If you’re looking for a bit of guidance on how to invest in Bitcoin in Australia, this article is for you! Given the popularity that they’ve garnered over the years, it’s not hidden why everybody wants a piece of profit from the Bitcoin pie. However, not many know of the different steps involved in the process. Therefore, we bring you this detailed guide that walks you through the steps and how to buy Bitcoins in Australia. Let’s get started!
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How To Buy Bitcoin In Australia
Buying Bitcoin is easy. However, you cannot simply go to a financial institution to purchase it or any other crypto for the fact! Given their unregulated nature, cryptocurrencies are only available over specific platforms known as ‘crypto exchange.’
While that’s your answer to ‘where can I buy bitcoin in Australia,’ you need to understand that a crypto exchange is a platform designed to buy and sell digital coins. It works in the same way as stock trading platforms do. Payment, security, fee, and payment methods are some of the features which vary among different cryptocurrency exchanges.
To begin your investments in BTC, you just need to access any one of these platforms and get started. However, if you’ve just started your journey, you might need to figure out the conversion process of your local (fiat) currency into Bitcoin using an exchange as your medium.
And to help you execute the process better, we’ve boiled down the process into four simple steps. Check out these steps to understand how to buy bitcoin in Australia.
Step 1. Choose where to buy
You don’t need a wide range of features as a beginning! While you can quickly join up for more exchanges later, you first need to decide where to purchase your BTC.
To begin, you can do a comparative analysis of the fee structure, security, features, and the different number of cryptos they offer. Once done, you can then curate a list of exchanges that seem fit. We think you should consider a few factors while picking up your ideal BTC platform.
- Fees: Each purchase and transaction you make over a crypto exchange attracts a fee with it. Therefore, try looking for exchanges that accept POLi, PayID, or BPAY as free deposit methods. Since the expenses of withdrawal, deposits, and converting fiat and crypto-assets vary, try shortlisting the exchanges which have no to low trading fees, deposit fees for crypto, fiat, or withdrawal.
Note: Credit card payments are charged as a cash advance fee, making them the most costly purchase method.
2. Coins: Which cryptocurrencies and tokens are you looking to add to your folio? You’ll need a platform with all of your cryptos of interest if you desire a varied portfolio. On the other hand, if all you want to do is acquire Bitcoin, seek the exchange with the lowest costs and maximum security.
3. Location: Local rules and regulations must be followed by cryptocurrency exchanges situated in Australia. To avoid problems, ensure that your exchange is registered under AUSTRAC.
Step 2: Create an account
After deciding which exchange you want to proceed with, visit their site and begin the account creation process. Once you’ve landed on their account creation page, proceed with putting in your personal information, starting with your email address and name.
Once you’ve put the input, you’ll next be required to authenticate your inputs as a part of the KYC (Know Your Customer) process, a legal requirement for almost every Australian exchange. To ensure a seamless registration process, you’ll need a copy of a recent bank statement, picture ID, or utility bill that has your address on it.
While KYC is granted immediately in most circumstances, you may have to wait a few days for your account to be validated. Before you can make any purchases, you’ll need to pick a payment method to transfer funds into your account after it’s been authorized.
Step 3: Fund your account to carry out transactions
To purchase Bitcoin (BTC), you first need to fund your account by depositing money via bank transfer, credit, or debit card.
Here’s a walkthrough of the different processes:
- Depositing funds: The most cost-effective approach to buying Bitcoin is to transfer money via your bank account to the dedicated exchange to initiate transactions. However, depending on the bank and the exchange rate, you may have to wait a few days for the funds to get highlighted on your account. Once done, you can then continue purchasing BTC.
- Purchasing via credit card: Buying Bitcoin via a credit card is straightforward. However, it also comes with its drawbacks. To begin with, fees are often higher than the cost of making a bank deposit. In addition, credit cards are designed for immediate transactions, so you won’t be able to fund your exchange using them. Finally, the fees might rapidly build up if you just have a credit card.
Credit card companies, for example, will generally charge you a cash advance fee, which may be pretty high. In addition, some credit card companies, depending on your provider and the country, will not allow you to buy cryptocurrencies. To figure out the specifics that work best for you, check out Finder’s advice on buying Bitcoin using a credit card.
3. Buying with a debit card: Using a debit card is similar to using a credit card but with far lower costs. A debit card, out of the three choices for funding and purchasing Bitcoin, has the lowest costs and allows for a real-time deposit of BTC or cash funds.
Generally, you needn’t stress much about the option you choose; exchanges generally provide you with the option to choose, which can be changed later. However, if you’re planning to make a large purchase, you might want to calculate the transaction fee involved in your chosen methods.
Step 4: Purchase your Bitcoin
Consider this as a thumb rule! You do not need to purchase an entire Bitcoin. Most exchanges allow you to purchase BTC with a little AUD (Australian dollars) and, in most cases, much less. Simply enter the amount you wish to spend in AUD, and the exchange will take care of the rest.
Second, bear in mind that certain exchanges only allow you to purchase BTC in one method, while others will enable you to buy cryptos in different ways. Besides, you can also opt for spot market and instant buy, which stand as the two popular methods in Australia.
Here’s a brief into both the process:
Instant purchases are usually made via credit card, but they may also be purchased using cash or crypto, present in your exchange account. However, it should be noted that instant buys have the highest costs and are at market pricing, which means you will most likely pay more than if you utilized the spot market.
There are extra costs if you pay using a credit card. You pay for convenience and quickness when you buy anything instantly. In general, you choose an asset to purchase and a budget. Following that, you are given a transaction preview, and after double-checking the details, you can complete the transaction.
The spot market is frequently referred to as “Trade” or “Spot.” Unlike an instant buy, the spot market allows traders to define desired conditions for the purchase or sale. On a spot market website, you can engage in various transactions. For example, you can place a market order, which works similarly to a buy/sell order but with cheaper expenses.
You have the option of placing a limit order. This is the second most popular order type, in which you specify the price at which you want to purchase or sell. Market orders have higher fees, but limited orders attract a lower cost. However, depending on the exchange, you might find different trading alternatives.
Regardless of which exchange you use, these four steps will be roughly the same. Now, even though you have all the factors in hand, the chances are that you might get confused with the numerous options available.
Relax, this is where we bring you a list of the top platforms to help you figure out ‘how to invest in Bitcoin in Australia’ in the next section.
Where To Buy Bitcoin In Australia
Even after all the details we have provided in the above section; you might still find yourself querying Google for ‘where can I buy Bitcoin in Australia.’ Yes, it’s possible! With numerous available BTC brokers popping up now and then, you’d need more than just a few tips and tricks to find yourself the best crypto platform.
Therefore, to help you better, we have curated a list of the top crypto exchanges where you can buy Bitcoin in Australia safely & securely. Let’s check it out:
First on our list of top crypto exchanges to purchase Bitcoin is Swftyx, a reliable platform that brings you a slew of features fit for advanced and beginner investors alike. What makes the platform a good fit for beginner investors is its features, such as custom charts and Live Chat.
Sywftx brings in a clean, easy-to-navigate UI that allows seamless purchase and sale of BTC without any waiting period. Besides investing in BTC, users of the platform also have the option to start their trading journey with over 310 cryptocurrencies, besides new and better cryptos being added every day.
Beginners who wish to learn more about trading can also find the platform reliable with its real-time ‘Demo mode’ gives you a $10.000 demo bonus to test your learned strategies in the real-time market without risking your funds. In addition, the more advanced traders can place limited orders and customize their graphs to match their strategy.
Another feature that makes Swyftx unique is staking, which allows investors and traders to earn some interest by locking in their funds for some time. Additionally, the platform is touted as a market leader due to its interactive and professional Live Chat customer support, making it an add-on for beginners.
Users can fund & withdraw AUD from their account without attracting any charge, regardless of which funding option they choose (bank transfer, credit, or debit card). Trading fees over Sywftx are a meager 0.6% per order, making it at par with many Australian Bitcoin exchanges. On the other hand, the platform stands out with its low fee and spot trades. You can get started with spot trading at a fee as low as 0.51%.
On the flip side, the platform can be limiting for advanced traders as they might miss out on a few advanced features like futures and margin traders.
Second on our list of the top Bitcoin exchanges in Australia is CoinJar. Founded in 2013, CoinJar is Australia’s largest crypto exchange today and enjoys active user strength in millions. The platform stands out with its interactive UI, reliable customer support, and flat fee structure, making it a perfect spot for beginner investors.
Besides BTC, users can invest their funds in over 50+ cryptocurrencies, in addition to folio favorites like Ethereum (ETH), Bitcoin (BTC), XRP (Ripple), among other altcoins like Stellar (XLM), Chainlink (LINK), and Uniswap (UNI), among others.
While CoinJar has multiple unique features like advanced charting tools and an interactive mobile app, the multi-currency deposit is one specific feature that stands out. This feature allows users to deposit funds into their accounts via cryptos and FIAT currencies. Moreover, users can also trade in different FIAT and cryptos.
Another standout feature for CoinJar is ‘CoinJar Bundles,’ which allows users to diversify their crypto investments across a variety of tokens via a single trade order. To begin with, you can easily choose from several options like DeFi tokens or stablecoins. Interestingly, all such operations can be carried out via the crypto wallet and mobile app platforms.
Funding your CoinJar account is easy! You can quickly deposit AUD via a variety of supported payment methods. For instance, you can choose from various funding options like PayID, Visa, MasterCard, BPAY, or Blueshyft. While there is no fee for paying via BPAY or PayID, other options attract a 1% fee on buy and sell orders. Furthermore, you can withdraw your balance to your local bank on a fee-free basis.
While the fee structure might be a flip side, the platform makes for it by eliminating any fee for spread. Besides, you also get support for large-cap projects, which many platforms don’t.
CoinSpot has been around the Australian crypto market since 2013. Fast forward to 2022, the platform stands out as one of the leading exchanges in the country, with over 2.5+ million users. Adding to it, the platform also records the highest number of transactions across all the crypto exchanges present in the country.
Traders and investors can deal with more than 350+ cryptocurrencies which are easily liquidatable on the platform. While you can easily access all the major cryptos like BTC and Ethereum over CoinSpot, it also allows beginner investors to trade or invest in a smaller altcoin. However, investing in smaller altcoins may result in a 1% fee as you’ll have to use the Instant Buy feature here.
Talking of the features that make CoinSpot attractive, the platform comes with a clean and interactive UI further backed by advanced charting tools. Additionally, users can access real-time customer access that resolves the queries within minutes.
Along with the features offered by the platform, the authenticity and safety provided by CoinSpot make it a reliable option for users of all types. In addition, the platform stands out as one of the most externally audited exchanges in Australia. Adding to it, CoinSpot is also the only exchange in the country to have received ISO 27001 certification.
Besides trading and investing in Bitcoin, CoinSpot also allows its users to stake over 22 cryptos, providing them with a chance to earn interest in their investments. Furthermore, users who like to invest in new financial tools can also access their NFT marketplace to trade with digital art & assets directly via their accounts, using their preferred cryptos.
On the flip side, CoinSpot attracts a high transaction fee of 1% for instant purchases and sales over the platform. Besides, the absence of a demo account over the platform makes it limited to users.
Next on our list is Coinbase, another crypto exchange that marks itself as a reliable platform for beginner and advanced traders alike. Founded in 2012, the platform currently enjoys a user base of 89+ million active traders, giving you a perfect start with over 100+ tradable cryptos.
Their list of offerings includes the likes of Bitcoin, Ethereum, and other popular digital assets like Dogecoin. Adding to its list of offerings, beginners can preferably execute their operations via a clean, easily navigable buy & sell process. On the other hand, more advanced users can access the features of Coinbase Pro to unlock additional features and execute additional orders.
Another additional feature of Coinbase is its reliable customer service that allows beginner investors to access real-time help for their trading. Besides, users can also continue to execute their trading journey via Coinbase’s simple mobile application.
What adds to Coinbase’s popularity is its safety & security measures! Although ASIC doesn’t list the platform, they make up for it via $278 billion in assets on the platform. Besides, to ensure complete security of their funds, Coinbase also stores 98% of its token in cold storage wallets and initiates additional measures like two-factor authentication.
What’s more? Users can even secure their withdrawals extra safely via a 48-hour lock. And their crypto wallets are standalone, ensuring the complete safety of their funds.
While the platform enjoys the status of being a fast and convenient crypto exchange, it comes at a cost! The platform charges a 3.99% transaction fee for funding payments using credit and debit cards while charging a standard trading commission of 1.49% on bank transfers. Additionally, trades over $200 attract a percentage-based fee.
Last on our list is eToro, which stands out as a broker rather than an established crypto exchange. The platform brings in a slew of privileges for new and advanced users alike. Present in the market for over 15 years, the broker enjoys over 20+ million active users.
Users of the platform can access over 3,056 tradable symbols, diversifying their platform across two different trading accounts (Basic & Pro). Talking of the features that make eToro unique, beginners can access its copy trading feature, where they get to copy the trades taken by professionals. And thanks to the demo trading account loaded with $100k trading money, they can also test their strategies without losing out on funds.
Advanced users can access a range of trading instruments, including 66 indicators and 13 drawing tools. Additionally, they can also venture into the forex markets with 108 supported pairs of cryptos. Other features available over the platform include staking crypto CFDs, allowing you to earn interest by locking in your cryptos for a designated period.
Users can fund their accounts in USD (the platform currently doesn’t accept any other currency). Its fee structure is simple, eToro charges a trading fee of 1% on crypto assets. For EFTs and stocks, users don’t need to pay any commission. For partial and complete transfers, the platform charges a $75 fee.
On the downside, eToro is limited in its crypto offerings; users can only access 30 cryptos on the platform, limiting the options to diversify a new user’s folio. However, users can invest using eToro for its no-commission structure and reasonable fee to make up for it, including the spreads.
Bitcoin & Cryptocurrency Regulation In Australia
Australia has moved ahead with a more forward-thinking attitude toward cryptocurrencies, especially Bitcoin. This is because the Australian regulatory organizations encourage growth and innovation in their sector. This was pretty evident when the legislation double-taxed cryptos under GST (Goods & Services Tax) was lifted.
Talking of the tax treatment of cryptos like BTC, they were ruled legal in Australia in 2017. However, Australia’s law also states that cryptos are only regulated if they align with the Counter-Terrorism Financing Act’s or Anti-Money Laundering provisions. As a result, cryptocurrencies are treated like other equities, liable to Capital Gains Tax (CGT).
As of 2018, DCEs or Digital currency exchange providers must register under AUSTRAC (Australian Transaction Reports and Analysis Center).
Additionally, the law also allows Australians to invest in BTC and other cryptos via their Self-Managed Super Fund (SMSF). Talking of the taxes, cryptos are taxed at 15% while utilizing this tax advantage.
Best Bitcoin Exchange – Conclusion
If you look at it, the market is filled with platforms that advertise themselves as the best! However, it becomes harder to go with one dedicated platform when it comes to practical selection. This is where our conclusion might help you settle for one Bitcoin broker.
Our opinion of the best Bitcoin broker in Australia goes with Sywftx. The platform is designed keeping in mind the fee, features, and functionalities that beginner investors might need to get started.
But we also understand that no one option fits all. Therefore, we suggest you do your research before settling for any one of the suggested Bitcoin exchanges.
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.