Best crypto exchanges in South Africa

If you're a crypto novice, getting started buying and selling coins and tokens can be complicated and confusing. On the other hand, experienced traders may want a platform with special features such as advanced charting and order types, plus the option to trade on margin.

If you're a beginner at crypto trading, look for a platform with a straightforward user interface that's easy to understand.

Can you deposit funds into your account via bank transfer, credit card and/or PayPal? The more payment options an exchange has, the more convenient it generally is to use. Make sure your exchange has deposit and withdrawal options that work for you. Remember to check the fees associated with different methods.

First, consider the type of trades you want to place. Some exchanges offer these trading options:

• Fiat-to-crypto
• Crypto-to-crypto
• Both fiat-to-crypto and crypto-to-crypto

For example, if you want to buy BTC with South African Rands, you'll need to find a platform that allows you to buy coins via bank transfer or card. Alternatively, if you want to exchange your BTC or ETH holdings for another cryptocurrency, you'll want a platform that offers direct crypto-to-crypto trades.

• Cryptocurrencies. There are thousands of different cryptocurrencies in existence, so don't expect to find them all listed on any single platform. Major cryptocurrencies such as BTC, ETH, XRP and others in the top 20 coins by market capitalisation are listed on an extensive range of exchanges. However, rarer altcoins may be much harder to find.
• Fiat currencies. If you want to buy crypto with South African Rands, check which currencies the platform accepts.

You can find an overview of the crypto assets and fiat currencies that each exchange supports in the table. Read the full review for a more detailed analysis.

From depositing to trading and withdrawing funds, how much will it cost you to buy and sell crypto on each platform? Consider your payment method, the currencies you want to use and any discounts you may be entitled to when completing these calculations. For instance, fees for credit card purchases are usually higher than for a bank transfer.

You can find detailed information on fees for each exchange by clicking on the "View details" text in the table.

Are there any limits on the amount you can deposit into your account or the amount of cryptocurrency you can buy or sell per transaction or per day? This question typically only applies to what some colloquially call "crypto whales" or people who make transactions ranging in value from hundreds of thousands to millions of South African Rands.

Most exchanges that require the Know Your Customer (KYC) process allow you to deposit and withdraw tens of thousands of South African Rands per day. This is more than most average traders deposit and withdraw on a daily basis.

How can you access your trading account? Certain platforms only allow you to trade through a web browser, but some have mobile apps. If trading on the go is important to you, it's worth reading up on whether or not the exchange has a mobile app and how easy it is to use.

If you are looking to earn a yield on your cryptocurrency, you can do so through exchanges that offer earning options. Certain exchanges allow you to either lend or stake your cryptocurrency as a means to earn a yield on it.

Lending involves loaning out your cryptocurrency to other users or businesses who pay you a fee for doing so. Staking involves locking up your assets to help them secure a blockchain network.

Before using any exchange to generate yield, make sure you understand the risks involved, what type of earning the exchange offers and whether it's appropriate for your needs.

The price of a digital asset is determined by whatever people are willing to pay for it.

Most brokers or instant buy services charge a fee as part of the service it provides. This means you will pay anywhere from a fraction of a percent to a few percent more than the going rate of the asset when you make the purchase.

If you purchase your asset in the spot market, you can set the price that you want to pay and then wait for your order to be filled. For example, if you are willing to pay US$21,000 for 1 BTC, then you can set a limit order to buy BTC at that price in hopes that someone is willing to sell it to you at that price.

The level of liquidity on an exchange affects the ease and speed with which you can complete trades. If there's a high level of liquidity – in other words, if the exchange has a high trading volume – then trades should be completed quickly and easily.

One of the biggest benefits of trading on larger crypto exchanges is they get enough orders to match buyers and sellers without any difficulty. However, low liquidity can lead to substantial price fluctuations.

You can check websites such as CoinGecko or CoinMarketCap to get a better idea of an exchange's level of liquidity.

Most centralised crypto exchanges these days require you to complete a KYC or identity verification process.

But some exchanges still let you deposit crypto and trade crypto-to-crypto without completing the KYC process.

The said exchanges may not be properly regulated, so please proceed with caution if you choose to use these, especially if they are located offshore.

Keep in mind that these exchanges may limit the amount of crypto you can withdraw from the exchange on a daily basis.

For exchanges that require the KYC process, verification requirements vary. You will likely need to provide some or all of the following:

• Your name
• Your email address and phone number
• Your address
• Proof of ID
• Proof of address
• A photo of yourself holding a signed declaration

If you need to provide a wide range of personal information, it's important to be sure you're dealing with a trusted exchange.

It's also a good idea to research how long you can expect the verification process to take. For some exchanges, it can take up to 2–3 business days while others are near-instant.

Finally, be aware that some exchanges require you to complete additional verification tasks to unlock full account features and permit higher transaction limits.

What is the difference between a brokerage and an exchange? How long will it take for your transaction to be completed? Is one better than the other?

Broker. Brokers buy and sell cryptocurrency to you. They typically charge a convenience fee for this, which may be hidden as a spread or markup on the going market rate.

The advantage of using a broker is your transactions should be instant. When you purchase crypto using either the fiat you've deposited into your account or with a credit card, that crypto should be available to you right away.

The same goes for when you decide to sell your crypto for fiat. You sell the broker your crypto in exchange for fiat and the fiat should instantly register in your account.

Exchange. An exchange has a spot market, which is where users come to place buy and sell orders on the open market. Doing so allows you to set a specific price for an asset. For instance, if you think the price of Bitcoin will go down from US$23,000 to US$21,000, you can set an order for US$21,000 and wait for it to be filled. Likewise, you can set an order to sell your assets for a higher price than what is being offered.

Exchanges may also offer brokerage services.

Most exchanges allow you to withdraw crypto to your own wallet. This is sometimes not the case with brokers.

Whether you use an exchange or broker will come down to your own needs and whether you plan to trade regularly or make a few one-off purchases now and then.

Security is a crucial factor to consider when choosing a crypto exchange.

There have been more than a handful of cases in which exchanges have been hacked in crypto's history, so do your research on what security measures are in place to protect your funds.

Questions you should ask include the following:

• Is the exchange ld and regulated by the proper authorities?
• Is 2-factor authentication (2FA) – a code sent to your phone each time you log in – supported?
• What percentage of customer funds are stored offline or in cold storage? Cold storage refers to storing the private keys to digital assets somewhere offline to greatly reduce the ability for hackers to access the assets.
• What level of verification is required to open an account?
• Have you checked the exchange's trust score on CoinGecko or CER?

Though authorities around the world are starting to catch up to the rapid growth of crypto exchanges, the industry as a whole is still lightly regulated. How an exchange is regulated depends on where it is based, so do your research to find out whatever information you can about the platform operators.

Cryptocurrency exchange operators based in South Africa are likely required to meet the government's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) compliance and reporting obligations.

It's also worth noting that due to regulatory requirements, users from certain countries will not be allowed to access some exchanges. As always, check the fine print to find out whether any of these geographical restrictions apply in South Africa.

This is a crucial but often overlooked factor when comparing crypto exchanges. If you ever have a problem with an individual transaction or with your account, how will you access a platform's customer support team?

You'll need to consider the following:

• Is customer support available through email, phone and/or live chat?
• Is support available 24/7 or only during specific hours?
• How quickly does the support team respond to inquiries?
• Is support offered in a language you are comfortable speaking?

Does the exchange have a reputation as a secure and reliable platform? Finder has reviewed a number of crypto exchanges to craft a list of the best crypto exchanges in South Africa.

In efforts to assess the soundness and reliability of crypto exchanges, we look at whether or not exchanges are properly regulated, how they secure the private keys to the crypto they hold and the level of customer support they provide, among other factors.

You can also read our dedicated review for each exchange or see what other users think of the platform using a third-party service like Trustpilot.