As per the International Monetary Fund(IMF), Africa is one of the fastest-growing cryptocurrency markets with Kenya, Nigeria, and South Africa having the highest number of cryptocurrency users in the region. As reported by Cointelegraph, South Africa is estimated to have as many as 6 million retail cryptocurrency users.
While financial authorities in South Africa are cautious about cryptocurrency, they are open to innovation at the same time.
The South African Reserve Bank(SARB), for example, had encouraged banks to not cut all ties with cryptocurrency in 2022. It further said that a hostile attitude towards digital currencies would pose a greater risk in the long run.
South Africa has been, therefore, moving towards better regulation of the crypto industry by classifying them as financial products. Bringing cryptocurrencies within the existing regulatory framework is the first step towards developing specific regulations for crypto assets.
However, even before these announcements, individuals and institutions were gaining exposure to cryptocurrencies as demonstrated by the number of global and local exchanges offering their services in the country.
If you’re wondering which exchanges among these are best in South Africa, have a look at the lists we have curated for this purpose.
Top 7 Cryptocurrency Exchanges in South Africa
There are a lot of cryptocurrency exchanges operating in South Africa. While most well-known global exchanges have a presence in the country, some native exchanges have also started coming up to better serve the needs of South African traders.
VALR
VALR, registered in Johannesburg, started operations in 2019 and is now one of the largest cryptocurrency exchanges in South Africa. It posits itself as an exchange that is “for everyone.” This means that VALR has a product suite suitable for both beginners and advanced traders.
With over 60 crypto assets, you can buy, sell, store and transfer the most popular and in-demand cryptocurrencies on VALR. You can get started by investing just $1 on the platform. From simple buys and sells to an advanced exchange where you can customize your trades, VALR has something for everyone.
VALR is a KYC-compliant platform and interestingly, it uses artificial intelligence and machine learning technology to complete user verification and onboarding in a few minutes.
Features
✔️Home-grown exchange
✔️60+ cryptocurrencies available
✔️KYC-compliant platform
✔️Auto-Buy feature available
Pros and Cons
✅Supports South African ❌Lack of proper tutorials
Rand(ZAR) ❌Limited advanced features
✅Low minimum investment
✅Referral program
✅Maker incentive
Trading Fees
VALR charges a 0.1% taker fee but instead of taking a maker fee, it gives out a 0.01% maker incentive on every trade.
VALR fees explained
Why We Picked It
VALR is a simple platform where you can just buy cryptocurrency with ZAR if you’re just getting into crypto trading. The fees are on the lower side for most trades and you get paid for every maker order you create.
Binance
Binance is the first name that comes up for cryptocurrency trading. And why should it not? Binance is not just the world’s largest cryptocurrency exchange but a whole crypto ecosystem in itself. Beyond trading 350+ cryptocurrencies at a price lower than 0.10%, you can also stake your assets here to earn some passive income.
With Binance Pay, you can use your cryptocurrency to make payments or send crypto to your family and friends anywhere in the world. You can also use it to accept crypto payments for your business.
Binance maintains a Secure Asset Fund for Users(SAFU) where 10% of all trading fees are kept as protection for a share of user funds. Further, you can personalize access control on Binance and restrict addresses that can access your account.
Features
✔️World’s biggest cryptocurrency exchange
✔️Over 350 cryptocurrencies available
✔️Native token is BNB Coin
✔️2FA and wallet and address whitelisting for security
Pros and Cons
✅Wide variety of coins ❌Regulatory troubles in several places
✅Trading fee on the lower end ❌Past incidents of hacking
✅SAFU to protect user funds
✅Staking options
Trading Fees
Binance uses the maker-taker model for determining fees. While the highest fee charged is 0.1%, you can bring even that down by using BNB Coin for payments.
Binance fees explained
Customer Reviews
Binance is a safe platform for trading
Binance’s verification process can be lengthy
Why We Picked It
Binance is a whole crypto ecosystem unto itself. There are a lot of features to explore and you are bound to find something of your liking. It may be a little overwhelming for newbies but Binance can be a great fit for intermediate traders.
Luno
Luno is another popular cryptocurrency exchange in South Africa. Staying true to its motto “Cryptocurrency is for everyone”, Luno is a no-nonsense platform that is all about making it easy for everyone to explore and buy cryptocurrency.
Though the number of cryptocurrencies and features available are limited, this also makes Luno quite a beginner-friendly platform. Therefore, you can easily buy cryptocurrency with the South African Rand(ZAR) on it. If you want to automate your crypto investments, you can do that too with its Repeat Buy feature.
Luno keeps 95% of crypto assets in cold storage for safety. It also uses multi-signature encrypted wallets for added protection. Further, you can set up price alerts on Luno to always stay on top of the market movement.
Features
✔️11 cryptocurrencies for trading
✔️Over 20 trading pairs available
✔️KYC-compliant platform
✔️Android and iOS apps available
Pros and Cons
✅Beginner-friendly platform ❌Low number of coins available
✅Supports ZAR ❌Limited features
✅Cold storage for funds
✅Business accounts for
corporations
Trading Fees
Luno does not charge any maker fees and it uses a multi-tier system to determine taker fees based on the trading volume.
Luno fees explained
Customer Reviews
Luno gives users a positive trading experience
Transactions may take time to be settled on Luno
Why We Picked It
Luno is a very approachable platform for cryptocurrency beginners. There are no maker fees and even the taker fees are quite low beginning at just 0.10%. You can get your hands on your desired crypto by buying it directly with ZAR and even automate your trades with Repeat Buy.
Coinbase
Coinbase, you can say, is one of the original cryptocurrency exchanges. Founded in 2012, it has now grown to become the world’s second-largest cryptocurrency exchange. Coinbase’s whole shtick is that it is a very convenient platform to buy and sell cryptocurrency.
If you are just getting started with cryptocurrency, you will find the default Coinbase platform easy to navigate. It also has a native Coinbase wallet where you can store your cryptocurrency and NFTs.
As a public company, Coinbase is obligated to maintain a certain level of transparency in its operations. Therefore, you can easily find information about its financial statements and audit reports. As for security, Coinbase auto-enrolls users for 2-factor authentication(2FA) and irreversibly hashes user passwords.
Features
✔️World’s second-biggest cryptocurrency exchange
✔️200+ cryptocurrencies available
✔️Default and Pro version
✔️2FA and password encryption for security
Pros and Cons
✅Decent coin collection ❌High fees on default version
✅Simple user interface ❌Poor customer service
✅In-built crypto wallet
✅Learn and Earn program
Trading Fees
Coinbase has a somewhat complicated system for determining trading fees based on factors such as market conditions, order size and payment method etc.
Coinbase fees explained
Customer Reviews
Coinbase is a stable exchange
Network fees are quite high on Coinbase
Why We Picked It
Coinbase is a reputable platform that’s been around for a long time. It offers services suitable for both beginner and advanced traders. It has a native crypto wallet, an easy-to-use app and implements all requisite security measures.
Kraken
Kraken is a popular cryptocurrency exchange known for being at the forefront of the blockchain revolution since the beginning. A decade ago, it was one of the first crypto exchanges to offer regulated derivatives, spot trading with margin and index services.
Now, it hosts over 200 cryptocurrencies that users can buy, sell and trade. Kraken has one of the best Learn Centers where you can learn a lot about blockchain technology in general and cryptocurrency in particular. You can find individual cryptocurrency guides and stay up-to-date on the latest crypto slang.
If you want more advanced features, you can check out Kraken Pro which has much lower fees than the basic version and advanced and riskier investment options such as low-fee margin trading.
Features
✔️One of the oldest crypto exchanges
✔️Basic and Pro versions
✔️200+ cryptocurrencies available
✔️Supports derivatives, spot and margin trading
Pros and Cons
✅Wide variety of coins ❌Not very suitable for beginners
✅Multiple order types ❌Limited funding methods
✅High liquidity platform
✅Staking services
Trading Fees
Kraken Instant Buy charges fees taking into account factors such as type of asset, order size and market conditions. Kraken Pro, however, uses the maker-taker model for determining trading fees.
Kraken Instant Buy fees
Kraken Pro fees
Customer Reviews
Kraken is a smooth platform
Kraken can close accounts without disclosing reasons
Why We Picked It
Kraken is a reliable platform with a good selection of cryptocurrencies and several order types. Experienced traders can head over to Kraken Pro for riskier trading with higher returns and lower fees than the basic version.
Crypto.com
Crypto.com is quite affordable as far as cryptocurrency exchanges go. However, it mostly depends on how much Cronos(CRO), its native currency, you have staked. The more the amount of staked CRO, the more benefits you can get on Crypto.com.
You can find 250+ cryptocurrencies for trading on Crypto.com with good discounts on trading fees for CRO holders. This is an exchange that is perfect for traders who mostly use their phones for trading. Crypto.com’s mobile app is its distinguishing feature with various interesting features and is available for both iOS and Android devices.
Features
✔️More than 250 cryptocurrencies available
✔️Primarily for mobile-based trading
✔️Native utility token called Cronos(CRO)
✔️Offers a prepaid Visa card for payments
Pros and Cons
✅Good coin selection ❌Expensive debit and credit card
✅Low fees for CRO holders transactions
✅Visa card with several benefits ❌Limited educational resources
Trading Fees
Crypto.com uses the maker-taker model for determining fees. Depending on the level of CRO staked, you can get good discounts on the trading fees.
Crypto.com fees explained
Customer Reviews
The Crypto.com app works well and has interesting features
Withdrawals can be a problem on Crypto.com
Why We Picked It
Crypto.com offers users a good cryptocurrency collection and other blockchain-related products. You can stake assets here, use the app to make payments and explore DApps with the Crypto.com wallet.
KuCoin
Nothing beats KuCoin when it comes to the variety of tradable cryptocurrencies. With 700+ coins, you would be hard-pressed to find such a variety of cryptocurrencies anywhere else. So, hop over to KuCoin if you want a platform with a huge collection of coins.
It supports both spot and margin trading and you can also get discounts on the trading fees if you use its native KuCoin Token(KCS) for payments. Further, there are trading bots on KuCoin that you can programme to automatically execute actions when certain conditions are met.
Features
✔️Over 700 cryptocurrencies available
✔️Has spot, margin and futures trading
✔️Encryption is used for security of accounts
✔️Native utility coin is KuCoin Token(KCS)
Pros and Cons
✅Massive coin collection ❌No insurance for funds
✅Advanced trading features ❌Limited payment options
✅Trading bots available
✅Inexpensive trades
Trading Fees
KuCoin uses the maker-taker model for charging fees. The fees are on the lower end and it goes down as the trade volume increases.
KuCoin fees explained
Customer Reviews
Users have plenty of options to explore on KuCoin
KuCoin’s customer support is not very useful
Why We Picked It
Experienced traders may like KuCoin for its vast selection of cryptocurrencies and several advanced trading features. The fees here are low and you can use trading bots to automatically execute trades.
Top 5 Cryptocurrency Exchanges in South Africa
Centralized exchanges have mandatory KYC requirements for cryptocurrency trading. Some traders don’t like this and prefer decentralized exchanges which allow users to maintain their privacy while trading cryptocurrency.
PancakeSwap
PancakeSwap is a decentralized exchange that was constructed on the BNB Chain. It is mainly used for swapping BEP-20 tokens though it does carry a few ERC-20 tokens as well. It has a native token CAKE and a dedicated syrup pool for staking said token. There are yield farms where you can get rewards APR for providing liquidity.
PancakeSwap has a feature called StableSwap where you can swap stable pairs with lower slippage and much more efficiency. There are regular lottery programs too where you can get CAKE tokens. You can also get early access to new tokens via the Initial Farm Offerings(IFOs).
PancakeSwap’s smart contracts are publicly visible and accessible since it is built on open-source software. The contracts are all multisig and time-locked for added security. They have also been verified by BscScan to ensure that the users get what they see.
Features
✔️Developed on BNB Chain
✔️Uses Automated Market Maker
✔️Utility token is called CAKE
✔️Publicly available smart contracts
Pros and Cons
✅Yield Farms for depositing ❌No official customer service
tokens ❌Rampant scams
✅No KYC needed ❌Possibility of pump and dump
✅Compatible with several crypto schemes
wallets
✅Governed by the community
Trading Fees
PancakeSwap charges a single fee rate of 0.25% and most of it is distributed among liquidity providers.
PancakeSwap fees explained
Customer Reviews
PancakeSwap is a pretty standard decentralized exchange
There is a problem of low-quality coins being listed on PancakeSwap
Why We Picked It
PancakeSwap has, along with the standard DEX features, several other products that are bound to raise your curiosity. It has a simple fee structure, satisfactory rewards for liquidity providers and allows CAKE holders to vote on proposals for the platform.
Bisq
Bisq is perhaps the closest to the original principles of cryptocurrency- decentralization and privacy. Bisq is, in fact, not even a company or developed on a blockchain network like UniSwap or PancakeSwap. Rather, it is a free software that was released under version 3 of the GNU Affero General Public License.
Bisq is a desktop application that you need to download and install on your computer to trade cryptocurrency. Since it has no central servers, there is no single point of failure which ensures the safety of the platform.
Bisq has no intermediaries and is a purely peer-to-peer trading platform. It does not ask for any identifying information and you can trade freely while maintaining your privacy.
Features
✔️Free desktop application
✔️Peer-to-peer network
✔️Native token is called BSQ
Pros and Cons
✅Private trading ❌BTC or BSQ required for trading
✅Can be used from anywhere ❌No educational material
✅User control over assets ❌Possibility of scams
✅No central servers
Trading Fees
You have to use BTC or BSQ to pay trading fees on Bisq. The maker/taker fee using BTC is 0.1%/1% and the same is 0.05%/0.5% for BSQ.
Bisq fees explained
Customer Reviews
Bisq is a good app true to the spirit of cryptocurrency
Transactions can take time to be completed on Bisq
Why We Picked It
If you’re looking for a completely P2P trading platform, Bisq is the way to go. It is a secure place since you never hand over your funds or identifying information. Plus, its servers are scattered globally so there is no single point of failure.
UniSwap
UniSwap is one of the most popular decentralized exchanges and perhaps what started a spate of launching similar ‘Swap’ exchanges. Like many decentralized platforms, it was also developed on the Ethereum network. Therefore, you can swap tons of ERC-20 tokens on it.
While most decentralized exchanges require some prior experience with crypto trading, UniSwap is one of the few that are actually beginner-friendly. It is quite easy to navigate even if you don’t have much experience.
Since UniSwap uses the Automated Market Maker(AMM) system, there are no intermediaries or central order books. There are simply smart contracts that define liquidity pools, how liquidity is to be provided and assets are to be swapped. The whole process of providing liquidity is automated and hence, more resistant to manipulation.
Features
✔️Developed on the Ethereum network
✔️Employs AMM system
✔️Utility token is called UNI
✔️Three tiers for pool fees
Pros and Cons
✅Anonymous trading ❌No customer service
✅No ID verification needed ❌Costly Ethereum gas fees
✅User control over funds
✅Democratic governance
Trading Fees
UniSwap liquidity providers initially have three pool fee tiers of 0.05%, 0.30% and 1%. A new level of 0.01% was added in 2021.
UniSwap fees explained
Customer Reviews
UniSwap is a simple and easy-to-use DEX
Transactions may fail on UniSwap
Why We Picked It
UniSwap is an easily navigable exchange with quite reasonable fees. You don’t need to wait to get your KYC verified and can immediately start trading by connecting your crypto wallet. You can also participate in the platform’s governance if you hold the UNI token.
Balancer
Balancer is also a decentralized platform for swapping ERC-20 tokens. However, its multi-token liquidity pools differentiate it from other similar exchanges. You can easily add upto 8 tokens in Balancer pools. These pools are also automatically rebalanced upon completing the token swap.
It also offers an automated portfolio manager for users. On Balancer, you can save on the gas fees by claiming digital assets from the contracts with its Merkle Orchard. It has both public and private pools which are programmable. While anyone can provide liquidity to a public pool, only the pool creator can deposit or withdraw assets in private pools.
Features
✔️Developed on the Ethereum chain
✔️Employs AMM system
✔️Multi-token pools
✔️Native token is called BAL
Pros and Cons
✅Customizable liquidity pools ❌Possibility of impermanent loss
✅Can deposit several tokens in ❌Prior experience with DeFi needed
one pool
✅Automated portfolio manager
✅Pools are automatically rebalanced
Trading Fees
Balancer fees can be anywhere between 0.0001% to 10% as it is decided by the pool creators.
Balancer fees explained
Why We Picked It
You can swap ERC-20 tokens and save on gas fees with Balancer. Its public and private pools are a great way to diversify your investment portfolio. These pools are programmable and you can change their parameters to suit your needs.
DODO
DODO is an Ethereum-based decentralized exchange that runs on the Proactive Market Maker(PMM) model. PMM helps it mimic human trading and provide better market prices with its oracles. It also offers more price stability by providing liquidity close to the market prices.
Further, you can list tokens pretty much for free at DODO via the Initial DODO Offerings(IDOs). Plus, there are no minimum deposit requirements if you wish to become a liquidity provider on the platform. You can also create your liquidity market and even conduct crowdpooling to do so.
Features
✔️Developed on the Ethereum chain
✔️Employs the PMM system
✔️Oracles for better market prices
✔️Utility token is DODO Coin
Pros and Cons
✅Price stability ❌No fiat currency
✅Better liquidity
✅Anybody can create liquidity
market
✅Free listing of tokens
Trading Fees
DODO charges a 0.3% fee per trade but buying and selling assets attract an overall 0.6% fee per transaction.
DODO fees explained
Why We Picked It
DODO is free from the limitations of AMM-based DEXs such as impermanent loss. You have the freedom to start crowdpooling to create a liquidity market. It also has a more inclusive approach towards token listing via IDOs.
Is Crypto Legal in South Africa?
South Africa classifies cryptocurrencies as financial products under the Financial Advisory and Intermediary Services Act(FAIS Act). Therefore, they are regulated on par with shares, derivatives and other financial products.
This means that crypto asset service providers need to apply for a license to operate as financial service providers in the country legally. To get a license, cryptocurrency exchanges need to comply with the Financial Sector Conduct Authority(FSCA) regulations under Section 1(h) of the FAIS Act.
These changes were introduced in 2022 in the wake of the Paris-based Financial Action Task Force(FATF) pointing out the country’s lack of crypto-asset regulation as a deficiency in its anti-money laundering and counter-financing terrorism efforts.
Further, income tax rules also apply to cryptocurrencies in South Africa. Therefore, residents need to declare any income from cryptocurrencies while filing their taxes. However, note that none of these regulations are applicable to Non-Fungible Tokens(NFTs) which are considered to be art investments.
Conclusion
South Africa has no dearth of service providers when it comes to cryptocurrency trading. It is one of the fastest-growing cryptocurrency markets in Africa and the relative lack of crypto-related infrastructure has not dampened the traders’ enthusiasm.
Of course, South Africa declaring cryptocurrencies as financial products has also helped in bringing regulatory clarity and fostering a positive environment for the growth of the cryptocurrency sector in the country.
However, this does not mean due diligence can be skipped over. Investing in cryptocurrency can be risky and you should never put in money you cannot afford to lose.