Cryptocurrency is becoming more and more popular, so much so that there are several apps for that. My boss mentioned an app for buying Bitcoin, Luno and I knew I had to test it out. So a few days ago I downloaded the app and bought R50 in Bitcoin and R50 in Ethereum (high roller, I know). Here’s how to buy Bitcoin in South Africa.
What is cryptocurrency
Cryptocurrency is a digital decentralised currency that uses cryptography to secure transfers. These two features, decentralisation (no interference from central banks or governments) and the use of cryptography (secure, no steep transaction fees) arguably make cryptocurrencies so popular. An example would be Bitcoin.
Bitcoin, currently one of the most popular cryptocurrencies, started in 2009. One Bitcoin (BTC) is currently worth $8000 (R112377). My R50 is currently worth R68.92 or BTC 0.00056654 after one week. The current Rand to Bitcoin rate is BTC1 = R115376.
— WIRED (@WIRED) November 18, 2017
How to buy Bitcoin in South Africa (in 5 easy steps)
I used Luno to buy my Bitcoin, and they recently started offering Ethereum (another cryptocurrency) so I decided to go fifty, fifty.
- Download the Luno app for Android or iPhone.
- Authenticate your number with the app.
- Send money to your ZAR wallet. I did it via EFT and it reflected in a few hours.
- Transfer money from your ZAR wallet to Bitcoin or Ethereum.
- Watch your money (hopefully) grow.
If I had a bitcoin for everyone who is suddenly a cryptocurrency expert…
— Mike Sharman (@mikesharman) November 20, 2017
What else can you do on Luno?
- You can set up price alerts so that you know when the cryptocurrency of your choice goes up or down.
- You can invite friends and each earn R10 of Bitcoin when your friend spends R500 or more. (A bit of a high threshold, but if any of you are interested my code is ER45D)
- You can also trade like you would with another forex. This seems really risky to me, so I haven’t done that yet.
- What is really cool is that you can buy more Bitcoin with your Ethereum earnings and vice versa. At the moment I’ve only made R6 from Ethereum and R19 from Bitcoin. So I could use my Ethereum earnings to buy more Bitcoin.
Google Trends lets you see how the search volume changes and therefore the interest in something. As you can see Bitcoin has become extremely popular.
But dudes be serious, it is a gamble and like my BF and a co-worker said it is like gambling. So only spend money you are willing to lose.
If you need a break from trading crypto currencies, I highly recommend you engage in some lower risk activities like roulette, craps and blackjack during your downtime.
— Vinny Lingham (@VinnyLingham) November 15, 2017
Disclosure: Jade used her own cash money to buy Bitcoin and Ethereum using the Luno app.