Why Crypto Trading is So Popular in South Africa

Dec 18, 2020 | Finance | 0 comments

South Africa is one of the world’s leading markets for crypto adoption. According to Luno, a popular SA cryptocurrency exchange, Bitcoin ranks second highest in the number of Google searches for the term “Bitcoin”. Each day, South African traders are buying crypto for the first time, or making trades on the regular. So, what’s the reason for crypto’s popularity in South Africa? 

Already Established Trading Infrastructure

Trading isn’t new to South Africans, and financial services are commonplace for most. SA has well established trading platforms already in existence, which made the transition to crypto trading platforms smooth. Most South African’s also have bank accounts and are familiar with mobile financial services, which makes the web-based world of cryptocurrencies more accessible and familiar to SA traders. 

Crypto Heavyweights

South African’s are actually pioneers in the crypto industry. Luno, which launched in 2013, was the very first crypto trading platform in Africa – and one of few that had been established on the global scale. Many exchanges that launched at roughly the same time no longer exist – but Luno has outlasted them. A home grown trading platform certainly added to the appeal of crypto in the South African context. 

South Africa is an Emerging Market

It’s fairly common knowledge that emerging markets like South Africa want change. The African continent as a whole has been a leader in the widespread adoption of cryptocurrencies. Cryptocurrencies offer an alternative to fiat financial services, which often leave much to be desired in developing countries. While South Africa has a high-functioning financial sector, the country’s economy is unstable – South African traders are savvy, and know that crypto can be an alternative should things go south. 

Fluctuating Rand and Positive Regulations 

The South African Rand has lost a substantial portion of its value since 2014, and the Covid-19 pandemic has seen the once financially stable economy contract further. The Rand fluctuates often, and although cryptocurrencies are highly volatile, they seem to offer more stability. 

This is compounded by the fact that the South African Reserve Bank has established a team from the crypto industry to work on regulation – current regulation is ambiguous, but the nation is looking to industry leaders to drive it in the future. 

Remittance and Cross Border Transactions 

Many South African’s send money across the border – but remittance services in the country are bound by bureaucratic red tape, are expensive, and quite slow. Cryptocurrencies offer a fast, and much cheaper alternative with relatively little admin work required. This makes crypto highly intriguing for many South African’s who need to send money elsewhere. 

Trading Crypto in SA is More Accessible Than Ever 

Crypto trading is incredibly popular in South Africa, for a number of reasons. Early adoption was fueled by a deepening economic crisis, need for remittance alternatives, and a tech savvy population craving change. Overall, crypto traders are set up for the good life in SA – thanks to the multitude of excellent digital asset trading options available to them.

Editor’s Choice

What Are Altcoins And How Do They Work?

Welcome to chapter two in our Introduction to Cryptocurrencies. In this installment we’re going to be covering altcoins and everything you need to know about them. If you’re reading this wondering what an altcoin is exactly, read on dear friend, we’ve got you covered. Let’s dive into what are altcoins and how do they work?

What Are Altcoins And How Do They Work?

Welcome to chapter two in our Introduction to Cryptocurrencies. In this installment we’re going to be covering altcoins and everything you need to know about them. If you’re reading this wondering what an altcoin is exactly, read on dear friend, we’ve got you covered. Let’s dive into what are altcoins and how do they work?

read more

5 Best Bitcoin Wallets for Windows

If you’re looking around to find the best desktop wallets for your favourite cryptocurrency, you need look no further! We’ve done all the heavy lifting for you and consolidated our research to bring you the 5 best Bitcoin wallets for Windows. Like you, we’re big fans of convenience and security, and desktop wallets don’t get any better than that. Let’s dive in and explore what our top recommendations are, in no particular order.

read more

5 Best Bitcoin Wallets for iPhone iOS

Now that we’ve taken you through the different types of wallets and how they work, it’s time for you to settle into one that conveniently slides into your life. Mobile wallets offer fast and easy access to your crypto portfolio at all times, similar to how Apple products just make life that much easier. In this piece we’re going to jump right in and name the 5 best Bitcoin Wallets for iPhone iOS our team are currently using.

read more
How to Buy Bitcoin in Turkey in 2021

How to Buy Bitcoin in Turkey in 2021

Following President Recep Tayyip Erdoğan dismissal of central bank governor Naci Agbal recently, the Turkish lira (TRY) took a tumble in global markets and sent Google searches for the term “Bitcoin” soaring. Whether using Bitcoin to hedge against the demise of your local fiat, high inflation rates, or just to tap into a new market, cryptocurrencies provide a reliable gateway with global usability. Whatever your reasons, we’re going to show you in this simple guide how to buy Bitcoin in Turkey in 2021.

read more
Can Your Bitcoin Wallet Be Hacked? How To Secure Your Funds

Can Your Bitcoin Wallet Be Hacked? How To Secure Your Funds

In our previous piece making up our Bitcoin 101 puzzle, we covered what Bitcoin wallet should you use in 2021. Building on from that here we explore the world of wallet safety asking can your Bitcoin wallet be hacked? As we uncover the truth behind the answer we’ll also dive into how to secure your funds and ensure that they are out of hacker’s reach. Before we get into that, in case you missed the last piece let’s do a quick recap.

read more
What Bitcoin Wallet Should I Use In 2021?

What Bitcoin Wallet Should I Use In 2021?

Whether you’re new to the industry (welcome) or a seasoned old timer looking for some other options, finding the right fit for your crypto trading habits is imperative. As we explore what Bitcoin wallet should I use in 2021 we’ll also explore the various options available and explain the pros and cons of each. This is one of the many chapters covered in our Bitcoin 101 archives.

read more
Read previous post:
The 3 Best Crypto Apps That Support South African Bank Transfer

We’ve put together a list of the best crypto apps that support South African bank transfers in ZAR.

Close