Cryptocurrency Trading in South Africa: Why trade crypto CFDs in 2022?

How to trade cryptocurrencies in South Africa?
Cryptocurrency is one of the fastest-growing financial markets globally. It has touched many facets of life and blossomed them with exemplary profits and remarkable volatility. If a trader has the ability to wait and exhibit patience in the fluctuating market, he invites fantastic returns on investments. Cryptocurrency trading in South Africa is growing on the same line. Proteas’ market players are taking their leap of faith and investing in virtual currencies.
The idea of trading through cryptocurrencies stems from earning quick bucks. However, that may not be appropriate. So, it needs some learning. The following article helps you in that perspective.

  1. What is Crypto Trading?
  2. How does the crypto market work?
  3. How to trade cryptocurrency in South Africa?
  4. The Top 7 Most Popular Cryptocurrencies To Invest in 2022
  5. Factors That Determine Price of Cryptocurrencies
  6. Is cryptocurrency trading allowed in South Africa?
  7. Advantages and Disadvantages of Crypto Trading
  8. Summary
  9. FAQ: How to trade cryptocurrencies in South Africa?

What is Crypto Trading?

If you want to trade cryptocurrencies, the first step would be to learn about their trading, starting with the core meaning. Thus, before knowing about cryptocurrency trading in South Africa, one should be well versed with what does cryptocurrency stands for.
Cryptocurrencies are virtual coins that are generated through computer programming. They are not available in the physical form like fiat currencies. Thus, it is a form of digital currency. People can purchase services and goods online using them. A decentralised system uses cryptography to maintain records and verify transactions. Hence, transactions are safe.
Crypto trading is precisely an act of speculating or predicting the movement of the crypto assets correctly for profit booking. Some people use CFD brokers for that purpose. It allows them not to own the underlying asset and make sufficient profit. Thus, crypto CFD trading is also gaining popularity among financial investors. 

How does the crypto market work?

If you want to begin cryptocurrency trading in South Africa, it is essential to know the modus operandi of the crypto market.
The cryptocurrency market is a decentralised entity, which means there’s no authority regulating or ruling it. No government can set rules for it. Thus, traders can trade on it any time of the day, from every corner of the world. So, it is synonymous with the liberal approach. The liberty it provides is unparalleled. Cryptocurrency circulates over networks of computers placed globally in various parts. 
Moreover, anyone can independently sell and buy cryptocurrencies and store them in wallets offered on broker or crypto trading exchanges.
Cryptocurrencies are available to an owner as a digital record that is stored on a blockchain. When a trader sells them, cryptocurrencies are transferred into the digital wallet of the buyer. Moreover, when a person purchases services or products using cryptocurrencies that are also received into a wallet of an exchange or a broker by the businessperson. 
However, the transaction is final only when it gets verified and added to the blockchain. Mining is one of the processes that channelises the crypto market. It depends on the computational and programming skills of a coder.
That’s how new virtual currencies are created to work in the market for transactions.
Hence, if you wish to make a payment using cryptocurrency, ensure that it gets transferred into the desired wallet of the receiver or a seller. 

How to trade cryptocurrency in South Africa?

For trading cryptocurrency in South Africa, one has to be vigilant of the crypto market and other circumstances. Here, knowledge is everything, which a trader earns with experience and spending time. In comparison to other financial markets, it allows making money quickly. 

For processing the trade with cryptocurrencies, investors and traders need to follow some steps:

  1. Know about the South African market

Crypto trading in South Africa is possible if you have researched well about the process of trading and investment regarding cryptocurrencies. You should know the number of investors in the country who trade regularly and how many of them are crypto traders. Such information helps in drawing a blueprint before putting your funds for better returns. 

An in-depth study is the success pointer for traders. So, if you are planning to put your money into some cryptocurrencies, have patience and observe the price fluctuations for some time. That’ll give you an idea of when to invest. Thus, cryptocurrency trading in South Africa will become relatively simple. 

Moreover, by tracking the historical data, you can find yourself in a utopian situation, making trading perceived. So, as a trader, you need to be mindful and a regular learner.

  1. Find a broker or an exchange

You need a platform or a broker for trading or to initiate transactions. However, that should be genuine and within the league of verification. So, before picking that up, read genuine reviews about them on various websites. Check feedbacks of traders and investors. See their policies and whether they are regulated or not. 

Check the registration and license numbers. Also, see the physical address for further verification. If you can find that, the broker is legit for crypto trading. 

Cryptocurrency trading in South Africa becomes legit when you choose a genuine broker. 

Moreover, always find a licensed crypto broker so that your money remains safe. You always have a chance to complain if anything goes otherwise because a reputed authority regulates a brokerage firm with a crypto license. 

So, ensure that it’s always there in place. Furthermore, ensure the broker picked by you has the best cryptocurrency trading platform. Currently, MetaTrader 4. 

  1. Create an account 

Once you’ve finalised the broker or exchange for trading, go for the registration straightaway. Then, click on the create account on the website of a brokerage firm. You can see the features offered by the financial service provider and then make a minimum deposit. 

A broker or an exchange may ask for your personal details, fill them, provide documents for verification and start trading. Therefore, KYC is an essential process. Thus, always remain true to the authorities. Otherwise, your candidature would get cancelled. 

For cryptocurrency trading in South Africa, you should take enough time. 

  1. Opt for a demo account 

Before going for the live trading, it is better to do some practice on a practice or demo account. Some brokers offer the feature where you can find a similar environment to live trading experience. S, put up your bids there, try different strategies and see what works in your favour. Do that as many times as you feel comfortable. After learning new tricks and gaining confidence, you can start your caravan in the live market. 

However, there may be slight differences in demo account and live trading because the latter keeps on evolving every day. But a demo account has to be set by a broker. Thus, one must check how frequently is the practice account gets updated as per the latest versions of the live trading environment. For nice cryptocurrency trading in South Africa, practice as long as you can. 

  1. Start trading

Now, you can start cryptocurrency trading in South Africa. However, ensure you do not indulge in bigger risks and begin with small investing. As you gain some experience, things will be better to understand, and you’ll get an idea about when to invest and divest. Moreover, never make an investment that you cannot bear to lose. Hence, always keep a thought in mind that greed can let you down heavily. 

So, whatever profit you make, try to be content with that and re-invest in the market when the value of digital coins slip.                                                 

The Top 7 Most Popular Cryptocurrencies To Invest in 2022

For trading cryptocurrency in South Africa, you must know the best coins for investing. Their market cap and prospect should entice you as a trader. That’s the signal which can help you in getting your investment right. Here’re some recommendations that a trader may follow for the best cryptocurrency trading in South Africa: 

  • Bitcoin
  • Cardano
  • Ripple
  • Ethereum
  • Litecoin
  • Dash
  • Tether 

These crypto coins have one of the highest market capitalisations in the world: 

  1. Bitcoin  

On October 20, 2021, the market capitalisation of Bitcoin reached USD 1243.93 billion. That was humongous. Never it has rallied so far. Also, no other cryptocurrency is near it. So, if you are trading cryptocurrency in South Africa, it cannot go without investing in BTC, as it happens to be the oldest virtual coin as well.
In March 2020, when the COVID-19 pandemic was spreading, its market cap plunged USD 117.81 billion. But since then, it outsmarted all expectations and went on to script history. The growth is more than 10 times in around 18 months. 
  1. Cardano 

The Swiss cryptocurrency triggers a great amount of passion and investment due to its immense progress over the years. In February 2021, the virtual currency witnessed a hundred per cent surge in its price. The unprecedented performance led traders to invest in it.
The market cap of ADA has touched USD 71.761B lately, which records a huge possibility for investors. 
  1. Ripple  

In December 2017, the market cap of XRP reached USD 88 billion. It took all investors by storm, given the huge numbers in a limited time. However, it didn’t grow as expected and remained on the lower side for some years. In Arpril 2021, it again catapulted to a glorious mark of USD 64.33 billion. That induced a ray of new hope in its regular investors.
The cryptocurrency is going strong and is running among the top three spots. So, investing in it can make cryptocurrency trading in South Africa better. 
  1. Ethereum 

As a trader, you would always want to invest in Ethereum if you cannot afford bitcoin due to huge price. ETH has been one of the biggest success stories for anyone. The virtual coin was released in 2015 and went on to make a history that left every expectation behind.
The current market cap of ethereum is $490,554,749,858.69. So, after Bitcoin, any cryptocurrency that is the distant second runner is ethereum. Moreover, it has always given chances for traders to surge their wealth when in doubt for investment. 
  1. Litecoin 

If you are willing for cryptocurrency trading in South Africa, LTC should be there in your portfolio. The current market cap of Litecoin is 13.362 billion. It has exhibited steady growth over the years, leading investors to believe it and guiding them to invest.
The circulating supply of litecoin is 68.83 million. So, it is available in sufficient amount. As an investor, you should think of adding it to your portfolio. 
  1. Dash

The market cap of Dash coin is around $2,111,813,187, and digital currency has shown promise in recent years. So, as a trader, if you’ve got some patience and are willing to try something new, Dash coin can be your trump card. However, you’ll need to focus on its performance for a few days before taking to plunge to buy it. 

The current market dominance is 0.08 per cent, which is getting better with each day. So, apply some patience and go for it. 
  1. Tether 

The Tether’s market cap is around $71,133,004,006, which is relatively at the higher side and a reason for investors to buy or invest in it. Moreover, its total market dominance is also better than many cryptocurrencies in a fray, which is 2.62 per cent. 

How to invest in cryptocurrencies with CFDs?

To get started trading CFDs and learn more about how to buy cryptocurrencies using CFDs, create your InvestBy account in five simple steps:
  1. A click on the button on Open an account is enough to go on to fill in the basic data, such as name, place of residence and email.
  3. It is necessary to attach the documents that validate the above information, such as identification or passport.
  5. It is important to make a form of 27 items on the type of trader, and thus know the interests, objectives and risk when operating.
  7. To start operating different assets, such as the main cryptocurrencies, it is necessary to make the smallest of deposits - 250 US dollars. This can be done using credit, debit cards, and other online payment options.
  9. Make your way into the world of trading with a high-quality broker and trade CFDs on numerous financial assets at InvestBy!

Factors That Determine Price of Cryptocurrencies

Multiple factors determine the value of different cryptocurrencies. Some of them are:

Demand and Supply

Any financial market is as good as the standard ratio of demand and supply. Likewise, cryptocurrencies also abide by the same law. If the demand for a virtual coin is higher than the available supply, the price or valuation of that digital currency will rise.
You’ll also find popular cryptocurrencies are always short on supply. Thus, their market valuation keeps on rising. 

Production cost

Before starting cryptocurrency trading in South Africa, know a little about the production cost that digital currency incurs. It will help you in acknowledging the jump in prices and when it plunged. It is the cost of infrastructure that includes electricity and computer systems that are used to generate cryptocurrencies. That cost adds up to your purchasing capacity.


The growing number of cryptocurrencies in the market also impact the price and valuation of other virtual coins. As opposed to a few handfuls of cryptocurrencies, the numbers have gone past 12,000 globally. However, traders have also grown, but not in equal proportion. Thus, they have plenty of options and to trade. And to sustain there, every cryptocurrency has to exhibit exemplary performance.

Is cryptocurrency trading allowed in South Africa?

The crypto industry is developing gradually in South Africa. So, a new set of rules and policies are underway. However, it is precisely legal in the country. So, traders can invest their money using a broker that offers them the best services. But it is recommended to follow the latest developments.
Cryptocurrency trading in South Africa is getting great acceptance among the masses.

Advantages and Disadvantages of Crypto Trading

Here are a few advantages and disadvantages of trading cryptocurrencies: 


  • Cryptocurrencies are decentralised
  • Self-governed and managed
  • Secure and private
  • Protection from inflation
  • One of the biggest ways to earn money
  • The transaction is free or has minimal charges
  • Transfer is quick
  • Traders can trade 24/7 and 365 days a year 


  • Scalability is one of the issues.
  • Non regulated.
  • Crypto CFD can be risky.
  • Lack of inherent value 


Cryptocurrency trading in South Africa is one of the objectives to help people carve their careers and earn their bread. However, you need to choose a broker that offers a few features that can benefit clients. Some of them are:

  • Flexible spreads
  • Plenty of cryptocurrencies for investment
  • Quick execution speed
  • No hidden fees
  • Customised trading accounts 

FAQ: How to trade cryptocurrencies in South Africa?

Is crypto trading legal in South Africa?

As per SARB (South Africa Reserve Bank), cryptocurrencies like bitcoin have no legal stature. Also, the country is due to set up regulations. However, there’s no policy of ban on trading. Thus, traders can invest their money. But they should also keep an eye on the latest developments that can keep them wary of the situation. 

How To Buy and Sell Cryptocurrencies?

For buying and selling cryptocurrencies, you need first to understand the concept of how to trade cryptocurrencies. Then, one needs to see the market to trade and choose a broker for entering it. Moreover, a trader should create a strategy and follow that until the desired profit is achieved. Also, watching the market carefully is necessary for traders. 

How to start trading cryptocurrencies in South Africa?

For trading cryptocurrencies in South Africa, you need to learn about the market and see how the country’s government accepts it. Moreover, see which brokerage firm is conducive for the crypto trading environment. Then, choose that and begin trading in the volatile market. Also, try to select a cryptocurrency trading platform that is beneficial in expediting trades. MetaTrader4 can be conducive. 

Why are cryptos ideal to trade?

Cryptos are ideal for trading because they provide opportunities for earning money quickly in the financial market. Also, everyone had seen the remarkable performance of cryptocurrencies during the peak pandemic time when other markets were down. Thus, every time it opportune period for investing, by following a better strategy in place. 

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