Cheapest way to get transact on Binance & the most Lucrative way to withdraw ZAR?

OkPlankton

Active Member
Joined
May 23, 2016
Messages
52
Hi, I am new to crypto and have 2 questions. As Binance suspended the depositing and withdrawal of ZAR about 6 months ago, we are left with using our credit cards to buy crypto directly. This carries a standard 3% fee as well as a currency conversion fee from our bank (2% ?).

Another way is to buy crypto on a local exchange and then deposit it into Binance, which I am currently doing with Luno because it works out cheaper than above. Is there another, trusted local exchange that is cheaper than Luno?


For my 2nd question, if there comes a time where I feel like withdrawing ZAR rather than reinvesting, what set of steps are best to achieve this? Let us assume:
1) Popular cryptos like BTC, ETH are dipping.
2) The price of some particular crypto, P, is on a bull run and I would like to sell P for profit.

Luno is not ideal as they only support popular crypto like those above. I am thinking to sell P for a stablecoin like Tether (USDT). Then withdraw this stablecoin from Binance to a local exchange with sufficient volume, and then sell that for ZAR. (is ice3x good?)

Is this a good plan? If not I would greatly appreciate some guidance. Thanks
This is my process.

1. Buy on Binance via Card (Capitec)
2. Trade whatever coin I want on Binance
3. Convert to USDC when I want to take profits
4. Transfer USDC to Luno Wallet
5. Convert Luno USDC to ZAR
6. Widraw in my bank account from Luno

Luno currently only supports ETH blockchain (https://www.luno.com/help/en/articles/11000100818) and not the Binance smart chain, so it's a hefty network transaction fee. This is one of the reasons I just buy directly with a card on Binance.
 

NarrowBandFtw

Honorary Master
Joined
Feb 1, 2008
Messages
21,570
This is my process.

1. Buy on Binance via Card (Capitec)
2. Trade whatever coin I want on Binance
3. Convert to USDC when I want to take profits
4. Transfer USDC to Luno Wallet
5. Convert Luno USDC to ZAR
6. Widraw in my bank account from Luno

Luno currently only supports ETH blockchain (https://www.luno.com/help/en/articles/11000100818) and not the Binance smart chain, so it's a hefty network transaction fee. This is one of the reasons I just buy directly with a card on Binance.
why would any exchange support Binance's proprietary chain though? (other than Binance of course)

have you tried those same steps except using XRP or LTC instead of USDC? fees should be much lower
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,184
This is my process.

1. Buy on Binance via Card (Capitec)
2. Trade whatever coin I want on Binance
3. Convert to USDC when I want to take profits
4. Transfer USDC to Luno Wallet
5. Convert Luno USDC to ZAR
6. Widraw in my bank account from Luno

Luno currently only supports ETH blockchain (https://www.luno.com/help/en/articles/11000100818) and not the Binance smart chain, so it's a hefty network transaction fee. This is one of the reasons I just buy directly with a card on Binance.
those cards transactions are capped at R1m a year and seen as foreign just fyi
 

OkPlankton

Active Member
Joined
May 23, 2016
Messages
52
why would any exchange support Binance's proprietary chain though? (other than Binance of course)

have you tried those same steps except using XRP or LTC instead of USDC? fees should be much lower
I wasn't aware the Binance Smart chain was proprietary. I thought some other Exchanges also support it. It does makes sense for it to be exclusive.

I will try transferring XRP/LTC and hope the fees are less. Thank you for the valuable info
 

GISDude

New Member
Joined
Oct 10, 2017
Messages
6
Hi All.
See this thread is still active so thought I would also join the convo.

I am also looking for a cheaper way to get funds into Binance. The Credit Card is unfortunately attracting that fee as well as the conversion typically is different than the actual ZAR/USD exchange rate (some more profits taken).

Using VALR or LUNO with EFT is free but has the drawback that the exchange is on average about 5% more expensive than international (like binance). So what I'm saying is if I deposit ZAR to my VALR and exchange for XRP (Ripple) I would be exchanging at a 5% higher rate than what is currently trading on binance. Then if I send the coin over to binance I would technically have paid a 5% fee for getting it there.

Anybody noticed this before and have a better alternative?
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,184
Hi All.
See this thread is still active so thought I would also join the convo.

I am also looking for a cheaper way to get funds into Binance. The Credit Card is unfortunately attracting that fee as well as the conversion typically is different than the actual ZAR/USD exchange rate (some more profits taken).

Using VALR or LUNO with EFT is free but has the drawback that the exchange is on average about 5% more expensive than international (like binance). So what I'm saying is if I deposit ZAR to my VALR and exchange for XRP (Ripple) I would be exchanging at a 5% higher rate than what is currently trading on binance. Then if I send the coin over to binance I would technically have paid a 5% fee for getting it there.

Anybody noticed this before and have a better alternative?
Notice this before? Yes this is normal.

Your best bet is to make use of the binance free card fee promotions that occur from time to time.
 

K T

Senior Member
Joined
Jan 26, 2008
Messages
588
Notice this before? Yes this is normal.

Your best bet is to make use of the binance free card fee promotions that occur from time to time.
I'm busy grappling with this at the moment as well.
It seems to me that even without the free card fee promo it would still be cheaper than going via a local exchange. Correct? Given the local premium and fees to send to Binance.
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,184
I'm busy grappling with this at the moment as well.
It seems to me that even without the free card fee promo it would still be cheaper than going via a local exchange. Correct? Given the local premium and fees to send to Binance.
the exchange prices fluctuate every second... thats why I belong to about 5 and pick the cheapest when I want to buy.
 

NarrowBandFtw

Honorary Master
Joined
Feb 1, 2008
Messages
21,570
I'm busy grappling with this at the moment as well.
It seems to me that even without the free card fee promo it would still be cheaper than going via a local exchange. Correct? Given the local premium and fees to send to Binance.
if that was true the local exchanges would be out of business ages ago

you also need to factor in the blockchain network fees to send it from Binance to a local exchange if you ever want to cash out in ZAR (or worse, SWIFT fees to transfer internationally back to you bank)

arbitrage simply is not that easy to profit from any more, that's why companies like Shiftly exists, it takes scale and specialization to profit from arbitrage these days and you need to include all fees to compare properly e.g.

Binance:
deposit fee + forex change fee + taker fee to buy + blockchain send fee to get it to a local exchange + local exchange taker fee to sell + local exchange withdrawal fee (and you are affecting your annual balance of payments limit)

Luno:

deposit fee (whatever your bank charges you for an EFT, R1 to R7 usually)
+
taker fee to buy (0.1%)
+
taker fee to sell (0.1%)
+
withdrawal fee (free) (and you are not affecting your annual balance of payments limit)

now compare the difference in fees to the difference in price and also consider that both markets fluctuate independently of each other, you might have bad timing and send from Binance to Luno at a time when their prices are closer to each other than usual

a free card promo can easily be the difference between profit and loss here
 

Comrade Alex

Member
Joined
Mar 30, 2020
Messages
21
It seems that a significant amount 2-3% goes to the spread when trading crypto paired with ZAR (via Luno, Binance and VALR). This is most likely because it is a less liquid market, USD pairs should offer better liquidity.

I therefore propose making use of Standard Bank's GetShyft app. This is a forex solution with free EFT deposits, decent spreads when exchanging ZAR to USD and the ability to transfer USD to a virtual credit card. I've previously used this virtual card to buy stuff on Amazon (in USD) and it attracted no fees. I think this will be the cheapest solution to get funds to Binance. I haven't tried this as of yet, but will update this post once I do. The only thing I'm unsure of is what Binance will charge for paying with a credit card, does anyone have more info on this?

For withdrawal, I agree with @OkPlankton that the cheapest appears to cash out via a cheaper network crypto like BCH, LTC or XRP to a Luno wallet and then withdrawing to your ZAR bank account.

Random side note: I wish the ERC-20 network's gas fees were lower, the high cost is a massive hinderance to the expansion of DeFi.

Edit 1: I just discovered that Binance charges 3.5% or 10 USD for card payments, whichever is lower (https://www.binance.com/en/support/...inance-Enables-Debit-and-Credit-Card-Payments). So it does seem that just using Luno will be cheaper. The drawback is less products being offered such as no interest earning options on stablecoins or staking. Also, you don't actually have your own keys (not your keys, not your coins - https://www.ledger.com/academy/not-your-keys-not-your-coins-why-it-matters). Sure, Binance also doesn't give you your keys, but you can transfer your coins to TrustWallet that they are affiliated with.
 
Last edited:

humbledryer

Active Member
Joined
Nov 5, 2020
Messages
98
This is my process.

1. Buy on Binance via Card (Capitec)
2. Trade whatever coin I want on Binance
3. Convert to USDC when I want to take profits
4. Transfer USDC to Luno Wallet
5. Convert Luno USDC to ZAR
6. Widraw in my bank account from Luno

Luno currently only supports ETH blockchain (https://www.luno.com/help/en/articles/11000100818) and not the Binance smart chain, so it's a hefty network transaction fee. This is one of the reasons I just buy directly with a card on Binance.
Hi

I just tried to buy on Binance using my Capitec card but it wouldn't go through. It isn't because there aren't funds available and I updated my temporary transaction limits for online purchases. :unsure:

Did you have to do anything else?

Thanks
 
Last edited:

Gralalo

Well-Known Member
Joined
Apr 18, 2015
Messages
154
Hi

I just tried to buy on Binance using my Capitec card but it wouldn't go through. It isn't because there aren't funds available and I updated my temporary transaction limits for online purchases. :unsure:

Did you have to do anything else?

Thanks
Also tried to buy on Binance with Capitec card and got the same problem. It keeps on saying 'Card issuer system is temporarily unavailable'

Did some digging and found the following info on their website:

"What is important to note is that purchasing any type of cryptocurrency from a non-South African entity using a debit or credit card, directly or indirectly with your Global One or any other card by means of a virtual account, is not permitted as such transactions do not form part of the permitted transactions stipulated in the Currency and Exchanges manual of the South African Reserve Bank (SARB). You should therefore refrain from doing these transactions with your Global One card."

https://www.capitecbank.co.za/bank-...s/best-way-to-bank/foreign-exchange-services/

Not sure if this is new.

Any suggestions?
 

NarrowBandFtw

Honorary Master
Joined
Feb 1, 2008
Messages
21,570
Also tried to buy on Binance with Capitec card and got the same problem. It keeps on saying 'Card issuer system is temporarily unavailable'

Did some digging and found the following info on their website:

"What is important to note is that purchasing any type of cryptocurrency from a non-South African entity using a debit or credit card, directly or indirectly with your Global One or any other card by means of a virtual account, is not permitted as such transactions do not form part of the permitted transactions stipulated in the Currency and Exchanges manual of the South African Reserve Bank (SARB). You should therefore refrain from doing these transactions with your Global One card."

https://www.capitecbank.co.za/bank-...s/best-way-to-bank/foreign-exchange-services/

Not sure if this is new.

Any suggestions?

some people seem to be unlucky
 

Gralalo

Well-Known Member
Joined
Apr 18, 2015
Messages
154

some people seem to be unlucky
Thanks for link to thread. Will keep an eye there. Seems I'm one of the unlucky ones. Maybe it's time to open a new bank acc... BankZero would have been nice if they finally decide to launch
 

Gralalo

Well-Known Member
Joined
Apr 18, 2015
Messages
154
Just a quick update. I changed the currency for transaction to USD from ZAR and transaction went through.
Might also have to do with limits on physical/virtual card. Just make sure the limits are synced.
 

humbledryer

Active Member
Joined
Nov 5, 2020
Messages
98
Just a quick update. I changed the currency for transaction to USD from ZAR and transaction went through.
Might also have to do with limits on physical/virtual card. Just make sure the limits are synced
That's good to know. Thanks for the update
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,184
Just a quick update. I changed the currency for transaction to USD from ZAR and transaction went through.
Might also have to do with limits on physical/virtual card. Just make sure the limits are synced.
limit is 50k per transaction and 1m a year for a cc
 
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