Crypto Trading in South Africa: What Cryptocurrencies Are Worth Your Time?
Due to regulatory issues associated with cryptocurrencies around the globe, you might wonder if it's legal to trade cryptocurrencies in South Africa. The answer is yes.
The cryptocurrency market has been growing rapidly in South Africa, with the number of users trading cryptocurrencies increasing exponentially. According to crypto news, African companies will be provided with innovative support and education on crypto and blockchain by the non-profit association (MEAACBA). Cryptocurrencies represent a new asset class continuously being recognized among financial markets. It’s not only retail investors that are involved but institutional too. With a market cap of over $900 billion, there is no ignoring this relatively new market.
Despite the market’s rapid growth, investors must be aware that there are many risks involved in trading cryptocurrencies as an investment vehicle. For starters, they are unregulated, and this has seen a plethora of scams thrive within the space, defrauding investors billions of dollars over the years. Also, they are highly volatile, which presents risk and opportunity at the same time.
To take advantage of the volatility, you need to identify a reputable platform that allows you to exploit the wild price swings for profit. A good example is a broker that offers access to crypto CFDs where you get to trade these products using leverage which boosts your capital and potential profits.
Another way to trade crypto in South Africa is on the spot market. This involves buying the actual asset on a trading platform, waiting for the price to appreciate, and selling for a profit. Once the price of the asset drops, you can repeat the process. In case you are wondering about the best crypto in South Africa, you can consider the likes of Bitcoin, Ethereum, Litecoin, Ripple, Binance Coin, Monero, Cardano, and many other top coins.
Is Crypto Trading Legal In South Africa?
Due to regulatory issues associated with cryptocurrencies around the globe, you might wonder if it’s legal to trade cryptocurrencies in South Africa. The answer is yes. Crypto trading in the nation is legal, but it’s not regulated by the South African Reserve Bank or any other government body. This means there are no regulations regarding how much money you can make or lose while investing in cryptocurrencies, and there aren’t any taxes on your earnings either. Additionally, cryptocurrencies are also not insured by financial institutions like banks or insurance companies.
Why Should Traders Trade Crypto Despite The Uncertainty Associated With The Crypto Market
Despite the uncertainty surrounding the crypto market, there are a few perks of trading the market. For starters, crypto trading is a great way to make an investment. It’s also a great way to diversify your portfolio, hedge against the South African Rand, and make some extra cash while you do it.
Remember, cryptocurrencies are decentralized assets that any government or central bank does not back. Because of this, they are considered a good investment since they are outside the control and manipulation of centralized entities. Also, at times of high inflation, stablecoins can help traders hedge against the loss of value of fiat currencies like the South African Rand.
Where Can You Trade Crypto CFDs In South Africa?
There are two options when it comes to trading crypto CFDs in the African nation: crypto exchanges that support this service and broker platforms. Admiral is a good example of the latter. On the platform, you don’t have to worry about safely storing your assets since you are dealing with derivative products attached to the actual asset. Also, you get to trade the crypto assets of your choice using leverage which boosts your capital, as mentioned earlier. Consequently, your returns are magnified, and so are your losses. It’s easy to make money and also to lose it. Therefore, it’s advisable to approach CFD trading carefully.
The difference lies in how you go about it. If you are getting started, consider learning how to conduct technical and fundamental analysis. Most platforms will offer free educational resources such as webinars, blogs, and ebooks that one can use to educate themselves on the subject. Once you gain enough knowledge, consider using the demo account to test your strategies before applying them to the market. Most importantly, ensure you practice sound risk management.
ALSO READ: CRYPTOCURRENCY TRADING BASICS
