Top 5 Best Crypto to Watch in South Africa
Cryptocurrencies have gained a lot of momentum in recent years, drawing attention from all over the world.
If you are looking for the best way to trade crypto in South Africa, then Admirals is here to offer more information on both the advantages and disadvantages of crypto CFDs and how to get started.
In this article, we take a look at the leading top 5 crypto to trade in South Africa and a better understanding of trading crypto CFDs.
Table of Contents
Can You Trade Crypto in South Africa?
Yes, you can trade crypto in South Africa. While it’s not a formal payment method, it is legal to own and trade crypto or crypto CFDs in South Africa. You can also use it in private transactions.
Now if you are looking to trade crypto in South Africa, it may be worth taking a look at Contracts for Difference (CFD).
With CFD trading, you don’t need to own the asset itself - cryptocurrencies in this case. Instead, you can trade on the difference between the opening and closing prices.
At Admirals, you can trade crypto CFDs with a trusted, regulated and safe broker. Trading with a regulated CFD broker is the safest way to trade the markets.
If you’d like to get started on your trading journey, we always recommend practising with a demo account first, which allows you to trade with virtual funds (not risking real capital):
What are the Top 5 Cryptos to Watch in South Africa?
Let’s take a look at the 5 best cryptocurrency CFDs to trade in South Africa. This list is based on the opinion of the author and market analysis in South Africa.
CFDs have many advantages compared to outright owning crypto, as they make transactions, whether it’s buying or selling assets, generally faster, cheaper and more secure.
There is more flexibility, as you can trade in both long and short positions. In other words, it means you can trade on the price going up or down, in either direction, without owning the underlying crypto asset.
By trading at Admirals, you will be trading with a reliable, trusted and regulated broker, which also means that your funds are protected. That’s the kind of security you won’t necessarily have when buying and trading crypto on the exchange.
On the contrary, of course, there are also disadvantages and risks to CFDs. Contracts for Difference are considered to be complex financial instruments and the risks, as well as the benefits, must always be taken into account.
The leverage on CFD financial products is one of the reasons why CFD trading is risky, however, if used correctly, leverage can also act as a benefit, as it increases your position size.
Trading CFDs can also incur swap fees, which are fees placed on the CFD trades when held for an extended period of time. Traders must also be aware of margin requirements by the broker, which can cut into potential profits in the overall trade.
Depending on your trading plan, whether you intend to trade in the short-term or long-term, the lack of ownership of the underlying asset can come as a disadvantage. Again, it all depends on your trading plan.
Now that you understand both the advantages and disadvantages of trading crypto CFDs, let’s look at the top 5 cryptocurrencies to watch in South Africa.
Bitcoin is, by a significant margin, the most popular and well-known crypto in the market.
Compared to other cryptos, Bitcoin is much more accessible thanks to its popularity, largely built upon its first-mover privilege.
It can be a double-edged knife depending on how you see it. On one hand, it does tend to have a more positive outlook from outsiders. On the other, it also comes under scrutiny more often, which increases the chance of getting some bad press every now and then.
This is something that can directly influence its value. Another important point to consider is Bitcoin’s finite supply, capped at 21 million coins.
Since there is a limited number of Bitcoin in circulation, this in turn increases the value. On the other hand, Bitcoin is a high-risk investment just like any other crypto. While its price swings aren’t as extreme, it still comes with a share of risks.
If you are willing to accept it, then BTCUSD CFDs are an option to consider.
See below the Daily chart of BTCUSD, to gather some insight into the Daily price swings:
Litecoin is another relatively well-known name in the crypto market. It has also been around for a long time, having been created in 2011 as an alternative to Bitcoin.
While it is more famous than some of the newer cryptocurrencies, Litecoin doesn’t enjoy the same popularity as Bitcoin.
LTC also has a finite supply, although significantly larger than BTC: 84 million coins. This means that each unit has less value, and the price is also more volatile.
It can be a problem if you own the asset, but it presents a potential opportunity if we are talking about LTCUSD CFDs. Since you have both long and short positions available, you can act on positions from these swings.
Of course, it does come with a high risk. Weigh the positives and the negatives before making your decision.
If you’d like to learn more about trading on the financial markets, feel free to join one of our upcoming trading webinars at Admirals – Click the banner below to register:
Ripple is a payment network that has its own native token, which is also called Ripple (XRP). It was originally created as a way to offer fast and cheap cross-border transactions for banks and other financial institutions.
XRP cannot be mined, as all 100 billion tokens were already issued on launch. They are then gradually released into the market instead.
In 2020, Ripple came under the spotlight, but not for a very good reason: the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs.
This ongoing legal trouble makes Ripple an even more volatile alternative. However, it can go both ways. If you are willing to take the risk and if you know how to make the best use of it, trading XRPUSD CFDs could be worth considering given the ongoing volatility.
Below, we have another Daily chart showing the Daily price fluctuations of XRPUSD, to give you a better idea of the price movements:
Dash is a moreso recent crypto in comparison, created in 2014, with faster transactions and cheaper fees.
It accomplishes that by employing a different protocol, Proof of Stake (PoS), instead of Proof of Work (PoW).
Originally created exclusively as a cryptocurrency, Dash has bigger ambitions now and intends to become a payment method for daily transactions.
Just like any other crypto, Dash is a high-risk investment. It has a supply limit of 18.9 million coins.
The same advice applies: if you understand the risks associated with the investment, then you can consider trading DSHUSD CFDs. Crypto paired with USD is generally more popular, however, we also offer DSHEUR.
You may also download our MetaTrader 5 platform, which not only allows you to execute your trades via your Admirals account, but you can also use the various features included in order to implement your trading strategy:
Monero was created in 2014, with privacy being its main draw.
While other cryptocurrencies have transparent blockchains, which can allow observers to learn some details about the transactions and those involved, that’s not Monero’s case.
It uses a variety of methods to hide these details, ensuring complete anonymity. Naturally, there are some positives and negatives that come with it.
Monero draws in many users looking for privacy, but that also makes it attractive for illicit activities. It all has a direct influence in supply and demand, which determines the crypto value and will have direct implications in trading XRMUSD CFDs.
What are the Top Payment Methods in South Africa?
If you want to start trading crypto CFDs in South Africa, then you can register an account at Admirals. These are the trusted payment methods we currently accept for account deposits:
- Electronic Funds Transfer (EFT): Transferring money from one bank account to another. This payment method does not have a minimum or maximum amount, although transactions can take up to 3 business days to complete.
- Credit Cards: Credit card payments are made available instantly, as Admirals processes transactions within milliseconds. Credit card transactions do have a minimum and maximum amount limit.
- Debit Cards: Much like credit cards, transactions using debit cards are also made available instantly. They are also subject to minimum and maximum amount limits.
Top 5 Crypto to Watch in South Africa: Conclusion
The increase in popularity for crypto and crypto CFDs is noticeable, not only in South Africa but the globe at large.
If you want to join in and trade crypto in South Africa, consider Contracts for Difference as one of the options available.
This way, you don’t have to actually own the coins, your funds have additional protection and you will be working with a trusted and reliable broker in Admirals. In case you want to start trading crypto CFDs, open an Admirals live account by clicking the banner below.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets and Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on Brandie E Blackler, Financial Writer and Analyst, personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.