If you’re new to the Australian cryptocurrency investment game, we’re glad to say that getting into digital currency and investing in Bitcoin isn’t too difficult at all.
From the start, you’ll have a select a Bitcoin exchange, set up an account, deposit your funds and you’re ready to start trading. Be on the lookout for intuitive interfaces, good liquidity and great online reviews if you’re going it alone in finding your exchange; otherwise, the ones we’ve chosen below will do just fine!
Of course, it isn’t that simple to get started, though finding an easy to use and reliable trading platform is a good place to start – and we’ll help you through that process in this article.
Below we’ll take a look at how to choose a cryptocurrency exchange, what you need to know about Bitcoin trading and how to buy Bitcoin in the simplest way possible.
The Best Cryptocurrency Trading Platforms in Australia
Right off the top, we’ll take a look at all the platforms that are the most beginner-friendly for Bitcoin trading in Australia. All of these exchanges are ideal for low-fee trading as well as ensuring you’re kept safe when trading online.
Swyftx – AUD – Bitcoin, Ethereum and more – 0.6% Fee
Independent Reserve – AUD, NZD and USD – Bitcoin, Ethereum, Ripple and more – 0.5% Fee
CoinSpot – AUD – Bitcoin, Ethereum and more – 1% Fee
Binance – AUD and USD – Bitcoin, Ethereum, Ripple and more – 0.1% Fee
CoinJar – AUD – Bitcoin, Ethereum, Ripple and more – 0.5% Fee
The trading platforms above are all fantastic options for beginners and have a myriad of trading tools, low trading fees and have been designed to make sure Australians have an easy way to trade Bitcoin in AUD with ease.
How We Selected our Bitcoin Exchanges
To ensure the cryptocurrency exchanges we chose were ideal for our readers, we focused on everything from security, reliability, ease of use, acceptance of AUD and plenty of payment methods.
Of course, these are some ‘bare essentials’ for a platform when you’re looking to trade or sell Bitcoin in Australia, though when it comes time for you to choose a platform make sure you’re choosing one based on your own style of trading.
All of the exchanges we’ve taken a look into offer their own pros and cons, of course, though we’re confident that going with any one of these will have you in a good position when it comes to making a trade in Bitcoin.
We also made sure to look for digital currency exchanges that offered more than just Bitcoin, as you will want to be sure you have room for growth beyond that one currency down the line. That said, LiteCoin, Ether, and Ripple were on our watch list too.
And with all of that in mind, let’s have a look at how to trade Bitcoin in Australia below, and which digital currency exchanges you should consider.
Our Bitcoin Trading Guide
Getting on to the blockchain and buying Bitcoin as an investment can be rather daunting the first time you do it, however, it’s fast becoming a safe and simple way to invest for Australians. With AUSTRAC regulators and AML coming in to keep the crypto asset investment game clean and safe, it’s more secure than ever to trade cryptocurrencies.
Let’s take a look below at how to invest in Bitcoin from Australia and what you’ll need to get started.
Select a Cryptocurrency Exchange
For those who have decided that Bitcoin is the way to go over altcoins like XRP or ETH then you’ll want to move on to choosing an exchange that offers Bitcoin. Across the globe, there are hundreds of these exchanges to choose from, though in Australia there is just a handful to take a look at – making the process a lot easier.
The three primary types of crypto exchanges to buy BTC include:
The Broker Exchange
Keeping things simple, these are the exchanges that offer a retailer experience when it comes time to sell Bitcoin or other digital currencies. There’s often an ultra-simple interface included with these online platforms and that means they’re generally the simpler and easier way to trade Bitcoin.
You’ll be able to pay with fiat currencies here too, including Aussie AUD or USD, which makes it easier as you’re not going to have to convert your funds before purchasing a Bitcoin.
A lot of these exchanges come with a tonne of ways to deposit funds, with bank transfers or PayID/Osko and POLi being the most common. However, credit cards and debit cards aren’t often supported. You’ll want to head over to Coinbase or Coinmama for these types of deposits.
Aussies will have easy access to CoinSpot and CoinJar if you’re looking for a broker.
The Peer-to-peer (P2P) Exchange
A little less safe than the other methods, the Peer to Peer exchange or P2P exchange is the one to rely on when you want to sell directly to a buyer. Much like fiat cash, the P2P style of trading can rely on Bitcoin cash to improve privacy.
One of the more common exchanges in Australia for Peer to Peer trading is LocalBitcoins, though there is Paxful here too.
A big disclaimer from us is to make sure you’re wary of scams and traders who are less than friendly. You might be defrauded when it comes to a Bitcoin transaction on these platforms, however, if you’re a seasoned trader or looking to increase privacy when trading, then the P2P option might be the best for you.
Lastly – these platforms often waive the verification process entirely, keeping you essentially anonymous.
Cryptocurrency Trading Platforms
For the traders of Bitcoin looking to actively swap their coins between other traders on the market, the trading platforms like Binance and Independent Reserve come in as the winners here. These types of exchanges are the best option for anyone looking to either work entirely in cryptocurrency for all trading movements or to partially work in fiat currency.
These platforms generally combat high fees as they’re not a retailer of the coins, so the Bitcoin price can often be at market rate.
There’s generally a wide range of altcoins supported by these platforms too, so if you’re looking to break from Bitcoin at any point to trade cryptocurrencies like ETH or XRP you’re able to do so.
One thing to note though is that these platforms can be a little complicated to use and there is a learning curve – much like Forex – in that there are trade limits and market-order-style purchases.
Move on to Buying Bitcoin
Once you’ve selected one of the trading platform types above, you’re then ready to signup and start trading Bitcoin. Just be sure you have a digital wallet ready if you’re a long-term trader, otherwise, you’re all set.
To buy with each style of trading platform above, we have some helpful tips for you below.
Buying with a Broker
The simplest of the bunch, Bitcoin investment with a broker is near effortless. Use your Australian Dollars as a base here and enter the number or amount of Bitcoin you’re looking to order. The broker’s platform will give you an AUD figure and you’ll be able to see if you have the funds to invest.
If you have enough funds, check your payment options and make a deposit. If you already have the funds in your trading platform’s balance, hit buy and your broker will deposit the Bitcoin into the Bitcoin wallet on their service.
Once you have the Bitcoin, it’s all yours. You can leave the coin (or the private key, rather) on your trading platform or you can store it anywhere else you’d like.
Buying with a P2P Exchange
On these platforms, you’re able to browse a tonne of ‘sell offers’ to find coins that match your price range or a fair market price. Once you find one that suits your investment plan best, then take a look at the payment method offered and you’ll be able to move forward with a purchase.
LocalBitcoins helps to take a little risk out of the process by offering up a score based on user experiences with that specific trader. Be sure to take a look at this score, and if it’s a good one, then you’re all good to go with buying the BTC.
An extra layer of safety is also included in that there’s an escrow feature. That means you’ll deposit your cash into an account and it will hold until the process is completed safely and securely. If it isn’t, you’ll have your cash handed back to you.
In all, it’s essential to remain wary and aware of these platforms, as buying on somewhat unregulated platforms can be a little risky.
Buying on the Trading Platform
To move forward with the trading platform, you’ll want to begin the process with funds in your account. Whether you do this with a bank transfer, instant payment method or even a cash deposit with blueshyft at a Post Office, it doesn’t matter too much.
Once there are funds in your account, all you’ll need to do is head over to the swap section of the website – in our case, that’s BTC/AUD for local currency.
To buy Bitcoin, put in an order for a Bitcoin amount or a fiat currency amount and place the order.
There are a few different order types offered by trading platforms, so be sure to take a look at their respective websites for a little help or reach out to a support staff member.
Storing Bitcoin
Unlike fiat currency, Bitcoin and all cryptocurrency for that matter require a wallet for storage — and a bank account won’t do.
You can, of course, keep your Bitcoin stored on the exchange’s platform for safekeeping, though sometimes it isn’t the safest option. There have been reports of theft, the coins being lost and the exchange not being liquid enough to allow withdrawals and purchases down the line.
That said, we suggest a personal wallet — either online or offline.
When you buy a Bitcoin you can move the coin to your Bitcoin wallet address and store it there for a period of time. For anyone buying to hold for a rather long time, we would suggest an offline hardware wallet. These can look like a hard disk or USB and essentially hold your coins indefinitely until you’re looking to cash them out at a later date, and preferably at a much higher value.
Paying for Bitcoin
It’s important to know that not all of the trading methods above offer the same payment experience, so it’s always good to check beforehand if you have a payment method in mind.
For example, some exchanges offer PayID and others offer POLi, and some offer both.
The good news is that just about all Australian exchanges offer bank transfers as a method of fund transfer, along with PayID, Osko and POLi. That means it’s going to be quite easy to find an Aussie-based exchange to trade Bitcoin with.
However, if you’re heading online and overseas, there are other payment methods accepted that you’ll have to read up on beforehand.
The most popular Aussie exchanges like CoinSpot, Swyftx, and Independent Reserve offer all major payment methods aside from credit card and debit cards.
BPAY is also supported by some exchanges in Australia, though there are fees attached depending on the exchange you go for.
Credit and Debit Card Support
If you’re looking to use your credit card or debit card to buy Bitcoin, or to ‘pay with plastic’ as the saying goes — you might be out of luck. At least as far as Australia exchanges go.
There are the global trading platforms of Coinbase and Coinmama that you’re able to use for your credit card payments, however, the fees are rather high as you might expect. On some platforms, you can pay more than 6 per cent in credit card fees alone, which might cancel out all of your earrings with BTC.
The Takeaway
With all of the above said, Australians are quite lucky when it comes to locally-based exchanges that accept AUD as a deposit by default.
You’re able to buy Bitcoin quite easily online and all you’ll need is an account with an exchange, some AUD funds in your wallet, and the skill and control to invest in such a volatile currency.
A few things to keep in mind are to never invest more than you’re able to lose and to stay as calm as possible when the currencies get a little rocky. Cryptocurrency is known to be one of the more volatile investments out there, and with that being said you should make sure not to pull the trigger on a buy or sell order too quickly.
To end, be sure that you’re always wary of scams, hold your coins in an offline wallet if you’re a long-term investor, and don’t trade more than you can afford to lose.
