Thinking about getting into cryptocurrency? This guide is for you. We’ll walk you through the basics of what crypto is and how to start your journey safely and simply in South Africa using VALR, a trusted local platform.

Disclaimer: I am not a financial advisor. This information is for educational purposes only and should not be considered as financial advice. Always do your own research and consider seeking advice from a qualified financial professional before making any investment decisions.

What is Cryptocurrency?

At its simplest, cryptocurrency is digital money. Unlike the Rand you have in your bank account, it’s not controlled by a central bank or government. Instead, it’s secured by something called a “blockchain,” a public record of transactions that is very difficult to change or hack.

Bitcoin (BTC) is the first and most well-known cryptocurrency, but there are thousands of others, each with its own purpose.

Why VALR?

VALR is a leading South African cryptocurrency exchange. It’s an excellent choice for beginners because:

• It’s Local: VALR is based in South Africa, which makes things like depositing and withdrawing Rands (ZAR) straightforward and often faster than with international platforms.
• Simple to Use: The platform offers a “Simple Buy/Sell” feature, which is perfect for new users who just want to buy crypto without getting bogged down in complex trading jargon.
• Security: VALR is licensed and regulated in South Africa, and they use industry-leading security practices to protect your funds. They store cryptocurrency between “cold storage” and “hot wallets” – read their disclaimer.
• Customer Support: Being a local company, they offer dedicated customer support to help you with any questions or issues you might have.

The Simple Steps to Buying Crypto on VALR

Ready to get started? Here’s a step-by-step guide to buying your first crypto on VALR.

Step 1: Sign Up and Verify Your Account

1. Go to the VALR website: Visit valr.com on your computer or download the VALR app on your phone.
2. Create your account: Click on “Sign up” and follow the prompts. You’ll need to provide your email address and create a secure password.
3. Verify your identity (KYC): As a regulated financial service provider, VALR is required to verify your identity. This process, known as Know Your Customer (KYC), is a standard security measure. You will need to provide your South African ID and proof of address. This is a crucial step for keeping your account secure and for enabling deposits and withdrawals.

Step 2: Deposit Money (Rands)

Once your account is verified, you need to get money onto the platform to buy crypto. The easiest way for South Africans is a bank transfer (EFT).

1. Log in to VALR: Go to your account and click on “Wallets” (or “ZAR” for your Rand wallet).
2. Select “Deposit”: Choose “Via EFT” as your deposit method.
3. Get VALR’s bank details: VALR will display their banking details and, most importantly, a unique reference number (starting with “VR…”).
4. Make the transfer: Log in to your personal online banking and make an EFT to VALR using the details provided. Crucially, make sure you use the unique VR reference number as the beneficiary reference. This ensures the money is credited to your account.

Note on fees: Depositing Rands via EFT on VALR is free.

Step 3: Buy Your First Crypto

With Rands in your VALR account, you’re ready to buy!

1. Use “Simple Buy/Sell”: This is the best option for beginners. On the VALR platform, you’ll see a “Buy/Sell” section on the app.
2. Choose your crypto: Select the cryptocurrency you want to buy, for example, Bitcoin (BTC).
3. Enter the amount: Type in the amount of Rands you want to spend.
4. Review and confirm: VALR will show you how much of the crypto you will get for your Rands. Review the details, and if you’re happy, confirm the purchase.

Congratulations, you’ve just bought your first cryptocurrency!

A Quick Word on Staying Safe

• Security: Always enable Two-Factor Authentication (2FA) on your VALR account. This adds an extra layer of security, requiring a code from your phone to log in or make withdrawals.
• Beware of Scams: Never share your password, 2FA codes, or recovery phrases with anyone. Be cautious of unsolicited messages promising high returns on your crypto.
• Do Your Research: The value of crypto can go up and down. Before buying, take some time to learn about the different cryptocurrencies and the risks involved. Only invest what you can afford to lose.

If you are interested in other investments, be sure to take a look at my other articles.