Our Official Guide to Trading Bitcoins in South Africa

Our Official Guide to Trading Bitcoins in South Africa

Is Trading Bitcoin in South Africa Legal?

South Africa doesn’t have any Bitcoin regulations in place yet. However, the government has been working on increasing awareness about Bitcoin and the number of crypto investors keeps growing. It is actually the same as for most of the leading economies such as the U.S.A, Europe or China.

In South Africa, Bitcoins are treated like an asset and you can therefore buy and sell your bitcoins as you like.

For that reason, it is possible to use a bitcoin trading platform legally and safely while investing in Bitcoins since South Africa. You will find all our in-depth review on Wikicrypto, however, we do recommend to use Plus500 as it is the most popular trading platform. It was ranked #1 in our 2017 Ranking for Bitcoin Trading Brokers,

What is Bitcoin Trading?

Bitcoin Trading (CFD trading) enables you to trade the asset of your choice (Bitcoins for example) on the market. So, if you’d like to invest in a CFD, you would enter a contract in which you would either sell or buy a specific asset at a later date to a specific person. Now, during the time that you hold the asset, the price may increase. Thus when you sell it at the time that was specified in the contract, you would make a profit. It is that simple.

This works inversely as well. If you were to enter a contract in which you speculate that the price of bitcoin will go down. The contract would be to buy the asset at a later date. Now, if the price does go down, you will make a significant profit since the asset’s price is much lower than what they paid for. Hopefully, the asset’s value will increase thus making a great profit for you.

If you believe that the price of Bitcoin will rise, you can purchase CFDs of Bitcoin to show that position in the market. If the price of Bitcoin does rise, you will make a proportional profit.

You can take advantage of Bitcoin’s volatility for effectively Trading Bitcoin in South Africa.

 

Best Platforms for Trading Bitcoin in South Africa

Plus500 is the world’s most popular trading CFD platform for financial instruments like commodities, stock and market indices. strong educational program within the website for registered users.

The platform is well designed, and has great features available! Whilst using the website, it’s pretty easy to follow your traders, communicate with them and learn using the program. Plus500 has really gone out of its way to make sure beginners have the right start on the website, and can slowly start trading on their own speculations. Since CFD trading is pretty tough to understand by learning yourself, the Plus500 platform makes it easier for you.

To be honest, I think that for a beginner the best website to learn CFD trading would be Plus500, after which you can make your own choices. Since the world of financial speculation is pretty unknown to a majority of the population, the educational program benefits practically everybody who wants to invest in CFDs.

It’s the best platform to start trading Bitcoin in South Africa.

Start Trading Now!

Hopefully, this guide has been helpful for trading Bitcoin in South Africa. You can also read our full tutorial on how to open a trading account on Plus500.

 

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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