Buying NFTs is a fairly simple process but there are some important steps involved, and this can be rather confusing to a beginner using the platforms available.
The good news is we have a simpler way for you to buy your NFTs, so if this is your first time buying an NFT this guide will definitely help secure your very first NFT.
Quick Overview: How To Buy NFTs In Australia
There are many different ways to acquire NFTs. These are the five steps that you need to take to buy your first digital art piece or collectible from a top Australian NFT marketplace.
- Create an account with CoinSpot: Signing up with CoinSpot will require a valid email address, password, and mobile phone number. An Australian passport or driver’s licence will be needed to pass the mandatory Know-Your-Customer (KYC) process.
- Deposit AUD funds: Fund your account with Australian Dollars (AUD) using one of the supported methods; bank transfers, POLi, PayID, BPAY, cash deposits, and credit/debit cards.
- Use AUD to buy Ethereum (ETH): Most NFTs are traded on the Ethereum blockchain, so we recommend purchasing ETH to buy your NFT. CoinSpot also supports the purchasing of NFTs using any crypto that is listed.
- Find the NFT you want to buy: Click on ‘NFT’ and browse the CoinSpot collection of NFTs to find the digital art piece that you are after.
- Buy your NFT: Bid for or purchase your chosen NFT by clicking on ‘Buy Now’. Review the transaction details including the fees and confirm. The NFT will be transferred to your CoinSpot NFT wallet.
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How To Buy NFTs In Australia – Full Tutorial
If you think the process of buying an NFT is difficult or confusing then you might be surprised to hear that it isn’t. In this step-by-step guide, we show you not only only how to easily purchase NFTs with the cryptocurrency of your choice, but on one of the most reliable and trusted trading platforms in Australia, CoinSpot.
Step 1: Sign up to CoinSpot
CoinSpot has one of the largest collections of NFTs available in Australia. For new users creating an account with CoinSpot, the process is streamlined and can be completed in as little as 6 minutes. The information that you need comprises a valid email address, strong password, and mobile phone number for 2-Factor Authentication (2FA) purposes.
You can use our CoinSpot referral code to get $10 worth of BTC for free.
CoinSpot is registered with AUSTRAC, the Australian government body responsible for the detection, prevention, and mitigation of organised financial crimes. This means that CoinSpot needs to adhere to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements.
As such, CoinSpot will prompt you to verify your identity before Australian Dollars (AUD) can be deposited. This is a mandatory step that can be completed by submitting a copy of your Australian passport or driver’s licence.
Step 2: Fund your account with AUD
Funding your new CoinSpot account can be done in a variety of ways. These include transfers of money from an Australian bank account, POLi, PayID, BPAY, and cash deposits via Blueshyft. There is even the option to directly purchase cryptocurrencies using a credit/debit card. Of these methods, we recommend using bank transfers, POLi, or PayID due to their lack of deposit fees. BPAY and cash deposits made via Blueshyft will incur minor fees of 0.9% and 2.5%, respectively.
Step 3: Buy Ethereum
CoinSpot supports the buying of NFTs using any of its supported digital currencies. However, since NFTs are typically transferred on the Ethereum blockchain, the purchase and use of ETH to buy NFTs are recommended.
Using money to buy cryptocurrencies on CoinSpot is an easy task. After logging in, you can choose to buy crypto using the Instant Buy/Sell feature or through the CoinSpot Exchange. Note, that a high fee of 1% applies for every transaction for using the instant feature. You can read more about its fees and charges in our detailed CoinSpot review.
The Buy/Sell page will present all the supported digital assets that you can buy. Scroll down or use the search function to find Ethereum (or an alternate cryptocurrency).
A panel that resembles the one shown in the image below will be presented. All you need to do is enter the amount of AUD to spend and click ‘Buy’. The next step is to review the details of the transaction including the fees incurred and confirm. Once bought, the Ethereum coins will be transferred into your Ethereum wallet.
Step 4: Browse the NFT marketplace
CoinSpot currently has 32 collections of NFTs from various digital artists, making it one of the more well-stocked marketplaces on a local Australian platform. You can find the marketplace by clicking on ‘NFT’ at the top of the page. Then scroll down to find the collections.
When you click on a collection, you will find that CoinSpot presents basic information such as the floor price (lowest price for the collection), number of items, trading volume, and number of owners. Clicking an individual NFT will show all the associated traits and their rarity.
Step 5: Buy the NFT
Purchasing the NFT you choose is as easy as clicking ‘Buy Now’ and confirming the transaction. This is where you can choose the cryptocurrency in which to pay for the NFT, a unique feature of CoinSpot that typically isn’t offered by many NFT trading platforms. NFTs that you buy will be stored in your CoinSpot NFT wallet. You can also transfer NFTs to this wallet from external sources.
In terms of fees, CoinSpot will charge a reasonable 0.9% fee for buying an NFT from its marketplace. An additional gas fee will also apply which can’t be avoided no matter which marketplace you buy from.
Related reading: How To Transfer From CoinSpot To Metamask In 4 Steps
Buying NFT Cryptocurrencies on Swyftx & CoinSpot
Swyftx and CoinSpot are two of the leading cryptocurrency platforms in Australia. They both offer Australian investors, traders, and blockchain enthusiasts the ability to purchase cryptocurrencies that are associated with NFT blockchains. Instead of purchasing them separately, both brokerage platforms offer them in bundles which saves you from incurring multiple trading fees.
For more information about Swyftx, you can read our comprehensive review. By using our Swyftx referral code, you can claim $20 worth of BTC for free.
When you purchase these bundles you’re not buying any NFTs. Instead, you get instant exposure to the blockchain projects associated with those tokens. The table below shows which NFT tokens you can acquire from Swyftx and CoinSpot.
One of the advantages of using Swyftx is that you can set recurring buys, otherwise known as Dollar Cost Averaging (DCA). DCA is an effective and beginner-friendly way of steadily growing a crypto portfolio whilst mitigating the effects of price volatility.
| NFT Coin | Swyftx NFT/Gaming Bundle | CoinSpot NFT Bundle |
|---|---|---|
| Apecoin (APE) | No | Yes |
| Decentraland (MANA) | Yes | Yes |
| Sandbox (SAND) | Yes | Yes |
| Theta (THETA) | Yes | Yes |
| Axie Infinity (AXS) | Yes | Yes |
| Chiliz (CHZ) | No | Yes |
| Enjin Coin (ENJ) | Yes | Yes |
| Wax (WAXP) | No | Yes |
| Illuvium (ILV) | Yes | Yes |
| Chromia (CHR) | No | Yes |
| Gala (GALA) | Yes | No |
| Flow (FLOW) | Yes | No |
Buying NFTs: The Pros & Cons
When you are considering entering the world of NFTs, it would be prudent to weigh up the pros and cons. So let’s dive into some of the things that you should be aware of when purchasing an NFT.
NFT Pros:
NFT Cons:
What Are NFTs?
Non-Fungible Tokens, otherwise known as NFTs, are unique digital works that usually come in the form of art pieces and collectibles. Besides being collectibles for people who enjoy art, a lot of NFTs have utility purposes in online gaming, online marketplaces, real estate, art and fashion. Those that are intended as digital art pieces can also be sold for fundraising purposes, such as the NFTs sold by the Australia Zoo.
NFTs are created using smart contract technology and are an application of blockchain technology, meaning that the demonstration of ownership of an NFT becomes easy. They are referred to as collectibles given the unique characteristics and traits that each NFT has. This means that they cannot be duplicated.
Things You Should Know Before Buy NFTs
The blockchain they are hosted on
You should be aware of the blockchain network on which the NFT you want is hosted. The majority of NFTs in Australia will be hosted on the Ethereum blockchain network, however, some will be held on other networks such as Algorand, Solana, Wax, and Flow. Since most NFTs are transferred to and from vendors on the Ethereum blockchain, it means that ETH is needed to buy them. If you see ETH as the purchasing medium, then there’s a good chance that those NFTs are hosted on the Ethereum network.
The gas fees
Gas fees are charges that are incurred by the buyer to complete the purchase of an NFT. The ‘gas’ is used to facilitate transactions by allowing for the computational processing required to transfer and validate an NFT on the blockchain. The amount of the gas fee is therefore dependent on network congestion. The higher the congestion, the more validations are required to process the transaction.
Frequently Asked Questions
Can I Store NFTs On My CoinSpot Wallet?
Yes, CoinSpot users have access to their own NFT wallet to store their digital art and collectibles. The NFT wallet is a highly secure and safe place to store your digital art pieces and collectibles. CoinSpot also allows you to transfer NFTs from an external wallet.
Are NFTs Subject to Taxation in Australia?
The Australian Tax Office (ATO) does not regard NFTs are digital currencies and therefore do not meet the requirements for taxation. As such, the minting, buying, or selling of NFTs in Australia does not trigger a capital gains event where Capital Gains Tax (CGT) could be applied.
Kevin is a cryptocurrency writer that has published hundreds of articles, guides, and reviews. He has been in the crypto space since 2016 and is passionate about sharing his expertise and knowledge with others.