How to Buy Ethereum in Australia

Last Updated on December 24, 2023 by Kevin Groves

Ethereum (ETH) is the second largest cryptocurrency in the world for market capitalisation. It is therefore, a highly sought after investment asset that is becoming more accessible for every day investors.

How do you go about buying Ethereum with your money? This guide has been compiled to outline the steps you need to take to deposit your cash in one of the most popular crypto exchanges in Australia and use it to purchase ETH.

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How Do You Buy Ethereum In Australia? A Beginners Guide

Step 1: Open an account with a crypto exchange

Based on our reviews of the best cryptocurrency exchange for Australians, Swyftx is our top pick. Swyftx is a legitimate exchange based in Brisbane, Australia and has a strong customer base of over 600,000 traders and investors. To find out more about Swyftx’s features and if it may suit your crypto needs, you can read our in-depth review.

All you need to get started is a desktop computer, the Swyftx mobile app, a mobile phone, and your Australian passport or driver’s licence.

CoinCryption has partnered with Swyftx to offer a promotional offer where you can receive $20 of free Bitcoin by visiting the Swyftx website and clicking on the “Sign Up” button. As shown in the below image, our referral code “CoinCryption” will be presented as well as our promotional code “Cryption20”.

The information you need to get started include your full name, phone number, and email address. Accept the terms and conditions and click on “Create Account”.

Step 2: Prove your identity

Before you can deposit any Australian Dollars (AUD) into your new Swyftx account, you will need to demonstrate your identity to Swyftx. This is a mandatory process (referred to as the Know Your Customer process) that all AUSTRAC-registered digital asset service providers are required to complete to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Verifying your identity can be completed by submitting a photo of your Australian passport or driver’s licence. Using the Swyftx mobile app is slightly more convenient as you can use your camera to electronically submit photos quickly. We completed the ID verification process in 3 minutes and waited one hour to receive email confirmation that the submission was a success.

Step 3: Deposit AUD funds

There are a number of ways you can fund your Swyftx wallet including transfers of cash from an Australian bank account, PayID, POLi, and credit/debit cards. These methods will near-instantly credit your trading wallet with money so you can buy Ethereum. Be mindful that a $30 minimum limit applies for bank transfers, PayID, and POLI, whilst a higher limit of $75 applies for credit and debit card purchases.

To finance your Swyftx wallet, click ‘Deposit’ on the left-hand navigation panel. As shown in the below image, a window showing the various deposit methods and other useful information such as fees, limits, and time frames will be presented. Select “Australian Dollars” as the asset to deposit.

Key details for each payment method, such as the BSB and account number for bank transfers, will be provided. Simply use the copy function to paste the correct details into your bank account.

After a successful deposit is made, you will see the AUD funds appear in your trade wallet.

Step 4: Enter the ETH transaction

Once you’re Swyftx wallet has been funded, the next step is about entering the ETH transaction.

1. Click on the “Trade” button on the navigation menu bar located on the left-hand side of the dashboard.
2. Find Ethereum from the list of digital assets. You can use the search function or scroll down.
3. At the top of the real-time charting interface, click on the “Buy” button to open up the Ethereum buying panel.
4. Swyftx will show the proposed transaction as the exchange of AUD for ETH. Enter the amount of AUD to spend by typing it or using the slide bar to select what percentage of available funds you wish to use.
5. Click “Review” to progress the purchase.

When you use cash to instantly purchase ETH, the transaction type is called a spot transaction. This means that you are directly swapping AUD for ETH in a single transaction. However, Swyftx gives you the option of setting up trigger and recurring orders.

• Instant Buy: Instantly uses the nominated amount of AUD to buy ETH in a single transaction. The purchased ETH is sent to your wallet almost instantly.
• Trigger Orders: These allow you to buy ETH at a price point that you think might occur. If the market price for ETH meets the price that you enter then the purchase will be automatically executed.
• Recurring Orders: Sometimes referred to as Dollar Cost Averaging, recurring orders instruct Swyftx to automatically use your money to buy ETH at regular time intervals. For example, you can set it up to spend $50 of your funds to buy ETH on a weekly basis. The advantage of this beginner-friendly strategy is that you don’t need to ‘time’ the market and you can steadily build your portfolio whilst mitigating the effects of volatility.

Using money to buy cryptocurrencies other than Ethereum follows the same simple process.

Step 5: Review and confirm

The last step of an ETH transaction is to review the details and confirm the order. As seen in the image below, Swyftx will present the trading pair (i.e. AUD-ETH), the amount of AUD being spent, and the trading fees incurred. If you’re happy with the details, then clicking “Place order” will execute the transaction. The ETH bought will be seen in your trade wallet.

Swyftx is quite competitive with its flat 0.6% fee that will apply for all Ethereum buy and sell orders. This is on par with other local crypto exchanges such as Independent Reserve and cheaper than platforms like CoinSpot (1% for Instant Buy/Sell) and CoinJar (1%), and BTC Markets (0.85%).

On the other hand, global crypto exchanges that provide services in Australia will generally have much lower fees. An example is Binance Australia where its trading fees start at a maximum of 0.1% due to its significant trading volume and liquidity. Whilst you can get better value for money, these exchanges are far more complicated than Swyftx and may be too overwhelming for beginners.

Is it legal to buy Ethereum in Australia?

Yes, it is legal to buy Ethereum in Australia. The Australian Tax Office (ATO) regards digital currencies as property that can be bought, traded, and sold. However, it is important to ensure that you purchase it from a trusted and reputable cryptocurrency exchange.

Additionally, you must comply with all applicable Australian laws, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. This is primarily through completing the Know-Your-Customer (KYC) process where you need to verify that your identity is correct.

What is the best crypto platform to buy Ethereum?

The best place to buy Ethereum in Australia is Swyftx. The Brisbane-based cryptocurrency exchange allows you to quickly deposit Australian Dollars and exchange them for Ethereum on a beginner-friendly interface. The trading platform has an impressive customer base of over 600,000 Australians who enjoy peace of mind using an exchange that has not been previously hacked. Swyftx is also a great place to sell ETH back to AUD due to its free withdrawals.

In addition to its ease of use and security, Swyftx also offers great value for money when buying ETH with its competitive 0.6% trading fee and free deposits.

How to store Ethereum

Australians have several options when it comes to choosing a wallet to store Ethereum. Deciding on the method will largely depend on how comfortable you are with security.

One of the most popular and secure ways is transferring Ethereum to an external hardware wallet after it has been purchased on an Ethereum platform or exchange. Hardware wallets are not connected to the internet which means that they are incredibly secure as hackers cannot gain access to it. The other advantage is that you have full custody of your Ethereum and remain 100% in control. Examples of Trezor and Ledger Nano S.

The second way is to keep Ethereum in the crypto exchange where it was purchased. Crypto exchanges typically store their crypto assets in a combination of hot (connected to the Internet) and cold wallets (not connected to the Internet). Multiple layers of security measures are implemented at organisational, digital, and information levels. Almost all exchanges also offer ways to protect your account from unauthorised access such as 2FA which makes them convenient places to hold Ethereum.

How To Find The Best Place To Buy Ethereum

If you’re looking to add Ethereum to your investment portfolio, then there are several factors that you need to keep in mind when buying it from digital currency exchange.

• Low fees and value for money: Ensure that you are aware of the fees that you will incur when buying Ethereum. These include deposit fees to fund your wallet, trading fees, and withdrawal fees if you wish to send your crypto to an external wallet. In Australia, trading fees to buy Ethereum with AUD range between 0.1% and 1%.
• A reliable crypto platform: It goes without saying but buying Ethereum as well as any other digital currency should be obtained from a trustworthy and reputable company that has an unblemished track record in security. Consider the exchange’s security controls such as 2-Factor Authentication (2FA), how it stores crypto, whether its framework is routinely tested and audited by third parties, and if the exchange has been hacked.
• Good customer support: Most crypto exchanges provide a Help Centre containing articles that address common issues experienced by users. They also provide similar avenues to customer support such as a 24.7 live chatbot and ticket system where a reply will be received via email. However, the quality and responsiveness of assistance will differ from exchange to exchange. Generally, the local Australian platforms have better customer service than the global exchanges.
• A variety of payment options: The ways in which you can fund your account so you can buy Ethereum will widely vary from exchange to exchange. As a general rule, local Australian platforms offer more ways to deposit AUD than global exchanges. In Australia, common deposit methods include bank transfers (OSKO), POLi, PayID, BPAY, cash deposits via Blueshyft, and credit/debit cards.
• An easy-to-use interface: Ethereum is a popular choice for beginners who are starting their investment portfolio. If this is you, then it becomes important to find a crypto exchange that is easy to use, navigate, and even enjoyable. Beginners should generally stay from global exchanges that come with complicated and feature-laden interfaces.
• Good liquidity: Experienced traders will want to use a crypto exchange that has a large trading volume for Ethereum tokens as well as above-average liquidity. High liquidity means that price slippages are kept to a minimum and this suits traders placing high-volume orders.
• Access to other crypto assets: If you’re thinking about adding other crypto assets to your portfolio, then it’s beneficial to find a crypt exchange that supports at least 300 digital currencies. Moreover, it will become useful if the exchange also supports the swapping of Ethereum for another coin.

The Cheapest Way To Obtain Ethereum

The cheapest way to obtain Ether is through a global cryptocurrency exchange that has a high trading volume for the AUD/ETH pair. This translates into strong liquidity which means minimal price slippage when you place orders to buy Ethereum in Australia. Digital currency exchanges in Australia that satisfy these two criteria include Binance Australia, KuCoin, Bybit, and OKX.

High trading volumes and liquidity for Ethereum transactions generally mean that the trading fees to buy ETH are low. Maker and taker fees in the vicinity of 0.1% and 0.1%, respectively, will provide great value for money when trading Ethereum in Australia.

Obtaining Ethereum at the lowest cost is usually hard to do when using the ‘Instant Buy/Sell’ features provided by crypto exchanges. For the convenience they offer, the fees are typically higher at around 1% and should be avoided unless the purchasing fees are stated to be lower.

The use of credit cards to acquire Ethereum is almost always an expensive exercise. In Australia, credit and debit card fees to instantly purchase ETH can range anywhere between 2% and 4%.

History of Ethereum

Ethereum was launched in July 2015 by Joe Lubin, founder of ConsenSys, and Vitalik Buterin. Joe is a blockchain applications developer that uses the Ethereum network. Vitalik had a major involvement in the original Ethereum concept and now serves as its CEO and public face.

The Ethereum blockchain network is a decentralized, open-source blockchain platform created to support the development and execution of smart contracts and decentralized applications (dapps). Its native token, Ether, has a major role in the governance and maintenance of the network as it can be used as a payment method. The Ethereum 2.0 network is built on a Proof-of-Stake (PoS) consensus mechanism.

The Ethereum network has received a number of upgrades. “Serenity” was launched in December 2020 that aimed to improve the speed, efficiency, and scalability of the network so that it could process more transactions and ease bottlenecks. The EIP 1559 upgrade was released to update transaction fees on the Ethereum network. Essentially, first-price auctions that were used to calculate gas fees were removed.

Frequently Asked Questions

Does Swyftx have a referral link?

Yes, CoinCryption has partnered with Swyftx to provide $20 free Bitcoin by using our Swyftx referral code. The promotional offer is valid once per new account is created and no deposit of money is required. The full code can be found in our Swyftx referral link article.

Can I earn interest on Ethereum?

Yes, you can earn interest on Ethereum (ETH) by using depositing it into an interest-earning wallet such as Binance Australia’s Earn wallet. Currently, you can earn 1.2% Annual Percentage Yield (APY) on a flexible term. You can also earn interest by staking Ethereum in a staking pool and earning rewards for validating transactions on the Ethereum network.

For more information about the best interest-earning wallets for crypto, you can read our Australian guide.

Can I use my SMSF to invest in Ethereum?

You can use your Self-Managed Super Fund (SMSF) to invest in Ethereum. Ethereum is long-regarded as a viable long-term investment asset due to its appreciating nature. In Australia, there are several regulatory compliance requirements that must be met for crypto SMSFs. However, you should be aware that investing in cryptocurrencies carries a high degree of risk. You should consult with a qualified financial adviser before making any decisions about investing in Ethereum.

Conclusion

As the second-ranked cryptocurrency by market capitalisation, Ethereum is an easy-to-get asset from an Australian exchange. A local Australian crypto exchange is the easiest option due to its high level of support for AUD where multiple deposit methods will be supported. AUSTRAC-registered crypto platforms that allow you to trade Ether often have stellar security records as a result of the controls they put into place.