Why Do People Buy Cryptocurrency in South Africa?
The number of people who buy cryptocurrency in South Africa continues to grow. At present, South Africa is home to more cryptocurrency investors per capita than any other country. Every day, also sees more South Africans buy cryptocurrencies at exchanges like Easy Crypto. The only question is, “Why?”
Why do people buy cryptocurrency in South Africa? Do people in South Africa buy cryptocurrency just as an investment? Or does buying cryptocurrency have a more practical purpose? At Easy Crypto, we believe that the latter is the case.
Here’s why the number of people who buy cryptocurrency in South Africa continues to grow
Contrary to what you might think, not everyone who buys cryptocurrency in South Africa does so to invest. In fact, at present, South Africa is one of just a few places in the world, where cryptocurrency is used just like regular currency. Now, let’s look one by one the reasons why South Africans start to adapt with cryptocurrency.
Cryptocurrency combats high South Africa remittance fees
Every year, thousands of South Africans with transferable work skills seek work in more affluent countries. At the same time, there is a high level of immigration into South Africa from surrounding countries to fill skilled worker shortages.
Having a large diaspora population means that money transfers in and out of South Africa are common. At present, though, remittance fees on South African money transfers are some of the world’s highest.
- When sending money to South Africa, remittance fees can equal up to 12% of the amount of cash being transferred.
- On average, most remittances to South Africa in 2019, saw South Africans pay fees equivocal to 7.3% of transaction amounts.
- High remittance fees still apply when sending money to or from neighbouring African countries.
Thankfully, cryptocurrencies like Bitcoin provide a solution to South Africa’s remittance fee problem. This is thanks to the fact that using coins like Bitcoin to transfer cash, can cost South Africans as little as a few cents.
Many businesses in South Africa have started using Bitcoin and other cryptocurrencies
In South Africa, high local remittance fees don’t just affect individuals receiving money from overseas. As well as this, high-fees also affect local businesses.
At present, the volatility of the South African rand puts South African businesses at a disadvantage when buying or selling goods overseas. This is why several South African businesses have already started to accept Bitcoin or other cryptocurrencies as a payment method.
At present, notable businesses using cryptocurrency in South Africa include:
- RunwaySale – South Africa’s largest online fashion sales store offering members exclusive 70% discounts on major fashion labels.
- Earthchild – A homegrown South African fashion retailer specializing in organic cotton casual wear.
- Cape Coffee Beans – South Africa’s most popular online coffee bean distributor.
- weFix – South African repairers of all kinds of consumer smart devices, including popular Apple products.
- Takealot.com – South Africa’s largest homegrown e-commerce store.
In the majority of cases, businesses don’t just invite consumers to pay with cryptocurrencies. As well as this, businesses like weFix use cryptocurrency to source inventory from overseas suppliers. In doing so, they significantly reduce their inventory procurement costs.
Promising asset for investment and trade in South Africa
Globally, the majority of people who buy cryptocurrency do so to invest or trade cryptocurrency. However, in South Africa, people don’t just buy coins like Bitcoin in the hope to get rich one day.
At Easy Crypto, we see many people buy coins like Bitcoin to safeguard the value of wealth they have already.
- Coins like Bitcoin often perform better against the U.S. dollar than the South African rand.
- By investing in cryptocurrency, South Africans can save without having to worry about the value of their savings decreasing due to inflation.
Where is the best place to buy cryptocurrency in South Africa?
Are you planning to buy Ethereum tokens or trying to get started with Bitcoin in South Africa or any other cryptocurrency? If so, at Easy Crypto you can do so in under 2-minutes. Best of all, because Easy Crypto is a local exchange, you can save on transaction fees while also buying coins for the best price possible.
Find out more about Easy Crypto now by visiting our website 🙂