How to Choose the Best Cryptocurrency Trading Platform in South Africa – Cryptopolitan
Forex trading in South Africa is growing month by month. Today, South Africans are among the most active traders on broker sites. Although most of these brokers focus on Forex South African brokers offer other trading instruments, stocks, indices and even cryptocurrencies. For this and other reasons, interest in trading cryptocurrencies continues to grow.
As interest in cryptocurrency trading grows, so does the number of crypto trading platforms. To select the best trading platform out of the thousands out there, people have to consider several factors. Among others:
- Fees charged by the platform.
- Platform security.
- Platform liquidity.
- Collection of goods
- The reputation of the trading platform.
Today we will consider these factors and list some of the best cryptocurrency trading platforms in South Africa.
Binance It is probably the first choice for a crypto trading platform for many traders. It was launched in 2017, this company has quickly gained traction with many crypto traders today. This broker is committed to keeping client funds as safe as possible. In addition, Binance runs an insurance program called SAFU. SAFU is a safe asset fund for users. Traders on this platform can trade with peace of mind knowing that security is a top priority.
Additionally, Binance has a large selection of crypto-assets on its platform. In total, Binance lists 387 different coins for investment. This massive collection of trading tools attracts many investors by giving the platform the most liquidity of any crypto exchange. As a side note, Binance supports a wide range of local currencies including the South African Rand. Therefore, South African customers do not need to convert funds after making a deposit.
Binance ranks first among all exchanges on Coinmarketcap and Coingecko, with a trust score of 9.9 on Coinmarketcap and 10 on Coingecko. Based on this, Binance has a high reputation among traders and critics. It also has relatively low fees, with BNB holders on the platform paying lower fees. The more BNB a client holds, the lower the trading fees.
Coinbase It is ranked second by Coinmarketcap and Coingecko. On Coingecko, this exchange has a trust score of 10, while on Coinmarketcap it only has a score of 7.8. In terms of popularity, this is the second place in the world. Naturally, this attracts traders to this exchange. Thus, this exchange has the second highest liquidity among crypto exchanges.
In terms of security, we have to mention an unfortunate event in 2021. Coinbase was hacked due to a bug in its account recovery system, affecting more than 6,000 accounts. However, Coinbase quickly fixed the security issues and refunded users in full. Despite the history of hacking, it’s good to see that the company is quick to fix all vulnerabilities and get customers back.
Unfortunately, this exchange does not accept the South African Rand. Therefore, South African customers should convert their funds to an accepted currency. However, Coinbase allows customers to invest in 245 different coins. The diversity on this platform is something to behold. Moreover, the fees on this platform are also not extravagant. Coinbase charges flat transaction fee of 1% All cryptocurrency transactions.
KuCoin supports over 45 different local currencies including the South African Rand. This is an advantage as they do not need to trade in another currency. They just make a deposit and start trading on the 812 cryptoassets listed on KuCoin. This exchange has tremendous liquidity due to the high daily trading volume on the platform.
In terms of popularity, it is one of the top 10 exchanges on Coinmarketcap and Coingecko. On Coinmarketcap, it ranks fourth with a trust score of 6.9. On the other hand, Coingecko is in fifth place with a trust rating of 10. This is very popular and shows that the platform is widely accepted as a top-tier platform.
Unfortunately, KuCoin has been hacked before. In 2020, the company was hacked and lost $281 million. The company froze deposits and withdrawals to mitigate losses and recovered more than $200 million from the hackers. However, KuCoin’s fees are industry standard between 0.005% and 0.10% per trade, and a 20% discount on trading fees is offered when using its token, the KuCoin Token.
eToro is primarily a multi-asset broker that allows investors to trade real cryptocurrencies and CFDs on cryptocurrencies. This gives investors variety and variety to choose from. However, it is important to understand that CFDs have many trading risks and most accounts lose funds in such markets.
In terms of liquidity, this broker site has one of the largest user bases with over 28 million registered users by 2022. High liquidity keeps fees low and executes orders quickly. Additionally, eToro receives its assets from liquidity providers, whose liquidity can be high. For crypto-assets, eToro charges eToro a trading fee of the variable spread received from its liquidity provider plus a 1% markup. A markup widens the spread by lowering the selling price and raising the buying price.
In terms of security, this company is regulated in several jurisdictions, including the FCA in the UK, CySEC in Cyprus and ASIC in Australia. Generally, regulated brokers have some of the best security features on the market. This is because regulators require them to have the highest level of protection for customer funds.
In terms of availability of trading instruments, there are a total of 92 cryptoassets listed and available for trading. Some of the popular crypto assets available on eToro include Bitcoin, Ethereum, XRP, Binance Coin, Cardano, Solana, Polkadot and Tron. Although there are many assets, brokers usually cannot compete with exchanges in the number of coins listed.
Ranked seventh in Coinmarketcap, OKX is worth mentioning. OKX has a trust score of 6.3 on Coinmarketcap and 10 on Coingecko. This shows a good reputation among traders. It is the best option for South African traders as it accepts the South African Rand. Therefore, clients in this jurisdiction can start trading immediately after making deposits. This is always a plus as it saves customers time and conversion fees.
OKX’s fees depend on the level of a trader. Levels are determined based on the trader’s OKB balance and asset balance or 30-day trading volume. As an example, Tier 1 merchants have a balance of less than 500 OKB and an asset balance of less than $100,000. Such merchants pay a producer fee of 0.080% and a commission of 0.100%.
Also, the liquidity of OKX is quite high, which means that the execution of orders is fast. Also, this keeps prices relatively tight when major events or news are not affecting the market. With a collection of 363 different coins to invest in, traders have a good choice with this exchange.
In terms of security, OKX claims that its servers cannot be hacked or compromised even physically. This is because they use cold storage techniques and encryption algorithms to keep their system security tight.
Kraken is another crypto exchange that ranks in the top 10 on Coinmarketcap and Coingecko. It has a trust score of 9 on Coingecko and 7.6 on Coinmarketcap. These are the top two cryptocurrency data aggregator websites in the world. A top 10 ranking on both websites is a big deal. Additionally, Kraken has achieved a high trust score on both websites.
Additionally, Kraken has a large number of listed coins with 222 different coins available for trading. Obviously, diversifying one’s portfolio is not a problem with this crypto exchange. Also, this exchange has high liquidity due to high daily trading volume. Therefore, customers can expect fast order executions.
Notably, Kraken has never had a major hacking incident. The company takes the security of user funds very seriously. This is one of the reasons why many traders trust Kraken as their trading partner. Another reason why Kraken attracts a large number of traders is its relatively low fees. Fees on this exchange are based on a trader’s trading volume each month, with the highest manufacturer fee at 0.16% and the highest receiver fee at 0.26%.
Uniswap is the world’s best decentralized cryptocurrency exchange. Coinmarketcap and Coingecko ranks first among all decentralized crypto exchanges. There are currently more than 900 cryptocurrencies available for trading on this platform. Also, this exchange has high liquidity as many traders go to trade on the top decentralized exchange.
Uniswap was built with encryption techniques to protect user assets. However, it is important to be aware that decentralized exchanges may have a higher risk of losing assets. This can happen not only through hack attacks, but also by fraudsters in the P2P system.
Uniswap may charge slightly lower fees compared to some centralized and other decentralized exchanges. Uniswap charges 0.3% to exchange tokens. The fee is divided by the liquidity providers in proportion to their contribution to the liquidity reserve.
Based on this, it appears that crypto trading in South Africa is here to stay. With thousands of exchanges and brokers in the market, it is essential to choose a trading platform with the best trading conditions. This is the only way to ensure that you will have a pleasant trading experience, whether you make a profit or not. It is very important to remember that this is a very volatile market and you should only invest money that you can afford to lose.