Bitcoin is a decentralized digital currency that has gained popularity and many people and businesses have accepted and adopted it. There are many ways you can make money with bitcoin in South Africa. It is good that you first get to understand how cryptocurrency works before you can think of investing in it. In this article, we are going to show you how you can make money with bitcoin in South Africa.
Bitcoin Do’s and Don’ts
- Trade or invest only in bitcoin as a long term investment. Altcoins are copy-cats, scams or simply nonsensical, avoid them.
- Don’t trade or invest into bitcoin more than you can afford or willing to lose. Generally, it is advisable not to invest more than 10% of your funds into bitcoin. We don’t recommend day-trading or betting on crypto.
- Only use non-custodial wallets to store your bitcoin. Don’t leave your bitcoin on a crypto exchange after buying. Use cold wallet such as Trezor for long term investment. Always have safe backups for when your wallet gets lost.
Is Cryptocurrency Legal in South Africa?
Yes. It is legal to buy, sell and hold cryptocurrency in South Africa. However, cryptocurrency is not regulated and the South African Reserve Bank (SARB) has issued a warning regarding the risks associated with trading bitcoin. However, it is worth noting that proceeds from trading in cryptocurrency are subject to taxation.
Make Money with Crypto in South Africa
There are many ways to make money with crypto in South Africa. They include:
Buying and Holding Bitcoin
One of the ways to make money with crypto through buying cryptocurrency in South Africa and “hodl.”. It is the easiest way for beginners to make money. To get started, you need to create an account with one of the exchange platforms, then buy bitcoin. After that, hold the bitcoin in your crypto wallet until bitcoin prices increase. Don’t worry about how long it will take. Wait until bitcoin prices increase and then you can sell them off.
You can make money with bitcoin by trading it. due to the highly volatile nature of bitcoin, trading it is a great opportunity. You need to understand how its market works before you can start trading bitcoin. You can trade bitcoin using these strategies:
- Day trading. This involves short and quick trading. This method entails selling bitcoin within short periods of less than 24 hours. Day traders analyze the markets within a few hours and capitalize on small profits.
- Arbitrage. Through arbitrage, traders buy BTC from one exchange and then sell it on a different exchange.
- Swing trading. Swing trading is a middle-term way of making money with bitcoin. Swing traders buy bitcoin at low prices, for long enough until their holdings get a price increase, and then sell them when prices are high.
There are many cryptocurrency exchanges where you can trade bitcoin in South Africa. They include Yellow Card, Coinbase, Luno, etc.
We do not advise you to use Coinbase because of many issues such as transparency, privacy, and security. In addition, Coinbase is known for pushing and listing high-risk shitcoins.
Earn Interest from Bitcoin
The other way you can make money with bitcoin in South Africa is through earning interest. You can open a bitcoin interest account, a type of crypto savings account. For instance, you can earn money through Paxful every week. The crypto in your wallet earns more cash through interest just like a savings account.
Platforms that can help you earn interest from bitcoin include:
- Luno. The South African cryptocurrency exchange offers up to 7.6%/year interest with no with no fixed terms, and unlimited deposits and withdrawals.
- Yearn.finance. A South African company that provides vaults for the safe custody of customer deposits. It also offers high APYs for deposits. However, the platform charges a 2% annual maintenance fee.
- Revix. A new crypto investment platform based in Cape Town, which offers you up to 12% interest on your bitcoin.
- Ovex. This is a South African crypto exchange that offers Ovex Interest Account that earns you 4% interest on bitcoin. The interest is paid out on a daily basis.
The other way you can make money with bitcoin in South Africa is through affiliate marketing. It works by you encouraging new customers to join the crypto industry. When customers sign up for crypto accounts or when they start trading on a platform you invited them to, the company pays you a commission. It is a great way to make money with bitcoin if you are able to convince many people to start trading in crypto. The following are some of the best bitcoin affiliate programs in South Africa:
Accept Bitcoin Payments for Goods and Services
If you have a business where you sell goods or services, you can make money with bitcoin by accepting crypto payments. You just need to integrate bitcoin into your payment system with the help of crypto payment gateways. Customers without bank accounts or credit cards can pay using bitcoin. If you have an online business, you can integrate Paxful Pay into your website and customers can be sending funds directly to your bitcoin wallet.
Lend Small Fractions of Bitcoin
You can start giving bitcoin loans through peer-to-peer lending platforms. There are many websites such as BTCPOP that can help you lend small fractions of bitcoin. Through lending, you can make money through interest gained from the lent-out bitcoin. Instead of just HODLing, you can use your wealth and not just keep it unmoved.
Investing in Solar Energy through Sun Exchange
Sun Exchange is a startup in South Africa that was started in 2015 to provide solar energy to schools. The startup has a peer-to-peer crypto business that you can use to invest in solar energy. You will be selling energy to schools in South Africa through a solar panel that you bought from the startup. The startup meters the electricity produced by your solar panel and then collects money from the consumer and then deposits oy in your wallet in Sun Exchange.
Earn commission with Azteco
You can generate an income through Azteco by becoming a vendor. When vendors top-up, you are paid a commission. To start earning a commission from Azteco, you just need to make an application. You can grow your revenue through vouchers that you sell.
Blog about Bitcoin
Bitcoin Niche is becoming popular and you can blog about it and make money through advertisements and affiliate marketing. You need to create a website, provide content about bitcoin and once you have enough traffic, you can start monetizing it. You can monetize a bitcoin blog through advertisements from platforms like Google AdSense or through affiliate marketing.
Run a Lighting Node
You can make money with bitcoin by completing Bitcoin transactions. You need to use a Lightning Network that facilitates Bitcoin transfers. Users can set up payment channels using Lighting Network and you will be earning through transaction fees. It is worth noting it is a slow way of making money since you will be getting small amounts of transaction fees.
Summary of How to Make Money with Bitcoin in South Africa
There are different ways to make money with cryptocurrency. The above are some of the ways you can make money with cryptocurrency in South Africa. Before you can start investing in bitcoin, it is good you get to know how it works and how you can safely buy bitcoin. After that, you can start making money using the the methods we have discussed here such as opening a savings account, trading, offering peer to peer bitcoin loans, etc