Connect with us

Bitcoin

How to Buy Bitcoin in South Africa

Published

on

south africa

If you are based in South Africa and want to buy BTC, then this guide is for you. In this article, you will discover five cryptocurrency exchanges you can use to buy bitcoin in South Africa using rand (ZAR).

ICE3X

ice3xICE3X is a digital currency exchange that offers users the ability to buy bitcoin, litecoin and ether using South African rand. Buying bitcoin on ICE3X involves the following simple steps:

  • Log on to https://ice3x.com/ and create a free account. A verification mail will be sent to your email address subsequently for the verification of your ICE3X account and to activate it.
  • Log into your ICE3X account and click on the ‘deposit tab’ in the ‘Account’ tab in the blue menu bar. ICE3X bank account details will be provided. You can then use your internet banking to make a bank transfer into your ICE3X trading account. It is important to include your ICE3X account number in the transaction description when making the transfer. Your account will be credited within one to three working days.
  • After your account has been credited, you can execute a bitcoin purchase by clicking on the Rand Balance in your wallet to confirm that you are trading in the ZAR market. Then click on the trading on the menu. You will be presented with an option to either buy bitcoin, litecoin or ether. Enter the volume of bitcoin you wish to purchase and how much rand you are willing to offer for it. It is advisable to place a realistic order based on existing market pricing. Your order slip will be generated afterwards with the transaction commission reflecting.
  • You then click on the buy tab to execute your order. Order execution might take a few moments since it will need a corresponding sell order to finalise.
  • Your bitcoin holdings will then appear in your wallet on your ICE3X account.

Luno

LunoLuno does not only serve as a bitcoin exchange, but it also provides a mobile bitcoin wallet and offers learning materials for beginners. To buy bitcoin on Luno, you have to do the following:

  • Log on to https://www.luno.com/ and create a free account. With this, you can get either a web wallet or mobile wallets (for Android and iOS) or both.
  • You can select a preferred way to transfer fiat currency after the Luno wallet has been created. You can do this using your local bank internet transfer or your bank cards (Credit, Debit or Pre-paid cards). Do remember to include your Luno account details in the transfer description!
  • Once your Luno account has been credited, you can execute a bitcoin purchase order and boom – you now hold bitcoin in your Luno wallet.

Remitano

RemitanoRemitano offers swift purchases of bitcoin as well as bitcoin remittances. This platform acts as a peer-to-peer (P2P) intermediary and provides an escrow service for the purpose of transaction security. To buy bitcoin using this platform the following easy steps can be taken:

  • Log on to https://remitano.com/ and register by entering your email address in the dialogue box provided and click on ‘continue’. Account login details will then be sent to your email, which you will then use to access your Remitano account.
  • You get to access your Remitano account after it has been verified and then you click on the Buy/Sell option in the menu bar. A list of bitcoin buyers and sellers within South Africa will show up.
  • You click on any of the sellers to place a buy bitcoin order instantly. The Remitano platform serves as an escrow that holds funds until the transaction has been confirmed by both parties.

LocalBitcoins

Convert Bitcoin Into Local CurrencyLocalBitcoins is the biggest peer-to-peer trading platform globally, which brings bitcoin buyers and sellers together to create a flourishing bitcoin trading environment.

Follow these steps to purchase bitcoin in South Africa using Localbitcoins:

  • Register a free account by logging onto https://localbitcoins.com/
  • Then, go to the main page and fill in the BTC amount you want to buy in ZAR. Then, you then select the payment method you prefer in the purchase transaction.
  • Users of the platform are ranked based on transaction history, which makes it easier to select who to deal with from the list of advertisers. It is advisable to select sellers with relatively high reputation scores. You can also see the typical response time for each seller.
  • After clicking on the ‘Buy’ button, you will receive details of the transaction. You can choose whether or not to proceed with the particular buyer depending on how comfortable you are with these terms.
  • To execute a trade, type in the blue box how much bitcoin you want in rand and also add a message to the seller after which you click on the ‘send trade request’ button. Be certain you are willing to execute the purchase before clicking on the button. The order will automatically cancel if you do not pay within the one-hour transaction window.
  • Once you pay, click on the ‘I have paid’ button. Once the seller confirms receipt of your payment, the bitcoin will be released from the Localbitcoin escrow into your online bitcoin wallet on LocalBitcoins.

Paxful

PaxfulPaxful is a peer-to-peer (P2P) bitcoin marketplace for buyers and sellers anywhere in the world. The following steps will allow you to purchase bitcoin using rand:

  • The first step is to log onto the site – https://paxful.com/. Click on the ‘Buy bitcoin’ option in the top menu bar.
  • You then enter the rand amount of bitcoin you want to buy in the box that will be made available. You then select the payment method you intend to use for the transaction. After selecting a way to pay, you click on the ‘search’ button. There, you will get a list of BTC sellers.
  • Just like LocalBitcoins, the reputations of sellers are scored and it is advisable that you select buyers with a high reputation to deal with. You then select a seller and begin your purchase order. It is important to read the ad to see the seller’s contact details and terms!
  • You click on the ‘buy now’ button when you are comfortable with the conditions. The trade details will then pop-up on the left side of the screen and a chatbox on the right side of the screen where you can chat with the seller so you can both track the stages of transaction execution.

If you decide to buy bitcoin in South Africa, remember to transfer the coins to your personal bitcoin wallet after the transaction to keep them safe and secure!

Terra

Bitcoin

3 Reasons to Use a Bitcoin Mixer in 2020

Published

on

Bitcoin Mixer

Bitcoin is not as anonymous as people think. Bitcoin transactions are viewable on the network’s public blockchain, which also means that transactions can be linked to real-world identities. As a result, bitcoin is not (yet) fungible and does not protect individuals’ financial sovereignty as much as it should. Fortunately, there is something called a bitcoin mixer that enables bitcoin users to increase their financial privacy.

In this guide, you will learn what bitcoin mixers are and why you should consider using them.

How Anonymous Are Regular Bitcoin Transactions?

Regular bitcoin transactions are not anonymous. Bitcoin addresses are pseudonymous. They do not reveal your identity as a user but can be linked to your identity.

For instance, most exchanges require you to verify your identity with legal identification (ID) documents. In a situation where you withdraw funds from an exchange into your wallet, your identity can be linked to that wallet, and all your linked transactions could be tracked.

Blockchain analysis companies can use information from your linkable transactions to track how many bitcoins you own, what you spend your coins on, and who you transact with. If you are conscious about your privacy, you might need a bitcoin mixer.

What is a Bitcoin Mixer?

Bitcoin mixing service

A bitcoin mixer allows you to mix your coins with other users. This obscures the ties between your personal identity and bitcoin transactions.

The end goal of a bitcoin mixing service is to create a misleading trail of transactions that makes it difficult to track your transactions. This is achieved by breaking down your bitcoin into smaller parts and then mixing them with coins from other transactions.

Most bitcoin mixers are non-custodial, run on the Tor network, and do not keep records of users after a couple of hours.

Why Do People Use Bitcoin Mixers?

The primary reason for using a bitcoin mixer is to increase transactional privacy. You may not want “the whole world” to be able to see what you are doing with your bitcoin. Through the use of a mixing service, you can achieve that despite Bitcoin’s public blockchain.

Moreover, there are a number of other reasons why you should consider using a bitcoin mixer. They include:

Your Transactions Reveal Personal Finance Information

Every time you send bitcoin to or receive bitcoin from an individual, the other party gains some information about your bitcoin holdings.

For example, if you have ten bitcoin in your wallet and you send two to another person. The individual who received the bitcoin now has access to your bitcoin address, which allows them to check your balance on the blockchain.

In some cases, by analyzing your inputs and outputs, they can predict other addresses you own, giving them more information about your finances and transactions you have done in the past. Mixers can prevent this. The mixer breaks the connection between addresses in your wallet by creating transactions that make it difficult for blockchain analysts to track.

Based on the example above, if you use a coin mixing service to send out the coins, the receiver can still check the blockchain to verify the transaction but will be unable to track your old transactions and find your bitcoin address.

Blockchain Analysis Companies Are Watching

Over the years, blockchain analysis companies have been established to track transactions and monitor the Bitcoin blockchain. These groups have resources to probe deeper into transactions, with some going as far as connecting IP addresses to bitcoin transactions.

Further, cryptocurrency exchange verification is required by regulators to keep an eye on how individuals use their bitcoin. This means that exchanges can still trace your transactions after you have purchased bitcoin.

Bitcoin mixers allow you to detach connections between your initial receiving address and other transactions you make. This can prevent companies from gathering data about you, which it would otherwise share with (or sell to) third parties.

To Prevent Censorship

Money has become a tool used to fund political groups and operations. In authoritarian regimes, where the financial system is highly monitored by the ruling government, critics or opposition groups may opt for bitcoin.

To ensure complete privacy while using bitcoin, such groups will require bitcoin mixing platforms. Without increased transaction privacy, these groups risk losing support in situations where the state begins to target individuals funding them by tracking their transactions on the blockchain.

This allows bitcoin to be used as a tool for freedom of speech and expression.

If you want to mix your coins to protect your financial sovereignty as a bitcoin user, check out Bitcoin Mixer.

Terra
Continue Reading

Bitcoin

Bitcoin in Africa: Making A Big Difference For A Big Continent

Published

on

Big Continent

There is no doubt that bitcoin, and cryptocurrency as a whole, can have a huge impact on the world economy. Also, Africa could benefit from it more than any other region.

Jack Dorsey, CEO of Twitter and Square, recognised this fact and recently claimed that Africa will define the future of bitcoin. He might be right as Africa is predicted to have some of the most populous metropolises by 2100 and the banking situation here is abysmal.

As it stands, bitcoin literally has the power to boost the economy of the entire continent of Africa. The question is whether it will happen as regulation by local authorities plays a key part in the adoption of cryptocurrency.

Why Africa Is the Best Place for Bitcoin to Shine?

Jack Dorsey is a well-known advocate of Bitcoin, which means he understands its potential better than most. And he is right to note that Africa is an exceptionally fertile ground for cryptocurrency. The entire continent is struggling because banking services are outright unavailable to many.

Remote is the best way to decide the vast majority of towns and other settlements in Africa. Many of them are days away from any urban areas, let alone places urbanised enough to actually have banks, Yet millions of people in these remote places rely on remittances from their migrant-worker relatives to survive. With a great number of these people being unbanked getting that money to them is a huge problem. A problem that literally costs lives.

Wherever banking is available, it still leaves a lot to be desired. Many governments in Africa are not trustworthy and hardly seem to work for the people’s best interests. As all banking services are regulated at the state level, people distrust them the same way they do the governments.

The fact that the number of banks is limited doesn’t help. With very little competition they set outrageous terms, especially for those poor families relying on remittances.

The situation is changing a little with the help of online money transfer companies. A transfer from UK to South Africa now costs a MINIMUM of 0.5% in fees. This is a great improvement, but it doesn’t change the fact that such transfers still cost 7% to 10% for the majority of Africa.

In such conditions, easy and virtually free bitcoin transfers can make a huge difference in the quality of life. And people need this kind of service desperately. Therefore, it’s no surprise that if bitcoin is allowed full freedom as an accepted universal currency, Africa will adopt it wholesale.

How is Bitcoin Doing in Africa Today?

bitcoin adoption

For all its potential, bitcoin is not a big thing in Africa today. Admittedly, cryptocurrency as a whole is not yet a big enough power to be a major factor in the global economy. It has the potential but it has not yet been realised.

Bitcoin is legal in most African countries, but this hardly matters because this only means that it’s not illegal to buy and trade it. You cannot actually use this cryptocurrency to make any payments, like pay utilities or your grocery bill. The best you can hope for is to pay at some international online shopping platforms that accept bitcoin.

In the states where using bitcoin isn’t banned, the government’s stance on it is very similar. Local finance authorities are investigating the potential impact of cryptocurrency. However, no state as of yet has reached a point where it decided to actually give it a legitimate status. Therefore, cryptocurrencies remain largely unregulated.

Being unregulated is one of the main benefits of cryptocurrency in the eyes of users. It’s an even more attractive advantage for countries where the level of trust in the government isn’t high. In fact, in many developing countries with unstable political and economic environments, residents now see crypto as an effective hedge that can protect their assets in times of turmoil. But truly benefitting from crypto is still hard due to its lack of legal status as a recognised currency.

The Wealth Lost in African Remittances Every Year

To understand how much of a difference adopting bitcoin can make for Africa one should consider some simple numbers. According to the World Bank, global remittances have already exceeded $530 billion annually. And this number keeps growing fast. About $40 billion of that money is sent by immigrant workers to Africa, over half of that money coming to Nigeria, where remittances are one of the main contributors to the GDP.

However, Nigeria is among the parts of Africa where the banking situation isn’t good at all. Therefore, remittances here cost about 10% of the transaction amount. With the overall amount of transactions about $29 billion, nearly $3 billion is lost in fees. Those are $3 billion that could go to the families and be invested in the country’s economy.

To understand how much of a difference that amount would make for regular people you should remember that GDP per capita in Nigeria is a little over $2,000 a year. Compare this to the US, where GDP per capita is over $60,000. Every cent counts for the families of migrant workers, especially when you consider that the size of an average remittance is under $500.

Bitcoin in Africa: Hopes for the Future of the Big Continent

The situation with banking and remittances to Africa is rather grim. But it doesn’t have to be this way. Bitcoin offers an opportunity to change this. The question is whether local governments will accept this and take the risk of adopting a decentralised cryptocurrency. So far, there have been no official announcements from that direction.

If this does happen, the economy of the entire continent could receive a boost. And the best thing is that this would be an immediate boost because that money already belongs to Africa, it’s just lost on the way there.

Bitcoin will make a difference. Jack Dorsey is absolutely right about that. Should this change happen, the difference for bitcoin itself, and cryptocurrencies in general, will also be huge. Recognition in Africa could tip the rest of the world in favor of crypto.

Terra
Continue Reading

Bitcoin

BitClub Network: The Rise And Fall of A Bitcoin Mining Scam

Published

on

Bitclub Network

Operators of the prominent bitcoin mining company, Bitclub Network, have been arrested and charged with fraud by the US Department of Justice in December 2019.

In this article, you will learn about the rise and fall of the BitClub Network scam, which has defrauded thousands of bitcoin investors.

What is BitClub?

The BitClub Network is a company that claims to enable individuals to make money through bitcoin cloud mining. Since BitClub was established in 2014, it has been in the spotlight for supposedly using MLM strategies to defraud investors.

BCN claimed on its website (before it was taken down) that it is a “team of experts, entrepreneurs, professionals, network marketers, and programming geeks who have all come together to launch a very simple business around a very complex industry.” These unspecific details about the people behind the company should have been the first warning sign.

The founders of BitClub Network have been anonymous for a long time. Only convicted sex offender, Russ Medlin, was associated with the bitcoin mining scam. However, recent arrests have brought to light other people that could be architects of the investment scheme.

Plenty of Red Flags

In addition to the acute lack of information about the company and its operators, the list of red flags was long.

  • Investors have to pay $100 to join BCN. They then choose from three packages of $500, $1,000, and $2,000. Considering that you can join other mining pools for free, BCN does not look attractive at all.
  • Generally, earning profits through bitcoin mining is difficult but on BCN, this is almost impossible. For example, an investor wrote on Steemit that he was earning $0.34 daily in 2017 with BCN’s $500 package. It would have taken nine years or more for him to get a return on his investment. But since the contract was only running for 600 days, he was never going to make any profits.
  • You can only sign up for an account on BitClub if you have a sponsor. This is characteristic of MLM schemes that thrive on referrals.
  • Russ Medlin is a convicted sex offender from the US associated with various BitClub Network YouTube videos and blog posts. He is considered the “Master Distributor” and unofficial “Owner” of the scheme.
  • Ofir Beigel, the founder of 99Bitcoins, states that the company used a criminal’s picture under a different name to display a customer testimonial. The photos were later taken down after the misrepresentation was discovered.
  • Investors are encouraged to reinvest their cloud mining earnings, which is a tactic MLM companies use to stay alive.
  • Many BitClub YouTube videos that were suspicious were deleted after catching attention from reviewers.
  • BitClub launched a “digital currency” that had no value outside its platform.

The Rise

Bitclub Scam

There is no doubt that the BitClub Network has been aggressively marketed. From Facebook and Telegram groups to Reddit, BitClub promotions have been all over social media. This attributed to its steep growth.

Although the hype surrounding making money with bitcoin is not what it once was, BCN has convinced a lot of people that they could get rich through bitcoin mining. After five years, some investors, if not all, are reportedly regretting their decisions after losing thousands of dollars to BitClub.

In Africa, BCN was just as popular as anywhere else in the world and social media was a key recruitment tool. An example is the Facebook page, BitClub Network South Africa, which is asking people to join.

Using the “fake it till you make it” approach, the leaders of the scheme defrauded investors $722 million even though earlier reports showed that the Network was contributing to bitcoin’s mining activity. However, the information from the recent arrests reveals that the BCN operators were displaying fake mining numbers to investors.

The Fall

Bitclub Network Scam

As with any Ponzi scheme operators, the law is bound to catch up with them. This is what happened to Matthew Goettsche, Joseph Abel, Silviu Balaci, and Jobadiah Weeks, the alleged operators of BCN.

The US District Court prosecutors charged the four with fraud in December 2019 with regards to the BitClub Network Ponzi scheme.

While these arrests could have brought the company to its knees, Russ Medlin, a well-known name in the BitClub Network scam, has not yet been charged.

The arrests revealed that the operators were making millions of dollars while using a small fraction of the money they received from new investors to pay the old investors. Interestingly, the leaders of BCN were not shy to state in their correspondence that they were out to profit from “the typical dumb MLM investor.” In January 2015, Goettsche told Balaci:

“We are building this model on the backs of idiots.”

Lessons Learned

The story of Bitclub is a great lesson for new and future crypto investors. There is a lot we can learn from a bitcoin scam that has been able to operate for so long.

The key points are:

  • Always do your research before investing in any opportunity
  • If you cannot find clear details about the founders of an investment company, do not invest
  • Always regard with suspicion any investment opportunity that asks for registration fees
  • Anyone who promises returns is most likely lying
  • Bitcoin mining is making people money but not as fast as you think
  • Never invest in something you do not understand

The ugly side of crypto is real. There are people intentionally starting crypto scams to make money from unsuspecting investors. Therefore, it is important to stay vigilant and to research the companies you plan on doing business with.

Terra
Continue Reading

Popular Posts