Recently, cryptocurrency adoption in Australia has been on the rise. This follows a new approach that the government has taken towards it. Bitcoin is one of the crypto coins that have enjoyed a massive adoption in Australia lately. The adoption of virtual currencies in the country was previously hampered by factors such as double taxation.
The value of Bitcoin is highly dependent on the investors' faith. It also depends on its integration into the existing financial markets and the general public's interest in using it. Bitcoin's performance has also been the best compared to some other virtual coins in Australia.
However, it is essential to note that investing in the crypto coin still involves dealing with specific technical and security issues. A good investor should be aware of all these factors before getting into the field. Any investor who wants to buy Bitcoins or other crypto assets should first look for a place to keep them. Crypto storage is known as a digital wallet.
As would be explained later in the article, buying the crypto is achieved through various simple steps. The buyer would need to link the wallet to a credit card, debit card, or a bank account. Investors would then join an online marketplace or a crypto exchange to trade the crypto assets of their choice.
Before Buying
As a Bitcoin investor you would need certain things to get this virtual coin. You will first need a digital wallet and personal identification documents. In addition to that, you will also need a payment method, a secure Internet connection, and an account at a crypto exchange. There are valid payment methods, including debit cards, bank accounts, and credit cards. It is also possible to get Bitcoin at Peer-to-Peer exchanges and other specialised exchanges.
Buying Bitcoin using credit or debit cards has continued to spread in most of the world markets. In Australia, it is easy to buy cryptocurrencies like Bitcoin through credit or debit cards. The significant advances in modern technology have made this a possibility. It is, however, essential to note that some credit card companies may not allow crypto purchases. Some credit card companies might even block the transactions.
On the other hand, certain financial organisations process crypto purchases as cash advances. This action could prove to be so expensive. There are things that a crypto trader should do before buying the coins using a credit card. One of them is to check if the credit card company accepts such transactions. It is imperative to understand the fees that usually accompany this. These steps are crucial for anyone who wants to acquire Bitcoin using a credit or a debit card.
Banking
To buy Bitcoin, you will need to connect the crypto wallet to a credit card, debit card, or a bank account. All these methods of payment just perform the same function. Their main work is to exchange the traditional currency for the crypto, such as BTC. However, they each come with different fees.
Bank account transactions can take up to five days in many crypto exchanges operating in Australia. Therefore, this method of payment is only recommended to first time Bitcoin traders. By linking a bank account to a wallet, it becomes easy to buy and sell BTC and deposit it into the account. Bank accounts are also the best options for those who are handling large sums of cash.
But with credit and debit cards, users can buy Bitcoins just instantly. However, the limits on cards can be lower and you are more likely to be charged fees.
Wallets
A crypto wallet is where the cryptocurrencies can be safely and securely stored. It is important to note that Bitcoin wallets do not necessarily hold Bitcoins. Instead, they store private keys, which is the public Bitcoin address. Without the Bitcoin address, one can never carry out any transaction.
If you want control of your crypto then after buying you will want to transfer it from the exchange your personal wallet
There are several options to pick from, depending on your preference. They include:
- Desktop wallets – Electrum and Exodus are the best examples of desktop wallets. These crypto wallets can be easily downloaded to your computer or laptop and can keep the private key on the hard drive.
- Mobile Wallets – An excellent example of mobile wallets include Coinjar Mobile App. With a mobile wallet, you will manage the Bitcoins from any kind of device – Android or iOS.
- Hardware Wallets – Hardware wallets provide users with offline storage for all the private keys. They mainly include Ledger Nano S and Trezor.
Selecting a Crypto Exchange
The next thing to do after setting up a crypto wallet would be to select a crypto exchange. The Bitcoin exchanges are the online marketplaces where Bitcoin can be traded for traditional currencies.
There are a vast number of platforms in Australia that you can pick from if you want to buy cryptos. The platforms are, however, subdivided into three main groups:
Trading Platforms
These trading platforms also provide a means of buying virtual coins by trading many digital currencies. A number of them offer lower fees and give you access to a huge variety of cryptocurrencies.
Bitcoin Brokers
Bitcoin brokers offer not only the quickest but also the simplest way to buy Bitcoins. They allow the user to buyusing fiat currencies such as the Australian Dollars (AUD). On top of this, bitcoin brokers also provide a user-friendly platform that allows you to buy BTC using standard methods of payments such as credit or debit cards. However, these Bitcoin brokers usually charge higher fees as compared to other available options. Coinbase and CoinSpot are the two most popular Bitcoin brokers that serve the Australian market.
Cryptocurrency (Bitcoin) Exchanges in Australia
We have listed below some of the more popular Exchanges for Australian residents
eToro
On eToro, Cryptocurrencies are offered as CFDs for users in Australia
eToro is one of the most popular crypto exchanges and trading platforms in Australia. It supports coins such as Zcash, Litecoin, Ethereum, and Bitcoin. Allowing traders to make deposits through bank transfer, NETELLER, and SEPA. Deposits can also be made through online payment options such as PayPal. It also boasts of great trading features such as copy trading. The interface is not only clean but also easy to use. eToro is a trusted crypto exchange that has helped in the traditional finance market.
Coinmama
Coinmama is another crypto exchange that operates in Australia. Coinmama charges between 4.9 to 5.9% fee on each of the purchases made on the site. However, the percentage will depend on the volume of transactions. The customers also have an opportunity to buy BTC using SEPA transfer that has relatively low fees. Australian traders love this exchange because it is a trusted and reliable broker. It also has the highest limits for those who are purchasing BTC through a credit card.
Kraken
Kraken was established mid-2011. In terms of the daily average trading volume, Kraken is the largest crypto exchange in Europe. That explains why it has a large presence in Australia. Its taker fee is at 0.25%, but, at times, falls as low as 0.1%. It also has sufficient trading volume for its customers. When it comes to data protection and security, Kraken is highly rated.
CoinJar
CoinJar has been in operation since 2013. It provides its Australian customers with an easy means of purchasing, selling, storing, and spending the crypto coins, especially Bitcoin. It also has Android and iOS applications, and with these, it becomes so easy to trade the coins on the go.
For the professional traders, there is CoinJar OTC and CoinJar Exchange. One of the reasons why CoinJar is rated at a top position is because of its low fees. It charges just 1%. For the first time traders, the site’s clean interface makes everything works. It also has instant bank transfer with PayID/Osko/NPP.
CoinSpot
Having been formed in 2013, CoinSpot is one of the most popular cryptos and Bitcoin exchange platform in Australia. The exchange offers an easy-to-use interface, accompanied with loads of great features. Bitcoin traders can deposit through BPAY, PayID, POLi, direct deposit, and cash transfer. Apart from supporting automatic recurring purchases, the exchange accommodates various crypto coins. Customer support is available at all times. With a trusted reputation, CoinSpot charges low fees to its Australian customers. Affordability is one of the features that have kept it ahead of the others.
LocalBitcoins
Apart from enabling Australian crypto traders to use their credit or debit cards, this escrow service performs other significant services. It assists in matching Bitcoin sellers and buyers. Users also get an opportunity to advertise trades for the kind of payment option that they prefer. LocalBitcoins has the most private and fastest means of purchasing BTC in Australia. It is fully facilitated and secured by the exchange. This exchange is easy to use, fast and can be private. The in-person trades offered on the exchange also do not need personal information.
CoinCorner
CoinCorner is a Bitcoin exchange that caters to the crypto traders in Australia. It is mostly suitable for first-time buyers. Users of this crypto exchange may buy BTC with credit or debit cards, among other methods. For purchases that are below the 100-Euro mark, no verification will be needed. It is a fully regulated company and trusted by users across Australia. It has excellent customer support and multi-sig security features. Customers will also enjoy video tutorials discussing the basics of BTC and trading the coin. Credit card purchases are permitted instantly.
Coin Loft
Coin Loft is another leading Bitcoin broker in Australia. It gives the crypto traders opportunity to buy their crypto coins through several means. Key among them includes the use of credit card, cash deposit, POLi, and Flexepin. It has been in the market for quite some time, which affirms its trustworthiness in trading the virtual assets. Coin Loft is also the only Australian Bitcoin broker that accepts Flexepin mode of payment. For credit card purchases on the exchange, the cumulative fee is 9%. Cash transfers will, however, cost the traders 4%.
Summary
If you are thinking of getting into the fast-growing Bitcoin market, it is essential to also think of how you'll be storing them. The means of storage should be secure. It is recommended that you shouldn't keep the coins in a crypto exchange. The best way to keep them would be in a digital wallet. All cryptocurrency exchanges in Australia are under the purview of the Austrac – Australian Transaction Reports & Analysis Centre. This is the financial intelligence agency operating in the country.
