To help you get started with the digital currency era, this guide will provide useful information on how to buy in cryptocurrency in Australia. Some exchanges do require a wallet before you can buy cryptocurrency. If you don't have a wallet, read our guide on the best Bitcoin hardware wallets.
How To Buy Cryptocurrency In Australia
To buy cryptocurrency in Australia using an exchange, follow these steps:
- Register for an account with an Australian cryptocurrency exchange such as Swyftx
- Complete the signup registration process
- Verify your email address
- Choose a preferred payment method and deposit AUD into the account
- Navigate to the 'Trade' link
- Select a cryptocurrency to buy and enter the amount in AUD to buy
- Confirm the transaction details and confirm your purchase
Cryptocurrency Exchange Reviews
There are several cryptocurrency exchanges in Australia to buy altcoins. Each exchange offers a slightly different user experience with varying functionality, trading fee's, deposit methods and customer service. To make it a little easier for you, we have assessed and rated each exchange based on the above criteria.
For further information, use the links below or browse the Exchange Category.
What Is Cryptocurrency?
Cryptocurrency is a digital, internet-based asset designed to work as a medium of exchange that uses strong cryptography to facilitate secure financial transactions, control the creation of additional units and verify the transfer of digital assets.
Cryptocurrencies leverage blockchain technology that uses a decentralized and transparent system, as opposed to centralized digital currency, often referred to as ‘fiat’ that are controlled by central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology that serves as a public financial transaction database.
What Was The First Cryptocurrency?
The first cryptocurrency was Bitcoin, which was invented in 2008 by Satoshi Nakamoto. It was his vision to provide the people an alternative financial system where it is easier to transfer funds directly between two parties in a transaction, without the need for a trusted third party such as a bank or credit card company.
Bitcoin was designed as a peer to peer electronic cash system, or to put it simply a a medium of exchange to allow for the secure payments of online transactions.
Investing In Cryptocurrency
Australians that are considering investing into cryptocurrencies such as Bitcoin, Ethereum or XRP should be viewed just like any other financial product. That is, trading and investing in cryptocurrencies involves substantial risk of losing your capital and is not suitable for every investor.
It is possible to make a lot of money investing in cryptocurrencies if you pick the right one and at the right time. But there are also many risks to be cautious of before you decide to invest in crypto.
Which Cryptocurrency Should I Buy?
For beginners this might be the first question that comes to mind when deciding to get started in cryptocurrency. You want to invest in something that you believe in and that you have researched and feel comfortable investing in.
We have published useful guides on how to buy the popular cryptocurrencies to help get you started by clicking the 'Learn More' button below. Remember, before you make an investment make sure you do your own research into the coin.
Each coin provides a different purpose and application using blockchain technology. Crypto coins other than Bitcoin are generally known as 'altcoins'. At the time of writing, the Bitcoin market dominance in the currently sitting at 70%. This means currently investors prefer to buy Bitcoin compared to other cryptocurrencies coins.
Is It Legal To Invest In Cryptocurrency In Australia?
Cryptocurrency is considered by the Australian Government to be a form of property and therefore an asset for capital gains tax purposes. If you are involved in acquiring or disposing of cryptocurrency, then it is subject to tax implications. Australians should be aware the following cryptocurrency activities are deemed to be taxable events:
- Cryptocurrency trading (the process of selling one crypto for another)
- Selling crypto back to Australian Dollars
- Giving cryptocurrency as a gift to a friend or family
- Receiving cryptocurrency as earnings (e.g. crypto mining)
- Purchasing goods and services with cryptocurrency
If you want to know more, read our article on the top 10 FAQ’s On Crypto Tax In Australia.
Can I Trade Cryptocurrency In Australia
There are several cryptocurrency trading exchanges that are available for traders that reside in Australian to create an account and speculate on the prices of cryptocurrency assets.
Trading can be very profitable if you have the right skill set, discipline and risk management. In a single day, the BTC price can fluctuate well beyond your risk appetite and cause investors to lose more than their original investment.
While the popularity of cryptocurrencies are increasing, investors should be aware of these risks. The golden rule of trading is that you should never risk more than 5% of your capital on a single trade.
How To Track Cryptocurrency Portfolio?
If you're a cryptocurrency investor or trader, keeping track of your cryptocurrency assets can across multiple exchanges be a real pain. Especially when it comes to tax time and having to declare a crypto capital gains report.
When it comes to declaring profit and losses for taxes, there are crypto tax software applications online to track all your trades across multiple exchanges. Each software can assist you to calculate your profit and loss to meet your tax obligations.
A few of the best crypto tax software tools are:
We hope this guide was useful for residents in Australia that want to know the answer on how to buy cryptocurrency in Australia.
With any financial investment, do make sure to do your own research and due diligence on the crypto currency and read reviews on the crypto exchange before depositing funds. And if you haven't already, we suggest that you purchase a cryptocurrency hardware wallet first to store your investment.
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