
## Starting out trading crypto
If you're looking to start trading crypto, you're not alone. Cryptocurrency trading has exploded in popularity in recent years, and for good reason: it offers the potential for high returns on investment. However, it can also be complex and risky, especially for beginners. In this guide, we'll cover everything you need to know about trading crypto, from the basics to the more advanced strategies.
### Which cryptos to trade
First, let's start with the basics. Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Bitcoin was the first and most well-known cryptocurrency, but there are now thousands of different cryptocurrencies available. Some of the most popular ones include Ethereum, Ripple, and Litecoin.
### Chosing an exchange
To trade crypto, you'll need to first choose a crypto exchange. This is where you'll buy and sell cryptocurrencies. There are many different exchanges to choose from, each with its own fees, security features, and user interfaces. Some popular options include Luno, VALR, and Binance. 

FiveWest offers an [OTC service](https://fivewest.co.za/otc) where our traders can execute trades for you.
### Verify your account
Once you've chosen an exchange, you'll need to create an account and verify your identity. This usually involves providing personal information, such as your name, address, and government-issued ID.
### Deposit funds
Next, you'll need to deposit funds into your exchange account. You can typically do this using a bank transfer or a credit/debit card. Once your funds are in your account, you can start trading crypto.
### Trading strategies
When trading crypto, there are a few different strategies you can use. 
#### -> HODL
One popular strategy is called "HODLing," which simply involves holding onto your crypto for the long-term. This can be a good strategy if you believe that the price of your chosen cryptocurrency will increase in the future.
#### -> Day Trading
Another strategy is day trading, which involves buying and selling crypto within a single day. This can be a more risky strategy, as it requires you to closely monitor the market and make quick decisions.
#### -> Technical Analysis
Finally, you can also use technical analysis to help inform your trading decisions. Technical analysis involves analyzing charts and market data to identify patterns and trends.
Of course, there is much more to trading crypto than what we've covered in this guide. However, by understanding the basics and doing your own research, you'll be well on your way to trading crypto successfully.
### Takeaways
In conclusion, crypto trading can be a lucrative and exciting endeavor, but it's important to do your due diligence before jumping in. By following the tips and strategies outlined in this guide, you can start trading crypto with confidence. Good luck!


<h2>Starting out trading crypto</h2>
<p>If you're looking to start trading crypto, you're not alone. Cryptocurrency trading has exploded in popularity in recent years, and for good reason: it offers the potential for high returns on investment. However, it can also be complex and risky, especially for beginners. In this guide, we'll cover everything you need to know about trading crypto, from the basics to the more advanced strategies.</p>
<h3>Which cryptos to trade</h3>
<p>First, let's start with the basics. Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Bitcoin was the first and most well-known cryptocurrency, but there are now thousands of different cryptocurrencies available. Some of the most popular ones include Ethereum, Ripple, and Litecoin.</p>
<h3>Chosing an exchange</h3>
<p>To trade crypto, you'll need to first choose a crypto exchange. This is where you'll buy and sell cryptocurrencies. There are many different exchanges to choose from, each with its own fees, security features, and user interfaces. Some popular options include Luno, VALR, and Binance.</p>
<p>FiveWest offers an <a href="https://fivewest.co.za/otc">OTC service</a> where our traders can execute trades for you.</p>
<h3>Verify your account</h3>
<p>Once you've chosen an exchange, you'll need to create an account and verify your identity. This usually involves providing personal information, such as your name, address, and government-issued ID.</p>
<h3>Deposit funds</h3>
<p>Next, you'll need to deposit funds into your exchange account. You can typically do this using a bank transfer or a credit/debit card. Once your funds are in your account, you can start trading crypto.</p>
<h3>Trading strategies</h3>
<p>When trading crypto, there are a few different strategies you can use.</p>
<h4>-> HODL</h4>
<p>One popular strategy is called "HODLing," which simply involves holding onto your crypto for the long-term. This can be a good strategy if you believe that the price of your chosen cryptocurrency will increase in the future.</p>
<h4>-> Day Trading</h4>
<p>Another strategy is day trading, which involves buying and selling crypto within a single day. This can be a more risky strategy, as it requires you to closely monitor the market and make quick decisions.</p>
<h4>-> Technical Analysis</h4>
<p>Finally, you can also use technical analysis to help inform your trading decisions. Technical analysis involves analyzing charts and market data to identify patterns and trends.
Of course, there is much more to trading crypto than what we've covered in this guide. However, by understanding the basics and doing your own research, you'll be well on your way to trading crypto successfully.</p>
<h3>Takeaways</h3>
<p>In conclusion, crypto trading can be a lucrative and exciting endeavor, but it's important to do your due diligence before jumping in. By following the tips and strategies outlined in this guide, you can start trading crypto with confidence. Good luck!</p>


Frame 6881.png

Learn how to trade crypto like Bitcoin, Ethereum with our beginner's guide to digital currencies. All the info you need to get started.

Crypto to Trade: A Comprehensive Guide for Beginners

Over-The-Counter or "OTC" desks are nothing new in financial markets. An OTC desk is a platform where individuals or institutions can buy or sell cryptocurrencies directly with each other, without going through a traditional exchange. OTC desks act as intermediaries between buyers and sellers, providing them with liquidity and facilitating large trades that may not be possible or practical on a public exchange.

In the crypto market, OTC desks fulfil the same function, and one of the largest in Africa is operated by FiveWest.

Moneyweb asked CEO Omer Iqbal why crypto investors should consider buying or selling cryptos through an OTC desk rather than a crypto exchange.

> “OTC desks are really like private banks, where people who want to place large orders can do so discreetly and get the orders filled rapidly without having to break them up into smaller bite-sized chunks, which creates price slippage,” Iqbal says.

“Our OTC desk is not for everyone. Most people wanting to buy small amounts of bitcoin, ether, or other cryptos will do so through a crypto exchange. Bigger orders would be better placed through an OTC desk such as ours,” he adds.

### Who are the typical customers of OTC desk services?

Iqbal says these are institutional and high net worth clients for the most part, who might want to keep their orders away from the prying eyes of traders on crypto exchanges.

“We’ve got vast expertise in handling large crypto trades, so that minimises any potential price slippage that could occur on an exchange,” says Iqbal.

He says FiveWest is more properly described as a fintech company than a crypto services provider – though it does that too. Apart from the OTC desk, it offers clients the ability to profit from crypto arbitrage (buying crypto assets cheaper on one exchange and selling them for a profit on another), treasury solutions (storing company cash reserves in US dollar-backed stablecoins to protect against currency depreciation) and recently launched Blockshop, a crypto payment gateway solution.

Are there any other good reasons to trade cryptos through an OTC desk rather than a normal exchange?

In fact, there are seven good reasons, says Iqbal.

## 7 reasons why you should buy cryptos through an OTC desk rather than an exchange

### 1. Minimise price impact:
FiveWest&#39;s crypto OTC desk provides greater liquidity compared to traditional exchanges. This is particularly beneficial for institutional investors and high net-worth individuals who may be looking to conduct large trades without affecting the market price. Normal exchanges typically
lack the liquidity to execute sizable transactions smoothly.

### 2. Reduced slippage: 
Slippage is the difference between the expected price of a trade and the executed price, and it can significantly impact the profitability of a transaction. Someone wanting to purchase (or sell) 50 or 100 bitcoin on a normal crypto exchange may wait days for that order to be fully executed, and it would be filled at many different prices.

### 3. Faster settlement times: 
FiveWest offers expedited settlement times, ensuring that your trades are completed swiftly and securely. Traditional exchanges can sometimes experience delays in settling trades due to operational and other inefficiencies. This can be frustrating for clients trying to capitalise
on time sensitive market opportunities. Iqbal says FiveWest&#39;s OTC desk offers expedited settlement times, meaning trades are cashed up and the proceeds (whether in cash or crypto) secured in record time.

### 4. More settlement options: 
Relying on its own facilities and partner network, FiveWest is able to settle trades in different global currencies, or cryptocurrencies, across any blockchain.

### 5. Enhanced privacy: 
For institutions and high net worth individuals, confidentiality is crucial when it comes to cryptocurrency trading. By using the OTC desk, large transactions will be kept off public order books, which means trading activity remains discreet and less susceptible to being targeted by other
market participants.

### 6. Customised solutions: 
Clients have different reasons for acquiring or selling cryptos, and many need personalised service and individualised trading solutions. This level of customisation is not available on traditional exchanges, where you are limited to pre-defined trading tools and interfaces.

### 7. Access to experts: 
FiveWest has arguably the largest pool of crypto talent in SA, and that’s a critical lever when it comes to developing a crypto trading strategy. Clients also require specialised insights into the broader crypto ecosphere, such as tax and legal implications, the risk profile one can expect when investing in cryptos, and the evolving number of uses for cryptos.

Brought to you by [MoneyWeb](https://www.moneyweb.co.za/)


<p>Over-The-Counter or "OTC" desks are nothing new in financial markets. An OTC desk is a platform where individuals or institutions can buy or sell cryptocurrencies directly with each other, without going through a traditional exchange. OTC desks act as intermediaries between buyers and sellers, providing them with liquidity and facilitating large trades that may not be possible or practical on a public exchange.</p>
<p>In the crypto market, OTC desks fulfil the same function, and one of the largest in Africa is operated by FiveWest.</p>
<p>Moneyweb asked CEO Omer Iqbal why crypto investors should consider buying or selling cryptos through an OTC desk rather than a crypto exchange.</p>
<blockquote>
<p>“OTC desks are really like private banks, where people who want to place large orders can do so discreetly and get the orders filled rapidly without having to break them up into smaller bite-sized chunks, which creates price slippage,” Iqbal says.</p>
</blockquote>
<p>“Our OTC desk is not for everyone. Most people wanting to buy small amounts of bitcoin, ether, or other cryptos will do so through a crypto exchange. Bigger orders would be better placed through an OTC desk such as ours,” he adds.</p>
<h3>Who are the typical customers of OTC desk services?</h3>
<p>Iqbal says these are institutional and high net worth clients for the most part, who might want to keep their orders away from the prying eyes of traders on crypto exchanges.</p>
<p>“We’ve got vast expertise in handling large crypto trades, so that minimises any potential price slippage that could occur on an exchange,” says Iqbal.</p>
<p>He says FiveWest is more properly described as a fintech company than a crypto services provider – though it does that too. Apart from the OTC desk, it offers clients the ability to profit from crypto arbitrage (buying crypto assets cheaper on one exchange and selling them for a profit on another), treasury solutions (storing company cash reserves in US dollar-backed stablecoins to protect against currency depreciation) and recently launched Blockshop, a crypto payment gateway solution.</p>
<p>Are there any other good reasons to trade cryptos through an OTC desk rather than a normal exchange?</p>
<p>In fact, there are seven good reasons, says Iqbal.</p>
<h2>7 reasons why you should buy cryptos through an OTC desk rather than an exchange</h2>
<h3>1. Minimise price impact:</h3>
<p>FiveWest's crypto OTC desk provides greater liquidity compared to traditional exchanges. This is particularly beneficial for institutional investors and high net-worth individuals who may be looking to conduct large trades without affecting the market price. Normal exchanges typically
lack the liquidity to execute sizable transactions smoothly.</p>
<h3>2. Reduced slippage:</h3>
<p>Slippage is the difference between the expected price of a trade and the executed price, and it can significantly impact the profitability of a transaction. Someone wanting to purchase (or sell) 50 or 100 bitcoin on a normal crypto exchange may wait days for that order to be fully executed, and it would be filled at many different prices.</p>
<h3>3. Faster settlement times:</h3>
<p>FiveWest offers expedited settlement times, ensuring that your trades are completed swiftly and securely. Traditional exchanges can sometimes experience delays in settling trades due to operational and other inefficiencies. This can be frustrating for clients trying to capitalise
on time sensitive market opportunities. Iqbal says FiveWest's OTC desk offers expedited settlement times, meaning trades are cashed up and the proceeds (whether in cash or crypto) secured in record time.</p>
<h3>4. More settlement options:</h3>
<p>Relying on its own facilities and partner network, FiveWest is able to settle trades in different global currencies, or cryptocurrencies, across any blockchain.</p>
<h3>5. Enhanced privacy:</h3>
<p>For institutions and high net worth individuals, confidentiality is crucial when it comes to cryptocurrency trading. By using the OTC desk, large transactions will be kept off public order books, which means trading activity remains discreet and less susceptible to being targeted by other
market participants.</p>
<h3>6. Customised solutions:</h3>
<p>Clients have different reasons for acquiring or selling cryptos, and many need personalised service and individualised trading solutions. This level of customisation is not available on traditional exchanges, where you are limited to pre-defined trading tools and interfaces.</p>
<h3>7. Access to experts:</h3>
<p>FiveWest has arguably the largest pool of crypto talent in SA, and that’s a critical lever when it comes to developing a crypto trading strategy. Clients also require specialised insights into the broader crypto ecosphere, such as tax and legal implications, the risk profile one can expect when investing in cryptos, and the evolving number of uses for cryptos.</p>
<p>Brought to you by <a href="https://www.moneyweb.co.za/">MoneyWeb</a></p>


shutterstock_1919430629-[Converted].jpg

An OTC (over-the-counter) desk is a platform where individuals or institutions can buy or sell cryptocurrencies directly with each other, without going through a traditional exchange. OTC desks act as intermediaries between buyers and sellers, providing them with liquidity and facilitating large trades that may not be possible or practical on a public exchange.

An OTC desk is a platform where individuals or institutions can buy or sell cryptocurrencies directly with each other, without going through a traditional exchange. 

What is an OTC Desk 

What is an OTC Desk? 

## Trade altcoins safely and in size using the Fivewest OTC desk

Interested in altcoin trading in ZAR? The Fivewest OTC Desk [ Fivewest OTC Desk ](https://fivewest.co.za/otc-desk) helps you trade altcoins with minimal slippage with the best fees. We offer coverage in all of the altcoins listed below.

Interested in learning more about Altcoins? We've got you covered with a overview of the top 10 altcoins for 2023.

### ETH (Ethereum)
#### Market cap (as of April 18, 2023): $547 billion USD
Ethereum is a decentralized, open-source blockchain platform that enables developers to build decentralized applications (dApps) on top of it. ETH is the native cryptocurrency of the Ethereum blockchain, used as a means of payment for transaction fees and as a medium of exchange for dApps. The outlook for ETH is generally positive, with its recent upgrades making it more efficient and capable of handling higher transaction volumes.

### BNB (Binance Coin)
#### Market cap (as of April 18, 2023): $128 billion USD
Binance Coin is the native cryptocurrency of the Binance blockchain platform, which is primarily used for trading cryptocurrencies and paying transaction fees on the Binance exchange. BNB has also been used to launch several decentralized finance (DeFi) projects on the Binance Smart Chain. The outlook for BNB is positive, as Binance continues to expand its services and launch new products and features that are likely to drive demand for BNB.

### XRP (XRP)
#### Market cap (as of April 18, 2023): $54 billion USD
XRP is the native cryptocurrency of the XRP Ledger, which is a decentralized blockchain network that is designed to facilitate cross-border payments and remittances. XRP is often used by banks and financial institutions to settle international payments quickly and at a low cost. The outlook for XRP is somewhat mixed, as it has faced regulatory challenges in some jurisdictions, but also has a strong use case in the global remittance market.

### ADA (Cardano)
#### Market cap (as of April 18, 2023): $123 billion USD
Cardano is a decentralized blockchain platform that aims to provide a more secure and sustainable infrastructure for decentralized applications and smart contracts. ADA is the native cryptocurrency of the Cardano blockchain, used for payment and settlement of transactions on the network. The outlook for ADA is positive, as the Cardano team continues to develop and roll out new features and improvements to the network.

### DOGE (Dogecoin)
#### Market cap (as of April 18, 2023): $18 billion USD
Dogecoin is a cryptocurrency that was created as a lighthearted joke, but has gained a significant following due to its meme-inspired branding and community. Despite its popularity, DOGE lacks a clear use case and its value is largely driven by speculation. The outlook for DOGE is uncertain, as its price is highly volatile and influenced by social media trends.

### MATIC (Polygon)
#### Market cap (as of April 18, 2023): $30 billion USD
Polygon (formerly Matic Network) is a layer 2 scaling solution for Ethereum, designed to improve the speed and scalability of the Ethereum network. MATIC is the native cryptocurrency of the Polygon network, used for payment of transaction fees and governance. The outlook for MATIC is positive, as it continues to gain traction as a popular alternative to Ethereum for building decentralized applications.

### SOL (Solana)
#### Market cap (as of April 18, 2023): $155 billion USD
Solana is a high-performance blockchain platform that is designed to process transactions quickly and at low cost. SOL is the native cryptocurrency of the Solana network, used for payment of transaction fees and as a medium of exchange. The outlook for SOL is positive, as it continues to gain adoption among developers and investors due to its fast transaction processing times and low fees.

### DOT (Polkadot)
#### Market cap (as of April 18, 2023): $45 billion USD
Polkadot is a next-generation blockchain platform that aims to enable cross-chain interoperability between different blockchains. DOT is the native cryptocurrency of the Polkadot network, used for payment of transaction fees and governance. The outlook for DOT is positive, as the project is still in its early stages and has a lot of potential to enable more seamless communication between different blockchain networks.

### LTC (Litecoin)
#### Market cap (as of April 18, 2023): $12 billion USD
Litecoin is a cryptocurrency that was created as a fork of Bitcoin, with faster transaction times and lower fees. LTC is used for payment and settlement of transactions on the Litecoin network. The outlook for LTC is somewhat mixed, as it has faced increased competition from other fast and low-cost cryptocurrencies, but still has a strong following and use case for peer-to-peer transactions.

### AVAX (Avalanche)
#### Market cap (as of April 18, 2023): $22 billion USD
Avalanche is a blockchain platform that aims to provide high-speed, low-cost transactions and smart contracts. AVAX is the native cryptocurrency of the Avalanche network, used for payment of transaction fees and governance. The outlook for AVAX is positive, as the project continues to gain adoption among developers and investors due to its fast transaction processing times and low fees, as well as its support for interoperability with other blockchain networks.

<h2>Trade altcoins safely and in size using the Fivewest OTC desk</h2>
<p>Interested in altcoin trading in ZAR? The Fivewest OTC Desk <a href="https://fivewest.co.za/otc-desk"> Fivewest OTC Desk </a> helps you trade altcoins with minimal slippage with the best fees. We offer coverage in all of the altcoins listed below.</p>
<p>Interested in learning more about Altcoins? We've got you covered with a overview of the top 10 altcoins for 2023.</p>
<h3>ETH (Ethereum)</h3>
<h4>Market cap (as of April 18, 2023): $547 billion USD</h4>
<p>Ethereum is a decentralized, open-source blockchain platform that enables developers to build decentralized applications (dApps) on top of it. ETH is the native cryptocurrency of the Ethereum blockchain, used as a means of payment for transaction fees and as a medium of exchange for dApps. The outlook for ETH is generally positive, with its recent upgrades making it more efficient and capable of handling higher transaction volumes.</p>
<h3>BNB (Binance Coin)</h3>
<h4>Market cap (as of April 18, 2023): $128 billion USD</h4>
<p>Binance Coin is the native cryptocurrency of the Binance blockchain platform, which is primarily used for trading cryptocurrencies and paying transaction fees on the Binance exchange. BNB has also been used to launch several decentralized finance (DeFi) projects on the Binance Smart Chain. The outlook for BNB is positive, as Binance continues to expand its services and launch new products and features that are likely to drive demand for BNB.</p>
<h3>XRP (XRP)</h3>
<h4>Market cap (as of April 18, 2023): $54 billion USD</h4>
<p>XRP is the native cryptocurrency of the XRP Ledger, which is a decentralized blockchain network that is designed to facilitate cross-border payments and remittances. XRP is often used by banks and financial institutions to settle international payments quickly and at a low cost. The outlook for XRP is somewhat mixed, as it has faced regulatory challenges in some jurisdictions, but also has a strong use case in the global remittance market.</p>
<h3>ADA (Cardano)</h3>
<h4>Market cap (as of April 18, 2023): $123 billion USD</h4>
<p>Cardano is a decentralized blockchain platform that aims to provide a more secure and sustainable infrastructure for decentralized applications and smart contracts. ADA is the native cryptocurrency of the Cardano blockchain, used for payment and settlement of transactions on the network. The outlook for ADA is positive, as the Cardano team continues to develop and roll out new features and improvements to the network.</p>
<h3>DOGE (Dogecoin)</h3>
<h4>Market cap (as of April 18, 2023): $18 billion USD</h4>
<p>Dogecoin is a cryptocurrency that was created as a lighthearted joke, but has gained a significant following due to its meme-inspired branding and community. Despite its popularity, DOGE lacks a clear use case and its value is largely driven by speculation. The outlook for DOGE is uncertain, as its price is highly volatile and influenced by social media trends.</p>
<h3>MATIC (Polygon)</h3>
<h4>Market cap (as of April 18, 2023): $30 billion USD</h4>
<p>Polygon (formerly Matic Network) is a layer 2 scaling solution for Ethereum, designed to improve the speed and scalability of the Ethereum network. MATIC is the native cryptocurrency of the Polygon network, used for payment of transaction fees and governance. The outlook for MATIC is positive, as it continues to gain traction as a popular alternative to Ethereum for building decentralized applications.</p>
<h3>SOL (Solana)</h3>
<h4>Market cap (as of April 18, 2023): $155 billion USD</h4>
<p>Solana is a high-performance blockchain platform that is designed to process transactions quickly and at low cost. SOL is the native cryptocurrency of the Solana network, used for payment of transaction fees and as a medium of exchange. The outlook for SOL is positive, as it continues to gain adoption among developers and investors due to its fast transaction processing times and low fees.</p>
<h3>DOT (Polkadot)</h3>
<h4>Market cap (as of April 18, 2023): $45 billion USD</h4>
<p>Polkadot is a next-generation blockchain platform that aims to enable cross-chain interoperability between different blockchains. DOT is the native cryptocurrency of the Polkadot network, used for payment of transaction fees and governance. The outlook for DOT is positive, as the project is still in its early stages and has a lot of potential to enable more seamless communication between different blockchain networks.</p>
<h3>LTC (Litecoin)</h3>
<h4>Market cap (as of April 18, 2023): $12 billion USD</h4>
<p>Litecoin is a cryptocurrency that was created as a fork of Bitcoin, with faster transaction times and lower fees. LTC is used for payment and settlement of transactions on the Litecoin network. The outlook for LTC is somewhat mixed, as it has faced increased competition from other fast and low-cost cryptocurrencies, but still has a strong following and use case for peer-to-peer transactions.</p>
<h3>AVAX (Avalanche)</h3>
<h4>Market cap (as of April 18, 2023): $22 billion USD</h4>
<p>Avalanche is a blockchain platform that aims to provide high-speed, low-cost transactions and smart contracts. AVAX is the native cryptocurrency of the Avalanche network, used for payment of transaction fees and governance. The outlook for AVAX is positive, as the project continues to gain adoption among developers and investors due to its fast transaction processing times and low fees, as well as its support for interoperability with other blockchain networks.</p>


altcoin.jpg

Use Fivewest to trade Altcoins like ETH, BNB and XRP safely and in size with ZAR.

Use Fivewest to trade Altcoins like ETH, BNB and XRP safely and in size with ZAR 

Altcoin Trading 2023

Altcoin Trading

## Getting started trading 
As a South African crypto trader, finding an exchange that offers both competitive fees and a wide selection of coins is crucial. 

Fivewest is the exchange if you are looking for the lowest fees, tightest spreads and leverage trading with Rands.

##  Fivewest features
What sets Fivewest apart from the competition? Firstly, its commitment to affordability and accessibility. Fivewest boasts the lowest trading fees in South Africa, making it an attractive option for both seasoned traders and those new to the crypto scene. But it's not just about low fees; the exchange also offers the tightest spreads in the market, ensuring traders can execute transactions at prices close to their true market value.

##  Get up to 50x leverage on your Rands
One of the most compelling features of Fivewest is its leverage options. With the possibility of using up to 50x leverage, traders have the unique opportunity to amplify their trading power. This means even those with limited capital can potentially achieve significant returns, making their Rands stretch further in the fast-paced world of crypto trading.

##  Trade all your favourite crypto pairs
You can trade Bitcoin, Ethereum, Solana and many other altcoins on Fivewest with the lowest trading fees in South Africa. Fivewest has tigher spreads than Luno and VALR giving you the best trading experience in South Africa.

Security and user experience are at the forefront of Fivewest's priorities. The platform employs state-of-the-art security measures to protect users' assets and personal information. Additionally, its user-friendly interface ensures that both novices and experienced traders can navigate the exchange with ease, making trading a seamless experience.

Whether you're looking to trade the major players like BTC and ETH or explore the potential of up-and-coming altcoins, Fivewest provides a comprehensive, secure, and cost-effective platform. Its dedication to low fees, tight spreads, and high leverage options positions Fivewest as a leader in the South African crypto exchange market.

As the crypto landscape continues to evolve, Fivewest stands out as a beacon for traders seeking to maximize their investments. With its user-centric approach and innovative features, Fivewest is not just an exchange; it's a gateway to the future of cryptocurrency trading in South Africa.

### Effective Trading Strategies

#### 1. Trend Following:
Trend following is a popular strategy in cryptocurrency trading that involves identifying and riding the prevailing market trends. In this strategy, traders aim to enter a position when an uptrend or downtrend is established and exit when the trend shows signs of reversal. Traders can use technical indicators like moving averages, relative strength index (RSI), or Bollinger Bands to identify trends and make informed trading decisions.

#### 2. Swing Trading:
Swing trading is a strategy that seeks to capture shorter-term price movements within a larger trend. Traders using this approach typically hold their positions for a few days to weeks. The strategy involves identifying key support and resistance levels and taking advantage of price fluctuations within those boundaries. Swing traders often use technical analysis tools, such as candlestick patterns and oscillators, to time their entries and exits effectively.

#### 3. Dollar-Cost Averaging (DCA):
Dollar-cost averaging is a long-term investment strategy that can also be applied to cryptocurrency trading. Instead of trying to time the market, investors using DCA allocate a fixed amount of funds regularly, regardless of the current price. By spreading purchases over time, DCA reduces the impact of short-term price volatility and allows investors to accumulate cryptocurrencies at different price points. This strategy can be especially useful for newcomers to the market.

#### 4. Premium arbitrage in South Africa:
A relatively low risk strategy to make profits in South Africa crypto trading is simply to arbitrage the overseas crypto prices vs the prices in South Africa. For example, Bitcoin trades at a premium in South Africa compared to the USA therefore you can buy Bitcoin overseas and sell it in South Africa for an instant profit. If you're interested in this strategy, you can sign up for the Fivewest crypto arbitrage service where we provide an automated way for you to complete your arbitrage.

As cryptocurrencies continue to gain traction in South Africa, it's essential to understand the landscape of crypto exchanges and develop effective trading strategies. Platforms like Luno, VALR, and Ice3X offer convenient ways to trade cryptocurrencies, while strategies like trend following, swing trading, and dollar-cost averaging provide options for different trading preferences and risk tolerances. Remember to conduct thorough research, manage risk wisely, and stay updated with the latest developments in the cryptocurrency market. Happy trading!

<h2>Getting started trading</h2>
<p>As a South African crypto trader, finding an exchange that offers both competitive fees and a wide selection of coins is crucial.</p>
<p>Fivewest is the exchange if you are looking for the lowest fees, tightest spreads and leverage trading with Rands.</p>
<h2>Fivewest features</h2>
<p>What sets Fivewest apart from the competition? Firstly, its commitment to affordability and accessibility. Fivewest boasts the lowest trading fees in South Africa, making it an attractive option for both seasoned traders and those new to the crypto scene. But it's not just about low fees; the exchange also offers the tightest spreads in the market, ensuring traders can execute transactions at prices close to their true market value.</p>
<h2>Get up to 50x leverage on your Rands</h2>
<p>One of the most compelling features of Fivewest is its leverage options. With the possibility of using up to 50x leverage, traders have the unique opportunity to amplify their trading power. This means even those with limited capital can potentially achieve significant returns, making their Rands stretch further in the fast-paced world of crypto trading.</p>
<h2>Trade all your favourite crypto pairs</h2>
<p>You can trade Bitcoin, Ethereum, Solana and many other altcoins on Fivewest with the lowest trading fees in South Africa. Fivewest has tigher spreads than Luno and VALR giving you the best trading experience in South Africa.</p>
<p>Security and user experience are at the forefront of Fivewest's priorities. The platform employs state-of-the-art security measures to protect users' assets and personal information. Additionally, its user-friendly interface ensures that both novices and experienced traders can navigate the exchange with ease, making trading a seamless experience.</p>
<p>Whether you're looking to trade the major players like BTC and ETH or explore the potential of up-and-coming altcoins, Fivewest provides a comprehensive, secure, and cost-effective platform. Its dedication to low fees, tight spreads, and high leverage options positions Fivewest as a leader in the South African crypto exchange market.</p>
<p>As the crypto landscape continues to evolve, Fivewest stands out as a beacon for traders seeking to maximize their investments. With its user-centric approach and innovative features, Fivewest is not just an exchange; it's a gateway to the future of cryptocurrency trading in South Africa.</p>
<h3>Effective Trading Strategies</h3>
<h4>1. Trend Following:</h4>
<p>Trend following is a popular strategy in cryptocurrency trading that involves identifying and riding the prevailing market trends. In this strategy, traders aim to enter a position when an uptrend or downtrend is established and exit when the trend shows signs of reversal. Traders can use technical indicators like moving averages, relative strength index (RSI), or Bollinger Bands to identify trends and make informed trading decisions.</p>
<h4>2. Swing Trading:</h4>
<p>Swing trading is a strategy that seeks to capture shorter-term price movements within a larger trend. Traders using this approach typically hold their positions for a few days to weeks. The strategy involves identifying key support and resistance levels and taking advantage of price fluctuations within those boundaries. Swing traders often use technical analysis tools, such as candlestick patterns and oscillators, to time their entries and exits effectively.</p>
<h4>3. Dollar-Cost Averaging (DCA):</h4>
<p>Dollar-cost averaging is a long-term investment strategy that can also be applied to cryptocurrency trading. Instead of trying to time the market, investors using DCA allocate a fixed amount of funds regularly, regardless of the current price. By spreading purchases over time, DCA reduces the impact of short-term price volatility and allows investors to accumulate cryptocurrencies at different price points. This strategy can be especially useful for newcomers to the market.</p>
<h4>4. Premium arbitrage in South Africa:</h4>
<p>A relatively low risk strategy to make profits in South Africa crypto trading is simply to arbitrage the overseas crypto prices vs the prices in South Africa. For example, Bitcoin trades at a premium in South Africa compared to the USA therefore you can buy Bitcoin overseas and sell it in South Africa for an instant profit. If you're interested in this strategy, you can sign up for the Fivewest crypto arbitrage service where we provide an automated way for you to complete your arbitrage.</p>
<p>As cryptocurrencies continue to gain traction in South Africa, it's essential to understand the landscape of crypto exchanges and develop effective trading strategies. Platforms like Luno, VALR, and Ice3X offer convenient ways to trade cryptocurrencies, while strategies like trend following, swing trading, and dollar-cost averaging provide options for different trading preferences and risk tolerances. Remember to conduct thorough research, manage risk wisely, and stay updated with the latest developments in the cryptocurrency market. Happy trading!</p>


AdobeStock_571779214.jpeg

The world of cryptocurrency has gained immense popularity in recent years, and South Africa has emerged as one of the vibrant markets for trading digital assets. With a growing number of exchanges and a supportive regulatory framework, South Africans have ample opportunities to participate in the exciting realm of crypto trading. In this blog, we will delve into the top cryptocurrency exchanges in South Africa and discuss a few effective trading strategies to help you navigate this dynamic market.


Trade Bitcoin, Ethereum and other crypto with as little as R10 in starting capital. Fivewest has the lowest fees and tightest spreads (better than VALR and Luno!) in South Africa for trading crypto.

Trading Crypto in South Africa with Fivewest

Trading Crypto in South Africa 

In recent years, the world of finance has witnessed a revolution in the form of cryptocurrencies, with Bitcoin leading the way. South Africa, with its thriving tech-savvy population, has embraced this digital currency with open arms. Bitcoin trading platforms have emerged as hubs for South African traders to explore the exciting potential of cryptocurrencies. In this post, we will delve into the key aspects of Bitcoin trading in South Africa, addressing questions such as the best trading platform, starting capital, trusted sites, legalities, banking support, and the use of platforms like Binance.

## 1. Best Bitcoin Trading Platform in South Africa:
Choosing the right trading platform is crucial for a smooth and secure trading experience. South Africa offers a range of reliable platforms including established players like Luno and VALR, but one that consistently stands out is Luno simply because it is the oldest exchange with the most users. Luno boasts a great user-friendly interface for first time users, competitive fees, robust security measures, and a wide selection of cryptocurrencies to trade. Additionally, the platform provides comprehensive educational resources, making it ideal for both beginners and experienced traders.

## 2. How Much Do I Need to Start Trading Bitcoin in South Africa?
One of the great advantages of Bitcoin trading is its accessibility, even for traders with limited funds. In South Africa, you can start trading Bitcoin with as little as R50 (or 0.0001 BTC). However, keep in mind that while a small initial investment is possible, it's advisable to have a more substantial amount to mitigate risks and take advantage of market fluctuations effectively.

## 3. Best Site to Buy Bitcoin in South Africa:
When it comes to buying Bitcoin in South Africa, Luno is a highly recommended platform due it being the oldest and havin the most users in South Africa. Luno offers a great instant buy/sell for users, secure bank transfers, and competitive exchange rates. The platform supports various payment methods, including bank transfers and credit/debit cards, making it convenient for users across the country. Luno has gained a strong reputation for its reliability and exceptional customer support.

## 4. Legality of Bitcoin Trading in South Africa:
Bitcoin trading is legal in South Africa. The South African Reserve Bank (SARB) recognizes cryptocurrencies as a legitimate means of payment and investment. However, it's crucial to comply with the regulatory framework outlined by the SARB, including reporting obligations and adhering to anti-money laundering measures. By trading on reputable and regulated platforms, South African traders can ensure compliance while enjoying the benefits of Bitcoin trading.

## 5. Banks Supporting Bitcoin in South Africa:
In recent years, some South African banks have shown support for Bitcoin and cryptocurrencies. All South African banks including FNB, Standard Bank, Nedbank and Absa allow you to transfer money to and from exchanges such as Luno and VALR. FNB no longer banks exchanges themselves and Nedbank has chosen not to work with crypto exchanges due to the risk. The other banks have either not published their position or remain neutral.

## 6. Can South Africans Use Binance?
Yes, South Africans can use Binance, one of the world's leading cryptocurrency exchanges. Binance offers a wide range of cryptocurrencies for trading, competitive fees, and a user-friendly interface. Traders in South Africa can create an account on Binance, deposit funds using various payment methods, and start trading cryptocurrencies. Binance's global presence and robust security measures make it a popular choice among South African traders.

## Conclusion:
South Africa has emerged as a vibrant hub for Bitcoin trading, with a growing number of individuals embracing the potential of cryptocurrencies. The country offers reliable trading platforms, low starting capital requirements, trusted sites for buying Bitcoin, and a supportive regulatory environment. By adhering to legal guidelines, utilizing reputable platforms, and staying informed, South African traders can confidently navigate the exciting world of Bitcoin and harness its potential for financial growth.

<p>In recent years, the world of finance has witnessed a revolution in the form of cryptocurrencies, with Bitcoin leading the way. South Africa, with its thriving tech-savvy population, has embraced this digital currency with open arms. Bitcoin trading platforms have emerged as hubs for South African traders to explore the exciting potential of cryptocurrencies. In this post, we will delve into the key aspects of Bitcoin trading in South Africa, addressing questions such as the best trading platform, starting capital, trusted sites, legalities, banking support, and the use of platforms like Binance.</p>
<h2>1. Best Bitcoin Trading Platform in South Africa:</h2>
<p>Choosing the right trading platform is crucial for a smooth and secure trading experience. South Africa offers a range of reliable platforms including established players like Luno and VALR, but one that consistently stands out is Luno simply because it is the oldest exchange with the most users. Luno boasts a great user-friendly interface for first time users, competitive fees, robust security measures, and a wide selection of cryptocurrencies to trade. Additionally, the platform provides comprehensive educational resources, making it ideal for both beginners and experienced traders.</p>
<h2>2. How Much Do I Need to Start Trading Bitcoin in South Africa?</h2>
<p>One of the great advantages of Bitcoin trading is its accessibility, even for traders with limited funds. In South Africa, you can start trading Bitcoin with as little as R50 (or 0.0001 BTC). However, keep in mind that while a small initial investment is possible, it's advisable to have a more substantial amount to mitigate risks and take advantage of market fluctuations effectively.</p>
<h2>3. Best Site to Buy Bitcoin in South Africa:</h2>
<p>When it comes to buying Bitcoin in South Africa, Luno is a highly recommended platform due it being the oldest and havin the most users in South Africa. Luno offers a great instant buy/sell for users, secure bank transfers, and competitive exchange rates. The platform supports various payment methods, including bank transfers and credit/debit cards, making it convenient for users across the country. Luno has gained a strong reputation for its reliability and exceptional customer support.</p>
<h2>4. Legality of Bitcoin Trading in South Africa:</h2>
<p>Bitcoin trading is legal in South Africa. The South African Reserve Bank (SARB) recognizes cryptocurrencies as a legitimate means of payment and investment. However, it's crucial to comply with the regulatory framework outlined by the SARB, including reporting obligations and adhering to anti-money laundering measures. By trading on reputable and regulated platforms, South African traders can ensure compliance while enjoying the benefits of Bitcoin trading.</p>
<h2>5. Banks Supporting Bitcoin in South Africa:</h2>
<p>In recent years, some South African banks have shown support for Bitcoin and cryptocurrencies. All South African banks including FNB, Standard Bank, Nedbank and Absa allow you to transfer money to and from exchanges such as Luno and VALR. FNB no longer banks exchanges themselves and Nedbank has chosen not to work with crypto exchanges due to the risk. The other banks have either not published their position or remain neutral.</p>
<h2>6. Can South Africans Use Binance?</h2>
<p>Yes, South Africans can use Binance, one of the world's leading cryptocurrency exchanges. Binance offers a wide range of cryptocurrencies for trading, competitive fees, and a user-friendly interface. Traders in South Africa can create an account on Binance, deposit funds using various payment methods, and start trading cryptocurrencies. Binance's global presence and robust security measures make it a popular choice among South African traders.</p>
<h2>Conclusion:</h2>
<p>South Africa has emerged as a vibrant hub for Bitcoin trading, with a growing number of individuals embracing the potential of cryptocurrencies. The country offers reliable trading platforms, low starting capital requirements, trusted sites for buying Bitcoin, and a supportive regulatory environment. By adhering to legal guidelines, utilizing reputable platforms, and staying informed, South African traders can confidently navigate the exciting world of Bitcoin and harness its potential for financial growth.</p>


AdobeStock_177349972.jpeg

Your resource for Bitcoin trading in South Africa, including the best trading platforms, starting capital, trusted sites, legalities, banking support, and the use of platforms like Binance.

Bitcoin Traders in South Africa

FiveWest clients will be pleased to hear that a new and instantaneous Buy/Sell feature has been added to the FiveWest dashboard.

**What does this mean in practical terms?**

It means, for example, you can switch between fiat ZAR and US dollar stablecoins such as USDC with the simple click of a button. Or you can get a market quote on Bitcoin and compare that price with other crypto providers to see if you are getting the best deal available.

> “We are excited to announce the launch of FiveWest’s latest instant Buy/Sell feature. Now, you can effortlessly trade between stablecoins and ZAR with our intuitive user interface, anytime, day or night,” says FiveWest CEO Omer Iqbal.

To access this feature, you have to sign up with FiveWest [here](lhttps://dashboard.fivewest.co.za/auth/register?).

Once your wallet is funded with either crypto or ZAR, the funds are immediately available for trading. “There’s no more waiting around,” adds Iqbal. “After completing your trades, the funds are instantly accessible in your wallet. You can also request withdrawals, which are processed multiple times per day for your convenience.”

Crypto traders will appreciate the convenience of being able to switch instantly between fiat or crypto into stablecoins. Prudent investors and traders will understand that ZAR has been one of the world’s weakest currencies this year so far, so hedging against any further weakness might be a smart strategy. When the opportunity presents itself to re-enter the crypto market, this can likewise be done in an instant with the click of a button.

> “If you still prefer a personal touch, our dedicated over-the-phone trading desk is at your service. Call our OTC desk to negotiate rates and settle funds directly into your wallet at the agreed-upon rate. Other crypto and fiat currencies are currently available on the OTC desk and will be added to the Instant Buy/Sell, along with other advanced features, such as margin trading, in the near future,” says Iqbal.

**Complete our short KYC process and begin trading automatically with FiveWest today!**

<p>FiveWest clients will be pleased to hear that a new and instantaneous Buy/Sell feature has been added to the FiveWest dashboard.</p>
<p><strong>What does this mean in practical terms?</strong></p>
<p>It means, for example, you can switch between fiat ZAR and US dollar stablecoins such as USDC with the simple click of a button. Or you can get a market quote on Bitcoin and compare that price with other crypto providers to see if you are getting the best deal available.</p>
<blockquote>
<p>“We are excited to announce the launch of FiveWest’s latest instant Buy/Sell feature. Now, you can effortlessly trade between stablecoins and ZAR with our intuitive user interface, anytime, day or night,” says FiveWest CEO Omer Iqbal.</p>
</blockquote>
<p>To access this feature, you have to sign up with FiveWest <a>here</a>.</p>
<p>Once your wallet is funded with either crypto or ZAR, the funds are immediately available for trading. “There’s no more waiting around,” adds Iqbal. “After completing your trades, the funds are instantly accessible in your wallet. You can also request withdrawals, which are processed multiple times per day for your convenience.”</p>
<p>Crypto traders will appreciate the convenience of being able to switch instantly between fiat or crypto into stablecoins. Prudent investors and traders will understand that ZAR has been one of the world’s weakest currencies this year so far, so hedging against any further weakness might be a smart strategy. When the opportunity presents itself to re-enter the crypto market, this can likewise be done in an instant with the click of a button.</p>
<blockquote>
<p>“If you still prefer a personal touch, our dedicated over-the-phone trading desk is at your service. Call our OTC desk to negotiate rates and settle funds directly into your wallet at the agreed-upon rate. Other crypto and fiat currencies are currently available on the OTC desk and will be added to the Instant Buy/Sell, along with other advanced features, such as margin trading, in the near future,” says Iqbal.</p>
</blockquote>
<p><strong>Complete our short KYC process and begin trading automatically with FiveWest today!</strong></p>


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FiveWest launches new instant Buy/Sell function

Buy Crypto South Africa

# Understanding the Taxation of Crypto Assets in South Africa 

Cryptocurrency has gained significant popularity in recent years, and as its use grows, so does the need to understand its tax implications. If you're a cryptocurrency holder in South Africa, you might be wondering how crypto is taxed, whether it falls under capital gains or income tax, the tax rates involved, and if any VAT is applicable. In this blog, we'll provide an overview of the tax treatment of crypto assets in South Africa.

## Is crypto taxed in South Africa?
Yes, cryptocurrency is subject to taxation in South Africa. The [South African Revenue Service (SARS)](https://www.sars.gov.za/) considers cryptocurrencies as intangible assets, and any income or gains derived from them are subject to taxation.

### Capital gains tax or income tax on crypto?
Determining whether you should pay capital gains tax or income tax on your crypto activities depends on the nature and frequency of your crypto transactions. SARS treats cryptocurrencies as assets, and the tax treatment will depend on whether you are an investor or a trader.

Capital gains tax (CGT): If you are an investor who buys and holds cryptocurrencies as a long-term investment, any profits made upon disposal will be subject to capital gains tax. The capital gain is calculated by subtracting the base cost (acquisition price plus any associated costs) from the selling price.

Income tax: If you actively trade cryptocurrencies, engaging in frequent buying and selling or using crypto for business purposes, SARS may view your activities as trading rather than investing. In this case, your profits will be treated as ordinary income and subject to income tax. Factors considered include the volume, frequency, and intention behind your transactions.

### How much tax do I pay for crypto?
The tax rate you pay for crypto depends on your income or capital gains bracket. South Africa uses a progressive tax system, where higher income or gains are taxed at higher rates. As of the current tax year, the marginal tax rates for individuals range from 18% to 45%. The tax rate applicable to your crypto activities will be determined based on your overall taxable income.

You can use [Tax Calculators](https://taxcalculators.ai/south-africa) to calculate your taxable income for your specific scenario.

It's important to note that SARS allows certain exclusions and deductions for crypto-related expenses. Expenses incurred for the purpose of generating income from cryptocurrency transactions, such as transaction fees, may be deductible when calculating your taxable income or capital gains.

### VAT on crypto assets in South Africa:
Value-added tax (VAT) is not applicable to the buying, selling, or holding of cryptocurrencies in South Africa. In 2018, SARS clarified that cryptocurrencies are not considered a currency for VAT purposes. However, it's worth noting that other services related to cryptocurrencies, such as mining or providing exchange platforms, may be subject to VAT.

When it comes to taxation, cryptocurrencies are not exempt in South Africa. Depending on your activities, you may be subject to either capital gains tax or income tax. It's crucial to keep accurate records of your crypto transactions and consult with a tax professional to ensure compliance with SARS regulations. Remember to consider the applicable tax rates based on your income or gains, and be aware that VAT does not apply to the buying, selling, or holding of cryptocurrencies themselves. Stay informed and proactive in fulfilling your tax obligations to avoid any potential penalties or legal issues.





<h1>Understanding the Taxation of Crypto Assets in South Africa</h1>
<p>Cryptocurrency has gained significant popularity in recent years, and as its use grows, so does the need to understand its tax implications. If you're a cryptocurrency holder in South Africa, you might be wondering how crypto is taxed, whether it falls under capital gains or income tax, the tax rates involved, and if any VAT is applicable. In this blog, we'll provide an overview of the tax treatment of crypto assets in South Africa.</p>
<h2>Is crypto taxed in South Africa?</h2>
<p>Yes, cryptocurrency is subject to taxation in South Africa. The <a href="https://www.sars.gov.za/">South African Revenue Service (SARS)</a> considers cryptocurrencies as intangible assets, and any income or gains derived from them are subject to taxation.</p>
<h3>Capital gains tax or income tax on crypto?</h3>
<p>Determining whether you should pay capital gains tax or income tax on your crypto activities depends on the nature and frequency of your crypto transactions. SARS treats cryptocurrencies as assets, and the tax treatment will depend on whether you are an investor or a trader.</p>
<p>Capital gains tax (CGT): If you are an investor who buys and holds cryptocurrencies as a long-term investment, any profits made upon disposal will be subject to capital gains tax. The capital gain is calculated by subtracting the base cost (acquisition price plus any associated costs) from the selling price.</p>
<p>Income tax: If you actively trade cryptocurrencies, engaging in frequent buying and selling or using crypto for business purposes, SARS may view your activities as trading rather than investing. In this case, your profits will be treated as ordinary income and subject to income tax. Factors considered include the volume, frequency, and intention behind your transactions.</p>
<h3>How much tax do I pay for crypto?</h3>
<p>The tax rate you pay for crypto depends on your income or capital gains bracket. South Africa uses a progressive tax system, where higher income or gains are taxed at higher rates. As of the current tax year, the marginal tax rates for individuals range from 18% to 45%. The tax rate applicable to your crypto activities will be determined based on your overall taxable income.</p>
<p>You can use <a href="https://taxcalculators.ai/south-africa">Tax Calculators</a> to calculate your taxable income for your specific scenario.</p>
<p>It's important to note that SARS allows certain exclusions and deductions for crypto-related expenses. Expenses incurred for the purpose of generating income from cryptocurrency transactions, such as transaction fees, may be deductible when calculating your taxable income or capital gains.</p>
<h3>VAT on crypto assets in South Africa:</h3>
<p>Value-added tax (VAT) is not applicable to the buying, selling, or holding of cryptocurrencies in South Africa. In 2018, SARS clarified that cryptocurrencies are not considered a currency for VAT purposes. However, it's worth noting that other services related to cryptocurrencies, such as mining or providing exchange platforms, may be subject to VAT.</p>
<p>When it comes to taxation, cryptocurrencies are not exempt in South Africa. Depending on your activities, you may be subject to either capital gains tax or income tax. It's crucial to keep accurate records of your crypto transactions and consult with a tax professional to ensure compliance with SARS regulations. Remember to consider the applicable tax rates based on your income or gains, and be aware that VAT does not apply to the buying, selling, or holding of cryptocurrencies themselves. Stay informed and proactive in fulfilling your tax obligations to avoid any potential penalties or legal issues.</p>


AdobeStock_356706798.jpeg

Trading of crypto assets is subject to the general principles of South African tax law and taxed accordingly. In simple terms, if crypto is traded for the purpose of making short-term trading profits, it will be considered part of a taxpayer's income. On the other hand, if it is held for capital appreciation purposes, it will be considered part of capital gains tax (CGT).

In South Africa, trading crypto assets follows general tax principles. If crypto is traded for short-term trading profits, it's treated as income, while holding it for capital appreciation falls under capital gains tax. Intention is also a factor.

Tax and Crypto Assets in South Africa

**Thought to be worth R15bn a year in profits to the major banks, forex is a market that is begging for disruption — and several new challengers are happy to oblige, reports Moneyweb.**

It’s reckoned that **80% of SA’s R4.6 trillion GDP** has a forex component, meaning money that either flows into or out of the country. This is a gold mine for the banks since they get to toll most of this money each time it moves.

_The five major banks — FNB, Standard Bank, Absa, Nedbank, and Investec _— are believed to make a combined **profit of R15 billion** a year from forex.

Smaller clients are paying 2–3% in forex transaction costs, which explains why newer entrants charging 1–1.5%, and sometimes less, see this as a market worthy of attack.

## Costly … and complicated
[Remittances](https://fivewest.co.za/remittance-define) (money sent from abroad, usually by family members) account for a huge part of the African economy, and as much as 25% of GDP in countries like The Gambia.

The transaction costs are sometimes frightening, as much as 12% in some cases, and an average of 6.24%, according to the [World Bank.](https://remittanceprices.worldbank.org/)

Crypto and blockchain-based companies have started to chisel away at these remittance costs, charging around 1%, and settling transactions within hours rather than the one, two, or three days typically offered by money transfer companies.

_When it comes to inter-bank forex, it is not always easy to see what the actual costs are — and this seems to be deliberate._

**There is Society for Worldwide Interbank Financial Telecommunications (Swift) fees of somewhere between R500 and R750 a transaction.**

And then there is a _less visible cost in the currency exchange rate_ you are quoted. Banks will quote a mid-market rate, which is the mid-point between the price at which it _buys and sells a currency_, also known as a ‘_spread_’.

This ‘spread’ — the difference between the banks’ buying and selling rates — is complicated by the fact that exchange rates are constantly on the move, and bigger clients will get preferential rates.

So you are never really comparing apples with apples, and banks will typically quote you a rate that benefits them, leaving it up to the client to negotiate a cheaper rate. They pretty much explain this on their websites.

If you don’t ask, you’ll pay more. The problem is you have to burrow your way through an automated phone operator to a dealing desk, and if you succeed at that, the rate you get quoted depends very much on the dealer you get and the bank’s order book for the day.

Here are a few factors that contribute to the higher costs associated with bank forex services, according to Omer Iqbal of[<u> FiveWest.</u>](https://fivewest.co.za/)

**Wide spreads:** Banks typically offer wider spreads compared to brokers. The bid-ask spread represents the difference between the buying and selling prices of a currency pair, and banks often have larger spreads to increase their profit margins.

**Commissions and fees:** Banks may charge additional fees and commissions for executing forex transactions. These fees can vary depending on the bank and the type of transaction, adding to the overall cost of trading.

**Minimum trade sizes:** Banks often require higher minimum trade sizes for forex transactions, making it more difficult for smaller traders to access the market. This can limit opportunities for retail traders and potentially increase costs for those who can’t meet the minimum requirements.

**Limited market access:** Banks may not offer the same level of market access as specialized forex brokers. They might have a narrower selection of currency pairs and limited access to certain forex markets, which can restrict trading opportunities and potentially result in higher costs for clients.

**Lack of transparency:** Banks may not always provide transparent pricing for forex trades. The lack of transparency can make it difficult for traders to fully understand and compare the costs involved, potentially leading to higher overall expenses.

“It’s important for individuals and businesses to carefully evaluate the costs and services provided by banks when considering forex trading. Comparing multiple providers, including specialized forex brokers, can help determine the most cost-effective options for executing forex trades,” says Iqbal.

A good idea is to use a currency converter app that provides forex comparisons between SA banks, as offered here at [Moneytransfer.online.](https://moneytransfer.online/)

<p><strong>Thought to be worth R15bn a year in profits to the major banks, forex is a market that is begging for disruption — and several new challengers are happy to oblige, reports Moneyweb.</strong></p>
<p>It’s reckoned that <strong>80% of SA’s R4.6 trillion GDP</strong> has a forex component, meaning money that either flows into or out of the country. This is a gold mine for the banks since they get to toll most of this money each time it moves.</p>
<p>_The five major banks — FNB, Standard Bank, Absa, Nedbank, and Investec _— are believed to make a combined <strong>profit of R15 billion</strong> a year from forex.</p>
<p>Smaller clients are paying 2–3% in forex transaction costs, which explains why newer entrants charging 1–1.5%, and sometimes less, see this as a market worthy of attack.</p>
<h2>Costly … and complicated</h2>
<p><a href="https://fivewest.co.za/remittance-define">Remittances</a> (money sent from abroad, usually by family members) account for a huge part of the African economy, and as much as 25% of GDP in countries like The Gambia.</p>
<p>The transaction costs are sometimes frightening, as much as 12% in some cases, and an average of 6.24%, according to the <a href="https://remittanceprices.worldbank.org/">World Bank.</a></p>
<p>Crypto and blockchain-based companies have started to chisel away at these remittance costs, charging around 1%, and settling transactions within hours rather than the one, two, or three days typically offered by money transfer companies.</p>
<p><em>When it comes to inter-bank forex, it is not always easy to see what the actual costs are — and this seems to be deliberate.</em></p>
<p><strong>There is Society for Worldwide Interbank Financial Telecommunications (Swift) fees of somewhere between R500 and R750 a transaction.</strong></p>
<p>And then there is a <em>less visible cost in the currency exchange rate</em> you are quoted. Banks will quote a mid-market rate, which is the mid-point between the price at which it <em>buys and sells a currency</em>, also known as a ‘<em>spread</em>’.</p>
<p>This ‘spread’ — the difference between the banks’ buying and selling rates — is complicated by the fact that exchange rates are constantly on the move, and bigger clients will get preferential rates.</p>
<p>So you are never really comparing apples with apples, and banks will typically quote you a rate that benefits them, leaving it up to the client to negotiate a cheaper rate. They pretty much explain this on their websites.</p>
<p>If you don’t ask, you’ll pay more. The problem is you have to burrow your way through an automated phone operator to a dealing desk, and if you succeed at that, the rate you get quoted depends very much on the dealer you get and the bank’s order book for the day.</p>
<p>Here are a few factors that contribute to the higher costs associated with bank forex services, according to Omer Iqbal of<a href="https://fivewest.co.za/"> FiveWest.</a></p>
<p><strong>Wide spreads:</strong> Banks typically offer wider spreads compared to brokers. The bid-ask spread represents the difference between the buying and selling prices of a currency pair, and banks often have larger spreads to increase their profit margins.</p>
<p><strong>Commissions and fees:</strong> Banks may charge additional fees and commissions for executing forex transactions. These fees can vary depending on the bank and the type of transaction, adding to the overall cost of trading.</p>
<p><strong>Minimum trade sizes:</strong> Banks often require higher minimum trade sizes for forex transactions, making it more difficult for smaller traders to access the market. This can limit opportunities for retail traders and potentially increase costs for those who can’t meet the minimum requirements.</p>
<p><strong>Limited market access:</strong> Banks may not offer the same level of market access as specialized forex brokers. They might have a narrower selection of currency pairs and limited access to certain forex markets, which can restrict trading opportunities and potentially result in higher costs for clients.</p>
<p><strong>Lack of transparency:</strong> Banks may not always provide transparent pricing for forex trades. The lack of transparency can make it difficult for traders to fully understand and compare the costs involved, potentially leading to higher overall expenses.</p>
<p>“It’s important for individuals and businesses to carefully evaluate the costs and services provided by banks when considering forex trading. Comparing multiple providers, including specialized forex brokers, can help determine the most cost-effective options for executing forex trades,” says Iqbal.</p>
<p>A good idea is to use a currency converter app that provides forex comparisons between SA banks, as offered here at <a href="https://moneytransfer.online/">Moneytransfer.online.</a></p>


1_lzyBdog52aOh6ODsb2mp3A.webp

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Challenging banks in the forex market

The upstarts challenging banks in the forex market

Ethiopia’s agricultural industry makes up most of the country’s annual GDP. In order to fertilize and water these large spans of agricultural crops, aircraft called crop dusters are used to efficiently service these areas. However, the issue is that the Ethiopian government does not have the money necessary to fund this endeavour. As an alternative to buying the planes, one of FiveWest’s clients leases out these planes to Ethiopia.

#### Solution

By utilizing our OTC desk, the aviation company is able to provide essential automated farming practices to Ethiopia at a fraction of the cost. FiveWest achieves this by facilitating the exchange between our client – the aviation leasing firm – and the agricultural farm in Ethiopia using USDT. 

#### Results

The result is that, by utilizing FiveWest’s OTC desk, our client was able to dramatically reduce the cost required to lease out agricultural planes in Ethiopia.


<p>Ethiopia’s agricultural industry makes up most of the country’s annual GDP. In order to fertilize and water these large spans of agricultural crops, aircraft called crop dusters are used to efficiently service these areas. However, the issue is that the Ethiopian government does not have the money necessary to fund this endeavour. As an alternative to buying the planes, one of FiveWest’s clients leases out these planes to Ethiopia.</p>
<h4>Solution</h4>
<p>By utilizing our OTC desk, the aviation company is able to provide essential automated farming practices to Ethiopia at a fraction of the cost. FiveWest achieves this by facilitating the exchange between our client – the aviation leasing firm – and the agricultural farm in Ethiopia using USDT.</p>
<h4>Results</h4>
<p>The result is that, by utilizing FiveWest’s OTC desk, our client was able to dramatically reduce the cost required to lease out agricultural planes in Ethiopia.</p>


Screenshot 2022-07-05 at 18.13.39.jpg

FiveWest provides automated farming practices to Ethiopia at a fraction of the cost

A company that was looking for a cost-effective method to get client funds into either a Crypto fund or just into their client’s personal accounts. On the current exchanges in south Africa individuals can be charged up to 2% for an OTC trade and a further 1.4% on their instant EFT deposits, this is all on top of the premium at the time meaning that a client could pay more than 5% for their ZAR to become Crypto.

#### Solution

FiveWest provides a clean and simple solution to collection agencies to simply supply their clients with crypto at rates that are far below the exorbitant rates of the current service providers. This is done by connecting the vast range of sellers that Fivewest has at any point in time with the respective buyers looking for an onramp solution.

#### Results

Rates can be locked at the click of a button and all settlements can be made the same day, providing everyone with a fast and simple onramp solution for all of their crypto needs.


<p>A company that was looking for a cost-effective method to get client funds into either a Crypto fund or just into their client’s personal accounts. On the current exchanges in south Africa individuals can be charged up to 2% for an OTC trade and a further 1.4% on their instant EFT deposits, this is all on top of the premium at the time meaning that a client could pay more than 5% for their ZAR to become Crypto.</p>
<h4>Solution</h4>
<p>FiveWest provides a clean and simple solution to collection agencies to simply supply their clients with crypto at rates that are far below the exorbitant rates of the current service providers. This is done by connecting the vast range of sellers that Fivewest has at any point in time with the respective buyers looking for an onramp solution.</p>
<h4>Results</h4>
<p>Rates can be locked at the click of a button and all settlements can be made the same day, providing everyone with a fast and simple onramp solution for all of their crypto needs.</p>


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Collection agencies looking for a Crypto on-ramp for clients into a CRYPTO portfolio Problem

Minimise price impact

Reduced slippage

Faster settlement times

We take care of our onboarding clients, making the process a breeze. Get started with a free account to see how FiveWest can help you and your financial goals.

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Key product stats:

Our OTC desk provides clients with the deepest liquidity in ZAR to BTC, ETH, and other altcoins. We offer fast execution and tight spreads. 

OTC trading involves the direct trading of digital currencies between two parties, outside of an exchange, to avoid slippage. We provide a personalized service to investors looking to trade large ZAR cryptocurrency orders (R10k to R10m+) with no slippage.

FiveWest offers OTC services for popular assets such as Bitcoin and Ethereum.



USDT

BTC

ETH

XRP

OTC Desk

Trading Pairs

Ethereum

Bitcoin

Tether

TrustToken

USD Coin

Ripple

OTC Crypto Trading

Benefits for our clients

Minimise price impact

Reduced slippage

Faster settlement times

The OTC Process

Open an account

Place your order

Fund your account

Key product stats:

To create an account, get these documents ready!

Create your FiveWest account today

We take care of our onboarding clients, making the process a breeze. Get started with a free account to see how FiveWest can help you and your financial goals.