A Step by Step Guide on How to Buy Bitcoin in Australia
There has been a lot of talk around digital currencies and Bitcoin’s popularity, in particular, seems to have exploded. Everyone’s talking about it, and there have been a lot of success stories. It’s no wonder you want to know how to buy Bitcoin in Australia!
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.
Before you get started, you need to understand how cryptocurrency works because Bitcoin is one of them.
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 coins.
Our recommended crypto exchange is Swyftx because it’s safe and easy to use, especially for beginners. They have more than 70 coins, including Bitcoin, and a ton of resources for those who are just getting started. The best part is that you also get a $10 worth of Bitcoin bonus when signing up.
How to Buy Bitcoin in Australia
The first step is always finding a reliable crypto exchange platform. This is the only way you can buy or sell bitcoin in a secure manner.
- Create an account on Swyftx (<- $10 USD Bonus inside!)
- Enable the 2-factor authentication for account security.
- Complete the verification process so that you can start trading.
- Deposit money in your Swyftx account, preferably in AUD.
- Navigate to the ‘ trade’ button on your account.
- Search through the available coins and click on the ‘buy button next to Bitcoin.
- Enter the amount of bitcoin you want to buy.
- Review all the information to make sure it’s correct.
- Click on “Buy BTC”
Simple as that! You don’t even have to struggle with the deposit process because most crypto exchange platforms support the most common payment methods, including debit & credit cards and bank transfers.
Where Can You Buy Bitcoin in Australia?
There are several exchange platforms available for Australian residents, but Swyftx is by far the best. Their platform is neat and easy to navigate so that new users aren’t overwhelmed. They also have a variety of digital assets and are constantly updating them, which means that you can grow your portfolio with them as you sharpen your skills.
Swyftx has low fees and is clear about the transaction charges you’ll incur when you trade with them. It’s also one of the most trusted platforms globally and has high-security features.
How to Start Trading on Swyftx
Swyftx makes crypto trading very easy, and the signup process is quick.
1. Create an Account
To get started, click on the ‘sign up’ button on Swyftx’s homepage. This will automatically take you to the registration page, where you’ll have to fill in your personal details, including first & last names, email, phone number, country of residence, and preferred password. Agree to Swyftx’s terms and conditions and then hit the ‘create my account button.
Simple, free, straightforward.
Once you’re done, ensure you activate 2FA to protect your account from unauthorized access. It adds an extra layer of security to your account and is easy to set up. Just go to the security section on your profile.
2. Identity Verification
Swyftx is a global platform, but it has to comply with local regulations. In Australia, it’s licensed and regulated by AUSTRAC(Australian Transaction Reports and Analysis Centre), so it has to comply with the set Know Your Customer rules. This is why every user has to go through identity verification.
This process is very simple and will take you less than 5 minutes. Navigate to the left sidebar, click on profile, and then verification
Verification process: left sidebar> profile> verification
There are 3 aspects that need to be verified before you start trading;
● ID number
● Email address
● Mobile phone number
You will be required to upload your documents but don’t be alarmed; this is only meant to keep you accountable and enhance safety.
3. Deposit Funds
You can either deposit in AUD or bitcoin (if you already have some) to start trading. Swyftx supports various deposit options, including POLi, PayID, credit cards, and bank transfers. They currently do not allow PayPal and cash deposits.
The minimum deposit amount is $30, and a $2 fee is charged on all deposits below $200. Once your account is fully verified, you can make deposits of up to $100,000.
Making deposits: left navigation bar> Deposit AUD > Choose a deposit method
PayID deposits reflect in your account almost immediately; POLi and bank traders take around 2 minutes, while credit cards can take up to 30 minutes.
4. Buy Bitcoin
Swyftx has more than 220 digital assets, including Bitcoin, Litecoin, and Ethereum, and you only have to be verified to start buying them. Go to the trade section on your account and click on assets. You’ll see a list of all the available coins, and you can choose your preferred one. Alternatively, you can search for the coin directly.
The next step is deciding how much AUD you want to spend on the coins and then make a purchase. Simple as that!
Make sure you move your coins to an offline wallet if you have no intentions of selling them to keep them secure. If you, however, plan on trading regularly, you can store them on the platform.
5. Sell Bitcoin
If you have bitcoin on other platforms, you can transfer it to your Syftx account for easy trading or withdrawal into your bank account.
What’s the Bitcoin Price in AUD?
You can see what the price of Bitcoin today in the chart below…
How to Buy Bitcoin Using Different Methods
Bitcoin may be the most popular cryptocurrency, but the truth is, buying digital assets can be challenging. There are instances where some platforms only accept payment in USD, thereby increasing the fees charged (due to conversion charges). There are also cases where some exchange platform only accepts limited payment methods that could be unavailable in Australia.
The good news is that due to bitcoin’s multipurpose nature and its rising popularity, there are several modes that you can use to purchase it. This includes cash purchases through payment processors, bank transfers, paying anonymously, and card purchases. Here’s an in-depth overview of these payment options.
1. Using Credit Cards to Buy Bitcoin in Australia
Going cashless is convenient and practical when your making purchases but not so much when it comes to bitcoin. Currently, Australian traders can only buy bitcoin using debit & credit cards on few popular crypto exchange sites like Coinmama and Coinbase. These sites are international, and you’ll not be in a position to use this option if you sign up with local exchanges.
Debit & credit cards also incur higher fees than most payment methods, which is why investors only use them for large purchases. For example, Coinbase only allows debit card purchases, and all card payments incur a fixed 3.99% fee. You only need a verified account and a linked debit card to start trading.
While this may seem like reasonable terms, you will be bound by a $7500 purchasing limit every week. For beginner investors, this is a great option, but expert traders need a payment method with higher limits.
Coinmama, on the other hand, accepts both debit and credit card payments but charges a higher fee of 5%. They, however, offer higher limits, and you can make daily bitcoin purchases of up to $5000.
Pros of Credit/ Debit Card Purchases
- Cards allow you to pay for bitcoin with fiat currency, an option that’s not available on most exchanges.
- The transaction process is quick and easy, making it perfect for first-time investors.
- Cards eliminate the complicated process of buying bitcoin using exchange platforms.
- They enhance security as the funds reflect in your account almost immediately.
Cons of Credit/ Debit Card Purchases
- They incur higher fees than regular payment methods.
- Cards often have a daily limit which could be inconvenient for expert investors.
2. Buying Bitcoin With Your Bank Account
Buying bitcoin via bank is by far the most popular payment method. Linking your account is easy, and almost all Australian crypto exchange sites allow you to make bank transfers. This process is also affordable and swift, enabling you to start trading in no time.
Swyftx, in particular, allows deposits using popular payment processors, including Osko, POLi, and PayID, which are almost near-instantaneous. They also accept regular transfers that take a maximum of 6 hrs for full processing. When you deposit using mobile transfers, the platforms immediately notify Swyftx of your transaction, after which your deposits are approved.
Coinspot is also one of the most reliable exchange sites that accept BPAY deposits. These, however, incur a 0.9% fee. As soon as your deposits reflect on your account, you can buy and sell bitcoin without hassle.
Most local exchanges have limited cryptocurrency, which is why expert investors prefer international sites. Some of these sites allow wire transfers as a substitute for bank transfers, but the payment processing takes long. Your funds could take up to 7 days to reflect in your account because approval has to be done by both local and international banks.
You could, however, work around this by buying bitcoin from a local Australian exchange site and trading your BTC on global sites for your preferred currency.
Pros of Buying Bitcoin Through Bank Transfers
- It’s one of the cheapest methods of buying bitcoin.
- Processing is swift.
- You don’t incur any conversion fees as you buy coins using fiat currency.
- It’s a widely accepted payment method by most exchange sites.
Cons of Buying Bitcoin Through Bank Transfers
- Wire transfers take a long time to get processed.
3. Buying Bitcoin Through PayPal
The foundation upon which PayPal was formed is almost similar to that of bitcoin goals. When this platform was launched in 1998, the main aim was to create a digital way of sending money across the internet, similar to how emails work. Even though Paypal never got around to creating internet money, it has become a widely accepted mode of online payment. It’s no surprise that some exchange sites accept it as a payment method.
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.
If you, however, find this payment method convenient, it’s widely accepted on peer-to-peer sites. Some of the sites that allow PayPal deposits include eToro, which is great for investors who mainly focus on speculating bitcoin prices and Kucoin, which has a $10,000 limit. 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 their subsidiary, Braintree, allows merchants to accept bitcoin payments.
Pros of Buying Bitcoin Through PayPal
- Paypal is a highly secure platform for online payments.
- It has a simple interface that’s easy to navigate.
- Most Australians already have a PayPal account, making it a convenient mode of payment.
Cons of Buying Bitcoin Through PayPal
- It has high fees and strict crypto trading limits.
- It’s not accepted by most exchange sites.
- High risk of fraud.
4. Buying Bitcoin Using Cash
Crypto trading has evolved so much that you can now withdraw coins from specialized ATMs into your wallet address. Australia has around 18 bitcoin ATMs that allow you to make cash or card deposits to buy bitcoin. This allows you to keep trading even when you don’t have internet access.
You can also buy bitcoin using cash on peer-to-peer sites or decentralized platforms and only have to look for local sellers that accept cash payments. This method carries a high risk of fraud, so ensure that the trade happens in person. You should also check the seller’s trade history & their reputation and make sure the meeting is in a public area for maximum safety.
Some Australian crypto exchange sites, including Coinjar and Coinpsot, allow users to make cash purchases through local newsagents. This option is available on their site, and once you enter the amount of bitcoin you’d like to buy, a QR code is sent to your email address. You then find the nearest agent, show them your code, and after they scan and verify its legitimacy, the bitcoin is sent to your wallet after you pay.
Pros of Buying Bitcoin Using Cash
- It’s a highly convenient mode of purchase.
- You don’t incur any fees.
- Bitcoin ATMs allow you to trade even without internet access.
Cons of Buying Bitcoin Using Cash
- Very risky, especially when you buy directly from a seller.
5. Buying Bitcoin Anonymously
Most centralized exchange sites are regulated by government bodies that require them to abide by KYC rules. This is why such platforms require you to provide your personal details such as phone number, email, address and upload your ID copies before you can start trading. Identity verification is also done to keep users accountable and reduce instances of hacks and fraudulent activities.
When bitcoin was introduced, it was mainly aimed at promoting high levels of online trading privacy. This is why some traders still prefer to trade with bitcoin anonymously. The best way to do this is through bitcoin ATMs that don’t require any documentation for bitcoin purchases. You’ll, however, have to take a photo or an ID to complete a transaction.
You can also buy bitcoin using another coin as you’ll not be required to verify your identity or decentralized exchanges that only require your email address during the signup process.
Verification is mostly required when you use fiat currency to make purchases.
Pros of Buying Bitcoin Anonymously
- The buying process is easy and straightforward.
- Your personal details remain private.
- Peace of mind from identity theft and fraud.
Cons of Buying Bitcoin Anonymously
- All centralized exchange platforms have identity verification protocols in place.
6. Buying Bitcoin Using Other Digital Assets
If you don’t want to buy bitcoin directly, you can purchase it using other digital currencies. It’s the first digital coin which means that it can be traded against multiple coins on all exchange sites.
Look out for sites like Swyftx that have multiple trading pairs or one that accepts trades with the coin you currently own. For example, if you’re looking to buy bitcoin with Litecoin, search for a BTC/LTC pair and make your purchase by indicating the amount of bitcoin you’d like to buy.
The major upside of buying bitcoin using other coins is that it’s anonymous and convenient.
7. Buying Bitcoin Over the Counter
Most of the above purchasing options are mainly applicable to small and medium trades that don’t exceed $100,000. If you prefer buying large amounts of bitcoin but don’t want to crash the market or have security concerns, the best option would be to go through an over-the-counter broker.
Make sure they have high liquidity so that all your orders can be executed quickly.
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 wallets, some of which are provided by exchange sites and third-party providers, but they are rarely immune to hacks. This is why we recommend that you go for a hardware wallet.
What’s a Hardware Bitcoin Wallet?
Hardware wallets are very secure and are external devices that store your encryption keys offline. This protects them from malware and security breaches, keeping your coins secure. It’s important to note that hardware wallets don’t store your bitcoin; they only store the security keys necessary for you to transfer your coins and monitor your account balance.
There are 3 main hardware wallets that you should consider;
- Ledger Wallet Nano S: It’s the best when it comes to cryptocurrency diversity as it supports the most digital coins. It’s also fairly affordable and has reliable security features.
- Ledger Wallet Blue: It’s more expensive than the Nano S, but that’s because it offers additional security features to keep your bitcoin safe.
- Trezor: This is the first hardware wallet, and despite being dated, it’s still one of the most effective.
Hardware bitcoin wallets haven’t been around for long, but their reliability remains unopposed. Make sure you keep your recovery phrase safe so that even if you lose your wallet, you can still access your coins.
Can You Convert Bitcoin Into Cash?
Currently, bitcoin is a popular mode of payment, and merchants are accepting it as a form of online payment. It, however, hasn’t achieved a high level of mainstream adoption, which is why most traders prefer converting their coins into fiat money.
Most exchange sites allow you to withdraw coins into your bank account, but you will incur charges. There are also limits imposed on the amount of bitcoin that you can withdraw in a day.
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.
Start Trading Bitcoin Today!
The price of bitcoin may be volatile, but there’s no doubt that this coin is one of the most profitable digital assets. You can legally buy or sell bitcoin in Australia, but it’s important that you choose the right exchange site. Swyftx is the most reliable Australian crypto trading platform, and it allows you to buy coins in AUD. Sign up today for a free $10 worth of bitcoin.