What is Bitcoin?
Bitcoin is a completely digital currency. It is a bank-free, worldwide currency, not governed by the government of any country but controlled by a network of users who authenticate Bitcoin’s monetary transactions. Once you have figured out how to buy Bitcoin in South Africa, the transactions made are recorded by a collection of computers called miners which store information and secure the network in what is known as a blockchain.
The system can not be cheated as Bitcoin miners can see transactions transparently in real-time through blocks that are found in the blockchains. New coins are circulated by a process called Bitcoin mining. Bitcoin miners are awarded Bitcoin when additional blocks of transactions are added to the blockchain. A block reward is the quantity of new Bitcoin released when a block is mined.
The amount of Bitcoin in circulation becomes more valuable and scarce as the circulation reward is halved every 210 000 blocks, approximately every four years. The old theory of supply and reward comes into play, with high demand for a scarce item, shooting prices higher.
Looking at past performance on technical charts, Bitcoin’s price provides us with proof that there is a positive connection between the price halving and price escalating. Halving Bitcoin means that the number of coins received by miners for purchasing new transactions is halved. It is not the only reason why the price rises, there are other contributing factors such as the cost of producing a Bitcoin, how many competing cryptocurrencies are in the playing field and availability.
For customers who know how to buy Bitcoin in South Africa, let us take a look at what we have noticed when halving occurs. In 2012, when Bitcoin was first halved, the price was around $11, rising within a year to $1100. Four years later, 420 000 blocks were complete, and the second halving took place. The price hovered between $500 – $1000 for a while but rocketed to $20 000 by the end of 2017. There was a pullback with the third halving in May 2020, retracing and then again multiplying.
It is expected that the amount of Bitcoins mined by the year 2140 is 41 million. With the supply being cut by 50% every 4 years, the value of Bitcoin will further increase with diminished supply and increasing demand. You will hopefully be able to make use of the best Bitcoin trading platform when you are looking to enter the market. Many also believe that Bitcoins are a hedge against inflation and that is why they are looking for options to buy Bitcoin South Africa.
Bitcoin can not only be used for investment purposes but can also be exchanged for currencies, used as a substitute to fiat money or used for purchases at certain retailers. Retail stores accepting Bitcoin payments have “Bitcoin accepted here” signs.
As is the case with all trading, buying of currencies and stocks, the theory of buying at a low price and selling at a higher price when the target is reached applies to Bitcoin. Most cryptocurrency South Africa traders purchase Bitcoin as an investment and not as a currency.
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Am I too late to invest in Bitcoin?
Bitcoin is climbing to new heights and becoming more and more popular as investors are realizing the cryptocurrency’s value. Bitcoin is now accessible to all thanks to our online trading simulator here at Crypto Parrot.
Crypto analysts predict that the value will rise further and multiply. Before you invest in the world’s largest cryptocurrency, we recommend giving your investment in Bitcoin a bit of thought, observation, and research by reading through our helpful crypto guides.
Entering a transaction at a good price is key and we advise testing your strategies and theories in a risk-free environment, such as our trading simulator, first. Trading cryptos is a volatile industry and you will need to keep your emotions in check when transacting. The bumpy ride of falling prices and diminishing value can have an emotional toll on any crypto owner. Demand for the cryptocurrency is important but we have seen that plenty of external factors can influence the price dramatically. By following our social trading service, you will be able to get a forecast of how traders are behaving with their Bitcoin investment South Africa.
When should you invest? Well, we believe that waiting for a healthy correction caused by a pullback of 10 – 15% through investors or analyst’s comments, or world events which swing the global market are a great entry option. Look for interest in the crypto to start increasing. Follow the amount of coins purchased on an hourly, and daily basis. The higher the volume of crypto traded, with the price increasing, is a good indicator as it shows that investor confidence is increasing.
There have been some rises and falls with Bitcoin trading South Africa but following the endorsement of Bitcoin by billionaire hedge fund manager Paul Tudor Jones, the price has risen to previously seen values. It seems that key figures are able to influence the price by providing negative opinions towards the crypto market.. Such pullbacks, should be seen as opportunities to enter trades, once panic selling has waned and interest, hope and buying returns. Keep in mind that you will need a decent cryptocurrency wallet South Africa to store your crypto.
Will I get taxed on my Bitcoin investment?
When you have determined how to invest in Bitcoin in South Africa, you will need to take into account the taxation on your investment. The entire market is relatively new and governments are still trying to figure out what their approach will be. Cryptocurrency trading in South Africa is not regulated at present but the SARB is working on a new regulatory framework to control the crypto industry, to prevent scams and of course money laundering. These measures will further boost buying as bitcoin investments will be protected.
It is essential to do your homework when it comes to choosing a reputable crypto exchange or cryptobroker. Trading Bitcoin in South Africa through Crypto Parrot gives the Bitcoin owner a secure place to buy, sell and store cryptocurrency in their Bitcoin wallet in South Africa. You might find that you can buy crypto with PayPal in the near future but it is still uncertain how this will all be regulated. Keep an eye on this page as we update you with all the developments regarding Bitcoin taxation as they are announced to the public.
How do I buy Bitcoin?
Once you have decided to invest in Bitcoin you should ensure that your currency is bought and sold via a reputable Bitcoin exchange South Africa, which is accessed by either using the relevant mobile app on your phone or by logging in on your personal computer. To learn how to buy cryptocurrency in South Africa, you can use all of the information available on our page here at Crypto Parrot.
When you have figured out how to buy Bitcoin in South Africa, trading through a trustworthy exchange is by far the easiest and safest way to transact. Crypto Parrot makes the process that can be daunting for the newbie, quite simple. We are a friendly, approachable service provider offering guidance as needed along the way. As soon as you have completed signing up and your account is verified, you need a Bitcoin wallet South Africa that holds your Bitcoin transactions and you are ready to start your Bitcoin journey.
You can start trading as soon as your funds are cleared. Transactions are transferable to your Bitcoin account via the major financial banks in South Africa. Bitcoin’s rise in price has given many South Africans motivation to trade the cryptocurrency. Factors such as economic uncertainty, unemployment, and poverty, attributed to South Africans looking for alternative options to invest and have sought Bitcoin as the answer. Interest in Bitcoin is continuously increasing and you can also look to sell Bitcoin South Africa when you are ready to cash out of the industry.
How secure is Bitcoin?
Many traders ask whether their Bitcoin investment is safely stored. Long strings of numbers and letters connected through encryption algorithms keep balances of Bitcoin tokens purchased. Tokens have a public and private key. The public key sets out your address. Bitcoins are stored on an app in a digital wallet making it easy to send, buy or store Bitcoins. The private key gives the Bitcoin owner permission to transact in bitcoin which is stored in the wallet and you can learn more about the entire process on our cryptocurrency trading page. A choice should be made on wallet availability on iOS, Google Play or your own PC.
Those looking to learn how to buy Bitcoin in South Africa should be cautious. The cryptocurrency world is filled with cloud-mining schemes, and Ponzi schemes, and many are conned through scams believing that they are dealing with reputable exchanges. Where to buy Bitcoin in South Africa will be one of your primary concerns. We are often asked whether buying Bitcoin is legal and yes it is legal to buy and sell the cryptocurrency in South Africa. In 2019, the SARB released a paper with favorable recommendations for cryptocurrencies. They are of the opinion that crypto-related businesses should be registered with the Financial Intelligence Centre and have warned against risk in trading cryptocurrencies. Earnings from crypto trades are subject to taxation.
Buy Bitcoin with Crypto Parrot today
Successful investment in Bitcoin for both the newbie to the more seasoned cryptocurrency trader is what we offer through guidance and support. All trading is risky so making use of our simulator is a social trading one that helps you learn the basics, giving you a feel of the market, and limiting risking your capital. This will give you a feel of how to buy Bitcoin in South Africa. Our simulator provides demo trades on the real-time exchange market so that you may experience crypto trading as it is and as it happens. You can earn while you learn as well as show other traders recently redeemed sections on the Rewards page.
We at Crypto Parrot believe that we offer the best Bitcoin exchange in South Africa. We are user-oriented and recognize the need to develop knowledge and skill to ensure that your investments are profitable. Building confident traders through continuous learning, support, cryptocurrency tips and guidance, and knowledgeable insights gives our Bitcoin traders the edge to identify the best cryptocurrency to invest in. Signing up is an easy process, and once you have worked through the learning process, making use of our user-friendly trading platform with numerous tools and features will get you going on your cryptocurrency voyage.
Buying and investing in cryptocurrency and especially Bitcoin is increasing at a phenomenal rate in South Africa. Once you have researched how to buy Bitcoin in South Africa, you will need to join an exchange. It is crucial to choose a trustworthy and reputable service. We at Crypto Parrot, are considered to be leaders in our field and will coach you in how to buy Bitcoin in South Africa through our social trading simulator without risking your capital.
Statistics show that Bitcoin investing in South Africa is escalating with an interest from the younger generation, who are coming into the investment market and even consider investing in Bitcoin as a potential retirement plan. Bitcoin investing has also become appealing to those who consider the crypto as an investment option to diversify portfolios.
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How to buy Bitcoin in South Africa FAQ
🤔 Where can I find out how to join Bitcoin in South Africa?
Everyone is looking to get involved with the cryptocurrency scene no matter where you are in the world. If you are on the southern tip of the world, you will need to learn how to buy Bitcoin in South Africa if you want to start investing. Our team of experts here at Crypto Parrot are dedicated to bringing you all of the information you will need to get going with trading cryptocurrencies. Head to our page now to find out more.
📈 What are the best Bitcoin platforms in South Africa?
Once you have learnt how to buy Bitcoin in South Africa, you will need to find a platform that suits your trading needs. These platforms can come in many different shapes and sizes and our team has seen them all. We know what to take into account when browsing through the platforms and all of our expert findings are detailed right here on our page. Head to Crypto Parrot now to get your trading career underway.
❓ How does Bitcoin work in South Africa?
Being such a new investment industry, the approach to cryptocurrency is vastly different from country to country. If you are a bit concerned about investing from South Africa, you will have to consider how Bitcoin works. Our experts have dived into the topic and presented all of their findings on this page. You can learn all about how to buy Bitcoin in South Africa right here at Crypto Parrot.
💭 What is the best Bitcoin exchange South Africa has to offer?
Having the knowledge of how to buy Bitcoin in South Africa is one thing, you will also have to consider which exchange is the best to complete your transactions. These exchanges usually compete with one another to try and attract new customers and some of their services are simply better than others. Head to our page now to browse through some of our detailed reviews.
⚖️ Is it legal trading Bitcoin in South Africa?
It’s a fair question, many countries are making cryptocurrencies illegal and this seems to be changing from day to day. While our page won’t provide you with expert legal advice, we can give you the necessary information to guide you towards the answer. The legality of your transactions will depend largely on your personal circumstances. Head to our page now to find out more.