How To Buy Altcoins In Australia
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Altcoins are a popular investment option for many individuals as they are often very cheap, and have smaller market caps that can provide attractive returns. If you're looking to buy altcoins, it is important to use a reputable exchange. The platform should support the desired coins that you want to buy and have low fees. In this article, we explain how to buy altcoins in Australia for beginners.
How To Buy Altcoins In Australia - Quick Guide
To buy altcoins in Australia, follow these simple steps:
- Compare and select a crypto exchange. Find and compare a crypto exchange that supports AUD that will be converted into altcoins. Each exchange will have different deposit options to fund an account with money.
- Register an account with the exchange. Create an account with a crypto exchange using a valid email address or mobile number.
- Complete ID verification. Before making a deposit in fiat currency, complete the mandatory Know Your Customer (KYC) process and activate 2 Factor Authentication (2FA).
- Deposit funds to a wallet. Choose a payment option that offers the best fees and reasonable speed for the funds to arrive in the exchange wallet. The most common payment methods include a bank transfer, wire transfer, debit card, credit card and PayPal.
- Buy Altcoins. Browse the supported assets and select an altcoin to invest in. Use the funded account to choose an amount to spend. Finalize the transaction by clicking on 'Buy'.
Where To Buy Altcoins In Australia
One of the first steps to buying altcoins is to find a cryptocurrency exchange in Australia. There are several different types of exchanges, brokers and trading platforms that offer support to hundreds of altcoins. Importantly, it is best to use an exchange that is registered with AUSTRAC and also licensed with the financial body ASIC. The following crypto exchanges are relevant examples of buying altcoins.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$20 Bitcoin for creating a verified account||Visit Swyftx||Swyftx Review|
|600+||0% to 0.1%|
|Up to $100 welcome bonus||Visit Binance||Binance Review|
|370+||1% for instant buy and sell|
|None available at this time||Visit CoinSpot||CoinSpot Review|
|BTC, ETH, USDT and 50+ more||1% to instant buy/sell, 0.1% on CoinJar Exchange|
|None available at this time||Visit Coinjar||Coinjar Review|
Swyftx is an AUSTRAC-registered Australian cryptocurrency trading platform with over 600,000 users that provide a simple and transparent way for individuals to invest in crypto with a good selection of more than 310 altcoins. Overall, Swyftx is our best-rated cryptocurrency exchange in Australia to buy, trade and sell altcoins back to AUD.
One of the best aspects of Swyftx is the feature-rich platform that will suit various types of investors such as rapid AUD deposits and withdrawals, portfolio tracking, recurring orders, low trading fees, demo mode and price alerts. There are also a mobile app, tax calculator and dollar-cost averaging tools. The platform has been designed for beginners and intermediate investors to get started with digital currencies. The trading experience is very simple on a fully customizable dashboard that can be tailored to suit each investor.
Swyftx boasts some of the most competitive trading fees in the country. The transaction cost to buy and sell crypto is a nominal 0.6% fee in addition to a spread charge that averages 1.7%. Compared to the industry average spreads of 4%, the overall trading fees are reasonable when Swyftx is measured against other exchanges. To learn more about the features and supported altcoins, read our full review on Swyftx.
Binance Australia is a widely recognized and popular exchange that enables Australians to invest in 350+ altcoins. The platform is the largest exchange in the world in terms of trading volume and liquidity which is an important factor when looking to buy altcoins. Citizens can fund a Binance wallet directly with AUD using a bank transfer with deposit zero fees.
Binance has two main methods to buy altcoins, which include Binance Convert or the advanced trading platform. The former is suited to beginners that can use drop-down menus to select an altcoin to purchase and choose AUD as the currency. For more experienced investors, there is a full-featured trading platform to trade altcoins using AUD or other cryptocurrencies.
The fees on Binance to buy and trade altcoins are one of the lowest in the country that starts from 0.15% per trade. There are further discounts available for higher trading volumes or holding BNB tokens. In short, Binance is a superb option due to its wide range of altcoins and low fees.
Read our full Binance Australia review.
CoinSpot was founded in 2013 and has built up a solid reputation as a leading local cryptocurrency exchange with over 1 million users. The exchange is purpose-design to cater to beginners getting started and buying altcoins in Australia with AUD. The Australian exchange is regarded as one of the safest platforms with bank-like security measures to protect its customer's information and funds secure. Coinspot supports several payment methods for users to deposit funds such as POLI, PayID, BPAY, or a cash deposit.
Each payment method using an Australian bank account deposit does not incur a deposit charge. In comparison, using BPAY or cash payments will incur a deposit fee of 0.9% and 2.5% respectively. For more information, read our complete review on CoinSpot and how we rated it as one of the best places to buy altcoins.
CoinJar is a trusted crypto exchange in Australia and also one of the longest-running digital currency exchanges. CoinJar allows users to buy, sell, store and spend altcoins. With over 400,000 users and counting, CoinJar exchange is one of the best places to buy altcoins in Australia that will suit both beginners and experienced investors.
CoinJar has a flat 1% fee to convert AUD to crypto or between digital currencies. CoinJar Exchange has fees of 0.1% using a maker/taker model to trade between users on the platform. This is quite confusing for investors to create an account with two products that have varying fees. Moreover, CoinJar offers a high level of fund protection with 90% of customers' assets stored in offline cold wallets located at secure locations for maximum safety.
Read our full CoinJar review.
What Are Altcoins?
Altcoins are alternative cryptocurrencies to Bitcoin. Many altcoins have been created to improve on the limitations of Bitcoin and create newer versions with competitive advantages such as faster transaction speed, enhanced scalability, improved security, lower miner fees and many others.
Many crypto enthusiasts will argue that altcoins are completely unnecessary and will not succeed because they cannot compete with the infrastructure that Bitcoin boasts. However, altcoins are important as they further decentralize the cryptocurrency community and allow developers to experiment, create and improve on new features.
What Are The Best Altcoins To Buy?
There are over 10,390 different cryptocurrencies at the time of writing according to Statista. Each coin offers a slightly different functionality that creates a unique perception of 'value' to different users and for various applications. The vast number of altcoins has created competition for Bitcoin and formed the cryptocurrency market that we know today.
Given the number of altcoins that exist, it is essential to choose the right altcoins to balance out a crypto portfolio. Knowing which is the best altcoin is a difficult task and requires sound knowledge of the altcoins metrics such as market capitalization, number of coins in circulation, the fixed supply, historical price action and the correlation to Bitcoin and traditional markets.
For beginners, a common strategy is to stick with the popular altcoins by market capitalization (or popularity). Some of the most bought altcoins include Ethereum, XRP, Binance Coin, Solana, Cardano, Avalanche and Polkadot.
It is equally important to choose the best altcoin exchange with the lowest fees.
Best Way To Buy Altcoins In Australia
There are several ways to invest in altcoins depending on how you wish to deposit AUD. If you prefer to use a regulated cryptocurrency exchange (which we recommend), then you should know that each digital currency provider can support different deposit methods.
Therefore, it's best that you decide to register with an exchange that supports your preferred payment method to buy altcoins. Use our guide below to see which common deposit methods are supported by our top rated Australian crypto exchanges.
- Bank transfer. Bank transfers usually credit within the same business day depending on the bank. Most Australians will be familiar using an EFT transaction using their online bank account. To complete a bank transfer, you need to obtain the BSB and Account Number of the exchange's bank account. This is not different from making a payment to anybody. You should note that bank transfers can take a bit longer to clear compared to other deposit methods and it is easy to make an error.
- PayID / NPP. Using PayID is an easy method to buy altcoins in Australia that is supported by most of the larger Australian banks. This is a near-instant payment method, so it will suit investors that wish to make an immediate alt-coin purchase. AUD deposits will be credited to your account within minutes of being transferred from your bank account. All you need is the cryptocurrency exchange's PayID email address to make a deposit.
- Debit and credit cards. Depending on which Australian bank you're with, it can still be possible to buy altcoins with a credit card or debit card. You should check with your financial institution or card issuer to find out if you can buy crypto with a debit card.
How To Buy Altcoins: Complete Tutorial
1. Compare and select an altcoin exchange
The first step to buying altcoins is to decide on what type of services to use. There are several options which include fiat-to-crypto exchanges, trading platforms, decentralized exchanges and brokerages to choose from. Centralized exchanges are the most commonly used and convenient for beginners which allow individuals to buy, store, trade and sell altcoins. Other important aspects to keep in mind are:
- Supported countries and accepted fiat currencies
- Deposit methods and limits
- Number of support altcoins
- All fee types (deposit, trading and withdrawal)
- Ease of use for all experience levels
- Trading volume and liquidity (minimize spread and slippage)
- Industry-standard security measures
- Live-chat and 24/7 customer service team
2. Create and account with the exchange
The first step to buying altcoins is to create an account with a cryptocurrency platform in Australia such as Swyftx. To get started, visit the Swyftx website using our link for $20 BTC and click on the "Sign Up" button. This will redirect to the registration page that will show the promotion code. Enter a valid email address, set a strong password, full name and phone number. Click "Agree" to the terms and conditions and hit "Create My Account".
3. Complete Identity Verification
Once an account has been created, the next step is to commence the ID verification process in accordance with Know Your Customer (KYC) and Counter-Terrorism Financing (CTF) regulations under Australian law. Before a wallet can be funded with AUD to deposit and withdraw funds, the account must be verified as per the rules set by AUSTRAC.
Using Swyftx as an example, the verification process is fast and hassle-free and can be completed within 2 minutes of creating a new account. To start verification, login to the account and navigate to the 'Verification' tab under the 'Profile Tab'. A valid email address, mobile phone number and identity document number will need to be provided.
To protect any funds within a crypto exchange account, it is vital to increase the basic account security level and turn on Two Factor Authentication (2FA). This should be the first step after verifying an account and prior to depositing any funds. 2FA is a specific type of multi-factor authentication that requires two methods to verify the user's account and even withdrawal requests. Popular 2FA apps for multi-factor authentication are Authy and Google Authenticator which can be downloaded for both iOS and Android devices.
4. Deposit funds in AUD
Finding an exchange that accepts local deposit methods using Australian Dollars is an important consideration. The majority of cryptocurrency exchanges in Australia have direct AUD payment methods with varying fees. The most common deposit options include bank transfer, POLi and PayID.
POLi connects to Australian Bank accounts and is processed instantly. PayID and bank transfers can take between 1 and 3 business days. Alternative payment methods that are available with certain Australian exchanges include cash deposits at a local newsagency, BPAY and credit cards. Swyftx is the only crypto exchange in Australia that allows using a credit card for payment.
5. Enter the amount and buy altcoins
Once the account has been funded with AUD, the next step is to search and select an altcoin to buy. To get started, click "Trade" on the left side bar. This will bring up the "Assets" list where you can search and select for any coin. Select how much AUD you want to spend and click "Instant Buy". The altcoin amount will be purchased, show in your trade history and stored in the Swyftx wallet.
The first step in deciding whether to invest in altcoins is to choose a suitable Australian crypto exchange. Several options now offer 'bundles' which are a collection of altcoins. For example, Swyftx and CoinSpot offer a bundle called the "top 5" which includes the top five coins by market cap. Alternatively, investors can also choose to invest in crypto ETFs. For more information, read our guide on how to buy spot crypto ETFs in Australia.