Best Exchange For
Best Exchange For
Best Exchange For
Are you a beginner want to buy Bitcoin (BTC) in Australia but don't know where to start? If so, this guide will show you how easy buying Bitcoin is. Some exchanges require a Bitcoin wallet before you can buy Bitcoin. If you don't have a wallet, read our guide on the best Bitcoin hardware wallets before getting started.
How To Buy Bitcoin In Australia
If you're looking to buy Bitcoin, follow these steps to get started:
- Register for an account with an Australian crypto platform such as Swyftx
- Complete the signup registration process and verify your email
- Deposit funds in AUD into the account
- Select Bitcoin from the asset list and click on 'Buy Bitcoin'
- Enter the amount of Bitcoin to buy using AUD balance
- Review and complete the trade
How To Get Bitcoin In Australia
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.
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.
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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 cryptocurrency exchanges in Australia.
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Buy Using Cash In Hand
Swap cash for Bitcoins with a trusted friend or family member who is willing to buy and sell Bitcoin. 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.
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/sell Bitcoin anonymously, however the trading fees are higher.
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.
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.
Best Way to Buy Bitcoin
The preferred method to obtain Bitcoin is to use a regulated and trusted exchange that offers BTC and accepts AUD payments. Here are a few pros and cons of buying Bitcoin using an exchange.
How To Use A Bitcoin Exchange
If you want to buy BTC, the most popular and safest method is using a regulated and trusted cryptocurrency exchange in Australia to convert AUD into BTC. Here’s a step-by-step guide explaining how to buy Bitcoin using a platform designed for beginners, Swyftx.
Create Account With Australian Bitcoin Platform
Visit the website and click the "Sign Up" button which will direct to the registration page. Enter your email, set a password, enter your name and phone number. Click "Agree" to the terms and conditions and hit "Create My Account".
Verify Account & Activate 2FA
Navigate to the side bar on the left and click "Profile" then under your name go to "Verification". An online form will appear to enter in your details which takes a few minutes.
Once you completed all of the ID verification steps, activate two-factor authentication which adds another security layer to protect the account funds. Go to the "About" page and click "Setup MFA" and follow the prompts to install the Google Authenticator App on your smart device.
Enter the token that appears once you have scanned the QR code.
Deposit Australian Dollars
The next step is to click the "Deposit AUD" link on the left side bar. Here you will be able to choose the amount of Australian Dollars that you wish to deposit. Once you are on the deposit page, you can fund your Swyftx account with Australian Dollars (AUD) using either PayID (instant) or BPAY (within same business day).
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.
Not all cryptocurrency exchanges in Australia are the same.
COMPARE 10 BEST BITCOIN EXCHANGES
What To Look For In A Bitcoin Exchange
With so many options available to choose a Bitcoin exchange, 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/sell 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 using 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 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.
Max. Daily Limit
Buy Bitcoin With A Credit Card
Australian banks currently do not allow customers to buy Bitcoin using a credit card. An alternative to using a credit card are debit cards 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.IO, Coinbase, Binance and Changelly which allow the purchase of Bitcoin and other digital currency using a credit and debit card. The Bitcoin can then be transferred to a hardware wallet or an Australian exchange to trade, store or sell back to AUD. Using a credit card 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 slower 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 cryptocurrency exchanges in Australia that support Afterpay as a means to buy BTC or other digital currencies.
Buy Bitcoin With Cryptocurrency
Cryptocurrency 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.
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. The safest and most secure place to store purchased Bitcoins is to withdraw to a hardware wallet such as a Ledger Nano X and keep it in your possession.
Nano Ledger X
72mm x 18.6mm x 11.7mm
Nano Ledger S
56.9mm x 17.4mm x 9.1mm
TREZOR T Model
64.0mm x 39.0mm x 10.0 mm
38 mm x
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. We have assessed the best Bitcoin hardware wallets and recommend the Nano Ledger and Tezor wallets.
History Of Bitcoin Adoption In Australia
Bitcoin is increasingly being used as a payment method in Australia as blockchain increases in adoption, people become curious about transacting without bank or Government intervention and low fees. Australians can buy everything day items such as a cup of coffee, clothing and even book a holiday using Bitcoin.
Frequently Asked Questions
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 — 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.
Which Bitcoin Exchange Is The Best?
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 trading fees as low at 0.6%. For more information on the best bitcoin sites, read our article on the best cryptocurrency exchanges in Australia before you start trading.
Can You Sell Bitcoin?
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 is similar, instead of selecting 'buy' button on an exchange, choose the 'sell' and enter in the amount of Bitcoins to convert.
What Is The Cheapest Bitcoin Exchange?
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.
Is Bitcoin Taxed In Australia?
Any gains as a result of trading cryptocurrencies still need to be taxed under the capital gains tax (CGT) rules. For more information, read our guide on Cryptocurrency tax in Australia.
Is Mining Bitcoin Popular In Australia?
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.
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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