As interest in Bitcoin surges across the world, many countries are now allowing their citizens to buy and hold the digital asset. In this guide, we will demonstrate how to acquire Bitcoin in Australia and discuss which wallets to store it.
Ways of Buying BTC in Australia
There are numerous ways you can use to buy Bitcoin in Australia. The most popular one is through cryptocurrency exchanges. These trading platforms allow Australians to use their fiat balances to purchase crypto by connecting their credit/debit cards or bank accounts.
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Also, you can convert your cash to BTC using a Bitcoin ATM. But how do you locate such ATMs in Australia? Simple! Go to Coinatmradar.com to discover a Bitcoin ATM near you. As of July 2024, there are over 250 Bitcoin ATMs in Australia, most of which are found in Melbourne and Sydney. Besides Bitcoin, these ATMs allow Australians to buy other cryptocurrencies like Ethereum, XRP, Dogecoin, and Litecoin.
Another common way of acquiring Bitcoin in Australia is through peer-to-peer (P2P) exchanges. A P2P trading platform enables crypto users to trade with each other without the involvement of centralized entities like banks. Notably, these platforms tend to have deeper liquidity than conventional crypto exchanges and facilitate trading at lower costs.
Lastly, Australians who wish to buy Bitcoin in large amounts can do so through over-the-counter trading. This method is popular among institutional investors and wealthy individuals.
Trading BTC on an Exchange in Australia
To trade Bitcoin in Australia, you need to follow these key steps:
1. Pick an Exchange
While several crypto exchanges have secured licenses to operate in Australia, not all suit your trading needs. To find a suitable one, consider factors like trading fees and digital assets offered on each exchange.
2. Create an Account
Once you pick your ideal centralized exchange, begin the registration process. You are likely to be asked to provide details like your email/phone number and country of residence. Remember to set up two-factor authentication to protect your newly created exchange account.
3. Complete KYC
This step involves verifying your identity. Australian regulators require all exchanges to implement the Know Your Customer process to help curb illegal financial activities. That said, you will be required to upload your proof of residence and a government-issued identification document.
4. Deposit Funds
Once you become a verified exchange user, you can use any of the supported payment methods to fund your account. After that, go to the spot market to purchase Bitcoin. You can place a buy order using different types of orders, such as market and limit orders. When your order is executed, you will receive Bitcoin in your spot wallet within a few seconds.
Australian Crypto Exchanges
Are there crypto exchanges in Australia launched by local entrepreneurs? Yes! Several Australian exchanges exist. They include CoinSpot, ZenGo, Swyftx, Independent Reserve, and BTC Markets. While these exchanges support the trading of Bitcoin, they differ in terms of trading fees. So, you might want to compare the charges before signing up with any.
Does Binance Serve Australians?
Yes! Binance, the largest digital asset exchange by trading volume, operates in Australia. Before buying Bitcoin on this platform, you must be a verified user. Other international exchanges that serve Australians include Coinbase and Crypto.com.
Bitcoin Wallets in Australia
Storing your Bitcoin in your exchange is not recommended. Instead, we advise maintaining your investment in non-custodial wallets, which can be software or hardware. Software wallets or hot wallets store Bitcoin online. While they’re vulnerable to cyberattacks, they are considered safer than exchange wallets. Top hot wallets include Exodus, Trust Wallet, Guarda, and Zengo.
Hardware wallets or cold wallets, on the other hand, keep Bitcoin in an offline environment, thus protecting it from online attacks. The most popular are Ledger and Trezor.
Crypto Taxes in Australia
Bitcoin is regarded as property in Australia. That means it is subject to capital gains tax. So, Australians who have held BTC for a year or more and generated profits must file tax returns.