How to Buy Bitcoin in Australia

How to buy Bitcoin in Australia?

Bitcoin is a decentralised digital cryptocurrency not issued under the authority of a government. However, there are a few different ways to purchase Bitcoin in Australia. These include buying from a Bitcoin broker, a Bitcoin exchange or a peer-to-peer exchange. Of course, all information here will apply to most major cryptocurrencies as well.

Bitcoin broker

A cryptocurrency broker is the same as any other investment broker, and they are often more user friendly for those new to the sector. The platform acts as a middleman, and users can buy and sell a variety of cryptocurrencies, including Bitcoin, using fiat currencies.

Bitcoin exchange

Cryptocurrency exchanges allow you to buy and sell Bitcoin, and they hold your funds for you. On the downside, if you wish to withdraw your digital assets, you are subject to any policies and fees required by your exchange, and they are more complex for those new to the space. However, the exchange will help you with security — storing private keys, for example — and technical issues.

Peer-to-peer

P2P is often used by investors who value the privacy crypto can offer, as not all peer-to-peer exchanges require you to disclose your identity. Be careful with P2P, however, and make sure that your seller has a good reputation, as it is much easier to get scammed with this method.

Here's a quick look at how to get started with cryptocurrency investing:

1. Pick your platform — Start by selecting a platform to purchase Bitcoin. There are various options available in Australia, each with different associated fees. Researching and comparing platforms is key to selecting the features that will best suit your personal situation. Some popular options include the crypto brokerages eToro and Binance, and the exchange Coinbase. Binance also offers P2P.
2. Register your account — Register your account with your chosen platform. Typically, creating your account will involve verifying your email address and identity.
3. Determine and deposit your funds — After verifying your account, navigate to the "buy," "trade" or "purchase" section of the website or app. You can select from a range of payment methods to begin depositing funds, including bank transfer, debit card and credit card. It's worth noting that there can be extra fees for using a credit card.
4. Finalise your purchase — Verify your details and complete your purchase. Congratulations — you've purchased Bitcoin! Your crypto will typically be sent to your account.

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How to safely hold Bitcoin in Australia?

After making a Bitcoin purchase, you will need to store your funds in a "wallet." Buyers have a few choices:

Hold on a crypto platform

If setting up a specialized crypto wallet is too much of a hassle for you, it's possible to store cryptocurrencies in a wallet connected to the same platform from which you bought the coins.

This option isn't usually recommended by crypto experts, as it means you as the coin owner don’t control the wallet's private key — meaning you don't completely own your cryptocurrency. It also makes Bitcoin holders a target for thieves, and since Bitcoin is a decentralised currency, there is little hope of recovering it once it’s stolen.

Use a digital crypto wallet

In Australia alone, there are many cryptocurrency wallets on the market. A crypto wallet is a software program that allows users to store and make transactions with cryptocurrencies like Bitcoin.

A crypto wallet has a private key that enables the owner to access their stored funds; it also has a public key that functions like a bank account number, enabling other people to send digital funds to the wallet.

Use a hardware wallet

Sometimes called "cold storage," a hardware wallet stores cryptocurrencies completely off the internet. These devices look like and function similarly to a USB stick, and are used to store users' private keys for Bitcoin.

In order to trade cryptocurrencies held in a hardware wallet, owners must move the coins to an exchange, which comes with some security risks.

If your wallet is held in an internet-enabled device like a cell phone, it is known as a “hot wallet.” A hot wallet offers ease-of-use, but is not as secure as a cold wallet. Consider your needs, and take security precautions, when choosing if you would like to use a hot wallet versus a cold wallet.

What are the steps for selling Bitcoin in Australia?

Bitcoin is a compelling purchase, but eventually, all investments reach an end.

When it's time to cash out, you must first decide whether you want to sell your Bitcoins for fiat money (such as Australian dollars) or trade them for another cryptocurrency. Here's how the process can be completed:

1. Log in to your account on your preferred cryptocurrency platform.
2. Deposit your Bitcoins into your cryptocurrency account.
3. Select the amount to sell and finalise the process.
4. Either withdraw your Australian dollars or transfer your new digital currency into your crypto wallet.

Alternatively, if you have a large amount of Bitcoin to trade or sell, you can use one of the around 600 bitcoin ATMs around Australia to quickly make the change to cold, hard cash.

For more on Bitcoin in Australia, click the link below:

• Bitcoin Investing in Australia