Carla Moretti
Carla Moretti
With almost two decades of experience in the fast-paced financial industry, Carla has established herself as a powerhouse and an innovative leader.
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    How to Buy NFTs in Australia? Complete Guide 2023

    How to buy NFTs in Australia

    Blockchain has gained a lot of popular acceptance over the years. A few years back when NFTs were new, it was a hard and cumbersome process to get a hold of one. Even if you found a way to get one, not many people wanted to buy NFTs because they were not a good form of investment.

    Today, NFTs are treated on par with real art, and many people consider them to be a great investment and store of value. It has never been easier to buy NFTs in Australia as most marketplaces and exchanges are now available in Australia.

    NFTs are the renaissance of the internet. Just as Europe transitioned from the middle ages to modern times, the internet and our technological lives are rapidly transitioning from Web 2.0 to Web 3.0. NFTs are an important part of it because, throughout history, the changes in art forms have symbolized the transformations humanity is constantly going through.

    Buying NFTs could not have been easier in today’s day and age. In this article, we’ll explain to you what NFTs are and how to buy NFTs in Australia. We’ll also talk about regulations, NFT marketplaces and some of the risks associated with buying NFTs so that you are fully informed before you make your decision.

    To make a sound investment in NFTs, digital art, and selecting from the available NFT projects, you first need to have a good understanding of what blockchain is, and how cryptocurrencies and NFTs are created on it. 

    What is Blockchain?

    What is a blockchain

    The blockchain is an immutable ledger. It’s the digital and decentralized version of a physical ledger that records transactions. It can be used to track the transfer of assets, goods, or information, among other things, from one person to another.

    The blockchain revolutionizes our understanding of digital data and information, empowering us to reclaim ownership over what we create. By design, it is a public ledger system that records transactions in chronological order without the need for a trusted third-party intermediary.

    Bitcoin was the first cryptocurrency to use blockchain technology. Bitcoin transactions are validated by miners who solve cryptographic puzzles and receive Bitcoins as a reward for their work.

    When a particular miner solves the puzzle, they update the blockchain and the computers on the Bitcoin network and then use this new information to complete Bitcoin transactions. This process is how Bitcoins are created fast enough for them to be used as currency on an exchange.

    In Proof-of-Work (PoW), the process that Bitcoin uses, miners compete to solve difficult math problems and get rewarded with cryptocurrency tokens for solving these problems successfully and securing the blockchain network against malicious actors like hackers or scammers.

    In Proof-of-Stake (PoS), in contrast, miners are chosen based on how many coins they hold instead of how much computing power they have, which reduces energy consumption while at the same time making it more expensive to attack the network because an attacker would need 51% of the stake in the network.

    The first non-fungible token, on NFT, was CryptoKitties which became popular in December 2017 because it allowed users to trade unique digital cats for ETH tokens on the Ethereum network.

    The game was later updated to allow for the ownership of “CryptoPets,” which are non-fungible tokens that represent a pet.

    How to Buy Cryptocurrencies Using AUD

    Before we tell you how to buy NFTs from an NFT marketplace in Australia, we’ll have to explain how to buy cryptocurrencies. And before you can buy cryptocurrencies, you will need to deposit AUD (Australian Dollars) in your account or digital wallet. This is because most exchanges only offer cryptocurrency trading pairs in BTC (Bitcoin) and ETH (Ethereum).

    To deposit AUD, you need to go to the “Deposit” section of the exchange and select which currency you want to deposit. For example, if you want to deposit USDC, then select USDC as your currency. If you want to deposit Bitcoin, on the other hand, then select BTC. After you have selected your currency on the deposit page, make sure to choose “Australian Dollar (AUD)”. Then click on “Deposit AUD”.

    The next part of the website will ask you to enter how much AUD you want to deposit. For example, if you want a AUD 1,000 deposit, select $1,000 on the drop-down menu and then hit “Deposit” to send the money. The system will then ask you for your cryptocurrency wallet address to send the cryptocurrency. After this, click “Submit” and your deposit should be processed.

    While there is no official list of other cryptocurrencies that can be bought directly through Australian Dollars, most exchanges allow the purchase of BTC and ETH as well as other mainstream cryptocurrencies like Ripple (XRP).

    What are Non-Fungible Tokens (NFTs)?

    NFTs in Metaverse

    Non-fungible tokens (NFTs) are unique and distinguishable assets on the blockchain. They’re fundamentally different from cryptocurrencies because there can be only one unique manifestation of a particular NFT. So, when you purchase NFTs, they’re always unique.

    They are protected by smart contracts and a unique digital signature that allows users to sell NFTs and buy NFTs from an NFT marketplace without the risk of being defrauded.

    NFTs are mostly used to represent digital art, but in recent times, especially with the inception of the Metaverse, they are used as representations of all sorts of real-world assets like cars and property.

    NFTs are also used in video games. There are a lot of video games currently in development that are playing around with the idea of having all in-game assets as purchasable NFTs. The games allow users to connect their digital wallets to trade NFTs.

    Can I Buy NFT through CoinSpot?

    CoinSpot NFT Marketplace

    CoinSpot is an exchange like Binance and Bittrex, and also offers an online crypto wallet. You can buy NFTs in Australia via CoinSpot.

    Note that when you buy NFTs from CoinSpot, you’ll be buying them priced in Australian Dollars. Make sure you have a wallet that lets you convert your AUD to whatever coin the NFTs are listed in.

    There are a lot of NFT bundles that are available only on CoinSpot. Users who don’t want to get too much into the details of NFTs may just choose to buy a CoinSpot NFT bundle to make a sound investment. Purchasing NFTs in Australia via a Coinspot NFT bundle is probably the easiest way to get started without having to browse through single NFTs on a NFT marketplace.

    Are NFTs Regulated in Australia?

    Because NFTs are blockchain-based assets, they are not regulated by the Australian Securities and Investment Commission (ASIC). This means that when you buy NFTs in Australia, it is not regulated in any form. Furthermore, NFTs are also not considered to be securities in Australia, so they are also not regulated by the Australian Securities and Investments Commission. NFT marketplaces are also not regulated in Oz yet.

    Note that this doesn’t mean that purchasing NFTs is unregulated, it just means that they don’t fall under the jurisdiction of ASIC or any other financial regulatory bodies in Australia. Even though the government is not regulating NFTs and their trade, you should still be careful when buying them.

    Be sure to do your research on the company behind the NFT, the product, and the viability of the token before you invest. To know how to buy NFTs in Australia, you also need to know which NFT marketplace you can go to.

    Where Do You Go to Buy NFTs?

    There is no central exchange for NFTs, so you need to choose a marketplace where you can buy them. There are plenty of NFT marketplaces from which you can check out your options. Note that you won’t be buying NFTs with Australian Dollars, but you will be using the currency that is used to buy the NFTs on that particular platform.

    You can buy and sell NFTs on the following marketplaces.

    OpenSea NFT Marketplace

    Opensea NFTs Marketplace Home Page

    OpenSea was created by Davin Finzer and Alex Atallah in 2017. At the time, there was no centralized ecosystem for NFTs, where artists and developers could come together and create and innovate upon the concept of NFTs.

    People were usually secluded in their own workspaces, and there was no good way for artists to connect with their audience.

    OpenSea has provided a platform that allows communities to thrive and invest in projects and NFT collections that they believe in. It allows creators to make money, and it enables celebrities and athletes to tap into the NFT market to provide products that users desire. OpenSea is based on the ethics of openness, inclusivity, and diversity.

    An average person can easily mint their own NFTs on OpenSea. Previously, the process was not that accessible, since the Proof-of-Work protocol on the Ethereum blockchain required users to make a considerable investment in the gas fees to mint their NFTs. Now, you can mint your NFT without paying any upfront gas fees. The gas fees are deducted on the first purchase when the NFT is actually minted on the blockchain.

    Rarible NFT Market

    Rarible NFTs Marketplace Home Page

    Rarible is the first NFT marketplace that is completely owned by the community. It was launched by Alexei Falin and Alex Salnikov in 2020. It currently supports Tezos, Polygon, Flow, and of course, Ethereum. Although most popular NFT platforms use only ERC-721 tokens, Rarible also supports ERC-1155 tokens. 

    Rarible functions on the Rarible protocol, which is an open-source, cross-chain project that provides an easy way to create and maintain decentralized applications. As for features, Rarible has a rankings page, which shows the rankings of the most popular NFT collections. There are also other pages for trending works, top sellers, and hot bids. 

    Rarible also promotes verified users on the platform, and usually, these verified users are shown with a yellow tick. Rarible is available in most countries including Australia.

    SuperRare NFT Market

    SuperRare NFTs Marketplace Home Page

    SuperRare prizes itself as “a community revolutionizing the economics of human creativity”. There is also a very strong statement on the SuperRare that says that it’s building an art market for the people, and “not elitist institutions or Web2 overlords”.

    The NFT marketplace empowers artists through the concept of royalties. Royalties are perpetually provided to artists. It allows users and artists independence by helping them to make instant payments and smart contracts. The platform also claims to be free from any censorship and exploitation.

    What is the Best Wallet to Buy NFTs?

    It depends on what you are buying your NFTs for. If you are buying NFTs to trade and make a profit, then you should get a wallet that allows you to trade easily. If you want to buy NFTs to use them to play games or buy digital assets, then you should get a wallet that allows you to easily interact with the digital assets.

    If you are buying NFTs to play games, then you will have a game client that you’ll need to use to play the game.

    You’ll also have to use the game client to interact with your NFTs. If you are buying NFTs to trade, you’ll need a wallet that allows you to easily exchange your currencies for other NFTs. You might want to get a wallet that lets you convert your AUD to another currency easily. Some of the best wallets currently in the market are MetaMask, Ledger Nano S, Math Wallet, Trust Wallet, and Coinbase.

    How to Get a MetaMask Wallet?

    • Download the Chrome Extension.
    • Create a password (it’s okay if you don’t remember this).
    • Create a seed phrase that you can use to restore your wallet in case it gets lost or stolen. This is important because if someone steals your MetaMask account, they’ll be able to access your funds without knowing what was used as the seed phrase. The easiest way to do this is by copying and pasting from an existing account on paper or in another text editor; then save it somewhere safe so that no one else finds it!

    Once all of these steps have been completed, connect your browser to https://www2.metamask.io/en/login and log in using the same email address and password from above (or create new ones!).

    How Do I Connect My MetaMask Wallet to the NFT Marketplace?

    • Import the wallet from the marketplace.
    • Connect to MetaMask.
    • Connect to the NFT marketplaces you want to buy from (e.g., The Abyss and CryptoKitties).
    • Go to any NFT shop you want, then click on your MetaMask wallet (it will open up another browser window), and select “Wallet.”
    • After selecting a wallet, go back into that same browser window where there are two links at the top of it: “My Ether Wallet” or “MetaMask”, depending on what platform you’re using! You’ll see one link for each one; click them both at once so they turn blue instead of grayish-blue like before! This means we’re ready now because everything has been set up correctly!
    • Click whichever option suits you best for buying some NFTs: whether it be buying/selling specific ones or just browsing around if there aren’t any particular ones available yet.

    Which NFT Marketplaces Can I Use with My MetaMask Wallet?

    Metamask NFTs Wallet

    If you are looking to buy NFTs in Australia, there are a few different ways of doing so. You can use a marketplace that is available in the country, or you can use one that accepts MetaMask. MetaMask can connect to almost all popular marketplaces including the ones that we mentioned earlier (OpenSea, Rarible, and SuperRare)

    The reason why we suggest MetaMask, apart from support and accessibility in most major marketplaces, is that it is an open-source software that is supported on most browsers while being easy to use with a highly user-friendly interface and design. You also have complete control of your private keys stored on your browser. The wallet can also be integrated with ledger devices.

    Are NFTs Tokens or Coins?

    Uncertain face expression

    To understand the difference between a coin and a token, you need to know that coins refer to fungible tokens. They have value because they can be used in transactions on the blockchain network. Examples of coins include Bitcoin and Ethereum.

    Fungible tokens are those that have fixed value based on their face value (such as USD). Coins do not have a fixed value; they change hands depending on how many people agree with their current price at any given time.

    For example: if you paid $10 for one Bitcoin yesterday but today it’s worth $100, then your total worth has increased by ten times. Because this type of asset has no intrinsic value other than its market price at any given point in time, it is considered non-fungible because there isn’t any way for two different units to be exactly alike – even though both were created from the same initial supply pool.

    What are the Risks of Buying NFTs?

    Now that you know how to buy NFTs in Australia, you just need to make sure that you understand the risks involved for those NFT purchases.

    In order to buy an NFT, you’re going to have to trust the seller. You might have heard of scams in the past where scammers would try and con buyers out of their money by pretending they had an NFT but didn’t actually. This is why it’s important that you understand what kind of risk there is before buying an NFT from someone on an exchange or elsewhere.

    There are three main risks: fraud, losing your NFT marketplace account and wallet password/private key, and losing your seed (a secret phrase used when generating a new wallet).

    The Future of NFTs and the Blockchain

    The world is changing rapidly, and at the head of the financial change is the blockchain. You are most probably aware of the financial meltdown that the world experienced back in 2008 when the housing market bubble burst.

    Although the bankrupt banks and institutes were bailed out by the government, the common people suffered the most. It was that day that the traditional financial system lost the trust of the people, and it was the reason why the blockchain came into being.

    We have seen the history of cryptocurrency unfold with the birth of Bitcoin and the subsequent second awakening brought on by Ethereum. Following them, dozens of blockchains with hundreds of blockchain solutions have sprung into existence. As the world transitions to Web 3.0, it has become an accepted reality that blockchain is the common future. And a part of that future is NFTs.

    Since the cryptocurrency and NFT market has not fully matured yet, it experiences a lot of deviation in the bull and bear cycles, which leads people to believe that it is not a smart choice to invest in cryptocurrencies and NFTs. You are obviously going to hear stories like that of Logan Paul, who bought an NFT a year ago for $623,000, which is now worth $10.

    There are always going to be bad investments like these by which you cannot judge an entire market. There are so many cases of stocks and companies going bankrupt, and their value falling to 0, and yet people still invest in the stock markets. We believe that the future of NFTs and blockchain is bright, and it is still not too late to jump on the trend.

    Still, when you purchase NFTs and put them in your crypto wallet, you hold assets which, if you did your own research, hold intrinsic value and which might be in demand at a later stage.

    Our extensive analysis of the Australian Crypto Space doesn’t stop here. You can also check out our guide on Crypto Taxation in Australia.

    FAQ

    Most frequent questions and answers

    Yes, like crypto, NFT is taxed as capital gains or business income in Australia.

    Yes, you can sell a NFT anywhere in Australia using the NFTs Marketplaces listed in this guide.

    NFT can be bought and sold on any NFT marketplace, including OpenSea and Rarible.

    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency 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. This post includes affiliate links with our partners who may compensate us. 

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