Mastering everything about the South African Cryptocurrency Ecosystem

African entrepreneurs and investors especially those in South Africa are becoming more interested in cryptocurrency. Many perceive digital currencies as ways to make their path to financial freedom, a state where a person no longer worries about the same money problems that trouble others. However, cryptocurrencies have fluctuating values which can render them nightmares to some people. In other words, in as much as you can easily become a millionaire with cryptocurrencies, you can as well lose part of your money due to a fall in price. Such happened in 2018 when Bitcoin experienced a fall in price. This makes it worth understanding how cryptocurrencies work before investing your money in them.

If you’ve ever wondered how the South African Cryptocurrency Ecosystem works, you are at the right place to learn. We’ll unfold everything unto your understanding to increase your chances of investment success. Many have become millionaires by investing in cryptocurrencies, and perhaps you might be the next. However, you must also learn to embrace the risk of loosing that comes with this investment opportunity. Always take every decision at your own risk after a deep moment of reflection and study.

South African Cryptocurrency Ecosystem

Although South Africa is not currently regulating cryptocurrencies, you can checkout the Reserve Bank’s position on cryptocurrency in the position paper on virtual currencies which was released in 2014. However, the bank has a dedicated fintech program which is aimed at assisting all the existing working groups to better analyze technology innovations in the financial industry. We must also point out that as part of its first step to regulate crypto assets such as Ethereum and Bitcoin, the South African Bank recently released a consultation paper on crypto assets for public comments. This release was made at the beginning of February 2019. Worth noting is that the South African Bank does not offer any guarantee for those who partake in cryptocurrency investments.

Cryptocurrency exchanges in South Africa

There exist many South African Cryptocurrency platforms that allow the buying and selling of cryptocurrencies. Below are the three most reputable and highly credited or trusted platforms for the buying and selling of cryptocurrencies in South Africa.

Luno

Luno is a popular and trusted brand that allows its users to buy and sell digital currencies like Bitcoin and Ethereum. In September 2017, Luno received a R120-million injection in a funding round which was headed by the London-based venture capital firm, Balderton Capital. The platform recently announced its expansion to 35 new markets in Europe.

IceCUBED

This platform which is unique in its kind offers Bitcoin and Litecoin trading for South Africans, Nigerians and other surrounding countries. It is one of the rare platforms that allow Ethereum trading.

DoshEx

This is another popular trading cryptocurrency platform in Africa that claims to have done work for Virgin Money South Africa. It was created in August 2018 to facilitate the buying and selling of cryptocurrencies.

Cryptocurrency investment platforms in South Africa  

The previous years were characterized by the creation of several cryptocurrency investment platforms in South Africa. The most popular ones are Bitfund and Revix. Bitfund claims that after its launching in 2018, it received signups from hundred of investors during the very month which it was created. Founders of Bitfund claim that it offers investors exposures to index portfolios of more than 20 of the largest cryptocurrencies. Revix on the other hand is out to target retail and institutional investors. It allows investors to invest in things that are backed up by real world assets.

 

Leave a Reply

Your email address will not be published. Required fields are marked *