Are you a beginner wondering how to buy Ethereum in New Zealand but don't know where to start? If so, this guide will show you how to buy ETH using the best crypto exchanges for New Zealand based on our research. Each platform offers varying features, NZD deposit methods and trading fees which are important considerations when choosing a suitable trading platform.
What Is Ethereum?
Ethereum is a cryptocurrency that utilizes innovative blockchain technology that operates on a decentralized network. It is one of the most popular and secure networks in the world that can be used as digital money or to allow applications to be built upon for real-world use cases. Ether (ETH) is the native digital currency of the Ethereum network that can be transacted as money or held as a store of value. Ethereum 2.0 is also a popular staking coin to lock away Ether and earn rewards.
Is Ethereum Legal In New Zealand?
According to the Financial Markets Authority (FMA) of New Zealand, cryptocurrencies such as Ethereum (ETH) are not regulated however can be legally purchased using an approved exchange. Crypto exchanges that allow individuals to buy and sell Ether must be registered on the Financial Service Providers Register (FSPR).
How To Buy Ethereum In New Zealand (NZ)
To purchase Ethereum (ETH) in New Zealand using local NZD currency, follow these steps:
- Create an account with Swyftx NZ
- Complete identity verification
- Activate 2 Factor Authentication
- Deposit funds in NZD
- Select Ether and click on 'buy'
- Enter the amount of ETH to buy
- Review and complete the Ethereum trade
Where To Obtain Ethereum In New Zealand
The best method to obtain Ethereum is to use a trusted exchange for New Zealand that abides by the rules set by the FMA. Most exchanges in New Zealand offer Ethers 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.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|$20 Bitcoin for creating a verified account||Visit Swyftx||Swyftx Review|
|$10 Bitcoin for creating a verified account||Visit Digital Surge||Digital Surge Review|
|$10 bonus after first purchase||Visit Easy Crypto||Easy Crypto Review|
|$10 BTC for creating a verified account||Visit Independen...||Independent Reserve Review|
Guide To Buying Ethereum In New Zealand
1. Create An Account With An Exchange
The first step to making an Ether purchase is to create an account with a cryptocurrency platform supported in New Zealand. Swyftx is our recommended crypto platform that supports trading with NZD that we will use in this example.
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".
2. Complete Identity Verification
Once an account has been created, the next step is to commence the ID verification process as per the Know Your Customer (KYC) and Counter-Terrorism Financing (CTF) regulations under NZ law. Before a wallet can be funded with NZ to deposit and withdraw funds, the account must be verified.
Using Swyftx as our 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 and 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 before depositing fiat currencies.
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 to buy Ethereum that accepts local deposit methods using New Zealand Dollars is an important consideration. 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 crypto purchases using a credit card, however, the fees are too high and are not recommended.
5. Buy Ethereum
Now that an account has been verified and funds have been deposited, the next step is to buy Ether. To get started, click "Trade" on the left side bar. This will bring up the "Assets" list where you can search and select Ethereum. At the top of the window, ensure that NZD is selected as the base currency,
Enter how much NZD to spend and click "Instant Buy". The amount of Ethereum will be purchased, shown in the trade history and stored in the ETH wallet.
Ways To Convert NZD into ETH
In New Zealand, there are several ways for residents to buy Ethereum. Each method has different risks and fees that must be considered before making any transaction to invest in ETH with NZD.
Use A Cryptocurrency Exchange
Crypto exchanges are online websites or trading apps that are accessible to individuals using an internet connection. These platforms are highly regulated and allow users to deposit funds in NZD that can be converted into Ethereum and other coins and tokens.
Using an exchange to buy ETH will require ID verification to comply with New Zealand laws and regulations. However, users can view the current price of Ether using a chart to find the optimal price to buy. It is also recommended to use a NZ-based crypto exchange which can have several benefits such as local customer support that is available 24/7 and via phone number.
Pros of using an exchange
- New Zealand exchanges must comply with AML/CTF reporting obligations which are enforced by FMA
- Buy/sell Ethereum directly to the exchange using New Zealand Dollars
- Supports local methods to deposit NZD such as POLi, PayID and BPAY
- Local customer support service that is easier to get in touch with
Cons of using an exchange
- Will need to submit identification documents to prove identity before making a purchase
- New Zealand exchanges can have lower liquidity compared to overseas exchanges meaning spreads can be higher
- Innovative products and services offered on global exchanges are not available on New Zealand exchanges
Buy Using Cash In Hand
Swap cash for Ether with a trusted friend or family member who is willing to buy and sell the digital currency. The benefit of getting Ethereum 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 Ethereum price and confirm the transaction which only takes a few minutes to complete.
Use a Peer To Peer Exchange
Peer to Peer (P2P) exchanges was commonly used several years ago to buy and sell digital assets 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 Ethereum is held by the website and released to the buyer once the payment method is verified.
How To Find An Ethereum Exchange In NZ
With so many options available to choose an exchange in New Zealand, it can be a difficult task for beginners to know which Ethereum exchanges are suitable. Before you start to purchase ETH, 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 Ethereum using a simple interface and to hold for the long term.
- Deposit methods: Find an exchange that offers a preferred deposit option such as bank transfers using a local bank account, wire transfer for international payments or credit/debit cards. 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: Ethereum is widely available on digital currency platforms. However, users that are searching for altcoins or Defi tokens will need to ensure there is a pairing against NZD or ETH that can be converted between quickly.
- Staking: With the upgrade of the Ethereum network to a Proof-of-Stake protocol, exchanges that support Ethereum 2.0 staking are beneficial to earn staking rewards. Investors that want to earn passive staking income will need to use a supported exchange.
- 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 offline hardware wallets for storage, multi-signature withdrawal process and 2 factor authentication. Alternatively, the best method to store ETH in New Zealand is to withdraw to a reputable Ethereum wallet.
- 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: It is always good practice to conduct a thorough review of the exchange before using it to purchase Ethereum. 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.
To conclude our article on buying Ethereum in NZ, it is important with any financial investment to do your own research and due diligence before depositing any funds before buying Ether. Cryptocurrencies such as ETH can be highly volatile assets, so it's crucial to validate the exchange before using any financial service.