How to Buy Bitcoin in Australia

Last Updated on December 24, 2023 by Kevin Groves

We know how daunting and complicated it might seem at first when you are new to Bitcoin buying or trading. So we’ve compiled a quick guide on how to buy Bitcoin so that you can start trading with ease. It’s important to follow this step-by-step guide carefully because if you skip a step, you might end up losing your investment.

First things first, all digital currencies are traded on exchanges. You need to sign up with a reputable platform, have your identity verified, deposit AUDs into your account, and finally, start buying Bitcoin.

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How To Buy Bitcoin In Australia: Full Step-by-Step Guide

Step 1: Create an account with an exchange

Visit the Swyftx website and click on the “Sign Up” button. This will redirect you to the registration page where an email address, password, and phone number will be required to be provided. As shown in the below image, our referral code “CoinCryption” will be presented as well as our promotional code “Cryption20” where you will receive $20 of free Bitcoin. For more information on how this works, you can read about our Swyftx referral link.

Once the details are entered, accept the terms and conditions and click on “Create Account”.

For more information, you can our comprehensive Swyftx review that covers its features, account financing options, fees, and more.

Step 2: Verify your identity

Log into your new Swyftx account to commence the ID verification process. Under your profile, click on ‘Verification’. This is a mandatory process that all Australian crypto exchanges and brokerages are legally required to satisfy the provisions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Your role in this is essentially proving your identity. On Swyftx, you can choose to upload a photo of your Australian passport or driver’s licence for Swyftx to verify. Overall, the process is efficient and streamlined. If you’re using a desktop computer, Swyftx will prompt you to use your mobile device and scan the QR code provided. You can then take a photo of your documentation and submit them online. Of course, this entire process is also able to be completed using the Swyftx mobile app.

Providing basic personal details and uploading your ID documentation is required before any AUD funds can be deposited. However, it should only take 3 or 4 minutes to complete. In our experience, we waited about an hour (on a weekday) before we received email confirmation that our identity has been successfully verified.

Step 3: Fund your account with AUD

Swyftx is one of the better crypto exchanges when it comes to account financing option. If you like having flexibility on how you finance your account, then you can also consider CoinSpot with its multitude of supported methods.

Swyftx allows you to fund your wallet using a variety of methods including transfers from an Australian bank account, PayID, POLi, and credit/debit cards. To begin the process, select ‘Deposit’ on the left hand navigation panel. This will bring up a window (as shown in the image below) where Australian Dollars can be chosen as the asset to deposit.

For this guide, we opted for bank transfers since they are near-instant. It should be noted that all wallet funding methods carry a $30 minimum limit which shouldn’t inconvenience many users. The exception lies with purchases from a credit/debit card where a $75 minimum applies.

After a couple of minutes, the money that you transferred will be seen as a ‘deposit’ in your Swyftx wallet. Now you can begin buying digital currencies.

Step 4: Select the crypto to buy

Once you’re Swyftx wallet has been funded, select the ‘Trade’ button on the left-hand navigation panel. This is where you can buy and sell over 320 cryptocurrencies. Next, select the cryptocurrency that you wish to buy with AUD buy by using the text box or scrolling through the list of supported assets.

For each crypto that you select, Swyftx will present the real-time pricing chart as well as a suite of advanced drawing tools and indicators if you’re able to analyse the price action. To buy the asset, click on the green ‘Buy’ in the top right-hand corner. After doing so, a buying panel will appear where you enter how much AUD you wish to spend.

At this point, you have some options on how you want to buy your crypto. You can make an instant purchase, set up a trigger order, or implement recurring purchases.

• Instant Buy: Exchanges your AUD for the desired crypto with the assets near-instantly transferred into your wallet.
• Trigger Orders: Enter a price point where you want Swyftx to automatically purchase the crypto at. If the real-time market price equals the indicated price then the transaction will be executed.
• Recurring Orders: Otherwise known as Dollar Cost Averaging, this will automatically use your money to buy crypto at set amounts and at regular timeframes (e.g. daily, monthly). This is a beginner-friendly way slowly accumulating crypto whilst minimising the effects of price volatility.

For most people, instant orders and DCA are the easiest ways of buying crypto in Australia. Applying trigger orders requires some knowledge of market price trends. Once you’re happy with the amount of money to spend, click on ‘Review’.

Step 5: Review and confirm the purchase

The fifth and final step of buying crypto on Swyftx is to review the details of the transaction. The details to look at include the amount of AUD being spent, the asset being purchased, and the trading fees being incurred.

For all buy and sell orders, Swyftx charges a flat fee of 0.6%. Compared to other popular crypto exchanges and brokerage platforms such as CoinSpot and CoinJar, this is very competitive. Whilst the Swyftx trading fee is more expensive than Binance (0.1%), the downside to Binance Australia is that you need to be fairly experienced with using an exchange. Swyftx offers value for money on top of an easy-to-use and streamlined interface.

If you’re happy that the details are correct, then clicking on ‘Place order’ will execute the transaction. The purchased digital currencies will be near-instantly transferred into your Swyftx wallet. Clicking on ‘Wallets’ using the left-hand navigational panel will present you with a breakdown of the assets you hold in your portfolio.

What Is The Best Platform To Buy Bitcoin In Australia?

There are several exchange platforms available for Australian residents to buy Bitcoin, but Swyftx is by far the best based on our review. Swyftx is a Brisbane-based cryptocurrency platform that has a customer base of over 600,000 Australian traders and investors.

The AUSTRAC-registered and ISO 27001-accredited platform is neat and easy to navigate so that new users aren’t overwhelmed. To fund your account, you can deposit AUD via bank transfer, POLi, PayID, or using your credit/debit card. The trading interface offers TradingView real-time charting and a suite of advanced analytical indicators and drawing tools if you’re handy with price action analysis. In addition to the transparency that Swyftx provides on its low 0.6% fee to buy Bitcoin, the interface comes equipped with multiple portfolio management tools and features.

In essence, the ease at which Swyftx can be used to buy Bitcoin, its features and competitive trading fees, makes the Australian-owned and operated exchange the best option for beginners and intermediate investors.

Choosing An Exchange To Buy Bitcoin

So how do you go about choosing an exchange to start investing in Bitcoin? What factors should you consider?

1. Research and select an exchange to buy Bitcoin

You can buy Bitcoin using several ways, however, the easiest and most popular method is to buy it from a Bitcoin exchange. You may be more familiar with global crypto exchanges such as Binance Australia and Bybit Australia, but they are not necessarily the easiest to use. Luckily, there are a few reputable trading platforms that operate locally in Australia that have been specifically designed for the every day Aussie.

If you prefer on using your cash to purchase Bitcoin, then you should expect that the crypto exchange is registered with the Federal government’s financial agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC). The Australian Securities and Investments Commission (ASIC) is another government body that is responsible for regulating providers of digital services in Australia. Swyftx, CoinSpot, CoinJar, eToro Australia, and BTC Markets are all examples of regulated crypto exchanges. On the other hand, Bybit Australia is not.

2. Consider the fees to buy Bitcoin

Different exchanges charge different fees for buying and selling Bitcoin. Make sure to compare the fees charged by different exchanges to find the one that offers the most competitive rates. In Australia, the fees to buy Bitcoin generally range between 0.1% and 1% of the transaction amount. Fees that are closer to 0.1% are typically offered by global exchanges that have significant trading volumes and liquidity across the AUD-BTC trading pair. If you prefer on using a local Aussie exchange, then look for fees around 0.5% to 0.6% as they provide great value for money.

3. Payment methods and deposit limits

Some exchanges accept only certain payment methods. Make sure the exchange you select offers payment options that are convenient for you. In Australia, you can fund your exchange wallet with AUD in several ways including transfers from an Australian bank account, POLi, PayID, BPAY, cash deposits (Blueshyft), and credit/debit cards. Almost all crypto platforms in Australia will support bank transfers of AUD but POLi, PayID, and BPAY are not so common. The global exchanges that support credit/debit card purchases of Bitcoin will often come with higher fees.

CoinSpot and Swyftx are two exchanges that provide a great deal of flexibility when it comes to payment methods. For information on how they differ in AUD deposit options, you can read our Swyftx vs CoinSpot review.

Most cryptocurrency exchanges will support transfers of digital currencies. However, you will need to check if you can swap crypto for Bitcoin as some exchanges won’t support coin-to-coin trades.

4. Check that AUD/BTC is a supported trading pair

Most, if not all, crypto exchanges and platforms in Australia will support the AUD/BTC trading pair. This means that you can exchange your money as well as selling BTC back to cash. The lack of support for the AUD/BTC trading pair may be more relevant for experienced traders. For example, Binance Australia currently does not support AUD/BTC on its spot market.

5. Ensure your Bitcoin will be protected

Security is a critical factor to consider when choosing an exchange to buy and store Bitcoin. Make sure the platform has robust security measures in place, such as Two-Factor Authentication (2FA), multi-signature wallets, and other security protocols. All reputable exchanges that utilise hot wallet storage (digital vaults that are connected to the internet and are therefore susceptible to hackers) should only be storing a maximum of 5% of their assets. Moreover, you should choose a Bitcoin platform that routinely has its security frameworks tested by third parties.

The Bitcoin that you buy on a crypto exchange will be sent to the exchange’s wallet for safekeeping. However, some traders and investors will opt to transfer their assets out of the exchange and place them into an external hardware wallet (it looks similar to a USB stick). Since your hardware wallet is not connected to the internet, the biggest security it brings is that it is not accessible by third parties.

Learn where to safely store your crypto assets: Best Crypto Wallets In Australia

How to Buy Bitcoin Using Different Methods

Bitcoin may be the most popular digital asset, but the truth is, that buying crypto in Australia can be challenging. There are instances where some platforms only accept payment in USD, thereby increasing the fees charged (due to currency conversion charges).

Here is an overview of the ways in which you can buy BTC in Australia.

1. Using credit cards to buy Bitcoin in Australia

Going cashless is convenient and practical when you make retail purchases but not so much when it comes to Bitcoin. Currently, there are only a few crypto exchanges available to Australian traders and investors where credit and debit can be used to buy Bitcoin. Examples of crypto exchanges that support credit and debit card purchases of Bitcoin include Swyftx, CoinSpot, eToro Australia, and OKX.

Since crypto exchanges use third parties to facilitate purchases of Bitcoin with a credit/debit card, the fees to process the transaction are typically higher. In Australia, expect to pay credit/debit card fees between 2% to 4%, excluding any fees incurred by your card provider. This is mostly why credit cards are generally used for smaller purchases rather than large-volume trades of BTC.

The use of credit and debit cards to buy Bitcoin comes in two aspects. Some crypto exchanges (e.g. Swyftx) will allow you to top up your account AUD using your card, and some (e.g. Binance Australia) will let you use your card to directly purchase the asset. Despite the difference in method, usually, all exchanges provide extremely easy ways to link your preferred card to your wallet by adding its details.

One of the major advantages of using a credit or debit card to buy Bitcoin is that the asset transaction is extremely quick to process. This makes it an attractive mode for beginners and experienced investors alike who want to instantly buy BTC in response to changes in the market price. Also, since you’re using a line of credit, you actually aren’t buying BTC with your own money.

2. Bank account transfers

The most popular payment method for buying bitcoin is by depositing AUD from your Australian bank account first. Most digital asset exchanges in Australia will support the transfer of AUD from a bank account to your wallet. Additionally, almost all platforms will provide simplistic and visually intuitive interfaces where you can easily add your bank details.

In terms of fees to deposit AUD into your wallet from your bank account, almost all exchanges will allow you to do this for free. The other thing to note is if your bank or financial institution supports OSKO deposits. If so, then you should see the transferred AUD in your wallet within a few minutes. If not, then the transaction may take between 1 and 3 business days.

3. Buying Bitcoin using PayPal

Buying cryptocurrency through PayPal is quick, but few investors use this method. This is because it has a high risk of fraud, especially through chargebacks. PayPal also has one of the highest fees, and the payment process is complex.

However, if you find this payment method convenient, then you can use it to buy Bitcoin on eToro Australia. Buying Bitcoin through this method only requires you to link your PayPal account to a card. It’s important to note that PayPal doesn’t accept Bitcoin as a mode of payment, but its subsidiary, Braintree, allows merchants to accept Bitcoin payments.

4. Buying Bitcoin with cash deposits

You can also buy Bitcoin using cash deposits at your local news agency that has a Blueshyft portal. Besides CoinSpot, there aren’t too many places that accept cash deposits, noting that the method is not popular in the first place. Once you enter the amount of Bitcoin you wish to buy, a QR code will be sent to your email address for verification at the Blueshyft portal.

5. Buying Bitcoin anonymously

Most centralized exchange sites are regulated by AUSTRAC which requires the exchange to obtain your details before any funds can be deposited, and certainly before any Bitcoin can be obtained. This is known as the Know-Your-Customer (KYC) process where your identity needs to be verified.

Crypto exchanges are not permitted to release your details. Nevertheless, if you prefer not to submit personal documentation to confirm your identity, then using an unregulated exchange is an option. Essentially, exchanges such as Bybit are not regulated by AUSTRAC and you don’t need to pass the KYC process. Instead, you can start funding your wallet with AUD or cryptocurrency and trading them in for Bitcoin.

One of the major downsides to using a crypto exchange that is not registered in Australia is that there is typically no fiat gateway in which to deposit AUD funds. Instead, trading exchanges like Bybit only allow you to fund your wallet with transfers of crypto from an external wallet, or by using credit cards to buy Bitcoin directly. Common deposit methods such as bank transfers, PayID, POLi, and BPAY are not likely to be supported.

6. Swapping your crypto for Bitcoin

If you don’t want to buy Bitcoin directly and have other crypto assets that you no longer need, you can swap them in exchange for Bitcoin. However, not all cryptocurrency exchanges offer coin-to-coin trades or a swapping service. Crypto exchanges such as Binance Australia offer crypto swapping services where you can convert one digital asset for Bitcoin.

7. Buying Bitcoin from an ATM

Bitcoin Automated Teller Machines (ATM) are becoming more mainstream in Australia’s shopping centres and commercial precincts. As the name suggests, a Bitcoin ATM works in a similar fashion to a traditional bank ATM. You can use Australian cash to buy Bitcoin with it being transferred to your external hardware wallet or sell it from your wallet back to cash.

Looking for a Bitcoin ATM? Find your nearest Bitcoin ATM.

One of the key benefits of buying BTC from an ATM is that the method is extremely convenient and quick. Depending on the ATM provider, you may need to verify your identity using your Australian passport or driver’s licence but the process is fairly streamlined. However, the drawback of having so much convenience is the high fees that may range between 7% and 20% of the Bitcoin transaction.

8. Peer-to-Peer (P2P) marketplaces

A Peer-to-Peer (P2P) is an online marketplace where buyers and sellers can trade Bitcoin directly with each other without the need for an exchange acting as a middle-man. Bitcoin transactions are secure and quick with the added benefit of having lower fees.

Examples of top-tier digital asset exchanges that allow you to purchase Bitcoin and Sell Bitcoin in a P2P environment include OKX, KuCoin, and Binance Australia. Almost all P2P marketplaces will store the purchased Bitcoin in an escrow service facilitated by the exchange itself. Once you send money to the seller via one of the accepted methods, the seller can confirm payment. The purchased Bitcoin is released from the escrow service and into your nominated Bitcoin wallet. In Australia, bank transfers are the most common payment method for Bitcoin on P2P marketplaces.

What’s the Best Way to Store Bitcoin in Australia?

Since Bitcoin is a digital currency, it has to be stored in the digital space. This means finding a reliable cold storage wallet that stores an encryption key that you can use to access your Bitcoins instead of actually storing them.

There are multiple hardware wallets to choose from including hardware wallets, desktop wallets, and online wallets provided by cryptocurrency exchanges.

• Hardware wallets: A hardware wallet, such as the Ledger Nano X and Trezor, are physical devices that securely store your Bitcoin in an offline environment. Make sure you keep your recovery phrase safe so that even if you lose your wallet, you can still access your BTC.
• Desktop wallets: Desktop wallets such as the popular Metamask are applications that run on your computer to store Bitcoin, altcoins, and even NFTs. They are convenient, but not as secure as hardware wallets since they are connected to the internet.
• Cryptocurrency exchange wallets: Almost all crypto exchanges will provide Bitcoin storage solutions connected to your trading wallet. Bitcoin that you buy and sell will be seamlessly moved between the relevant wallets during trading. They are convenient, but not as secure as external hardware wallets.

How Long Does It Take To Transfer Bitcoin?

The time it takes to transfer Bitcoin depends on the size of the transaction and network congestion. Generally, heavier traffic on the network means that more confirmations are required to facilitate the transaction. Bitcoin transactions with a higher number of confirmations will mean longer waiting times. In most cases, receiving Bitcoin in your wallet after buying it may take between 10 and 45 minutes.

Can You Convert Bitcoin Into Cash?

Currently, Bitcoin is a popular mode of payment for goods and services, and retail merchants are accepting it as a form of online payment. However, it hasn’t achieved a high level of mainstream adoption, which is why most traders prefer converting their Bitcoin into fiat money. Most Australian crypto exchanges allow you to sell BTC into AUD and have it transferred to your bank account.

Can You Legally Buy Bitcoin in Australia?

Yes. In fact, Australia was one of the pioneers of crypto trading regulations, and it imposed antimony laundering policies to keep this industry in check. The RBA (Reserve Bank of Australia) marked Bitcoin legal in December 2013. Mining Bitcoin is also legal. Before 2017, bitcoin was subject to double taxation, but currently, you only have to pay the capital gains tax. It should also be noted that very few Australian banks directly accept Bitcoin as a transaction medium. Therefore, you will need to find an AUSTRAC-regulated crypto exchange to safely buy Bitcoin.

Frequently Asked Questions

What is the best way of buying Bitcoin in Australia?

The best way to buy Bitcoin in Australia is through an AUSTRAC-registered crypto exchange like Swyftx or CoinSpot. These exchanges allow you to buy Bitcoin using Australian Dollars (AUD) via bank transfers, PayID, BPAY, POLI, and credit cards. They are also regulated by the Australian government and implement industry-leading security measures to protect your Bitcoin.

Do I need to declare Bitcoin to Centrelink?

Yes, you should declare your Bitcoin to Centrelink, especially so if you earn an income from it. If you participate in income-earning activities such as Bitcoin trading, mining, or investing then it should be made known. Although Bitcoin is not considered a traditional currency by the Australian Tax Office (ATO), Centrelink regards Bitcoin as an asset that may affect your pension.

Is it legal to buy Bitcoin in Australia?

In Australia, it is legal to buy Bitcoin. The Australian Tax Office (ATO) regards Bitcoin as an asset or property that can be bought, traded, and sold with Australian Dollars (AUD). The ATO has released several guidelines that outline how the crypto asset is taxed under Australian regulations. Australian cryptocurrency exchanges that offer Bitcoin trading such as CoinSpot need to be registered with AUSTRAC to allow customers to deposit money before making a Bitcoin purchase.

Do you pay Capital Gains Tax on Bitcoin in Australia?

In Australia, Bitcoin is generally subject to Capital Gains Tax (CGT) when a capital gains event is triggered. This means that any profit or financial gain made from activities such as Bitcoin mining, investing, or trading must be reported to the ATO. Any losses in your Bitcoin portfolio should also be reported alongside any gains.

Conclusion

Bitcoin is the most popular and easily accessible cryptocurrency for beginners in Australia to get their hands on. For most, going through a reputable and local crypto exchange will be the easiest and safest way to start your BTC portfolio. In Australia, it is the local Bitcoin platforms that offer the best payment methods, however, global exchanges may offer the best security.