Bitcoin has generated a lot of buzz, and like most crypto enthusiasts, you may be asking how to get started trading in this digital money.
Today, buying Bitcoin is as easy as purchasing shares. You can buy it for a given price from a broker, or you can buy it on the open market from a cryptocurrency exchange and establish your price.
A cryptocurrency exchange is an online platform that allows you to buy, sell, and store digital currencies. Even so, you should expect some challenges when dealing with cryptocurrency, especially if you’re a newbie.
This article will cover everything you need to know about Bitcoin—the leading cryptocurrency—to get you started swiftly. Heck, you’ll also get to see where you can buy your Bitcoin in Darwin. But first, let’s get a quick overview of Bitcoin.
A Quick Overview Of Bitcoin
Bitcoin is decentralized digital money that was the world’s first of its type. Satoshi Nakamoto, a mysterious figure, created Bitcoin in 2009. Bitcoin serves as a medium of trade, a store of value, and a unit of account, but the government does not issue it. The Australian Taxation Office (ATO) has more information on how bitcoin is taxed in Australia.
Every Bitcoin transaction is completed on an internet peer-to-peer network; no server or central authority must first check with a bank for a transaction to be completed. Banks may be able to transfer funds to each other faster and at a lesser cost using the decentralized verification procedure than they could be using the existing techniques. To compensate for the institutions’ costs, international money transfers come with relatively high fees and higher exchange rates.
Blockchain, the technology that supports Bitcoin and other cryptocurrencies, is essentially a ledger of who owns which bitcoins. Every bitcoin transaction is sent to the decentralized network and recorded in the Blockchain. Unlike traditional currencies, you can hold the ‘digital keys’ to unlock and spend your bitcoins if you own them.
There are a rising number of places in Australia and throughout the world that take Bitcoin as payment. Still, given the currency’s young, the uncertainty about how it works, and the risks involved, it’s thought to be highly volatile.
How Do I Purchase Bitcoin in Darwin?
1. Find an Exchange Platform—Swyftx Highly Recommended
To purchase bitcoin, you must first sign up with an exchange, much like you would for a bank account.
Once you have reviewed the exchange and decided to execute on the platform, you’ll need to fill out your personal details and verify your identification—for security purposes.
These may contain images of a driver’s license, your social security number, as well as details about your employer and source of funds, depending on the exchange policies.
2. Set Up Your Payment Methods
You’ll also need to set up a payment method so that you can pay for any cryptocurrency that you buy. Bank accounts, debit cards, and credit cards are the common payment methods and, in some situations, PayPal may be accepted. The exchange will charge you a fee, as well as a cost from your bank account, which you may verify at the time of purchase.
In recent years, exchanges have become considerably more widespread, and many now provide a range of options to place orders and invest. Like online stock trading platforms, virtually all crypto exchanges offer both market and limit orders, with some also offering stop-loss orders as a method to invest.
3. Receive Goods and Items in Bitcoin
If you have a Bitcoin digital wallet to hold the currency, any business or individual can take bitcoins as payment.
You can get a Bitcoin wallet from the Apple or Google Play stores, and then you’ll have to pick how you’ll receive the payment. You can accept payments in a variety of ways, including:
- QR codes; are barcodes that may be scanned with a smartphone and created in a Bitcoin digital wallet application.
- Online payment processing solutions; can automatically convert digital currency such as Bitcoin into a traditional currency such as Australian dollars.
- In-store custom point-of-sale (POS) terminals; that work with your existing cash register.
4. Mine Your Bitcoins
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Mining is a technical term for the process of locating new, unreleased bitcoins. It is the process of confirming bitcoin transactions over many networks. All transactions are grouped into boxes with virtual padlocks, and it is up to the ‘miners’ to locate the key to open the padlocks by running specific software. They can receive new, never-before-discovered bitcoins as a prize if they find the key.
While popular, mining is likely limited to larger centralized miners with a large budget as Bitcoin grows. This is because simply earning the rewards would necessitate the power of an extensive computer network that you might expand. It was, however, quite popular in the beginning.
Where Should I Buy Bitcoin in Darwin?
1. Swyftx—Highly Recommended
Trading fees on most Australian cryptocurrency exchanges run from 0.5 per cent to 1%, with “hidden expenses” in the form of significantly fluctuating exchange rates. It’s not uncommon in Australia for cryptocurrencies to be offered at a premium of 1% to 5%, or possibly more, over mid-market rates.
Fortunately, Swyftx particularly shines when it comes to exchanging rates. Swyftx offers significantly lower rates when compared to other brokers. And, while its trading fees aren’t the cheapest, they’re still very reasonable.
There are no currency exchange fees if you buy directly with AUD, but there may be some costs depending on your deposit method and the deposit quantity. It’s important to note that using a non-free deposit option for a tiny amount can add up to a significant percentage of the total.
2. CoinSpot
Cryptocurrency exchanges can be scary at times, especially when it’s a peer-to-peer exchange with order books to navigate. Meanwhile, some cryptocurrency brokers may require consumers to have their wallets or overburden users with unnecessary information or cluttered interfaces.
But with CoinSpot, you’re in safe hands. It’s a simple brokerage with an optional peer-to-peer market on the side, and it provides customers with wallets for all supported cryptocurrencies. It’s a bonus that it brings together a wide range of cryptocurrencies in one place.
3. Binance
Binance is reputable for offering a diverse range of cryptocurrencies, various features, and minimal trading fees.
When trading crypto to crypto, you’ll pay a flat 0.1 per cent trading charge at maximum, free AUD deposits are allowed, and you can further reduce trading fees by using the exchange’s native cryptocurrency, Binance Coin (BNB), and paying your trading fees with BNB kept in your exchange account.
There are many trading charge sets, with cheaper costs available to customers that retain enough BNB coins and trade a particular amount each month.
Buy Bitcoin in Darwin With Swyftx
Swyftx goes to great lengths to make the platform user-friendly for both experts and novices. Their website and smartphone apps are simple to use, and you will be assigned an account manager once you sign up.
This platform is licensed and regulated with the AUSTRAC (Australian Transaction Reports and Analysis Centre).
Moreover, Swyftx boasts one of the lowest trading fees in Australia, as all trades are executed at market value. Except for fiat transfers under $200, they don’t charge withdrawal or deposit fees for fiat and cryptocurrencies.
