Bitcoin is the most popular cryptocurrency in the world and has been for over a decade now. People knew what Bitcoin was even before they fully understood cryptocurrencies and all that these entail.
Initially, many people were sceptical about where this decentralized currency was headed. But now there’s no denying that people all around the world are highly invested in Bitcoin and crypto.
Each country has its own restrictions on how you can and can’t buy cryptocurrencies. Australia is quite favourable for crypto investors and the process to buy Bitcoin here is straightforward.
In this article, we’ll cover all the different ways of how to buy Bitcoin in Australia. Some you might have heard of before and others might be new for you.
We’ve also mentioned the step-by-step process you can follow to get started with buying crypto.
Whether you’re an absolute beginner or a seasoned investor looking for ways to expand, this post will surely answer your questions about the buying and storing of cryptocurrencies.
If you’re looking to buy Bitcoin, then you must already know enough about what it is and all its history. So we won’t cover all that and instead jump straight into how you can buy Bitcoin and other cryptocurrencies.
The two best ways to buy Bitcoin in Australia are:
If you want to earn Bitcoin without buying them the traditional way, then you can choose one of the following ways:
The easiest way to buy Bitcoin for most people is to open an account with a crypto exchange and use that for buying cryptocurrencies.
And we’ll discuss the process of doing that in great detail below. But first, let’s look at how you can use a crypto broker to buy Bitcoin in Australia!
Using a broker for buying Bitcoin is a lot like online shopping.
You visit the broker’s website, create an account, enter the number of Bitcoins you want and the website will tell you how much it’ll cost.
You can then send the fiat currency to the broker using any of the payment options available. These are usually direct bank transfers, credit cards, and PayPal.
Once that’s done, you get the Bitcoin and you can transfer those to your crypto wallet.
The user interface for each broker’s website will vary. But the steps will be the same.
You should remember to look at the trading costs, commissions, range of cryptocurrencies available, and regulations before deciding on a broker platform to buy Bitcoin in Australia.
Over-the-counter (OTC) brokers are the best option if you’re buying a large amount of Bitcoin – more than $50,000 or more.
That’s where your deals go through a direct broker-dealer network instead of an exchange.
The biggest downside of using brokers is that you generally have to pay much higher fees as compared to exchanges. You sometimes even have to pay an inactive fee if you don’t trade with the crypto broker for a specified period.
On crypto exchanges, you trade fiat currencies or other cryptocurrencies for Bitcoin. But here, you deal with other crypto traders like yourself and not brokers. That’s called P2P or peer-to-peer transaction – we’ll discuss what that is later on in this article.
Although the world of crypto is decentralized, trading here has many of the same steps as making transactions through your traditional banking systems.
Here are the five steps you need to complete to buy Bitcoin in Australia using a crypto exchange platform:
Now, let’s look at an overview of each of these steps:
Selecting a crypto exchange is much like choosing a bank.
You need to look at the security, fees, the exchange’s own wallet, supported currencies, customer support, and the benefits it offers.
There are dozens of options for Australians and you should select the one that suits you the most.
The top five crypto exchanges you can consider include:
All of these support AUD as the fiat currency. But each one offers some things that others don’t.
CoinSpot has multiple payment options for instantly adding funds to your account. Binance is excellent for new traders since the interface is user-friendly.
Swyftx has over 300 cryptocurrencies so you can get a wide range of investment options. Coinjar has low fees and easy withdrawals into your Australian bank.
Opening an account requires an email address and password, to begin with. All exchanges have slightly different processes for creating your account but most of them will require you to verify your identity.
For that, you’ll have to upload a photo of yourself and add a government ID such as your drivers’ license or passport copy.
Here’s the process for creating an account:
You must remember to activate two-factor authentication of your account with the crypto exchange. This adds an additional layer of security and keeps your data, USDT, and cryptocurrencies safe.
For you to buy Bitcoin, you must transfer AUD or any other fiat currency into your account. You can also exchange some other cryptocurrency for Bitcoin instead of using fiat currency.
Generally, the payment methods available in Australian crypto exchanges include:
You can also use other payment services such as POLi Payments, Osko, and PayID to add funds to your crypto exchange account.
This is the most critical step. You have to buy USDT from other traders using P2P transactions. You can then use these to place your orders for Bitcoin.
Open the app or the website and the P2P option. You’ll see the names of many traders along with the exchange rate they’re offering. That’ll show under the ‘price’ category.
You have to then select the one that offers the lowest exchange rate and has the required funds that you need.
Here’s an example from Binance:
Once you’ve selected your seller, you then place the P2P order. Next, you’ll transfer AUD to the seller’s Australian bank account and get the required USDT in return.
Then you can go to the trading or buying tab – depending on what it’s called in your crypto exchange – and place the order for Bitcoin by entering the amount of USDT you want to use.
Here, you can place market or limit orders which we’ve explained in detail below. Click on buy and you’ll have your Bitcoin.
Although you can keep your cryptocurrencies in your exchange, it’s not the safest place for your coins. That’s why you need an external crypto wallet if you’re buying Bitcoin in Australia.
These crypto wallets have addresses that you can use to send or receive Bitcoin or other cryptocurrencies.
A hot wallet is one that’s connected to the internet making it more convenient for instant purchases yet vulnerable to hacks.
A cold wallet on the other hand is a digital wallet where you transfer your cryptocurrencies to keep them safe by disconnecting the wallet from the internet.
You can consider cold wallets as the vault where you store highly valuable items or large amounts of money. It’s not the most accessible but is the safest option.
When you’re buying Bitcoin, you’re either investing in it or trading it to make a profit. It’s important to understand the distinction so you can make the best out of it. your choice of wallet will also depend on this.
The primary thing you should remember is to secure your passwords at all costs.
Losing these could mean losing all your cryptocurrencies. And there won’t be a way to get it back since it’s a decentralized system.
Another important thing is that you have to pay a fee to buy Bitcoin whether you’re using fiat currencies or swapping one cryptocurrency for the other.
Here are some things that you should know before and while you’re buying Bitcoin in Australia:
P2P transactions on crypto exchange platforms offer lower fees as compared to brokers. You also get flexibility in terms of payment methods so you can use direct bank transfers, e-wallets, POLi Payments, Osko, and PayID.
And the biggest advantage is that you can trade at your preferred rate. You can watch the market and buy when the price is favourable to you. Your funds are secure as the USDT is safe in escrow while you send the AUD to the seller’s bank.
You also don’t need to share any personal information or credit card number in P2P transactions. So these are better for privacy as well.
When you buy Bitcoin in Australia via crypto exchanges, you can place two kinds of orders – market orders and limit orders. You must understand what these terms are and what the difference is if you want to be a successful crypto trader.
Market orders are transactions that are completed as soon as possible. You type in the amount of USDT you would like to trade for BTC and click on buy.
The advantage of this is that there’s a greater likelihood for your order to go through.
The downside is that you might end up paying a higher price per Bitcoin especially if the market is fluctuating and the price is changing quickly – but that could also work out in your favour.
A limit order is where you set your desired price of Bitcoin – called the trigger – that’s below the current market value. You type in the amount of Bitcoin you want to buy at your price and place the order.
Should the market go down and the price of Bitcoin match your trigger, then your order will automatically complete and the preset number of Bitcoin will transfer to your account.
Here, there’s usually no limit of time so your order can complete whenever the price goes down – if at all. It could be hours, days, weeks, or even longer.
For swapping one cryptocurrency for Bitcoin, you’ll have to find the right trading pair such as BTC/DASH if you want to convert your DASH coins to Bitcoin.
You can complete this process as follows:
This process is slightly different on different crypto exchange platforms. For instance, have a look at how it looks on CoinSpot and Binance.
And here’s how the crypto swapping feature works on Binance:
Some of the main features you should look at when deciding on a crypto exchange include the number of fiat and cryptocurrencies supported, user experience, app support, crypto market prices, and more.
Here’s a quick table to give you an overview of the top choices of crypto exchanges for
|Crypto Exchange||Supports AUD||# Of Cryptocurrencies||Payment Options|
|Digital Surge||Yes||280+ Including BTC||Cryptocurrency, Bank transfer, POLi, Osko, PayID|
|CoinSpot||Yes||300+ Including BTC||Cryptocurrency, BPay, Cash, Osko, PayID, POLi|
|Binance||Yes||350+ Including BTC||Cryptocurrency, Debit & credit card, Osko, PayID|
|Swyftx||Yes||310+ Including BTC||Cryptocurrency, Bank transfer, Debit & credit card, Osko, PayID|
|CoinJar||Yes||45+ Including BTC||Cryptocurrency Cash, Debit & credit card, Bank Transfer|
You could also look at other factors before choosing a crypto exchange such as fees, the commission of exchange, time for transactions, and the reputation of the crypto exchange to name a few.
Buying Bitcoin in Australia is not the hard part, keeping it safe is.
Your cryptocurrency in your exchange or your wallet is vulnerable to hacks if you’re not careful. That’s why you need two-factor authentication (2FA) and cold storage.
Some tips to keep your crypto wallet safe include:
You can also use VPN or a secure internet connection for added security. The bottom line is to diversify your crypto storage and be vigilant when it comes to hacking.
The two basic types of crypto wallets to keep your Bitcoin are cold and hot wallets. As we’ve said above, hot wallets are connected to the internet while cold wallets aren’t.
Crypto wallets are further categorized into:
You can request to be paid in Bitcoin in exchange for your work.
If you’re operating out of a store then you can set up a QR code with your crypto wallet address so your customers can simply scan and send the coins to you directly.
There are multiple platforms such as Coinjar and Coinbase Commerce that streamline payment systems for businesses by setting up the wallet, QR code, and even tax reporting processes.
The same goes with online transactions if you’re working remotely.
You can create invoices just like you would for any payment method. And have your clients send your payment to your wallet in Bitcoin instead of AUD.
You can also set up a POS system that converts that accepts payments in Bitcoin. CryptoBates POS system can automatically convert crypto to fiat currencies so you can use your money elsewhere or store it in traditional banks.
All you need before earning Bitcoin this way is a crypto wallet to store the Bitcoin.
If you understand the technical side of how the blockchain works and are interested in it, then you can earn Bitcoin by mining it. Mining Bitcoin is legal in Australia and Byron Bay has the biggest set up for it in the country.
Here’s a quick rundown of what mining is for those who might not know.
Whenever you buy a Bitcoin, a transaction happens on the Bitcoin blockchain. Someone is needed to verify and record that transaction. These people are called miners.
Mining involves unlocking unreleased Bitcoin by running certain software. Miners compete with each other to be the first ones to solve the equation to release the Bitcoin and ultimately complete your transaction. Whoever does that first, gets Bitcoin as a reward.
You need a lot of electricity and heavy computing power to successfully mine Bitcoin and earn significant coins in exchange. So this approach is suited for centralized miners who can afford a massive setup.
Opening an account with a crypto exchange or using a broker to buy Bitcoin are the two most commonly practised ways of buying cryptocurrencies.
Another approach that you can use to earn Bitcoin in Australia is by charging in BTC in exchange for your services. For instance, you could be a graphic designer or a home baker and get paid in Bitcoin for your services or products.
Keeping Bitcoin safe is just as important as buying it. That’s why our tips for added safety of personal devices and securing coins in cold wallets are critical for you to remember.
If you’re ready to buy Bitcoin in Australia, then head over to an exchange today and set up your account. Keep the precautions in mind and follow the steps laid out in this article!