Your first crypto buy done right; KYC, fees, spreads, and a 30-minute wallet drill
Buying crypto in South Africa isn’t rocket science, but it’s also not a tap-and-go. Here’s how to dodge rookie mistakes in under an hour.
Buying your first slice of crypto isn’t like ordering sneakers online. There’s paperwork, small print, and a whole bunch of “wait, what?” moments before you can click buy. That’s not a bad thing; if you do it right the first time, you save yourself a mountain of stress later.
KYC: the digital bouncer at the door
Before you go near Bitcoin, Ethereum, or that one coin thousands online swear is “the next big thing,” an exchange will make you prove you’re human. That’s Know Your Customer (KYC). Expect ID scans, proof of address, maybe even a selfie that looks worse than your licence photo.
Verification is not a power trip by the exchange. It’s the ticket to play, and the law demands it.
The point? To keep regulators happy, weed out fraud, and stop money laundering. Do it once, and you’re good to go.
Fees and spreads: the sneaky twin costs
Everyone worries about “fees.” That’s the visible cut the exchange takes on each trade. Straightforward enough.
What trips newbies is the spread, which is the difference between what you pay and what you could get if you were on the other side of the trade. That’s where your money is sneakily skimmed. Exchanges don’t exactly put that in neon lights.
It’s not the fee you see that hurts most; it’s the hidden spread in your trade.
Tip: Compare buy and sell prices side by side before you click confirm.
The 30-minute wallet drill
Exchanges are convenient, but keeping all your coins parked there is like storing your salary in the till at a cash-only bar. Enter the wallet.
Do this once, properly, and you’ll thank yourself later:
- Download a reputable wallet app or set up a hardware wallet.
- Write down your seed phrase — don't use screenshots or cloud saves, write it on paper.
- Test it: send a tiny amount of crypto out and back.
- Learn how to restore with the seed phrase. Yes, actually test it.
This isn’t overkill, but basic digital survival skills.
Your first crypto buy isn’t the “retire at 35” fantasy some blogs peddle. It’s about avoiding rookie mistakes that drain your wallet before you’ve even started.
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