Buying Bitcoin with a credit card can make it easier for South African traders and investors to get into the world of cryptocurrency.
In this guide, we’ll show you how to buy Bitcoin with a credit card in South Africa.
How to Buy Bitcoin with Credit Card – Step by Step Guide 2020
Want to learn how to buy Bitcoin with a credit card in South Africa right away? We’ll show you how to get started in just 4 simple steps.
- Open an account with eToro – eToro is our top-rated Bitcoin exchange. Click here to head to the website and open a new account.
- Upload ID – eToro requires you to verify your ID to comply with financial regulations.
- Deposit – Deposit at least $200 USD to your account using a Visa or Mastercard.
- Buy Bitcoin – Search for ‘BTC,’ click ‘Trade,’ and buy Bitcoin with a credit card.
Where to Buy Bitcoin in with Credit Card in South Africa
In order to buy Bitcoin with a credit card in South Africa, you’ll need a crypto exchange that accepts credit card payments. Let’s take a closer look at 2 of our top-rated best Bitcoin brokers in South Africa.
1. eToro – Buy Cryptocurrency with 0% Commission
eToro is our number one recommended Bitcoin trading platform for South African traders. This platform offers 15 of the most popular digital currencies, including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and more.
One of the great things about eToro is that you can choose to either buy cryptocurrencies outright or trade with CFDs (contracts for difference). If you choose to buy Bitcoin outright, you can store your coins in eToro’s built-in crypto wallet. If you want to trade with CFDs, you don’t have to worry about a digital wallet and you can leverage your trades up to 2:1.
Whichever way you choose to trade, eToro charges absolutely no commissions. You just pay a fixed spread of 0.75% for Bitcoin. Notably, there’s no additional spread when you sell Bitcoin, so this is a pretty inexpensive trading fee. Bitcoin also doesn’t charge any deposit fees when you fund your purchase with a credit card.
eToro offers its own web and mobile trading platform that comes complete with over 100 technical studies and drawing tools. So, it’s good for active Bitcoin traders as well as long-term investors. eToro also offers a social trading network, so you can see what other traders think about Bitcoin’s prospects. If you want to automate your portfolio, eToro’s copy trading feature enables you to mimic the moves of more experienced traders.
eToro is regulated by the UK’s Financial Conduct Authority (FCA). The broker accepts Visa and Mastercard credit cards, plus debit cards, PayPal, Neteller, Skrill, and bank account transfers. You must deposit a minimum of 200 USD when opening a new account.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Best Bitcoin CFD Trading Platform South Africa
If you want to trade Bitcoin CFDs instead of owning this cryptocurrency outright, Capital.com is a good option. This cryptocurrency trading platform offers 0% commission trading and spreads of just 0.25% for BTC trading. Capital.com also doesn’t charge any deposit or withdrawal fees when you make a credit card payment.
Capital.com offers a wide range of cryptocurrencies to trade in addition to Bitcoin. Notably, you can trade digital currencies against fiat currencies other than the US dollar. So, if you want to trade BTC/GBP or BTC/EUR, you easily can.
Another thing we like about Capital.com is that it offers a comprehensive web and mobile trading experience. The technical analysis platform includes dozens of technical studies, plus a news feed and economic calendar to help you stay on top of the market. Even better, the platform uses artificial intelligence to monitor your trading patterns and suggest ways to improve your win rate.
Capital.com also stands out for its educational materials. The broker has a library of videos that explain the basics of CFD trading as well as a mobile app dedicated entirely to trader education. So, if you’re new to the market, Capital.com is a great place to get started trading.
Capital.com is regulated by the UK FCA and offers 24/7 customer support. The broker accepts all Visa and Mastercard credit cards and debit cards.
71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
How to Buy Bitcoin with Credit Card Today
Ready to buy Bitcoin today? We’ll show you how to buy Bitcoin with a credit card using eToro, which charges zero deposit fees and no commissions.
Step 1: Open an Account with eToro
To open an account with eToro, head to the broker’s website and click ‘Join Now.’ You can sign up using your email or by logging in with Google or Facebook.
Step 2: Upload ID
eToro requires you to verify your identity to comply with FCA regulations. You can complete this step online by uploading a copy of your driver’s license or passport. You’ll also need to upload a proof of address such as a bank statement or utility bill.
Step 3: Deposit
Next, deposit funds into your eToro account using any Visa or Mastercard credit card. eToro also accepts debit cards, bank account transfers, PayPal, Neteller, or Skrill for payments. You must deposit a minimum of 200 USD.
Step 4: Buy Bitcoin
Now you’re ready to buy Bitcoin with eToro. Search for ‘BTC’ and click ‘Trade’ when it appears in the drop-down menu. You will see the current exchange rate for Bitcoin from USD.
Enter the amount of Bitcoin you want to buy in USD and choose whether to add a stop-loss or take profit to your order.
Once your trade is ready, click ‘Open Trade’ to buy Bitcoin.
Benefits of Buying Bitcoin with Credit Card
Why should you buy Bitcoin with a credit card in South Africa as opposed to using other payment methods?
Here, we’ll cover some of the key advantages of buying Bitcoin with a credit card.
The number one reason to buy Bitcoin with a credit card is because it’s easy. You don’t have to go through the complex process of using a Bitcoin ATM, finding an exchange that will convert cash to digital currency, or something else.
When you are buying Bitcoin with a credit card, all you have to do is enter your credit card number and your Bitcoin exchange will take care of the rest. It’s one of the simplest ways to convert fiat currency to cryptocurrency.
Another benefit to buying Bitcoin with a credit card (or a debit card, for that matter) is that it’s fast.
When you fund a cryptocurrency trade with a bank account, it can take up to several days for the money to appear in your trading account. On the other hand, credit card deposits are available for trading instantly.
That means there’s no waiting around when you use a credit card. You can buy Bitcoin and other digital currencies in minutes.
When you buy Bitcoin with a credit card in South Africa, you also get extra security.
Since credit card payment is nearly instantaneous, there’s very little time for a hacker to insert themselves into your transaction. This is important when so many cryptocurrency exchanges have fallen prey to hackers, particularly during the pandemic.
If your credit card is connected to a mobile payment app like Apple Pay or Google Pay, you also get the benefit of making payments right from your smartphone.
That’s a big plus since so many Bitcoin wallets and crypto exchanges are available on mobile devices. With Apple Pay or Google Pay, it’s seamless to buy Bitcoin and store it in your mobile wallet.
Bitcoin Credit Card Regulation
Buying Bitcoin with a credit card does mean you should know some things about how credit card companies view digital currencies.
For one thing, many credit card providers will not allow you to claim rewards for crypto purchases. So, if you normally receive 1% cash back for your credit card account, you probably won’t get that when you buy Bitcoin with a credit card. That said, Visa just introduced the first Bitcoin rewards credit card – so rewards may be coming soon.
Another thing to note is that chargebacks aren’t possible when you use a credit card to buy Bitcoin. Transactions are handled anonymously on the Bitcoin blockchain, so there’s no way for a credit card company to undo your transaction.
Can I Buy Bitcoin with Credit Card with No Verification?
Whether or not you need to verify your identity when buying Bitcoin with a credit card depends on the exchange you use. More specifically, it depends on whether your crypto exchange is regulated.
Bitcoin exchanges that are regulated by South Africa’s Financial Sector Conduct Authority (FSCA) or the UK Financial Conduct Authority (FCA) require users to verify their identity. You might be able to buy Bitcoin using a credit card payment without verification, but you will need to provide ID before you can withdraw any funds from your trading account.
Unregulated crypto exchanges often do not require you to verify your identity. However, beware of unregulated exchanges. Since they are not overseen by any financial authority, there are no investor protections. Many unregulated exchanges have also been targeted by hackers.
Buying Bitcoin with a credit card comes with several advantages, including simplicity, speed, and security.
Now that you know how to buy Bitcoin with a credit card in South Africa, it’s time to get started. Just click the link below to sign up for an eToro account today!
67% of retail investor accounts lose money when trading CFDs with this provider.
Can I buy Bitcoin with a credit card in South Africa?
Yes, you can buy Bitcoin with a credit card in South Africa. You must find a crypto exchange that accepts credit cards, like eToro.
How do I buy Bitcoin with a credit card in South Africa?
You can buy Bitcoin with a credit card simply by using your card to fund your Bitcoin exchange account.
Are there fees for using a credit card to buy Bitcoin?
Many exchanges charge extra fees - up to 5% - when you buy Bitcoin with a credit card. We recommend using an exchange like eToro that charges no deposit fees for credit card transactions.
Where can I buy Bitcoin with a credit card in South Africa?
You can buy Bitcoin with a credit card at a crypto exchange like eToro. eToro charges no commissions and no deposit fee when you pay with a credit card.
Can I buy Bitcoin with a credit card without verification?
You can buy Bitcoin without verification by using an unregulated crypto exchange. However, we recommend regulated exchanges like eToro because they are typically safer for investors.