How to Buy Ethereum in South Africa
Interested in buying Ethereum in South Africa? No worries, we've got you covered!
In this guide, we’ll briefly explore what Ethereum is and the exact steps you need to take to buy Ethereum in South Africa, addressing common questions along the way.
What Is Ethereum (ETH)?
Conceived by Russian-Canadian programmer Vitalik Buterin in 2013 and launched in July 2015, Ethereum (ETH) stands as the leading smart contract blockchain and the second-largest cryptocurrency by market capitalisation.
Ethereum has played a pivotal role in numerous crypto market developments, from the ICO boom to the rise of decentralised finance (DeFi), non-fungible tokens (NFTs), and the Web3 gaming explosion. It remains the preferred platform for various digital asset sectors, boasting a substantial market share in DeFi (57.45%), Play-to-Earn (P2E) (81.5%), and real-world assets (RWAs) (94.2%).
Key to Ethereum's appeal is the Ethereum Virtual Machine (EVM), the network's computational engine enabling developers to deploy and execute smart contracts using the Solidity programming language. With standards like ERC-20 and ERC-721, developers can create decentralised applications (dApps), tokens, DeFi protocols, NFT marketplaces, and more atop the Ethereum mainnet.
Ethereum places significant emphasis on security and decentralisation. Anyone can launch a full node with no cap on the number of validators. Simultaneously, the network is secured by public-key cryptography and the staked ETH of validators.
Transitioning from the energy-intensive Proof-of-Work (PoW) consensus to the more eco-friendly Proof-of-Stake (PoS) algorithm during the Merge event, Ethereum requires validators to stake their ETH to secure the network instead of mining.
Despite its strengths, Ethereum faces scalability challenges due to the blockchain trilemma. During periods of high network activity, Ethereum's mainnet may experience congestion, leading to increased transaction fees and confirmation times.
To address these concerns, developers are exploring solutions like sharding. In the meantime, high-throughput Layer 2 (L2) chains such as Arbitrum, Optimism, and Polygon offer alternative scalability solutions, providing users with affordable, instant transactions while leveraging Ethereum's security and decentralisation.
In March 2024, Ethereum's Dencun upgrade went live, laying the groundwork for a long-term solution to its scalability challenges.
How to Buy Ethereum in South Africa
One of the most convenient ways to buy Ethereum in South Africa is through VALR, which supports the deposits of South African rands (ZAR) as a fiat currency.
You can buy Ethereum (ETH) in 3 simple steps on VALR. Here’s how:
Step 1: Sign in to your VALR account
To get started, make sure you’re signed into your VALR account on VALR.com or on VALR’s mobile app. If you don't have an account yet, don't worry! Creating and verifying a new account only takes a few minutes. Sign up for one here.
Step 2: Deposit ZAR to your VALR account
Once your have a fully-verified VALR account, you can now deposit ZAR by either using a South African bank account or credit/debit card.
Deposit ZAR via EFT:
For bank transfers, navigate to your ZAR Wallet, select "Deposit," and then the "Via EFT" method. Choose your bank and use the displayed VALR's banking details and your unique VR reference to transfer Rand to your VALR account. Be sure to utilise your unique VR reference number as the beneficiary reference when making the transaction via your bank.
Deposit ZAR via Credit/Debit Card:
For card payments (only South African-issued 3D Secure-enabled Visa and Mastercard cards are supported), select "Wallet" and "ZAR" and then navigate to the "Deposit" tab. When there, choose the "Via Card" method and provide your card details on the next page. Please note that there's a rolling 24-hour card limit of 10,000 ZAR in place for card deposits.
Step 3: Purchase ETH
Based on your payment method, your ZAR will be credited to your VALR account shortly (approximately in 2 business days for EFT transfers and instantly for card payments).
Once your ZAR deposit has reflected, you can buy Ethereum in 2 ways on VALR:
1) Simple Buy/Sell: Ideal for beginners, you can use VALR’s Simple Buy/Sell feature to purchase ETH. To do so, navigate to the "Buy/Sell" tab, select “Ethereum” as the coin you want to buy, choose “ZAR” as the fiat currency you’re going to pay with, specify the amount of Ethereum you wish to purchase, and then finalise the transaction.
2) Pro Trading: Tailored for more experienced users, VALR’s Pro Trading feature comes with advanced functionality. To buy Ethereum, select the "ETH/ZAR" pair, set the parameters for your order (e.g., the type of the order, the Limit price, and the time in force), the ETH amount, and then finalise the transaction. Please be aware that Limit orders don't get filled immediately like Market orders. Instead, they will be executed once the ETH price reaches the level you set when placing the trade.
Learn more about the different order types available on VALR here.
If you’re now ready to gain exposure to Ethereum through VALR, but don't have an account yet? Sign up below and get started in just a few minutes!
Frequently Asked Questions (FAQ)
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One of the easiest ways to purchase ETH in South Africa is on VALR, which supports Rand deposits and offers ETH/ZAR trading.
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Yes, Ethereum does work in South Africa. Like other public and permissionless blockchain networks, Ethereum has no geographical restrictions. All you need to get started is an active internet connection and a device like a laptop, smartphone, tablet, or desktop computer.
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For optimal security and convenience, consider a reputable crypto wallet like VALR, which offers a robust platform with multiple layers of protection.
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Yes, you can buy Ethereum with a bank account in South Africa. On VALR, you can fund your account with ZAR via EFT transfers and use your deposited funds to purchase ETH on the platform.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.
VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
