Are you a beginner wondering how to buy Bitcoin in Australia but don't know where to start? If so, this guide will show you how to buy Bitcoin using the top Australian crypto exchanges. Each platform offers varying features, AUD deposit methods and trading fees which are important considerations when choosing a suitable Bitcoin exchange.
How To Buy Bitcoin In Australia
To buy Bitcoin (BTC) in Australia, follow these simple steps:
- Compare and select a crypto exchange. Find and compare the best cryptocurrency exchanges that support AUD that will be converted into Bitcoin. Each exchange will have different deposit options to fund an account with money. Other important considerations to finding the right exchange are the deposit, trading and withdrawal fees, account and wallet security and customer support.
- Register an account with the exchange. Create an account with a Bitcoin exchange using a valid email address or mobile number. Before making a deposit in fiat currency, exchanges have a mandatory Know Your Customer (KYC) process that will need to be completed. This is to meet the international Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements. It is also recommended to activate 2 Factor Authentication (2FA) for additional account security.
- 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. Existing crypto investors can also deposit altcoins or stablecoins (e.g. USD, USDT or BUSD) which can be converted into Bitcoin on the exchange.
- Buy Bitcoin. Browse the supported assets and choose Bitcoin (BTC). Use the funded account to choose an amount to spend. Finalize the transaction by clicking on 'Buy'. The amount of Bitcoin or satoshis (SATS) will be determined at the selected price and transferred to the user's BTC wallet.
For a step-by-step tutorial on buying Bitcoin with an Australian exchange, jump ahead to the full guide.
Best Places To Buy Bitcoin In Australia
The best method to obtain Bitcoin is to use a regulated and trusted Australian exchange. Most exchanges in Australia offer Bitcoin which can be purchased with AUD using a bank account. The following exchanges are easy to use and compliant with AUSTRAC.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$20 Bitcoin for creating a verified account||Visit Swyftx||Swyftx Review|
|None available at this time||Visit CoinSpot||CoinSpot Review|
|$10 Bitcoin for creating a verified account||Visit Digital Surge||Digital Surge Review|
|325||0.02% / 0.07%|
|5% off trading fees||Visit FTX Australia||FTX Australia Review|
What Is Bitcoin?
Bitcoin is a decentralized digital currency that can be bought, sold, or traded like any other commodity such as precious metals. It is unique as it can also be used to buy goods and services such as — food, cars, house, whatever you’d like. Bitcoin is different from traditional 'fiat' currency such as US dollars because it uses peer-to-peer technology to operate with no central authority or bank. For more information on what Bitcoin does and how it works, read our beginners guide.
These features are in-built into Bitcoin itself and are powered by the blockchain making it an attractive proposition as Bitcoin's value cannot be manipulated by an organization, government, or single person. Using Bitcoin as a payment method is less expensive than credit cards to transact, with zero chargebacks and zero risk of identity theft.
What To Look For In A Bitcoin Exchange
With so many options available to choose from, it can be a difficult task for beginners to know which platform to use when buying crypto. Before you start buying Bitcoin, here are a few important considerations to take on board to assist with comparing exchanges.
- Trusted and regulated: Using a local exchange is a smart decision when buying or selling Bitcoins. Australian-based platforms must comply with strict laws and regulations that govern the digital currency industry. These exchanges also have built up a reputation in the local community as trustworthy and safe places to buy Bitcoin.
- Beginner-friendly & easy to use: Look for an exchange that allows quick and easy AUD deposits and a mobile app to buy Bitcoin at any time or place.
- Deposit methods: Find an exchange that offers preferred deposit options such as PayID, POLi, credit or debit card purchases to buy Bitcoin. Not all exchanges offer the same payment methods to deposit AUD funds and have restrictions on the minimum and maximum amount that can be deposited per 24 hours.
- Supported cryptocurrencies: Bitcoin is widely available on the vast majority of digital currency platforms. However, if you are looking to purchase a bundle with other exotic digital assets with Bitcoin, check to make sure the platform offers the trading pairs.
- Wallet security: The risk of online scams, fraud and theft is a major concern in the blockchain community so it is important to ensure the exchange includes security features and 'bank-like' to protect funds that are stored on the exchange. Common security measures include cold wallet storage, a multi-signature withdrawal process and two-factor authentication.
- Fees: There are several different fees to be aware of when using a crypto exchange such as depositing AUD, withdrawing cash or crypto and trading between assets. Also, exchanges can charge a spread fee which is often a 'hidden cost' and not fully disclosed. Essentially it is the difference between the bid and ask price on the market. When withdrawing from the exchange, there is also the Bitcoin transaction fee to be aware of.
- Customer support: Explore the website to find out what communication methods are available to support users that need troubleshooting advice or assistance on the exchange. Also, some exchanges will provide comprehensive FAQ's and How-To-Guides which is useful for beginners.
- Reviews: Search for online exchange reviews, forum comments and posts on social media is a great way to see what experience other investors and traders have had with the platform.
How To Pay For Bitcoin
Did you know that you don't need to buy a full Bitcoin (BTC) to own the asset? You can purchase a fragment of the cryptocurrency using an exchange. While it can seem intimidating at first, buying and selling using an exchange is simple. Here are the common ways to buy Bitcoin which each has its pros and cons.
Buy Bitcoin with Cash in Hand
Swap cash for Bitcoins with a trusted friend or family member who is willing to buy BTC within Australia. The benefit of getting Bitcoin in person is that the buyer does not need to create an account with an exchange and complete identity verification. However, it can be a tricky process to complete and recommend a mobile phone wallet or laptop is used to confirm the successful transfer of Bitcoin.
Buy Bitcoin With A Bank Transfer
You can purchase Bitcoin via bank transfer (EFT) through NPP, PayID or POLi payments using a regulated cryptocurrency exchange in Australia. These transfers are generally free of charge and near-instant, usually within the same business day depending on the bank. Most Australians will be familiar with using an online bank transfer using their online bank account.
Sending funds from an overseas bank account will generally use a third-party service such as SWIFT to process the international wire transfer. SWIFT payments take longer to process and can incur hefty fees and foreign exchange conversion compared to using a domestic bank transfer.
Buy Bitcoin With A Cash Deposit
Exchanges such as CoinJar and Coinspot allow users that want to buy Bitcoin using cash in Australia. There is an additional fee of 1.5% to 2.5% to use this option compared to PayID and POLi. There is a common misconception that paying for Bitcoin with cash is anonymous. This is not true (in Australia at least) as users must still provide identity verification with a cash deposit through the exchange as per strict regulations.
The process of using a cash deposit to buy BTC takes longer as the investor will need to obtain the QR code from the exchange and take it to a supported newsagent to complete the payment. The purchased Bitcoin will usually be sent to the nominated BTC address within a day. For a full guide on how to buy Bitcoin with a cash deposit in Australia, read this article.
Buy Bitcoin With A Credit Or Debit Card
There are several options for Australians to buy Bitcoin using a credit card as a payment option. Examples of financial institutions that allow credit and/or debit cards for Bitcoin purchases at the time of writing are Westpac, Macquarie Bank, Judo Bank, Jolt Bank, ANZ, and NAB. These are subject to change that can depend on personal circumstances and card issuer. It should also be noted that several banks like the Commonwealth Bank of Australia, HSBC and Bendigo Bank do not allow Bitcoin purchases with credit cards.
Buy Bitcoin With PayPal
PayPal is a popular payment type that is used worldwide and was heavily used to purchase Bitcoin (BTC) in recent years. eToro and Paxful are one of the few exchanges that can be used in Australia that accept PayPal as a deposit method. This payment option has fallen out of favour due to chargebacks and higher fees. For a guide on how to use PayPal to buy Bitcoin, click here for a step-by-step tutorial.
Buy Bitcoin With BPAY
Exchanges like Digital Surge allow users to deposit AUD into the online wallet using a BPAY payment to buy Bitcoin. This method is generally slow and can incur additional surcharge fees.
Buy Bitcoin With Afterpay
Afterpay is a service in Australia that allows customers to purchase items now and pay later. To our best knowledge, there are currently no exchanges in Australia that support Afterpay as a means to buy BTC or other digital currencies.
Buy Bitcoin With Cryptocurrency
Altcoin trading exchanges and crypto swap platforms allow users to convert altcoins such as Ethereum, Litecoin, Cardano and Tron into Bitcoin. The process for investors that want to buy Bitcoin using cryptocurrency can be completed in a few steps. It involves transferring the altcoin to exchange and selling it for Bitcoin.
Popular exchanges in Australia to trade Bitcoins are Binance and BTC Markets. Before using make sure the platform supports the digital asset that you want to convert into Bitcoin and check the deposit, withdrawal and trading fees. For further information on how to buy crypto in Australia, read this article.
Buy Bitcoin Anonymously
Exchanges in Australia that accept fiat currency in exchange for a cryptocurrency asset such as Bitcoin will require you to verify your identity by completing an identity verification process. This will involve submitting personal documentation to the exchange to review and approve. This is in accordance with strict regulations and laws. If buying Bitcoins without a trace is preferred, the best way is to pay with cash in person or use a prepaid gift card on peer-to-peer exchanges.
Buy Bitcoin with a SMSF
Several exchanges in Australia allow customers to allocate digital currencies such as Bitcoin under a self-managed super fund. Crypto SMSFs are increasingly used as a vehicle to acquire digital assets to build retirement savings. There are several super and tax-related regulatory requirements to ensure compliance before buying Bitcoin using an SMSF. For more information, read our guide on cryptocurrency SMSF and the best exchanges to use.
Buy Bitcoin with a Gift Card
Several exchanges accept a wide variety of payment forms such as pre-paid cards, gift cards from iTunes, Amazon and many others. These cards can be traded in the exchange for digital currencies such as Bitcoin. Exchanges like Paxful will accept Amazon giftcard to buy Bitcoin. It should be noted the fees can be higher than using a traditional method.
Buying Bitcoin In Australia - Full Guide
1. Create An Account With An Exchange
The first step to making a Bitcoin purchase 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". For more information on how to add the Swyftx referral code, read this article.
2. 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, log in to the account and navigate to the 'Verification' tab under the 'Profile Tab'. A valid email address, mobile phone number or identity document number will need to be provided.
3. Secure Account & Activate 2FA
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 Bitcoin purchases using a credit card.
5. Buy Bitcoin
Now that your account is verified and you've deposited AUD, you can buy Bitcoins. To get started, click "Trade" on the left side bar. This will bring up the "Assets" list where you can search and select Bitcoin. Select how much AUD you want to spend and click "Instant Buy". The Bitcoin amount will be purchased, shown in your trade history and stored in the Swyftx wallet.
Where To Store Bitcoin In Australia
If you have purchased Bitcoin and currently storing it on a cryptocurrency exchange, then the ownership of your Bitcoin investment is at risk of theft and fraudulent activity. With more than 45 crypto exchange hacks since 2012, the safest and most secure place to store purchased Bitcoins is to withdraw to a hardware wallet such as a Ledger Nano X or CoolWallet Pro.
The devices are small compact wallets that store encrypted private keys that give access to Bitcoin. Access to Bitcoins can be recovered if the wallet is lost or stolen using a recovery phrase. Numerous exchanges include secure wallets and 3rd party online versions. In our experience, the safest method against scams and theft is keeping control of the private keys using a reputable hardware wallet. For more information on the best crypto wallets in Australia, read this comparison article.
Frequently Asked Questions
The best exchange in Australia to buy Bitcoin based on our reviews is Swyftx. The exchange offers new and exciting features that make it easy for Australian's to invest in Bitcoin fast and easy. Users can buy Bitcoin using a bank transfer with a maximum trading fee of 0.6%. The next best option would be CoinSpot which has a simple to use platform to quickly and safely buy Bitcoins.
If you want to sell Bitcoin, the best way is to trade it on an Australian crypto exchange for another coin or convert back to Australian Dollars. The process of buying and selling Bitcoin in Australia is similar, instead of selecting 'buy' button on an exchange, choose the 'sell' and enter in the amount of Bitcoins to convert.
The online share trading and investment platform Commsec does not allow Australian investors to buy Bitcoin (BTC) using the website or app. Commonwealth Bank customers will need to create an account with a regulated exchange in Australia and use a bank transfer or debit card purchase with AUD to obtain the Bitcoin asset.
One of the cheapest exchanges in Australia to buy Bitcoin is Swyftx. The platform offers a competitive trading fee of 0.6% with spreads as low as 0.2%. Compared to other Bitcoin providers, the spreads can be as high as 5.2% which eats into your deposit amount.
Any gains as a result of trading cryptocurrencies still need to be taxed under the capital gains tax (CGT) rules. Read our guide on crypto tax in Australia for more information.
Bitcoin mining was popular with certain groups in Australia however become unprofitable during the 2018 bear market due to the expensive electricity costs. Making a return on investment mining Bitcoin in Australia is therefore slim and reliant on the BTC price to increase to make it worth the investment. Another alternative is to join a Bitcoin mining pool where individuals can share resources and split the Bitcoin mining rewards.
To conclude our article on buying Bitcoins in Australia, it is important with any financial investment so make sure to do your own research and due diligence on the exchange before depositing any funds to start buying Bitcoin.