Skip to content
Carla Moretti
- Home
- /
- Australia & Crypto
- /
- Crypto Guides for Australians
- /
- How to buy crypto...
How to buy crypto in Australia: Tips for 2023
Carla Moretti
Cryptocurrency has attracted a lot of attention in recent years, and with its soaring prices, many people are looking to get involved. For those living in Australia, the process to buy crypto can seem daunting at first glance. But don’t worry – this guide will walk you through the process of how to buy crypto in Australia step-by-step, so you can get started with trading crypto as quickly and easily as possible.
Cryptocurrency, or crypto for short, is a type of digital currency that is based on a decentralized, distributed ledger called blockchain technology. Unlike traditional currencies, crypto is not regulated by any government or financial institution. Instead, it is powered by a network of computers that use cryptographic algorithms to verify transactions and secure the network.
Cryptocurrency has become increasingly popular due to its potential for high returns and its ability to be used for a wide range of purposes. Due to its ability to appreciate in value over time, it has also grown to be a popular asset among new or successful traders as well.
What is Cryptocurrency?
Remember, cryptocurrency is a form of digital currency that can be used to make payments, send money, and store value. It is based on a distributed ledger system, which is a database that is shared among a network of computers.
This ledger records the details of every transaction that takes place in the network and is secured by a cryptographic algorithm. All of the data stored on the ledger is public and can be accessed by anyone on the network.
Cryptocurrency is not regulated by any central authority or government, which means that its value is determined purely by its supply and demand. This makes it a highly volatile asset, and its prices can fluctuate rapidly. This can be a risk and opportunity at the same time when you trade Bitcoin, for example.
The Benefits of Using Cryptocurrency
Cryptocurrency offers several benefits over traditional currencies. For starters, it is often much faster and cheaper to send money with crypto than with traditional methods, as transactions are processed almost instantly and trading fees are much lower. Most of the larger EMIs and more prominent money transfer providers, such as Wise or Moneygram, already utilise blockchain and distributed ledger technology.
It is also secure, as the data stored on the distributed ledger is encrypted and cannot be tampered with or removed. The data will stay on the blockchain forever.
Potential for High Returns
Another benefit of using cryptocurrency is its potential for high returns. Due to its decentralized nature, it is not subject to the same regulations as traditional currencies or assets and can, therefore, increase in value much more quickly. This makes it an attractive asset for crypto investors, as it is much more likely to generate high returns over time.
How to Buy Cryptocurrency in Australia
If you’re interested in knowing how to buy crypto in Australia, the first step is to choose a broker or a reputable crypto exchange. This decision can be a bit overwhelming, especially for new crypto investors or crypto beginners, as there are many options to choose from. To make the process easier, keep the following factors in mind:
● Security: Make sure the crypto platform you choose has strong security measures in place to protect your personal information and your funds.
● Fees: Compare the fees charged by different crypto platforms to find the one that offers the best value for your money.
● Payment Methods: Consider the payment methods accepted by the platform and ensure that it supports the one that you prefer.
● User-friendliness: Look for a platform that is easy to use, with a user-friendly interface that makes it easy to navigate.
Once you’ve chosen a broker or crypto exchange, the next step is to create and verify your account. To create an account, you will need to provide some personal information and verify your identity. This process is usually quick and easy, and it’s an essential step to ensure the security of your account and your funds.
After your account is set up, you can deposit cash to invest in cryptocurrency. This can be done through various methods such as bank transfer, credit card, or debit card. The deposit process is usually fast and simple, and once your funds are in your account, you can start buying cryptocurrency.
Place Your Order
The next step is to place your cryptocurrency order. To do this, you will need to select the cryptocurrency you want to buy, the amount you want to purchase, and the price you’re willing to pay. If you wish to buy crypto through a broker, you can place a market order, which will be filled at the best available price. If you are going to buy crypto through Bitcoin exchanges, you will have the option of placing a limit order, which will only be filled at the price you set.
Regulations and Security
It’s important to note that cryptocurrency is not regulated by any central authority or government in Australia. This means that you are responsible for ensuring that you are complying with any applicable laws and regulations.
However, the Australian government has implemented regulations to ensure the safety and security of the cryptocurrency market. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has regulated crypto exchanges to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 200 (AML/CTF Act). This means that a cryptocurrency exchange is required to verify the identity of its customers and report any suspicious transactions to AUSTRAC.
They also have to keep records of transactions, which provides transparency and helps law enforcement agencies detect money laundering and terrorism financing activities. It’s also important to be aware of the security risks associated with crypto trading.
Cryptocurrency exchanges are vulnerable to hacking attempts, and in the past, there have been instances of exchanges being hacked and customers losing their funds. To ensure that you are using a secure cryptocurrency exchange, make sure to check whether the platform has been hacked in the past and whether they have robust security measures in place such as two-factor authentication, SSL encryption, and cold storage for their customers’ crypto assets.
Additionally, it’s essential to ensure that you are taking steps to protect your account, such as using two-factor authentication and strong passwords. Make sure to use a unique and complex password for your account, and avoid using the same password for multiple accounts.
Two-factor authentication (2FA) adds an extra layer of security by requiring a code from your mobile device or an app to gain access to your account.
Furthermore, it’s important to keep your computer and mobile device safe by using updated anti-virus software, and be wary of phishing attempts. Do not click on suspicious links or enter your personal information on unknown websites.
Selecting the Right Exchange
When selecting an exchange to buy Bitcoin in Australia, it’s important to consider several factors to ensure you are choosing the right one for your needs.
- Fees: One of the most important factors to consider is the fees charged by the exchange. These can vary significantly between different platforms, so it’s important to compare the fees of different exchanges to find the one that offers the best value for your money. Some exchanges charge a flat fee per trade, while others charge a percentage of the total amount traded. You must consider the platform fees when calculating your overall trading volume and costs.
- Payment Methods: Another factor to keep in mind here is the payment methods available on the exchange. Some exchanges only accept certain types of payments, such as bank transfers or credit card payments. It’s important to ensure that the exchange you choose supports the payment method you prefer. Some exchanges also have limits on the amount you can deposit or withdraw, so it’s important to check these limits before you start trading.
- Security: The security of your account is of the utmost importance when trading cryptocurrencies. It’s important to check the security measures in place, such as two-factor authentication, SSL encryption, and cold storage for assets. This will ensure that your account is as secure as possible and that your assets are protected.
- User Experience and Customer Service: It’s also a good idea to read reviews of the exchange to get an idea of the user experience and customer support offered. This will give you a better understanding of what to expect when using the exchange’s services. A good exchange should have a user-friendly interface, fast and reliable customer support, and a wide range of trading options.
Setting Up Your Account
Once you’ve selected the right exchange, you’ll need to set up your account. This usually involves providing some basic personal information and verifying your identity. You may also be required to verify your email address or phone number before you can start trading.
Once your account is set up, you’ll be able to buy cryptocurrency. You can buy crypto in Australia using a variety of payment methods, such as bank transfers, debit and credit cards, and PayPal. You may also be able to buy cryptocurrency using other alternative payment methods, such as Apple Pay.
Making Your First Purchase
After creating your account, you may begin purchasing crypto. Numerous payment options can be used to purchase cryptocurrencies in Australia, which we have already discussed above. Additionally, you might be able to purchase cryptocurrency using various alternate payment options like Apple Pay or Google Pay.
When making your purchase, you’ll need to specify the amount of crypto you’d like to buy and the type of currency you’d like to pay with. You’ll then be prompted to enter your payment information, such as your credit card or bank account details. Once you’ve completed the payment, you’ll be able to view your cryptocurrency balance in your account.
Storing Your Cryptocurrency
Once you’ve bought your crypto, you’ll need to find a secure place to store it. You can either store it on the exchange or in a dedicated crypto wallet to store your crypto holdings. If you decide to store it on the exchange, make sure that it is secure and that you are taking steps to protect your account, like two-factor authentication and strong passwords.
If you decide to use a cryptocurrency wallet instead, you’ll need to select one that is compatible with the type of cryptocurrency you are buying. There are many different types of wallets available, such as hardware wallets, desktop wallets, and mobile wallets. It’s important to select the right wallet for your needs and to make sure that it is secure.
Final Thoughts
Buying cryptocurrency in Australia is not as difficult as it may seem at first. By following this guide, you should be able to get started quickly and easily. Just remember to select the right exchange and take measures to protect your account. Once you’ve done that, you’ll be ready to start buying and trading cryptocurrency and taking advantage of its potential for high returns.
Our extensive analysis of the Australian Crypto Space doesn’t stop here. You can also check out our Guide on Crypto Mining in Australia if you are interested in acquiring crypto through mining.
FAQ
Most frequent questions and answers
Buying and selling cryptocurrency in Australia is legal. The Australian government and its regulatory bodies have recognized the increasing use and acceptance of digital assets and have developed a framework to regulate the industry. The Australian Transactions and Reporting Analysis Centre (AUSTRAC) is responsible for monitoring and regulating digital currency exchanges operating in the country to prevent money laundering and terrorist financing.
To comply with AUSTRAC regulations, cryptocurrency exchanges must register with the agency and implement know-your-customer (KYC) and anti-money laundering (AML) policies. Additionally, the Australian Securities and Investments Commission (ASIC) has issued guidelines for initial coin offerings (ICOs) and cryptocurrency investment schemes to protect consumers from fraud and mismanagement. As long as you abide by the regulations and laws set by the government, buying and selling cryptocurrency in Australia is legal.
Choosing the best cryptocurrency platform in Australia ultimately depends on personal preference and user experience. There are several reputable platforms available, each with its own unique features and benefits. CoinSpot is a popular choice among Australian users, offering a wide range of cryptocurrencies to buy and sell, as well as a user-friendly interface.
BTC Markets is another well-established platform that has been operating in the Australian market for several years and offers a variety of trading options. Independent Reserve is an Australian-based platform that is known for its high-security standards and low transaction fees. Other popular platforms in Australia include Binance, Kraken, and Coinbase.
Yes, several Australian cryptocurrency exchanges are available to buy Bitcoin and other currencies. Some of the most popular and well-established Australian crypto exchanges include CoinSpot, BTC Markets, and Independent Reserve. CoinSpot is a popular choice among Australian users, offering a wide range of cryptocurrencies to buy and sell. Another reputable site that has been active in the Australian market for a while is BTC Markets. An Australian-based trading platform with good security standards and affordable prices is Independent Reserve.
No, Cryptocurrency is not tax-free in Australia. The Australian Taxation Office (ATO) considers it to be a form of property and, therefore, subject to capital gains tax. This means that when you sell cryptocurrency, you will be required to pay tax on any profit you make.
Additionally, if you use cryptocurrency for personal or business transactions, you will be required to pay GST on the supply of goods or services. It is important to note that the tax laws related to cryptocurrency are constantly evolving, so you should stay updated with the latest ATO guidelines. It is also highly recommended to consult with a tax professional or accountant to ensure that you are compliant with all tax laws and regulations when buying, selling, or using cryptocurrency in Australia.
Choosing the best Bitcoin wallet in Australia ultimately to purchase Bitcoin depends on one’s preferences and needs. There are several reputable crypto wallets available, each with its own unique features and benefits. Some popular crypto wallets in Australia include Mycelium, Ledger Nano S, and Trezor. Mycelium is a mobile-based wallet that is user-friendly, offers a high level of security, and allows for integration with hardware wallets. Ledger Nano S is a hardware crypto wallet that offers offline storage for maximum security and supports multiple cryptocurrencies. Trezor is another popular hardware crypto wallet that is known for its high level of security and user-friendly interface.
Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.
To view our privacy policy read here.
