Bitcoin Trading in South Africa – Learn Bitcoin Trading

Forex Trading SA » Bitcoin Trading in South Africa – Learn Bitcoin Trading

Bitcoin trading online is the hottest topics nowadays. Many people around the world want to invest in trading bitcoin online. Bitcoin trading in South Africa is also increasing. Indeed, there are many bitcoin trading platforms, which provide a secure transaction. Indeed, these online bitcoin trading platforms also offer bitcoin trading apps, through which you may take more significant advantage of online bitcoin trading.Besides, bitcoin trading South Africa is in a new dimension, along with the world in bitcoin trading.

Let us introduce the core basics of bitcoin trading online, the bitcoin trading platform, the bitcoin trading app, and all the basics of how you can invest in bitcoin trading in South Africa.

Bitcoin Trading Brokers in South Africa

Trade with:
HYCM Markets
Min. Deposit: $100
Best Forex Broker
4.9 rating
T&Cs Apply
South African Customers Only

Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

Trade with:
Min. Deposit: R 1500
Best 2021 FX Broker
4.5 rating
T&Cs Apply
South African Customers Only

Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

What Is Bitcoin?

Bitcoin, an entire decentralized network without any peer to peer facilities, is a money transfer and verification system. It has no principal authority. It works with software that allows its users to create electronic payment addresses that can send or receive Bitcoin. Bitcoin is an open-source of code, intended to provide an experimental alternative to online electronic payment. Its unit of account has eight decimal places. Bitcoin trading is, therefore, a new protocol allowing online payments. It is this new protocol that makes it so exciting as it promises many future innovations.There are several variants of this cryptocurrency, which are the result of changes in the rules which govern it (‘forks’). It includes bitcoin cash, bitcoin gold, and bitcoin diamond. Above all, bitcoin trading online is also popular in South Africa.

Bitcoin Trading in South Africa

What is Bitcoin Trading?

Trading Bitcoin involves trading online by using a CFD trading account. From such a trading account, you can buy and sell bitcoins. You can also be able to purchase and sell any cryptocurrency via this exchanging platform. Yes, you can use these online bitcoin trading account platforms from anywhere in the world, from South Africa also.

How To Trade Bitcoin

Two ways are there to trade bitcoin. Bitcoin trading online is effortless and secure if you select the first way., where you need to have a trading account. From the trading account, you can sell and buy bitcoin. Way two a complicated one that you can buy or sell from individual to individual. You can have cash directly from the seller and transfer the bitcoin into the seller’s account via a bitcoin trading online exchange platform. Similarly, you can sell also. However, keep in mind that transaction face to face with an unknown person is somewhat risky.

What Moves Bitcoin’s Price?

Bitcoin prices go up and down depending on the market (based on supply and demand). You can check the bitcoin price from the bitcoin trading online platform. In a simplified way, thousands of sales and purchase orders are configured at a given price and quantity. When someone buys, they execute the cheapest contract (they buy at the best price). The person who wishes to buy after the first individual must do so against a more expensive order. We can, therefore, deduce that the price has increased. Conversely, during sales, the more sales made, the more the price will decrease.

Other mechanisms govern the theory of supply and demand. Thus, if traders believe that the current price is below the actual market value (that the asset becomes undervalued), they will be more likely to buy. Conversely, if the price is too high, more will want to sell.

For example, imagine that someone has just bought 1  Bitcoin for ZAR 177084. Now let’s say that three people want to buy Bitcoin at ZAR 169000,  ZAR 170000, ZAR 175000 and that three other people want to sell at ZAR 180000, ZAR 180500, ZAR 190000. If a person wants to buy 1 Bitcoin instantly, they will have to buy it for 180000, the best price on the market. And such a way, the cost of bitcoin will increase by ZAR 2916.

How to Trade Bitcoin

Bitcoin Margin Trading And Trading With Leverage

There are many different ways to exchange your Bitcoins. You may have heard of Bitcoin shorting, margin trading, or leveraged trading. These terms refer to the same practice – leverage – but using them interchangeably can give you an idea of ​​how difficult it works.Margin trading provides its users with leverage by giving them access to more funds than they already have. So they can have more purchasing power for their transactions.

Suppose you want to buy Bitcoin worth  100 ZAR, and all you have is 25 ZAR, you can use the 25 ZAR and 4: 1 leverage to access an additional 75 ZAR, thus reaching the 100 ZAR. However, keep in mind whether you are successful or not, you must reimburse the 75 ZAR with additional costs.

Margin is an asset trading strategy that allows users to trade with someone else’s funds, in this case, usually a third party.Unlike conventional or spot trading accounts, margin accounts provide traders with a higher amount of capital to trade their positions effectively. Margin trading usually helps traders to increase their results with a higher profit margin on successful trades. In traditional markets, the loans used by traders come from investment brokers, while in Bitcoin trading online, other traders provide the funds.

Bitcoin Trading Strategies

With the value of online bitcoin trading continually growing, it becomes interesting to know which trading strategies to put in place to benefit from the insolent rise of the most famous Bitcoins. There are different methods to invest in Bitcoin. These are Bitcoin Mining, Initial Coin Offering(an ICO is the fastest way to get rich with Bitcoin, provided you are an insider), buying Bitcoin,and trading Bitcoin derivative like CFDs (contracts on the difference).

Here are the best strategies for Bitcoin trading in South Africa to the purchase of Bitcoin on an exchange platform, as well as the techniques and strategies for trading Bitcoin online with CFDs.

Buy And Hold Trading Strategy Applies To Bitcoin

As anyone who wants to hear repeats it, one of the most gifted investors of his generation,  All investors know that the past performance of a financial market does not predict the future. It is, therefore, impossible to predict whether Bitcoin will continue its bullish rally.It may be in a bubble. However, historical data demonstrates the tremendous resilience of bitcoin since its course has already been halved before making a spectacular rebound.Many platforms now offer to exchange Bitcoin. Today, many of them play the role of market places. These are small autonomous exchanges, on which supply and demand meet to determine the price of Bitcoin. As with precious metals, the earning money with Bitcoin involves betting on a long-term trading strategy. Consequently, the investor will have to take advantage of the downturns in the Bitcoin price to position themselves before the rebound.

Bitcoin Trading Strategy With Derivatives

Online trading platforms were among the first to offer speculation in Bitcoin thanks to CFDs (Contract For Difference), which are derivatives indexed to the price of Bitcoins.

Once you register on their platform and open and funded a trading account, you can speculate on Bitcoins seven days a week, directly on the price of the cryptocurrency, or on a currency cross using Bitcoin. The best platforms offer many tools to develop their trading strategy; the investor thus has many technical indicators such as the RSI (Relative Strength Index) or moving averages, for example. Be careful to choose a regulated broker with a license to offer its products in France because some brokers are not regulated. Therefore, in the event of a conflict, you will be unable to recover the funds from your trading account.

Steps To Trade Bitcoin

The steps are elementary. After opening a bitcoin trading online account with the bitcoin online trading platform, post an add if you want to sell your bitcoin. You will indeed get instant buyers. Sell them if the price is okay with you. Then after the selling, transfer the money to your bank account. Similarly, when you want to buy bitcoin, check the sale advertisement on the bitcoin online trading platform. Then you can purchase bitcoin adding funds in your bitcoin trading online account.

Best Bitcoin Trading Platforms

Best Five Star Rated Online Bitcoin Trading Platform

  • Binance
  • Bitpanda
  • Bittrex
  • Coinbase
  • Coinmama
  • eToro

Best Four Star+ Rated Online Bitcoin Trading Platform

  • Aex
  • Bithoven
  • Coinfloor
  • Plus500
  • Xcoins
  • Xtrade

Bitcoin Trading App

Every best bitcoin trading platform has its own apps. Those apps are very user friendly. Binnace, Coinbase, eToro, etc. provide free bitcoin trading app service. You can download those appson your android or IOS phone. From these bitcoin trading apps, you can smoothly move forward to bitcoin trading online from anywhere around the world, and even from South Africa. Indeed, these apps are top-rated in bitcoin trading in South Africa.

Bitcoin FAQs

Question: Who created Bitcoin, and when?

Answer: Satoshi Nakamoto created Bitcoin in 2008.

Question: How does Bitcoin work?

Answer: Bitcoin uses public and private key cryptography (asymmetric cryptography). A bitcoin balance is attached to the public key of its owner. When bitcoins are transmitted from user A to user B, A signs a transaction with his private key and broadcasts it over the network, which identifies his signature and credits the address of B, which can, in turn, receive the funds received. To prevent A from transmitting the funds already used to a user C, a public list of all past transactions is maintained collectively by the network of Bitcoin nodes.

Question: Why use Bitcoin?

Answer: It is to transfer money quickly via the Internet. The most significant benefit to mention is that no third party can prevent or control your transactions. Besides, it is a free transaction. It is to be safe from the instability caused by the fractional reserve system and the bad monetary policies of the central banks. Bitcoin system’s limited increase of money issuance is spread evenly (by computing power) across the network, instead of being concentrated in banks.

Question: Are the Bitcoin Online Trading Apps Free?

Answer: Yes.

Question: Is bitcoin trading legal in South Africa?

Answer: Yes, bitcoin trading is legal in Soth Africa. You can trade bitcoin from South Africa without any legal barrier.

Question: Can the people from South Africa trade bitcoin online like other people around the world with a bitcoin trading app?

Answer: Yes.

Markets Bonus


# 1 Guide to Forex Trading in South Africa
Forex Trading SA | © Copyright all right reserved
error: Content is protected !!