Are you a beginner wondering how to buy Bitcoin in New Zealand but don't know where to start? If so, this guide will show you how to buy Bitcoin using some of the best exchanges as a step-by-step example. Each platform offers varying features, AUD deposit methods and trading fees which are important considerations when choosing a suitable exchange.
How To Buy Bitcoin In New Zealand (NZ)
To buy Bitcoin (BTC) in New Zealand, follow these simple steps:
- Compare and select a crypto exchange. Find and compare the best cryptocurrency exchanges that support NZD 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 in New Zealand include a bank transfer, wire transfer, debit card, credit card and PayPal. Existing crypto investors can also deposit altcoins or stablecoins (e.g. USDC, 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.
What Is Bitcoin? Quick Overview
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.
Is Bitcoin Worth Investing In?
Bitcoin has been referred to as the "best-performing asset of the last decade". Furthermore, according to research by Charlie Bilello from the firm Compound Capital Advisors, Bitcoin has produced an average annualized return of 230% which is more than 10 times higher than the second-ranked asset class. Bitcoin's extreme volatility has an upside because it can generate higher gains than the stock market, which is why investors are increasing their exposure with Bitcoin price predictions by industry experts exceeding more than $100,000 within the next 12 months.
Best Places To Buy Bitcoin In New Zealand
The best method to obtain Bitcoin is to use a trusted exchange for New Zealand that abides by the rules set by the Financial Markets Authority. Most exchanges in New Zealand offer Bitcoin which can be purchased with NZD using a bank account. The following exchanges are available to operate in NZ and have commonly accessible payment options.
Other Ways To Get Bitcoin With NZD
In New Zealand, there are several ways for residents to buy Bitcoin. Each method will comprise different risks and fees that must be considered before making any transaction to invest in Bitcoin with NZD.
- Buy Bitcoin using cash. 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. However, it can be a tricky process to complete and recommend a mobile phone wallet or laptop to verify the Bitcoin price and confirm the transaction.
- Use a peer-to-peer exchange. These websites were commonly used several years ago to buy Bitcoin before the emergence of centralized exchanges. Platforms such as Paxful connect willing buyers and sellers from all over the world. Paxful uses an escrow service to ensure the transaction is fulfilled by both parties. The Bitcoin is held by the website and released to the buyer once the payment method for the Bitcoin is verified.
- Trade-in a gift card. Several exchanges accept a wide variety of payment options 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. There are several websites that will accept an Amazon giftcard in exchange for Bitcoin.
- Use a Bitcoin ATM. Bitcoin automatic teller machines (ATMs) 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 ATMs that can be found using a service such as Coinatmradar.
What To Look For In A NZ Bitcoin Exchange?
With so many options available to choose an exchange in New Zealand, it can be a difficult task for beginners to know which cryptocurrency exchanges are suitable. Before you start to purchase 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 safe option knowing the platform will need to comply with local laws and regulations and have built up a solid reputation. There is also the option to contact the customer support team should any issues arise.
- Beginner-friendly & easy to use: Look for an exchange that allows quick and easy NZD deposits using an online version of the trading app. Some exchanges are designed as a cryptocurrency trading platform and should be avoided for users that want to buy Bitcoin using a simple interface and to hold for the long term.
- Deposit methods: Find an exchange that offers preferred deposit options such as bank transfers to a local bank account, credit card or debit card. Not all exchanges offer the same payment methods to deposit NZD 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, users that are searching for altcoins or Defi tokens will need to ensure there is a pairing against NZD or Bitcoin.
- 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 is 'bank-like' to protect funds that are stored on the exchange. Common security measures include offline hardware wallets for 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 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.
- 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 FAQs and How-To-Guides which is useful for beginners.
- Reviews: It is always good practice to conduct a thorough review of the exchange before using it. Read online exchange reviews, forum comments and posts on social media to find out what others thought about the platform. It can save time and money by choosing the right exchange.
Guide To Buying Bitcoin In New Zealand
1. Create An Account With An Exchange
The first step to making a Bitcoin purchase is to create an account with a cryptocurrency platform that is available in New Zealand and accepts NZD 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, and set a strong password, full name and phone number. Click "Agree" to the terms and conditions and hit "Create My Account".
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 New Zealand law. Before a wallet can be funded with NZD to deposit and withdraw funds, the account must be verified as per the rules set by the FMA.
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 NZD
Finding an exchange that accepts local deposit methods using New Zealand Dollars is an important requirement for the safe transfer of funds. A suitable method to fund a crypto exchange is to transfer funds using ANZ via a bank transfer, POLi payment or PayID. These deposit options are fast, secure and will be familiar to residents in New Zealand.
POLi connects to bank accounts and is processed instantly. PayID and bank transfers can take between 1 and 3 business days. Swyftx also supports Bitcoin purchases using a credit card.
5. Buy Bitcoin
Now that an account is verified and funded with NZD, the next step is to buy Bitcoin. To get started, click "Trade" on the left side bar. This will bring up the "Assets" list where the users can search and select Bitcoin to purchase. Select how much to spend and click "Instant Buy". The BTC amount will be purchased based on the current Bitcoin price and shown in the trade history. The number of Bitcoins will be stored on Swyftx and then transferred to an external wallet.
Where To Store Bitcoin In New Zealand
Users that buy and store Bitcoin on cryptocurrency exchanges are putting the ownership of the asset 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 and keep it in your possession.
Hardware wallets are small compact devices that store encrypted private keys that give access to Bitcoin or other assets. Access to Bitcoin can be recovered if the wallet is lost or stolen using a recovery phrase. We have assessed the best Bitcoin hardware wallets and recommend the Nano Ledger and Trezor wallets.
Frequently Asked Questions
Residents in New Zealand (NZ) can purchase Bitcoin using a variety of methods with NZD. The easiest way is to use a safe, regulated and licenced cryptocurrency exchanges to buy Bitcoin New Zealand. Users can also use global fiat to crypto exchanges such as Coinbase and Binance which allow deposits in New Zealand Dollars to convert into cryptocurrency.
Coinbase is supported in over 100 countries worldwide including residents in New Zealand to buy Bitcoin and other cryptocurrency coins. Users will need to complete ID verification before funding a Coinbase account with New Zealand Dollars (NZD) using a debit card, credit card or bank transfer.
To conclude our article on buying Bitcoin in NZ, it is important with any financial investment to make sure to do your own research and due diligence before depositing any funds to start buying BTC. Digital currencies such as Bitcoin can be highly volatile assets, so it's crucial to validate the exchange before using any financial service.