Summary
Cryptocurrency is legal in South Africa, with the government taking steps towards regulation. Popular payment methods include bank transfers and credit cards. The South African Rand (ZAR) is supported by several exchanges. The Financial Sector Conduct Authority (FSCA) and the South African Reserve Bank (SARB) are key regulatory bodies overseeing crypto activities in the country. Here are the best crypto exchanges in South Africa:
Best Crypto Exchanges in South Africa
When selecting a cryptocurrency exchange in South Africa, it’s essential to consider factors such as supported coins, trading fees, deposit methods, and KYC requirements. South African traders typically prefer exchanges that support the local currency (ZAR) and offer convenient payment methods like bank transfers and credit cards.
Here’s a comparison of the best crypto exchanges in South Africa:
1. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
2. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
300x
Spot Fees:
0.05%
Futures Fees:
0.01%/0.04%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 300x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 300x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
3. Bitget
Users:
23m
Free Demo:
Mobile App:
Bonus
$6,200
Cryptos:
840+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Over 800 cryptos
- Fair trading fees
- Great for EUR SEPA transfers
- 24/7 customer support
- Very beginner friendly
Cons
- Not available in the US
- No TWAP order supported
- Mandatory KYC for new accounts
Overview
Bitget is a true powerhouse for crypto traders from over 100 supported countries. What makes Bitget special is its beginner-friendly trading platform, which has over 800 supported cryptocurrencies. With so many supported cryptocurrencies, if you are looking to trade altcoins, Bitget might be one of your best shots.
With fiat support for 6 currencies, including EUR and RUB, Bitget is a top choice, especially for European users looking to deposit and withdraw funds in their native currency with ease. The 0% fee for SEPA transactions makes Bitget stand out. Credit card payments are also supported.
Experienced crypto traders can trade futures contracts on Bitget with 125x leverage on selected assets such as Bitcoin or Ethereum.
The spot trading fees start at 0.1% for makers and takers, which is very common in the industry. For futures traders seeking leverage for their day trading activities, Bitget charges very low fees of 0.02% maker and 0.06% taker.
4. OKX
Users:
50m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
350+
Leverage:
100x
Spot Fees:
0.14%/0.1%
Futures Fees:
0.01%/0.06%
Pros
- Highly efficient trading platform
- 350+ assets
- Free demo trading
- Fiat supported
- 24/7 customer support
Cons
- Not available in the US
- Not beginner-friendly
- Limitations and restrictions in Europe
OXK Overview
OKX is the third largest crypto exchange sorted by daily derivatives volume. This is no surprise since OKX’s focus lies in offering a high-efficiency leverage trading experience. While the UI is not necessarily beginner-friendly, it is one of the fastest and most reliable platforms we have come across.
Over 300 coins are supported on OKXs spot market while 250 contracts are available for futures trading with up to 100x leverage. What makes OKX stand out is its extensive liquidity which are without a doubt at the top of the game.
With low futures fees starting at 0.02% maker and 0.05% taker, OKX ensures a cost efficient derivatives trading environment. Spot trading fees however are on the more expensive side starting at 0.14% for makers and 0.23% for takers.
You can easily deposit funds using your credit/debit card. Additionally, you can deposit and withdraw fiat using your personal bank account, making OKX a reliable platform for on- and off-ramp funds.
5. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
Is Crypto Legal and Regulated in South Africa?
Cryptocurrency is legal in South Africa, but the regulatory landscape is evolving. The South African Reserve Bank (SARB) has taken a proactive approach to crypto regulation. In 2020, the SARB published a position paper on crypto assets, laying the groundwork for future regulations.
The Financial Sector Conduct Authority (FSCA) is the primary regulatory body overseeing crypto activities in South Africa. In October 2020, the FSCA declared crypto assets as financial products under the Financial Advisory and Intermediary Services (FAIS) Act. This move brought crypto asset service providers under regulatory oversight.
The Intergovernmental Fintech Working Group (IFWG) has also played a crucial role in shaping crypto regulations. In June 2021, the IFWG released a position paper on crypto assets, recommending a phased approach to regulation.
While cryptocurrency is legal, users should be aware that they are responsible for complying with tax laws and reporting their crypto transactions to the South African Revenue Service (SARS).
Is Crypto Taxable in South Africa?
Yes, cryptocurrency is taxable in South Africa. The South African Revenue Service (SARS) treats crypto assets as assets of an intangible nature. Profits from crypto transactions are subject to capital gains tax or income tax, depending on the nature of the transaction.
For individuals, capital gains tax rates range from 0% to 18%, depending on the taxpayer’s overall taxable income. Companies are subject to a flat rate of 22.4% on capital gains. If crypto trading is deemed to be carried out as a business or trade, the profits may be taxed as normal income, with rates ranging from 18% to 45% for individuals and 28% for companies.
SARS requires taxpayers to declare all crypto-related income and capital gains. This includes profits from mining, trading, and the sale of goods or services in exchange for cryptocurrencies. SARS provides specific guidance on crypto asset taxation, including examples of taxable events.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in South Africa.
How to Buy Crypto in South Africa
Buying cryptocurrency in South Africa has become increasingly accessible. For South African residents, we recommend using Bybit due to its user-friendly interface, competitive fees, and support for the South African Rand (ZAR).
Here’s a step-by-step guide on how to buy cryptocurrencies like Bitcoin, Ethereum, or USDT in South Africa:
- Choose a Crypto Exchange: Select a reliable exchange that accommodates ZAR and provides suitable payment options. Check the KYC requirements of the exchange to ensure they meet your preferences.
- Create an Account and Verify Your Identity: Sign up on the selected exchange and complete the KYC process by submitting the necessary identification documents, which usually include proof of identity and proof of address.
- Fund Your Account: Deposit ZAR into your exchange account using popular payment methods in South Africa, such as bank transfers (EFT), credit/debit cards, or mobile payment services like Ozow or InstantEFT.
- Select Your Cryptocurrency: Go to the trading section of the exchange and choose the cryptocurrency you wish to buy, such as Bitcoin (BTC), Ethereum (ETH), or Tether (USDT).
- Complete the Transaction: Input the amount of ZAR you wish to spend or the quantity of crypto you intend to purchase. Review the transaction details, including any applicable fees, and confirm the transaction.
- Secure Your Funds: After your purchase, consider transferring your cryptocurrencies to a secure wallet. While you can use the exchange’s wallet for smaller amounts, a hardware wallet or a trusted software wallet is recommended for larger holdings.
Make sure to maintain a record of all your cryptocurrency transactions for tax reporting. Always verify wallet addresses before transferring funds, and stay alert for possible scams or phishing attacks.
Best Crypto Wallets in South Africa
Choosing a secure wallet is essential for safeguarding your cryptocurrency investments in South Africa. Here are some top wallet options for South African users:
Hardware Wallets: Ideal for long-term asset storage due to their robust security.
- Ledger Nano X or Nano S: Provides exceptional security for long-term storage.
- Trezor Model T or One: Another great hardware wallet option known for its user-friendly interface.
Software Wallets: Convenient for regular transactions and easy access.
- Trust Wallet: A flexible mobile wallet that supports various cryptocurrencies.
- Exodus: Available on both desktop and mobile, this wallet features an intuitive design and integrated exchange capabilities.
- MetaMask: Best suited for Ethereum and ERC-20 tokens, it is popular among DeFi enthusiasts.
Exchange Wallets: Most major exchanges come with built-in wallets. While these are convenient for trading, they are not advisable for holding large amounts of cryptocurrency over the long term.
Paper Wallets: A physical, offline storage method for advanced users seeking maximum security.
When selecting a wallet, take into account factors like security features, supported cryptocurrencies, user-friendliness, and backup options. For significant investments, using a combination of a hardware wallet for long-term storage and a software wallet for daily transactions is often the safest strategy.
Bottom Line
For South African crypto enthusiasts, the best crypto exchanges in South Africa offer a balance of security, variety, and ease of use. Bybit stands out as our top recommendation, providing a wide range of cryptocurrencies, competitive fees, and strong security measures. For those seeking an alternative, MEXC offers an extensive selection of altcoins and attractive trading fees. Both exchanges support ZAR deposits and withdrawals, making them ideal choices for South African traders looking to enter the crypto market efficiently and securely.
