How to Buy Bitcoin and other Cryptocurrencies in Australia
So you’ve heard all the buzz about Bitcoin and cryptocurrencies and it is starting to seem like it isn’t going away, huh? Well, there is no time like the present to dip your toes in and hedge your bets before you miss the boat entirely, just in case prices keep heading north over the long-term. This article will show you how to buy Bitcoin in Australia (and around the World) – It’s easy!
It may seem mysterious, but it is actually very easy to buy Bitcoin and other cryptocurrencies these days with a plethora of crypto exchanges around on the web. This article is going to be more geared towards Australians. As a lot of the big US-based exchanges aren’t as friendly for us Aussies should you want to actually sell your holdings and cash out in the future.
What is a Cryptocurrency Exchange?
A Cryptocurrency exchange is a digital marketplace whose business facilitates the trade of cryptocurrency assets for its customers. These can be from fiat currency (your Country’s regular form of money) to cryptocurrency or from one cryptocurrency to another or from any other digital asset that they choose to make available on their exchange.
What exchange is best for Australians?
There are a few, but the most common and simplest for beginners is generally considered to be CoinSpot.com.au. Note that this is a referral link. If you decide to register and buy some cryptocurrency of your own, by simply using this link we will both receive a $10 gift of Bitcoin when your first deposit is completed. There is no additional cost to you in doing so; it is just a bonus for getting started.
CoinSpot is generally considered the best place for Australians to get into Bitcoin and cryptocurrencies because it offers a simple and friendly user experience that isn’t too technical or intimidating – like some more advanced exchanges that you may decide to use later if you want to get more into frequent and advanced trading strategies.
What do I need to do to get setup?
Firstly, you need to register your account. Keep in mind that as you are dealing with a financial asset, the sign up process does require a bit more personal information than you may be used to giving. As there are compliance and potential taxation implications involved, these exchanges need to keep and report adequate details about their customers to financial authorities and to do so must know enough about you. It may seem cumbersome at first, but it is for your own safety and the compliance of the platform. Remember that everyone else has had to go through the same process to be allowed to trade and this helps to keep things secure.
Once you have created your account and had your details verified you can deposit some funds from your bank account either via BPAY or direct deposit. Once the funds have reached your CoinSpot account, you can simply choose to “Buy” whatever takes your fancy. Note that there will be transaction costs on each purchase or sale as the exchange essentially works as a broker for you, similarly to buying stocks on the stock exchange, so avoid making repetitive small purchases in order to avoid paying unnecessary fees if you can.
What about other popular exchanges like Coinbase?
There is no shortage of exchanges on the internet, each with their positives and negatives. For Australians, the big problem with a lot of foreign exchanges like the US-based Coinbase is that they will allow you to sign up and purchase Bitcoin and a few other cryptos, but will not allow you to sell back to cash and deposit this back into your Australian bank account. In order to get your money back, you’ll need to send your crypto to your wallet on another exchange that facilitates selling in Australia (like CoinSpot) and then sell it there. This carries the additional time cost of waiting for the exchange to process the transfer and the risk of sending it to the wrong place.
There is a lot to learn about Bitcoin and cryptocurrencies and whether or not you believe in the technology or its chances of taking over from the payment systems we use today, it doesn’t hurt to have a little bit of the pie in your name just in case that forward-thinking approach does pay off for you one day.
Disclaimer: Only buy digital currencies like Bitcoin at your own risk. Like any asset class, prices can very and no one can guarantee your success. This article is only to guide you in the direction if you are curious in getting started, but does not advocate for or take responsibility for any financial decisions you make for yourself. All exchange links are referrals that will credit both you and the author with some Bitcoin at no additional cost to you. This article purely shows how to buy Bitcoin in Australia but the choice is yours.