How to Make Money with Bitcoin South Africa

Want to make money on the Bitcoin boom? In this guide, we cover everything you need to know about how to make money with Bitcoin in South Africa.

How to Make Money with Bitcoin Quick Steps

You can learn how to make money with Bitcoin in South Africa in just 4 quick steps:

  1. Open an eToro account – eToro is our top-rated crypto exchange. Click ‘Join Now’ and verify your identity to open an account.
  2. Deposit funds – Make a minimum deposit of $200 USD by credit card, debit card, PayPal, or bank transfer.
  3. Analyse Bitcoin – Use eToro’s analysis tools to find the perfect entry point into Bitcoin.
  4. Trade Bitcoin – Once you’ve found the right time to trade, click ‘Trade’ and enter the amount of Bitcoin you want to buy. Then click ‘Open Trade.’

How to Make Money with Bitcoin – 5 Top Methods

There’s more than one way to make money on Bitcoin. Let’s take a look at the 5 best methods you can use to learn how to make money with Bitcoin in 2021.

Bitcoin Trading

One of the most popular ways for how to make money using Bitcoin is through active trading. With Bitcoin trading, you actively buy Bitcoin when the price is low and sell it when the price is high. Alternatively, you can short-sell Bitcoin when the price is high and sell when the price drops.

Wondering how to make money on Bitcoin this way when the cryptocurrency’s price is so volatile? The key is technical analysis.

You need to use price charts to track the minute-to-minute and day-to-day price changes of Bitcoin. You can watch for common chart patterns and use technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) to determine when the price of Bitcoin is about to pop.Bitcoin Technical Analysis on eToro

To be sure, cryptocurrency trading is risky. The price of Bitcoin can swing rapidly up and down within a single day of trading, and it’s hard to predict where the price of Bitcoin is headed.

The best advice we can offer for how to make money on Bitcoin trading is to limit your losses as much as possible. When a trade goes against you, get out quickly rather than let emotion get the better of you. It’s better to live to trade again another day than to bet your entire trading account on a single bad Bitcoin trade.

Investing in Bitcoin – Holding

Instead of trading, you can also make a long-term investment in Bitcoin. This is one of the easiest methods to follow for new traders who are wondering how to make money with Bitcoin in South Africa.

To invest in Bitcoin, you simply buy cryptocurrency and then hold it in your portfolio for several years. This strategy takes patience, but it can pay off – if you had bought 1 Bitcoin at the start of 2019, you would have a gain of over 1,400% today!Bitcoin Long Term Performance

The key to learning how to make money on Bitcoin investing is to not be tempted to sell when the price starts going up, especially after a long period of low prices. If you sell too soon, you could end up missing out on further gains.

This strategy for how to make money with Bitcoin in 2021 is best for South African investors who truly believe in Bitcoin and think that the Bitcoin blockchain could largely replace fiat currencies in the future. If that happens, Bitcoin will be worth a lot more than the $55,000 USD it’s valued at today.

Invest in Bitcoin Stocks

Wondering how to make money using Bitcoin without actually owning Bitcoin? One of the best options is to buy shares of Bitcoin stocks.

Bitcoin stocks is a broad term that encompasses stocks of companies that are working on blockchain technology, companies that supply processors and computing hardware for Bitcoin mining, and companies that facilitate the Bitcoin economy.

Let’s take a quick look at some of the top Bitcoin stocks you can buy today:

  • CoinbaseCoinbase is a global Bitcoin exchange that recently held its IPO on the NASDAQ stock exchange in the US.
  • Nvidia – Nvidia produces graphic processing units (GPUs), which are widely used for Bitcoin mining.
  • Visa – Visa recently announced its first Bitcoin rewards credit card and has been investing in blockchain technology for its own financial network.
  • Riot Blockchain – Riot Blockchain is a cryptocurrency mining operation with plans to triple its computing power this year. Since the start of 2021, Riot Blockchain shares are up more than 120%!

Riot Blockchain Stock Chart

You can also get broad exposure to Bitcoin stocks through the Amplify Transformational Data Sharing ETF – better known by its ticker symbol, BLOK.

Bitcoin Mining

Another route for how to make money with Bitcoin in 2021 is to go straight to the source: mine Bitcoin.

To understand what Bitcoin mining is, it’s important to know how the Bitcoin blockchain works. When a transaction is made using Bitcoin, that transaction is bundled with others and turned into a block. Bitcoin miners then use computer algorithms to find what’s known as the block’s hash key to verify the transactions in the block. When a miner succeeds in calculating the hash key, they’re rewarded with Bitcoin.

Mining for Bitcoin is extremely competitive, especially since the rising price of this cryptocurrency has encouraged more miners to get into the game. If you’re serious about mining, you’ll likely need to invest in dedicated servers to give you an advantage over other miners. That said, anyone with a computer can try their hand at mining.

Bitcoin rewards are distributed every 10 minutes. For calculating a single hash, you receive 6.25 BTC – the equivalent of over $340,000 USD at today’s Bitcoin prices. So, even receiving a single block reward from Bitcoin mining can make your initial investment in mining hardware worthwhile.

Bitcoin Lending

A relatively safe option for how to make money using Bitcoin is through lending. Bitcoin is designed to work like cash, so you can put it in a digital savings account just like cash and make interest when your coins are lent out.Bitcoin Lending Overview

There are several services that lend out your Bitcoin automatically, including Bitbond, Unchained Capital, and Zipmex. You also have the option to lend out Bitcoin on your own using decentralized finance (DeFi) apps or by sending Bitcoin to friends and family.

Bitcoin lending can offer very high-interest rates – in some cases, up to 15%. That’s much higher than the rates you can get for putting your fiat currency in a bank account.

However, it’s important to recognize that Bitcoin lending is riskier than traditional lending. Since Bitcoin is so volatile, your coins could lose value by the time they’re returned to you with interest. In addition, Bitcoin isn’t protected by any deposit insurance like traditional bank accounts are, so you could lose your coins if the borrower defaults.

How to Make Money Using Bitcoin – Tutorial

If you want to make money with Bitcoin by trading or investing, you’ll need a cryptocurrency exchange. We recommend eToro since it offers 0% commission trades, low spreads, and excellent analysis tools. eToro also includes a social trading network, so you can see what more experienced Bitcoin traders think about the cryptocurrency’s price movements.

To help you get started, we’ll show you how to make money with Bitcoin in South Africa using eToro.

Step 1: Open an eToro Account

The first step to how to make money using Bitcoin is to open an eToro account. Head to the broker’s website and click ‘Join Now’ to create a new account. Enter your email and password to open a trading account or log in with your Google or Facebook credentials. You can also download the eToro app for iOS or Android and sign up on mobile.eToro Homepage

67% of retail investor accounts lose money when trading CFDs with this provider.

eToro is a regulated cryptocurrency exchange, so you will be required to verify your identity before withdrawing funds. You can complete this step now by uploading a copy of your driver’s license or passport along with a copy of a recent utility bill or bank statement.

Step 2: Deposit Funds

Next, add money to your new account – this is the money that you will use to buy Bitcoin. eToro requires a minimum deposit of $200 USD, which you can pay by credit card, debit card, bank transfer, PayPal, Neteller, or Skrill. Credit, debit, and electronic transfers are available in your account immediately.Deposit funds to your eToro account

Step 3: Analyse Bitcoin

Now it’s time to do your research. Search for ‘Bitcoin’ in the eToro dashboard and click on it to view the BTC analysis page.

If you’re interested in actively trading Bitcoin, you can use eToro’s charting interface and technical studies to find the best price to buy Bitcoin. For long term investors, eToro offers a professional analysis of Bitcoin – so you can see whether crypto analysts believe the coin will continue to rise in value or fall in the next 12 months. eToro Bitcoin Research

67% of retail investor accounts lose money when trading CFDs with this provider.

In addition, traders and investors alike can use eToro’s social network to find out what other Bitcoin investors think about the coin’s prospects. eToro also has a market sentiment gauge, which shows whether traders are buying or selling the digital currency right now.

Step 4: Trade Bitcoin

Once you’ve found the perfect time to buy Bitcoin, you can execute your trade using eToro. From the BTC analysis page, click ‘Trade’ to open a new order form. Enter the amount of Bitcoin you want to buy in USD. If you’re actively trading Bitcoin, you can also enter a stop loss or take profit level for your trade.

Once you’re ready, click ‘Open Trade’ to buy Bitcoin.

Buy Bitcoin on eToro

When it comes time to sell your position, you can repeat this process. Just select ‘Sell’ instead of ‘Buy’ in the Bitcoin order form.

Conclusion

Learning how to make money with Bitcoin in South Africa is one of the best ways to get in on the cryptocurrency boom. Trading and investing are the most popular ways to try to profit from this digital currency, but investing in Bitcoin stocks, mining, and lending are also options.

Now that you know how to make money with Bitcoin in South Africa, it’s time to get started. Click the link below to sign up for an eToro account today!

eToro – Best South Africa Bitcoin Exchange for Trading & Investing

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

Can I make money with Bitcoin?

You can make money with Bitcoin by trading, investing, mining, or lending. You can also invest in Bitcoin stocks. Keep in mind that all of these methods involve risk and there is no guarantee you will make money.

What is the best way to make money using Bitcoin?

The best options for how to make money with Bitcoin in South Africa are trading and investing in Bitcoin. You can get started with just a small amount of capital ($200 USD with eToro) and you can potentially get results quickly.

How much money can I make Bitcoin mining?

The reward for mining a Bitcoin block is 6.25 BTC, or around $340,000 USD. However, keep in mind that succeeding at Bitcoin mining requires a large upfront investment in mining hardware.

How do I find the best time to invest in Bitcoin?

There are several ways to figure out when to invest in Bitcoin. You can use technical analysis, which looks at short-term price movements to determine where the price is going next. You can also use fundamental analysis, which considers how widely Bitcoin is used and what it might be valued at in the future.

How do I create a Bitcoin wallet?

When you buy Bitcoin, you’ll need to store your coins in a digital wallet. Many crypto exchanges, including eToro, offer built-in wallets to make this process simple. Just download the eToro wallet app on your smartphone.

What is the lowest risk option for how to make money with Bitcoin in South Africa?

All methods for how to make money with Bitcoin in South Africa involve risk. That said, a long term holding strategy involves the least risk. Bitcoin’s use around the world is growing, so the coin is poised to gain value in the long-run despite any booms and busts in the short term.

Michael Graw

About Michael Graw

Michael Graw is a freelance journalist based in Bellingham, Washington. He covers finance, trading, and technology. His work has been published on numerous high-profile websites that cover the intersection of markets, global news, and emerging tech.