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 with screenshots of the entire process. Each platform offers varying features, AUD deposit methods, and trading fees which are important considerations when choosing a suitable Bitcoin exchange in Australia.
How To Buy Bitcoin In Australia - Quick Guide
To buy Bitcoin (BTC) in Australia, follow these simple steps:
- Compare and select a Bitcoin exchange. Find and compare the best exchanges that support AUD that will be converted into Bitcoin. Each exchange will have different deposit options to fund an account with money.
- 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.
- 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 Bitcoin. Browse the supported assets and choose Bitcoin (BTC). Use the funded account to choose an amount to spend. Finalize the transaction to receive Bitcoin.
For a step-by-step tutorial on buying Bitcoin with an Australian exchange, jump ahead to the full guide.
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Best Way 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. Below is a list of the best Bitcoin exchanges in Australia to consider based on HedgewithCrypto's reviews and comparisons.
|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|
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 Bitcoin. 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 altcoins: Bitcoin is widely available on the vast majority of digital currency platforms. However, if you are looking to purchase altcoins in addition to Bitcoin, check to make sure the platform offers other 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 Bitcoin exchange such as depositing AUD, withdrawing cash or Bitcoin 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 Bitcoin 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.
- 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.
- Bank transfer. Purchase Bitcoin via bank transfer (EFT) through NPP, PayID or POLi payments using a regulated Bitcoin 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.
- 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. For a full guide on how to buy Bitcoin with a cash deposit in Australia, read this article.
- Credit and 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.
- PayPal. 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 favor due to chargebacks and higher fees. For a guide on how to buy Bitcoin with PayPal in Australia, click here for a step-by-step tutorial.
- 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.
- AfterPay. 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.
- 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.
- SMSF account. Most exchanges in Australia allow customers to allocate digital currencies such as Bitcoin under a self-managed super fund. Bitcoin SMSFs are increasingly used as a vehicle to acquire digital assets to build retirement savings. For more information, read our guide on cryptocurrency SMSF in Australia.
- Altcoins. Exchanges allow users to convert altcoins such as Ethereum, Litecoin, Cardano and Tron into Bitcoin. The process for investors that want to buy Bitcoin using altcoins can be completed in a few steps. It involves transferring the altcoin to exchange and selling it for Bitcoin.
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 Bitcoin 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.
To protect any funds within a Bitcoin 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.
3. Deposit Funds In AUD
Finding an exchange that accepts local deposit methods using Australian Dollars is an important consideration. The majority of Bitcoin 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 exchange in Australia that allows Bitcoin purchases using a credit card.
4. 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 Bitcoin 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 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.
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.
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.
Any gains as a result of trading Bitcoin still need to be taxed under the capital gains tax (CGT) rules. Read our guide on Bitcoin tax in Australia for more information.
If you want to sell Bitcoin, the best way is to trade it on an Australian Bitcoin exchange for another coin or convert it back to Australian Dollars. The process of buying and selling Bitcoin in Australia is similar, instead of selecting the 'buy' button on an exchange, choose 'sell' and enter the number of Bitcoins to convert.
To conclude our article on buying 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 Bitcoin. If using a centralized exchange is not for you, an alternate method is to buy Bitcoin ETFs using traditional brokers in Australia.