Growing Crypto Market in South Africa - What Cryptocurrency is best to invest in?
Undoubtedly, trading crypto has become one of the primary sources of income for many people. In South Africa, a few people trade crypto full-time, while most treat it as a side hustle. But the popularity of these assets continues to grow, with millions of people trading or investing their savings in digital currency. Unfortunately, South Africa has not formalized the use of crypto as a medium of exchange. However, it is legal to own and trade the currency.
So far, 21,844 digital currencies have been created in the last decade. Unfortunately, most of these currencies are dead, leaving the world with only 9,314 active digital currencies.
There are about 300 million cryptocurrency users worldwide, with over 18000 businesses accepting crypto payments in full or partial settlement of financial obligations. South Africa is ranked eighth globally in crypto ownership, with about 7.1 percent of its population owning more digital currency than Brazil and Britain's populations. However, not all digital currencies are popular. Continue reading to unravel the Best Crypto in South Africa.
Bitcoin is the most popular digital currency in South Africa and globally. The currency is more accessible and easily acceptable in settling financial obligations. Bitcoin enjoys a positive outlook but sometimes receives negative press coverage that puts it under scrutiny.
Nonetheless, the coin’s supply is capped at 21 million, which explains why its value is high compared to other digital currencies. Also, the currency often comes under intense price swings but is not as extreme as other digital coins.
It is another household name in the crypto world. The first litecoin was mined in 2011 to give Bitcoin a run for its money. But the coin enjoys less popularity than bitcoin. However, just like Litecoin has a finite supply capped at 84 million coins. So when you compare it to Bitcoin, each unit will have less value. Traders in South Africa can thus buy the coin for speculative purposes or as a store of value. Similarly, they may use it to meet their day-to-day financial obligations. Even so, the coin comes with some risks; therefore, you must consider the pros and cons of investing in the currency.
It is a payment network that owns Ripple XRP as its native token. The token allows traders to make cross-border transactions with financial institutions or banks. In fact, it is one of the currencies that will reduce the need to convert obligations into third-party currencies like the USD or Euro before making payment. The mining Ripple is capped at 100 billion, but all the units issued when it was launched have so far been mined. So those who already own the token have been releasing them into the market gradually.
Indeed, like bitcoin and litecoin, Ripple has, on many occasions, come into the limelight. In 2020, the United States Security and Exchange Commission filed a case against Ripple Labs. The litigation is ongoing and could go either way. Thus, South African traders understand the crypto market can profit from the case.
The coin came into the limelight in 2014. Transacting in the coin incurs the least charges, but you enjoy a quicker transaction thanks to the Proof of Stake Protocol it uses. Notice that some digital assets are on the Proof of work protocol, while DASH and a few other currencies are on PoS.
Dash is capped at 18.9 million coins but is more ambitious and likely to grow into a day-to-day payment method. This explains why the currency is popular in South Africa and is ideal for traders who understand the risks of popular coins.
Of course, other currencies, such as Ethereum and Monero, are equally popular and traded in South Africa. However, Bitcoin. Ripple and Litcoin have more followers and are the most traded currencies. Also, traders are free to deposit and withdraw money at any time.