How To Buy Bitcoin In Australia (2022)

Updated: Jan 15th, 2022
Kevin Groves
Kevin Groves
How To Buy Bitcoin In Australia (2022)

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 purchase Bitcoin with Australian Dollars, follow these steps:

  1. Create an account with Swyftx
  2. Complete identity verification
  3. Activate 2 Factor Authentication
  4. Deposit funds in AUD
  5. Select Bitcoin and click on 'buy'
  6. Enter the amount of BTC to buy
  7. Review and complete the trade

Where To Obtain 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.

ExchangeCrypto AssetsTrading FeesRatingPromotionWebsiteReview
Swyftx Logo

Swyftx

280+0.6%
Overall 4.8/5StarStarStarStarEmpty Star
$20 Bitcoin for creating a verified accountVisit SwyftxSwyftx Review
Digital Surge Logo

Digital Surge

2700.5%
Overall 4.7/5StarStarStarStarEmpty Star
$10 Bitcoin for creating a verified accountVisit Digital SurgeDigital Surge Review
CoinSpot Logo

CoinSpot

320+1%
Overall 4.6/5StarStarStarStarEmpty Star
None available at this timeVisit CoinSpotCoinSpot Review

Guide To Buying Bitcoin In Australia

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 re-direct to the registration page that will show the promotion code. Enter a valid email address, set a strong password, full name name and phone number. Click "Agree" to the terms and conditions and hit "Create My Account".

Swyftx registrationSwyftx registration

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 with the rules set by AUSTRAC.

Using Swyftx as an example, the verification process is fast and hassle-free which 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 of identity document number will need to be provided.

swyftx verification processswyftx verification process

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 deposit at a local newsagency, BPAY and credit cards. Swyftx is the only crypto exchange in Australia that allows Bitcoin purchases using a credit card.

swyftx deposit aud fundsswyftx deposit aud funds

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, show in your trade history and stored in the Swyftx wallet.

swyftx buy btc with AUDswyftx buy btc with AUD

Benefits of Using A Bitcoin Exchange

Ways To Get Bitcoin With AUD

In Australia, there are several ways for residents to buy Bitcoin. Each method will comprise of different risks and fees that must be considered before making any transaction to invest in Bitcoin with AUD.

1. Use a Bitcoin Exchange

Bitcoin and crypto exchanges are online website or trading apps that are accessible to individuals using an internet connection. These platforms are highly regulated and allow users to deposit funds in AUD and convert into Bitcoin. Using an exchange to buy Bitcoin will require ID verification to comply with Australian laws. Our top rated platforms to buy Bitcoin are listed below. To view the full list, read our article on the best Bitcoin exchanges in Australia.

2. Buy Using Cash In Hand

Swap cash for Bitcoins with a trusted friend or family member who is willing to buy and sell Bitcoin 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.

3. Use a Peer To Peer Exchange

Peer to Peer (P2P) exchanges was commonly used several years ago to buy Bitcoin before the emergency of centralised exchanges. Platforms such as Paxful connect willing buyers and sellers from all over the world.

As these services rely on trust between the buyer and seller, Paxful uses an escrow service to ensure the transaction is fulfilled by both parties. Bitcoin is held by the site and released to the buyer once the payment for the Bitcoin is verified. P2P exchanges can be used if you want to buy and sell Bitcoin anonymously, however the trading fees are higher.

4. Trade-In 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.

5. Use Bitcoin ATM

Bitcoin automatic teller machines (ATM) are located predominately on the East coast of Australia in the metropolitan cities which provide a means for investors to buy Bitcoin directly from an ATM. The process is similar to using an ATM to withdraw cash and there is a growing number of ATM's that can be found using a service such as Coinatmradar.

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. 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 a 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, 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 to deposit AUD, withdraw cash or crypto and trade 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. 
  • 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 have their pros and cons.

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. Exchanges in Australia that accept these forms of bank deposits as a payment option include SwyftxIndependent ReserveCoinspotCoinJar and Binance.

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 with a cash deposit 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.

Buy Bitcoin With A Credit Or Debit Card

The majority of Australian banks do not allow customers to buy Bitcoin with a credit card. An alternative to using a credit card is a bank card which are supported by certain Australian banks and institutions. It is recommended to check with your financial institute or card issuer to find out if you can buy BTC with a credit card and/or debit card.

Traders can also create an account with global exchanges such as CEX.IOCoinbaseBinance and Changelly which allow the purchase of Bitcoin and other digital currency using a credit and savings card. The Bitcoin can then be transferred to a hardware wallet or an Australian exchange to trade, store or sell back to AUD. Card purchases is a safe and convenient way to make a Bitcoin purchase, although the charges can be as high as 5% in addition to the trading fee in some instances.

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 in the world that still accept PayPal as a deposit method. This payment option has fallen out of favour due to chargebacks and higher fees.

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 an 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, withdraw 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 a identify 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 if preferred, the best way is to pay with cash in person or use a prepaid gift card on a peer-to-peer exchange.

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 the encrypted private keys that give access to Bitcoin. Access to the 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. 

Frequently Asked Questions

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 — 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.

These features are in-built to Bitcoin itself and is powered by the blockchain making it an attractive proposition as Bitcoin's value cannot be manipulated by a organisation, 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.

The best exchange in Australia to buy Bitcoin in our opinion is Swyftx. The platform 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. We have compiled a detailed comparison of Swyftx vs CoinSpot that highlights the pros and cons of each exchange.

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. Mining Bitcoin is more popular in countries such as China and India where the electricity costs are lower and therefore cheaper to mine Bitcoins.

Conclusion

To conclude our article on buy Bitcoins in Australia, it is important with any financial investment to make sure to do your own research and due diligence on the exchange before depositing any funds to start buying Bitcoins. Also, if you don't have a hardware wallet, we suggest that you read our review on the best crypto hardware wallets so you can keep your crypto investment safe.

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Kevin GrovesKevin GrovesKevin Groves

Kevin is the founder and chief editor at HedgewithCrypto that he started in 2019 which has reached over 1.5 million visitors worldwide. He is passionate about cryptocurrency as an emerging technology and is heavily involved in the fast-growing fintech space. An experienced trader growing his portfolio since 2016, he has a strong understanding of investing in the crypto market using exchanges, brokers and derivatives platforms.

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