this trade. Simply ensure that you are doing it correctly and using some of the methods that we suggested in this article. If you are still hesitant to jump on the crypto train, your concerns are valid. Ensure that you carry out as much research as possible before engaging in buying and selling bitcoin. We wish you success in all your endeavours in this venture.
