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How to Buy Ethereum South Africa – Cheapest Exchanges Revealed

Currently the second largest cryptocurrency by market cap, Ethereum is a favourite of crypto investors worldwide due to its smart contract applications and decentralised platform. With price up over 285% in 2021 alone, Ethereum looks set to continue its positive trajectory for the remainder of the year and beyond.

If you’re interested in Ethereum, this guide will show you How to Buy Ethereum South Africa – discussing everything you need to know to make an informed investment and highlighting how you can buy Ethereum commission-free.

How to Buy Ethereum South Africa – Step by Step Guide 2021

Are you wondering how to buy Ethereum in South Africa right away? Then look no further – the four steps below will show you how to do so without paying any commissions whatsoever.

  1. Open an account with Capital.comCapital.com allows you to buy cryptocurrency CFDs with 0% commission, making them a great broker for buying Ethereum. Simply head to their website, click ‘Join Now’, and create a new account by choosing a username and password.
  2. Upload ID – Capital.com abides by the strictest security guidelines, so you must verify yourself before trading. Upload proof of ID (copy of driver’s license or passport) and proof of address (copy of bank statement or utility bill) to verify your identity.
  3. Deposit – Capial.com deposits can be completed via credit/debit card, bank transfer, or various e-wallets.
  4. Buy Ethereum – Type in ‘ETH’ into the search bar at the top of the screen, choose the first option in the drop-down menu, and click ‘Buy’ on the following screen. 

What is Ethereum?

ethereum logo

Launched back in July 2015, Ethereum is a decentralised, open-source blockchain platform that allows smart contracts to be developed and initiated. The platform was devised in 2013 by Vitalik Buterin, a Russian-Canadian programmer who has been involved in the cryptocurrency space since 2011. The development of Ethereum was crowdfunded, with an initial supply of 72 million coins being available on the network.

It’s important to note that Ethereum is the platform that enables smart contracts and other practical applications. The digital currency that underpins this platform is called Ether (ETH). Ether is mainly used by developers to create and launch applications on the Ethereum platform.

These applications function using Ethereum’s blockchain network. Understanding blockchain technology is crucial to understanding what Ethereum is. Blockchain technology is essentially a decentralised ‘ledger’, which can be considered a copy of all transactions on the Ethereum network. As this ledger is decentralised, it allows all users to see the transactions that have been completed – nothing is hidden. Thanks to this decentralisation, transactions are verified by Ethereum users rather than one single entity, which ensures transactions are valid and prevents fraud.

Due to this high level of security provided by Ethereum’s blockchain, people can use Ethereum for many applications. As mentioned previously, one of the main selling points of the Ethereum platform is that it provides a medium to create and launch ‘smart contracts’. These smart contracts are pieces of software that complete ‘if/then’ functions. A good way to visualise a smart contract is by thinking about a vending machine.

buy ethereum ZA

If you wanted to purchase a chocolate bar from a vending machine, you’d need to provide the required amount of ZAR. The vending machine uses a type of smart contract to complete this transaction – ‘if’ you provide the ZAR, ‘then’ you receive the chocolate bar. No middleman is required to complete this transaction; it is all handled by the ‘smart contract’ software utilised by the machine.

If you take this idea and extrapolate it, you can imagine the benefits this technology would have. These smart contracts reduce the need for a middleman in various situations, decreasing the chance of fraud and reducing costs. Many top industries are set to begin using smart contracts more often in the years to come, including insurance companies, property firms, and even medical facilities.

In summary, Ethereum is the actual platform used to facilitate transactions and create these smart contracts. The digital currency that developers use to make these contracts (along with other applications) is Ether. Ether can also be sent between the platform’s users as an exchange of value. So, if you are looking to buy Ethereum with credit card or any other payment method, you are essentially investing in the whole Ethereum platform. If this platform rises in value due to more companies using the technology, then the price of Ethereum will increase.

Why Buy Ethereum? Ethereum Analysis

If you are wondering how to buy cryptocurrency and are interested in Ethereum, this section will highlight all of the vital information you need. Found below are three key reasons why you should consider adding Ethereum to your crypto portfolio.

Innovative Smart Contract Technology

As touched on in the previous section, Ethereum can change the way many businesses operate through its smart contract technology. A recent report by Market Research Future projected that the smart contracts market will be worth approximately $300 million by 2023. These smart contracts are so revolutionary for many reasons, such as their cost-effectiveness and inherent security.

As these smart contracts focus on facts and logic, there is no need for an intermediary to mediate – meaning contracts can be executed immediately. A prime example would be the purchase of property; a smart contract could be developed which automatically released the funding for a property exchange once the deeds had been signed. Furthermore, as these smart contracts are hosted on the blockchain, it’s nearly impossible to hack them, which theoretically makes them safer than using banks or other intermediaries.

So, if you are looking to buy Ethereum South Africa, you are essentially investing in the future of smart contract technology. With many industries warming to the idea of smart contracts, we could see Ethereum become even more valuable in the years to come. If this happens, who knows how high Ethereum’s price may go!

Incredible Price Potential

Talking of price, another reason to buy Ethereum is its price potential. At the time of writing, Ethereum is currently priced at $2,873, representing an all-time high for this cryptocurrency. Now, you may be thinking you have missed out on the bull run – but this isn’t the case. If you look at the price of Bitcoin, which is currently sitting at $57,897, you can see that Ethereum’s price still has a lot of growth potential before it reaches Bitcoin’s level.

ethereum stats

One of the reasons Ethereum’s price has skyrocketed in 2021 is that developers are using the platform for uses other than smart contracts, such as the creation of decentralised applications (dApps) and the sale of non-fungible tokens (NFT). Notably, NFTs have become increasingly popular in 2021 as they allow physical assets to be traded digitally, providing secure proof of ownership. And guess which platform is the go-to for these NFTs? That’s right – Ethereum!

Finally, the price potential for Ethereum can also be highlighted through its market cap. Ethereum is currently #2 in the world according to market capitalisation, growing to over $250 billion for the first time according to data from Statista. However, Bitcoin has a market cap of over $1 trillion and is the fastest asset in history to reach this figure. Although Ethereum is currently much smaller than Bitcoin, this can be seen as a good thing. It highlights that there is still so much room to grow for this cryptocurrency, which means there’s plenty of returns still to be made by investors.

Exposure to the Cryptocurrency Market

Another reason to buy Ethereum in South Africa is that it will provide you with exposure to the cryptocurrency market as a whole. Buying Ethereum with the best cryptocurrency trading platforms will provide you with an asset that adds an element of diversification to your portfolio. You can even boost this diversification by adding other non-crypto holdings to your portfolio, which is straightforward to do when using a reliable broker such as eToro.

Furthermore, Ethereum is also positively correlated with other cryptocurrencies – meaning that you do not have to buy Bitcoin to gain exposure to its price movements. In addition to this, if there is some positive cryptocurrency news that is not directly related to Ethereum, due to the positive correlation between digital currencies, it is likely that Ethereum’s price will also receive a boost. This is another excellent benefit of buying Ethereum, as you essentially gain access to potential returns generated by the crypto market as a whole.

Ethereum Price

When discussing how to buy Ethereum South Africa, it’s crucial to analyse where the price is currently and where it could go. As mentioned in the previous section, Ethereum tends to correlate with other cryptocurrencies – meaning that if the crypto market is in an uptrend, then chances are Ethereum’s price will follow suit.

Since the start of 2021, Ethereum has been on an incredible upward trajectory, increasing over 285% in the year-to-date. To put this into perspective, if you’d invested 20,000 ZAR on January 1st, your investment would now be worth 77,000 ZAR! This momentum shows no signs of stopping, with the price chart highlighting clear higher-highs and lower-lows, which indicate strong bullish momentum.

ethereum price chart

If you’re researching how to buy Ethereum South Africa, you’re probably wondering if this momentum will stop and when would be a good time to enter the market. The reality is, it’s difficult to say. When cryptocurrency trading or stock trading, timing the market is a task that requires intense research and the understanding that you could end up losing money.

Ethereum’s price is currently sitting at $2,873 – meaning you would need a considerable investment to buy just one coin. However, many of the top South African brokers (such as eToro) will allow you to purchase fractions of a coin, meaning you do not need to spend a lot of money when investing in the crypto market. eToro enables you to invest from only $25 (around 362 ZAR), allowing you to test the waters before investing more significant amounts.

Ethereum to Rands

With Ethereum currently sitting at $2,873, this means you will need 41,644 ZAR to purchase one coin. If you are researching how to buy Ethereum South Africa, this might seem steep. However, compared to Bitcoin, it can actually be thought of as a relatively good price to get into the crypto market – with Bitcoin priced at $57,897, this would mean you would need 839,228 ZAR to buy just one coin!

However, as touched on previously, you can buy fractions of a coin with eToro. Many retail investors choose to purchase smaller amounts of Ethereum on a regular basis rather than buying one or two coins outright. This allows them to implement a dollar-cost averaging approach, which helps take emotions out of investing.

Ethereum Price Prediction

When thinking about how to buy Ethereum in South Africa, it’s a good idea to examine which levels price could reach and in what sort of timeframe. Some industry experts, including billionaire investor Mark Cuban, believe that Ethereum will overtake Bitcoin as the world’s most valuable cryptocurrency in the years to come. This is down to Ethereum’s smart contract offerings, which are set to revolutionise how many companies conduct business.

capital.com ethereum price chart

Furthermore, many top analysts and algorithms have made predictions about Ethereum’s price over the next five years. Some analysts have stated that they believe Ethereum will double in price before the end of 2021, whereas others think it will double in price over a more extended period. Either way, when researching how to buy Ethereum South Africa, it’s vital to examine all of the information out there and make your own decision rather than listening to one particular source.

Ways to Buy Ethereum

Another aspect to consider when examining how to buy Ethereum South Africa is the different methods you can use to facilitate your investment. The sections below will show you how to buy Ethereum with credit card, PayPal, and Bitcoin.

Buy Ethereum with Credit Card or Debit Card

One of the best ways to invest in Ethereum is to buy Ethereum with credit card or debit card. Many top brokers allow you to fund your account using your credit or debit card – meaning that you can use this balance to purchase Ethereum through their online platform.

It’s worth noting that some crypto exchanges will charge a higher fee when you buy Ethereum with credit card or debit card. However, eToro allows you to fund your account without having to pay any fees – regardless of which deposit method you choose. This will enable you to invest in Ethereum cost-effectively.

Buy Ethereum with PayPal

paypal logo

Another popular method of buying Ethereum is by using PayPal. Notably, only US residents can currently buy Ethereum directly through PayPal’s online platform. However, there are other indirect ways to buy Ethereum with PayPal.

If you’re wondering how to buy Ethereum South Africa, many top brokers and crypto exchanges allow you to fund your account using PayPal and then use this funding to purchase Ethereum. Brokers such as eToro do not charge a fee for this service – meaning you can buy Ethereum in a streamlined and inexpensive manner.

Buy Ethereum with Bitcoin

Another option you have when deciding how to buy Ethereum in South Africa is to use Bitcoin to fund your purchase. Many of the best crypto exchanges and bitcoin exchanges will allow you to use your Bitcoin balance to buy Ethereum. This can all be completed within the online platform.

Alternatively, if you hold Bitcoin in your crypto wallet, you could even transfer it to your desired crypto exchange and trade it for Ethereum. Usually, this is accompanied by a small fee, denoted through the exchange’s spread. At the time of writing, 1 BTC would get you 19.44 ETH.

Where to Buy Ethereum in South Africa

One of the most important aspects to consider when discussing how to buy Ethereum South Africa is the broker or crypto exchange you will use to facilitate your investment. When researching which trading platform to choose, it’s vital to consider multiple factors to make the best decision for your unique circumstances.

Found below are our two recommendations on where to buy Ethereum in South Africa, with particular attention paid to each trading platform’s fee structure and the features they offer.

1. eToro – Overall Best Broker to Buy Ethereum in South Africa

Our number one choice when it comes to deciding where to buy Ethereum in South Africa is eToro. eToro is one of the world’s most popular broker, boasting over 20 million users across the globe. Furthermore, eToro has a solid reputation as a trustworthy broker, ensuring that all users can trade with confidence.

One of the main reasons we recommend eToro when buying Ethereum is that they do not charge any commissions. This is in stark contrast to other brokers and crypto exchanges which tend to charge from 0.1% right up to 3% in commissions. As eToro does not charge these fees, it allows traders to invest in a cost-effective manner.

etoro ethereum price chart

Instead of commissions or transaction fees, eToro utilises a spread-based structure. This spread refers to the difference between the bid and ask prices of an asset and tends to be relatively small in liquid markets. eToro currently offers a spread of 1.90% when buying Ethereum, which remains competitive with other trading platforms.

Another great feature offered by eToro is their CopyPortfolio selection. These CopyPortfolio’s are actively managed investment funds, which do not charge any management fees. Due to this, they offer a fantastic way for beginner investors to gain exposure to a professionally managed portfolio in an inexpensive way. What’s more, eToro even provides a ‘CryptoPortfolio’ which invests in a wide variety of digital currencies, including Ethereum.

etoro cryptoportfolio

Finally, eToro makes it super easy to sign up and begin investing in Ethereum – users can complete the whole process in less than ten minutes. New users must make a minimum deposit of $200 (around 2,900 ZAR), which can be achieved using a credit/debit card, bank transfer, or various e-wallets. The great thing is, unlike some other brokers, eToro does not charge any deposit fees regardless of which method you choose.

Pros

  • Crypto exchange with 16 digital currencies
  • Competitive spread structure
  • Supports commission-free Ethereum investing
  • Built-in cryptocurrency wallet
  • 24/5 customer phone support

Cons

  • Some inactivity and withdrawal fees

Cryptoassets are highly volatile unregulated investment products. No investor protection.

2. Capital.com – Low-Cost Ethereum CFD Broker in South Africa

An alternative to eToro when it comes to where to buy Ethereum in South Africa is Capital.com. Capital.com is well known worldwide as a reliable and low-cost broker and is regulated in the UK by the FCA and CySEC.

capital.com ethereum price chart

As Capital.com primarily focus on CFD trading, when you buy Ethereum, you will not actually ‘own’ the digital currency. Instead, you will own a contract that is based on Ethereum’s price. This provides a simple and effective way to speculate on Ethereum’s value. What’s more, Capital.com also offer leverage of up to 1:2 for cryptocurrencies – meaning you can essentially double the potential returns you may make.

Similar to eToro, Capital.com also utilise a spread in their fee structure. These spreads tend to be relatively tight; however, they can vary depending on market conditions. Furthermore, Capital.com do not charge any inactivity fees or monthly account fees.

Finally, Capital.com allow minimum deposits of only $20 (around 289 ZAR) when using a credit/debit card; however, this rises to $250 (around 3623 ZAR) if you fund your account via bank transfer. However, deposits are entirely free with Capital.com, and the broker also does not charge any withdrawal fees.

Pros:

  • Cost-effective investing in Ethereum
  • Offers tight spreads
  • Up to 1:2 leverage when trading cryptos
  • AI assistant spots weak points
  • Low minimum deposit amount

Cons:

  • Cannot build custom trading strategies
  • CFDs only

Cryptoassets are highly volatile unregulated investment products. No investor protection.

How to Buy Ethereum Tutorial

The final section of this guide will show you how to buy Ethereum South Africa in under ten minutes with eToro. We recommend using eToro to buy Ethereum as they do not charge commissions and allow you to invest from as little as $25 (around 362 ZAR).

Step 1: Open an eToro Account

Head to eToro’s website and click the ‘Join Now’ button in the top right of the screen. On the page that follows, simply enter your email address and choose a username and password.

etoro sign up

Step 2: Verify ID and Address

Once you have created your account, you’ll have to verify yourself before you can begin trading. Luckily this is super easy to do and can be completed online. Upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). eToro will then verify the documents, which usually only takes a few minutes.

Step 3: Make a Deposit

eToro requires new users to deposit a minimum of 3,000 ZAR before trading. Users can complete this deposit via credit/debit card, bank transfer, or various e-Wallets.

Step 4: Search for Ethereum

Click into the search bar at the top of the screen and type in ‘Ethereum’. Click on the first option in the drop-down menu, then click ‘Trade’ on the following screen.

buy ethereum south africa

Step 5: Buy Ethereum

In the order box that appears, all you have to do is enter the amount of money you’d like to invest – eToro requires a minimum investment of only $25 (around 362 ZAR). After this, double-check everything is correct, and click ‘Open Trade’.

buy ethereum in south africa

And that’s it! You’ve just invested in Ethereum – totally commission-free!

How to Buy Ethereum South Africa – Conclusion

Throughout this guide, we have discussed everything you need to know about Ethereum – analysing its features and discussing its prospects. With Ethereum’s price rising over 1300% in the past year alone, this cryptocurrency shows no signs of stopping and represents a fantastic investment opportunity for retail and professional investors alike.

If, like many others, you are interested in buying Ethereum in South Africa – then we recommend using eToro. Due to their commission-free crypto investing and competitive spreads, eToro ensures that investing in Ethereum is as inexpensive as possible. What’s more, eToro’s account opening process has been streamlined in such a way that you can be set up and ready to invest in under ten minutes.

eToro – Best Broker to Buy Ethereum in South Africa

Cryptoassets are highly volatile unregulated investment products. No investor protection.

FAQs

How can I buy Ethereum with rand?

You can buy Ethereum with rand by using a reliable broker such as eToro. All you have to do is sign up for an account and make a deposit via credit/debit card, bank transfer, or e-wallet. Once the rand is in your account, you can use this balance to buy Ethereum through eToro's online platform. Currently, one Ethereum coin will cost approximately 41,412 ZAR.

Should I buy Ethereum now?

The answer to this question depends on your unique circumstances and investment goals. With more and more money flowing into DeFi projects, Ethereum looks set to increase in popularity over the coming years. However, it may be more of a gradual increase – so if you are happy to invest long term, then it's worth considering.

What is Ethereum cash?

Ethereum Cash (ECASH) is a cryptocurrency token that can be used on Ethereum’s platform. However, this token has a tiny market cap and is not to be confused with Ether (ETH).

What can I buy with Ethereum?

Due to Ethereum’s increase in popularity in recent years, many online stores are now accepting Ethereum as a method of payment. All you have to do is use your Ether holdings in your crypto wallet to pay for the product or service. There are even some travel agencies and private jet services that accept ETH as a form of payment!

Where to buy Ethereum in South Africa?

There are now many brokers and crypto exchanges that offer their services in South Africa, allowing people who reside in the country to buy and sell Ethereum (among other cryptos). However, our recommended broker to buy Ethereum in South Africa is eToro, as they allow you to buy Ethereum with credit card/debit card, bank transfer or e-wallet.

About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.

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