The question of how to ‘join bitcoin’ or ‘invest’ in bitcoin in South Africa, is a common one, usually from someone looking for the next way to make fast money, not from someone genuinely interested in bitcoin, the Blockchain, or crypto currencies in general.

(Please also see our articles on Cloud Mining and Mining schemes in South Africa, and bitcoin mining in South Africa. You might also like to read about bitcoin scams in South Africa and the sick people who promote them)

There happen to be a wide variety of ‘get-rich-quick schemes’ and ‘systems’ running in South Africa that use bitcoin as well as Rand. Almost all of them are a variation of a pyramid scheme or High Yield Investment Program, and will eventually fail, causing many people to lose their money.

With the rise of bitcoin over the last couple of years, many of these programs are now jumping onto the bandwagon and spreading half truths and misinformation about bitcoin, to promote their system.

Follow the golden rule, if it sounds too good to be true, it usually is!

Bitcoin Accumulation programs

There are ‘bitcoin accumulation’ schemes and ‘systems’ where you can earn ‘interest’ or more money than you ‘invest’ with bitcoin. THIS IS A SCAM!!! Often disguised as FREE BITCOIN EDUCATION, the information provided is factually incorrect, and filled with affiliate links to sub standard and questionable websites that will financially benefit the authors when you sign up.

The bitcoin supply is finite, there is NO INTEREST to earn, and if you believe you will buy bitcoin for one price, and after some time you will have more bitcoin than you bought….you are being scammed. Dont believe everything you read on the internet….ask yourself, if you are ‘earning bitcoin’, where does it come from? In most cases either you are getting completely scammed and you will not get back all your money, OR, you are recruiting others and scamming them without knowing it, as it is them who are funding your ‘earnings’, and they are the ones who lose all their money…making YOU the one who is literally stealing money from other users. Do not contribute to this problem in the bitcoin community! Normally these are the same people who are promoting a variety of ponzi schemes and dubious ‘systems’ to make money, and they have a reputation for questionable conduct in the bitcoin community

Bitcoin has performed well since it started

Bitcoin stats

Figures accurate on 16/06/2016

Quack Financial advisor newsletters

These ‘advisors’ keep sending out newsletters and updates with so called ‘proof’ of their predictions of the markets and now that bitcoin is around, they are suddenly experts in cryptocurrencies too.

Membesr and users are shown all sorts of bitcoin information, and then told they can join in and make lots of money with bitcoin, by joining the scheme or program. Most of the time the scheme has NOTHING to do with bitcoin, other than it uses it as a payment method, but users are led to believe it is all part of the same thing.

The people running these  schemes are well organised, and have ‘wealth seminars’, as well as conferences, meetups, and live chats online, where they talk about bitcoin as if they and their scheme are part of it. It is shocking to see how the people running these ‘wealth growing’ and ‘investment’  systems have  themselves very little knowledge of how bitcoin works, but since it is more than the people who are there to participate, they look like gurus.

Every day we are inundated with emails, Facebook messages and calls from people who think that they have ‘joined bitcoin’ and now they dont know what is happening, but they want their money! Unfortunately many poor users even think they are bitcoin miners, because they are part of a system that is ‘mining bitcoins’, yet they dont know much about anything except the name of a website.

The fact of the matter about people who think they are ‘bitcoin miners’ is that they are almost always not. Most of the time they are involved in a fancy ponzi scheme, that only tells them they are bitcoin miners, and of course, takes payment in bitcoin. What people should remember is that almost anyone over the age of 16 can make a website, so dont believe everything you read or see online! Check if your ‘bitcoin cloud mining’ website can pass these checks.

If you are a ‘bitcoin miner’ because you sent bitcoin or money to a website…..I hate to burst your bubble, but you probably are not.

Here are some points to note when you are told about bitcoin:

You do not have to pay anyone to become a member of any scheme to buy, sell, or use bitcoin.

If you would like to trade bitcoin, or ‘invest’ in bitcoin, just buy some bitcoin. You do not need to be a member of a ‘system’ to do that. To be part of the bitcoin community, and to take part in the bitcoin revolution, all you need to do is own some bitcoin. Join a bitcoin exchange, buy some bitcoin, and you have officially ‘joined bitcoin’.

A bitcoin account is FREE

You do not need to pay anything to have a bitcoin account or bitcoin wallet. You can get one for free within seconds, and you do not need to go through any other person to do this. The bitcoin exchange you use to purchase bitcoins on will always give you a free bitcoin wallet, and you can download a bitcoin wallet to your computer, or use a web or mobile phone based wallet, all for free. Check out our list of bitcoin wallets to choose from here.

There are no ‘Administration fees’ for your bitcoin account

Since you open your bitcoin wallet yourself, there are no other people involved, and never should be. You do not need to pay someone to ‘administer’ your account for you. If anyone is offering you that ‘service’, you are probably about to be scammed. There are zero ‘admin’ fees or ‘activation’ fees with your bitcoin account.

Minimum investment to join bitcoin

There is NO minimum buy in or investment for bitcoin. Beware is people who try to tell you there is! You might want to make it worth your while by starting with R500 or R1000 worth of bitcoin, but if you want to buy R50 worth of bitcoin, you can do that. There is no minimum investment amount for bitcoin, you can even buy R5 worth of bitcoin if you desire. Do not let anyone tell you that there is a minimum amount you MUST invest to be part of bitcoin!

There is NO table of monthly profit/interest or earnings with bitcoin

Bitcoin is traded like a stock or forex on exchanges. The price goes up and down all the time, and nobody can predicct the price in 10 minutes, let alone one month. If someone is showing you tables with figures of earnings you will get, you are most likely involved in another scam.

If you know anything about bitcoin, you will know that ANY system that offers interest on your bitcoin deposits is a scam or pyramid scheme. Stay away!

bitcoin minerBitcoin mining websites

This is one of the biggest cons out there on the internet. There are thousands of bitcoin cloud mining websites, but only a very very small amount are real. The ones that are real, are not very profitable, and you dont make a lot of money. If a website is offering you bitcoin mining and promising great returns, you are almost certainly going to be scammed, or you might just be joining a pyramid / ponzi scheme that says it is bitcoin mining but it is not. Many bitcoin mining websites are just websites, nothing more, they do not mine, they just take your bitcoin, and pay you back small amounts over a long period of time, often vanishing before you have made back your money.

Again, if you REALLY think you are a bitcoin miner, and are mining bitcoin by sending your bitcoin to a random website, I challenge you to check them against our cloud mining scam points list.

Other alt coins and crypto currencies that will make you rich

Don’t buy in to pump-and-dump altcoins that claim to be the next bitcoin, and encourage you to get in early.

Most of these ‘coins’ that are presented at ‘wealth seminars’ rely on everything from outright fraud such as pre-mined coins or insta-mined coins, to features that have no cryptographic proofs to sucker new buyers in.

These ‘sales people’ of these new crypto coins baffle users with crypto lingo and false promises to get everyone to sign up to the ‘next big thing’. The influx of buyers artificially inflates the price, so that the people running the ‘coin’ who have already pre-mined, can dump their coins onto the market, cashing out with all your hard earned money. Understand that ‘cons’ that are POS (Proof of Stake) or weak POW (Proof of Work), can be attacked at very little cost. This is why Bitcoin is the MOST secure crypto coin out there and a much better choice. Do your research! Stop just believing websites and people at face value, do your due diligence on them, and question everything, this is your money at risk!

If you have to go to a presentation about a ‘new’ type of coin, that is going to make everyone ‘rich’, or be the next ‘bitcoin’, you are almost certainly about to be scammed. No REAL crypto currency needs this at all as it can do well on its own merits.

How to join bitcoin and buying bitcoin on an exchange

If you would like to buy bitcoin you can do so quickly, easily and safely on a licenced bitcoin exchange. You do not need to be a member of any system or scheme, or pay any monthly fees to anyone for the privilege. As long as you are over 18, you can open a FREE account on a bitcoin exchange, and buy and sell bitcoin all day long. There are no monthly admin fees, or activation fees, it is just you transacting directly with the exchange, and being part of the bitcoin ecosystem. That is how you ‘join bitcoin‘. (Read more on investing in bitcoin in South Africa)

In South Africa you can register for free on exchange. If you would like to take advantage of the cheapest prices, you should register on both, so that you have better pricing options. Once your account has been verified with your ID, and proof of address, you are free to deposit money by bank transfer. Once your account on the exchange has been funded and has a positive balance, you can trade bitcoins.

Congratulations! You have ‘joined bitcoin’ and are now a bitcoin trader!

32 Responses to Bitcoin schemes in South Africa
  1. Great article! So many schemes and scams going around at the moment. And somehow everything is about recruiting people. Cloud mining if done properly is actually very profitable. I have spent the past three months testing out dozens and dozens of cloud mines and so far have found a few that are legit, and profitable, but the vast majority are either SCAM’s or HYIP’s

    • Hi kindly share your cloud mining website with me to learn. thanks

      • We are launching a new website on this soon. We spread our risk over ten different operations and use a portfolio strategy, similar to what fund managers do. Drop me an email [email protected] and I will keep you in the loop with developments

        • Niel, you know me well enough by now to know I don’t do scams. On fact, at the bosberaad we had together in January 2016 I voiced my concern to you that I had concerns over many of the projects and I have been proved 100% correct. I also made it known to you at the time that I had been involved with David Martin and his team for 5 years at that time and that we would bring a LEGITIMATE REAL MINING ( NOT cloud mining) opportunity to the people. You remember that conversation round the fire? I can proudly say, despite what many people here may be saying ( including you) that we have done that and that we have been mining with Dragon Mine successfully and profitale for a ONE YEAR now with REAL EQUIPMENT in a REAL MINE which WE OWN. Several people you personally know have been there. I know you posted this 8 months ago with just reasons. I ask you to sit and listen to me now. I was right and you were right. The only difference is that I brought a solution ( along with a few others). By the way, this is Andrew Eaton posting here.

          • Andrew, I do not understand your post. Why exactly did you write the essay above – in response to what? Did I mention you, David Martin, or Dragon Mine for that matter? I bought a contract with Dragon Mine and am happy with it, so I really do not understand what you are on about here

            • Hi Niel

              Your post was below a guy called Fernando, who is accussing us of being a scam. So, I am just making sure anyone who reads this thread understands we are not. I am extremely pleased that you are mining with us. I was not aware of that. I am more pleased that you are happy with the performance. In the other part of my “essay” above I was actually also agreeing with you about there being too many scams. Something you and I did chat about a year ago. All the best, bud. As I was saying….was not aware that you were actually mining with us. 🙂

            • Assuming you are not recruiting other members to earn a commission, can you let us know how long it takes you to get ROI, and withdraw out of the site 100% of all the money you have ever invested, including initial and ongoing costs and fees?

  2. Yup. Look out for dragon mine/ Skilldragon. Zero evidence of any mining. Lots of recruitment

    • Obviously since the guy behind behindmlm was sitting in China (or thereabouts – I forget), where Skilldragon doesn’t operate, he was unable to see the website. (Which didn’t stop him from reviewing the company – on pure guesswork? Wishful thinking?) From South Africa, where the company does operate, you can see the website perfectly. All behindmlm’s “accusations” have been clearly refuted by the leadership – that site is just clickbait. But believe it if you like – your loss. I’ve checked out Skilldragon and am very happily earning my daily Bitcoin. (And no, it’s not cloud mining – too risky for my taste, as the owners remain anonymous and can simply vanish overnight – and often do.)
      For those with a general dislike for MLM, there’s always the retail option for mining contracts – no joining anything, no commissions paid to the upline when you join, no need to even tell a single soul that you’re with Dragon Mine. So if you’ve seen zero evidence of mining, you’re simply not looking, Fernando.

      • Dont assume that someone cant see a website based on their geographical location, that is what everyone uses VPNs for.
        “Leadership” has not answered any of our questions here: but instead said “I have nothing to prove to you here”.
        Glad to hear you are happy with your daily bitcoin…how much bitcoin have you withdrawn, compared to how much you sent to start?
        Evidence of mining does not mean the mining power is able to mine the bitcoin needed to pay all users, this is how most bitcoin “mining websites” turn ponzi….as long as people keep investing and re-investing they dont have a problem.
        Hopefully they will change their mind, and prove their mining power, and give cryptographic proof like we asked in the comments of that post I gave you to look at….

    • I have been testing a few of the mining providers out there and its true. The vast majority are scams. The exception being Genesis Mining and Dragon Mine and perhaps others I haven’t discovered yet. Fernando I am not sure what you base you accusations on but its inaccurate in my opinion and I would like the opportunity to correct you as I am sure you were just trying to help people and I respect that. It is however incorrect. There’s plenty of evidence of their mining farm on the retail website. They are listed as one of the top miners on the Ethereum Blockchain Currently their Bitcoin Ant Miners are pointed to Slush pool but planning to have its own on the Bitcoin Blockchain in 2 – 3 months or so once its capacity reach a level that it can justify doing so. Onto the behindmlm review. That idiot has been exposed so many times for simply writing negative reviews on opportunities he knows will attract a lot of traffic to his website. Sure he probably reviews real scams as well but that’s not the point. He makes money from banner ads and the more traffic the website gets the more money he makes – simple strategy but really pathetic in my opinion. Many people follow the same strategy on YouTube to get traffic. Again, pathetic strategy but since humans pay 10 times as much attention to negative info than to positive info it works. Hence the majority of articles in a newspaper being negative. The author is such a coward that he does not even reveal his identity. Anyway – on to the point of Network Marketing it is very simple. Businesses’ products needs to be marketed to generate revenue. You can use traditional marketing methods like TV/Radio/Billboard/PPC/Newspaper etc. or you can offer your clients a financial reward for marketing the products. I also offer my clients/Employees/friends a commission for bringing me more clients in my traditional business. Very simple, very straightforward. Anyone with half a brain can see the logic behind that. Heck this article also uses affiliate marketing of a debit card where should you sign up for the bitcoin debit card using their promo code they earn a commission. And there’s nothing wrong with that. In fact they deserve it for putting out content and carrying the cost of this website. Network Marketing/MLM just takes it a little further and pays commissions on multiple levels to encourage marketers to build sales teams and support those teams since their success is dependent on the success of their team. Again, incredibly simple concept. If someone does not see the logic in that I suggest they avoid any form of business/ entrepreneurship altogether and then also keep their uniformed emotionally charged opinions to themselves. If you still don’t get it go ask Warren Buffet why he invests in Publically traded MLM businesses or Robert Kiyosaki why he thinks it’s the business of the 21st Century.

    • Fernando…I personally visited the mine in December. I invite you and anyone who doubts us to call me on 082 9226157 and I will show you both video and photographic evidence. Hopefully then you will change your opinion based on fact rather then an annonimous blogger’s opinion.

    • Fernando….you sure you want to have this discussion? I ahve been to the mine myself and have photos and video evidence. Bring it on, bud! You bring your A game and I will bring my A game and we have a public debate with you, the person who owns this website as well as the idiot who pertains to be an expert who runs But we can start with you. Public webinar where you show everyone the evidence we don’t exist and dont have any mining equipment and I will bring the evidence that we do. Then we let the public decide. How does that sound?

      • Hi Andrew, could you please provide the cryptographic evidence please? it seems this is commonplace that you should be able to provide this?

  3. How long has this bit coin scheme been running and when will it stop, What is the average percentage gain /annum.

    • Bitcoin is not a ‘scheme’, it is a digital currency that has been running since 2009. The percentage gain or loss per year is volatile and not predictable.

  4. Hey, did you pay or invest using bitcoin? How much bitcoin have you earned, not looking at the Rand / Dollar value.
    You cannot withdraw your money?! What is the time frame or rules on this?
    Bitcoin cloud mining that is high profit is usually a scam, the legit ones out there can prove everything, but are not very profitable….bitcoin mining is not very profitable unless you have free electricity, or cheap hardware etc.
    Bitcoin miners who are really mining dont need to recruit anyone and they can still turn a small profit.

    • I invested using Bitcoin.

      I mean you cannot withdraw your original investment. The yields you can withdraw.

      Yup, mining used to be very viable a while back but now the risks are too high compared to the moderate returns. Easier and quicker ways to make money

      • Have the yields you have withdrawn in bitcoin been more than the original bitcoin investment?
        Yes, mining is too risky and not a good investment, which is why we discourage new bitcoin users who are often convinced by others that it is a great idea to get involved…of course using an affiliate link every time.

        • Dragon Mining must be the biggest scam to hit South African shores. And they’ve changed their name to MyLifeStyleGalaxy recently.

          People invested in this seem like brainwashed cult-members with no grasp of reality.

          The only hope is that when it collapses and people lose money, it will awaken them to the ruse of how ponzis operate and to be careful with investing in them in future.

  5. This one is not a scheme. In fact
    btcmoneysystem is one of the trusted sites for bitcoins. People in India are using it.

  6. I’ve received an email this morning from people claiming to be lawyers for MyGalaxyLifestyle telling me that I’m defaming their customers, asking me to remove my comments here and from elsewhere.

    Anyone else get the same?

  7. Bongezwa Kira Mhlaluka August 22, 2017 at 2:21 pm Reply

    Is there such a thing as a crypto currency bank? There is a group insisting on people joining bitcoin for free and being paid $50 for it. And claiming its the first Crypto Currency bank in SA
    Please advise.I have been warning people close to me about it being a scam. What would they gain by telling people to register but not pay anything instead promise to pay them money. Free money they say!! !
    This is the site they have and will be giving workshops on:

    *website address removed*

    • The address should be a clue….MLM, Multi Level Marketing, otherwise known as pyramid scheme. In bitcoin you are your own bank, and its FREE to have a bitcoin wallet. You dont earn any interest or get paid for having an account. It is like buying property, you get nothing….but it appreciates in value, so that when you sell it, you can make a profit. The website you are referring to is a pyramid scheme that needs people to put their money into it, and constantly needs more new money to be added to the system. Dont trust anyone with your bitcoin! Not even a bitcoin exchange….secure your bitcoin yourself in your own wallet that you control the private keys for, not in a pyramid scheme.

  8. I’ve been led to believe so, lol.

  9. These companies dont add money to the price of bitcoin, they dont even sell bitcoin. The price is set by the users on the exchange. If you can get bitcoin cheaper and sell it locally for a profit you can compete. The price is influenced by the supply and demand locally, as well as the time, energy and cost involved to try and source bitcoin from an exchange outside of the country. Doing a google search for the price of bitcoin does not show the correct price of bitcoin in SA, its showing the USD price converted. We all know the converted price of USD to ZAR on Google is not what you get if you go to the bank….there are costs involved in changing money at a bank, or sending it overseas.

  10. Hi. Please advise on Bitcoin Code. Is my understanding correct? By depositing into their account, they “hire” out to you a crypto robot who acts as a broker in a sense. The robot trades bitcoin for people and the fee you earn is a broker fee? Is Bitcoin code a scheme?


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