With cryptocurrency value fast making a comeback in 2020 and Bitcoin ballooning to $14,000, there’s a good chance you’re exploring your options when it comes to digital currency and finding how to buy cryptocurrency in Australia.
There are a tonne of crypto exchanges on the web today and with a number of them being well-regulated, compliant with Australian laws and agencies like AML & AUSTRAC and increasingly more secure, it’s looking easier and safer to get into crypto in 2020 than ever before.
That being said, take a look below to learn a little more about buying cryptocurrency in Australia through a digital currency exchange and what you will need to get started.
Buying and Trading Cryptocurrency in the Past
As you might already know, altcoins and cryptocurrency are relatively new to the investment world, and that being said, it was quite difficult to invest securely up until recently. There was a tonne of suspicious exchanges, platforms with exuberantly high fees and little to no regulation whatsoever.
Fast-forward a few years and we have a handful of reliable, trustworthy, and easy to use exchange services with good liquidity to buy Bitcoin and cryptocurrency in Australia.
A couple of fan favourites include Swyftx and CoinSpot for their low fees and simple interfaces, making it easy for newcomers to get into investing in Bitcoin and other coins using the blockchain.
Keep in mind that today’s digital asset exchanges come with a tonne of special features as well as access to up to 200 coins in some cases. If you’re looking to invest in crypto but don’t have the budget for the bigger or faster moving coins, there’s sure to be a smaller, more affordable and less volatile one for you.
Where to Buy Cryptocurrency in Australia
Without naming a specific service, you would be required to buy your currency or coins from an exchange based in Australia — if that’s where you’d like to set up your trading ‘home base’ so to speak.
These exchanges allow you to buy, trade and sell crypto assets, or altcoins on their platform through a fiat currency conversion process. You’ll begin with your local currency, in this case, AUD or Australian Dollars, or USD and NZD for some, and then move forward to trade this currency for your cryptocurrency of choice.
Where the real ‘trouble’ comes in, is choosing an exchange that’s best for you. There are a lot out there, and they all come with different features, approaches to investment and also a different take on security.
Things to keep in mind include:
What currency you’ll be using to invest with; AUD, NZD, USD, etc
Which method of fund transfer you will be using; Credit/Debit, PayPal, PayID for example
Which coins you are looking to invest in; Ethereum, Bitcoin, Litecoin, Doge, etc
The highest fee percentage you’re willing to pay per transaction
With those points out of the way, you’ll have a little more direction when it comes to buying cryptocurrency in Australia.
One final point to note is that in Australia, many of our cryptocurrency exchanges will require an ID for you to begin. This will link you to your specific cryptocurrency wallet or exchange platform, however, there are other ways of remaining more anonymous such as through a decentralized crypto exchange.
Is it Worth it to Invest in Cryptocurrency?
To start, it is good to know that although the cryptocurrency world is quite new, the room for expansion is enormous.
Even though fiat currency or traditional currency is the standard today, we are already beginning to see the space for erosion to take place. Almost all our daily transactions are starting to take place digitally only, through smartphone apps for example, which means that as a whole, our population may be more open to a switch to decentralised currency.
And to add, this process may take just a few years rather than a century as we’ve seen in the past — due to the prevalence of smartphones. Theoretically speaking, the entire currency landscape could change in an instant if banks and governments were on board.
To a more down to earth reason for cryptocurrency investment, there is a volatile process occurring whereby you’re able to rise and fall with the altcoins of your choice and possibly make a pretty penny doing so.
You’re able to invest in a coin, Bitcoin for example, and ride the volatility waves until you see a major return is possible. And with Bitcoin on the up at the tail end of 2020, it’s a good time to get back into the swing of things.
For new investors, it’s imperative to understand that the crypto market is a lot different from the stock exchange and traditional forex exchange in that the risk is a whole lot higher. Coins have gone under in the past and price fluctuations can be giant, and without good skill and an understanding of how to invest, this process can be daunting.
With all of that out of the way, it is certainly worth investing in the volatile cryptocurrencies, however, a game plan is certainly needed before you start trading.
Disclaimer: it’s important to keep in mind there is a level of risk when investing in cryptocurrency and you should never invest more than you’re able to lose.
Which Cryptocurrencies Are the Most Popular
While altcoins and crypto may be volatile and prone to instant and unforeseen changes, one part of the landscape has remained the same for almost half a decade — the top coins.
As of 2020, Bitcoin (BTC) remains the leading cryptocurrency and also the most desirable in that it has an ultra-high value when compared to the other currencies. It was also the very first cryptocurrency, released back in 2009, making it one of the more dependable out there and less prone to ‘evaporating’ from the exchanges.
For both long and short term investors, we would suggest Bitcoin thanks to its comparative stability and high pay off over time. There are also more and more brands accepting the coin as a direct payment method in stores, driving up demand.
A second popular coin is Ether (ETH) or Ethereum, with a more affordable price point, but still a great earner in the long term. Like Bitcoin, Ether is also making waves in commerce and becoming a standard coin for payments, driving up value.
Arguably the winning coin for anyone who works in a field where cross-border investment is a priority, Ripple or XRP should land at the top of your list. It’s a fast coin that makes use of a consensus mechanism that’s more efficient than Bitcoin, which means transactions are generally quicker.
A few other coins to keep in mind include Litecoin (LTC), the Bitcoin Cash alternative (BCH) along with the less popular Monero (XMR), Zcash, Dogecoin and EOS.
The Easiest Ways to Buy Cryptocurrency in Australia
If you’re here to look for the fastest and simplest way to invest in crypto in Australia through an exchange, we have some information for you below.
Use a Bank Transfer
For one of the most popular and straightforward ways to invest in cryptocurrency in Australia, nothing quite beats the bank transfer from a local bank account.
A good majority of both global and Aussie cryptocurrency exchanges offer a bank transfer option and you’re simply able to use your OSKO account or bank account details to move funds between your bank and the exchange.
If you’re using the Swyftx exchange, for example, its integration with OSKO is top-notch and you can instantly move funds with almost no delay.
Once you’ve moved your funds, you can buy cryptocurrency right away.
Another popular method for Australians looking to buy cryptocurrency is using your existing BPAY account.
There is a minor downside here in that BPAY does take a couple of days to complete the transfer, which might have you lose out on a specific coin price you were looking for, though if this isn’t too much of an issue for you, then BPAY is a great option.
For a smooth BPAY experience, we would suggest the CoinSpot exchange.
If you already have a PayID account, you’re 90 per cent of the way there. If not, be sure to set up your PayID account with your bank and have everything linked and verified.
Once you have this set up, head online for an Australian-based exchange that accepts the PayID payment method. There are a few out there that take this method, such as Swyftx so you’re able to get trading as fast as possible with instant deposits.
Like OSKO, your PayID or POLi payment will be instant so you can get to sell Bitcoin right away — however, some banks do delay this depositing process.
Use a Cash Deposit
A surprising way of buying cryptocurrency in Australia is with your hard-earned physical cash. You’re able to convert your cash to Bitcoin at a number of exchanges and ATMs across the country like Paxful or LocalBitcoins.
To add, if you want to physically meet with a person and exchange your cash for Bitcoin you’re able to do this through the platforms above. There’s a huge database of users, and therefore you’re likely to find a buyer.
Use a Credit or Debit Card
As you might have expected, there are, of course, credit card and debit card supported platforms out there — however, there are some hefty fees attached.
The Aussie cryptocurrency exchanges will often use an overseas broker for these transactions which means there is a per-transaction fee attached to credit and debit card crypto investment.
For example, Coinmama and Coinbase are often used for these transactions and feature fees that extend from 3.99 per cent up to 5.00 per cent per transaction, which is a little steep when you deposit funds.
Keep in mind that with fixed-fee or value-based fees, an exchange rate might come in to play here, so keep this in mind when calculating trading fees.
Use a Bitcoin ATM
There’s a good chance you’ve seen these machines across your city and in major shopping centres, and they’re a great way to invest in Bitcoin.
There are a number of these Bitcoin ATMs or Bitcoin Exchanges spread across Melbourne and Sydney as well as other capitals, and they take credit and debit cards, with some even accepting cash.
Take a look at FindBitcoinATM for some more information on where these ATMs are located and how to use them to buy cryptocurrency in Australia. Keep in mind that there are some high fees associated with these machines though.
Use an Anonymous Exchange
Initially, cryptocurrency investment was almost entirely anonymous and wasn’t able to be linked to a specific person. Of course, this leads to some pretty nasty outcomes like terrorist funding — so a lot of the anonymity has been stripped from crypto investment.
However, there is still a few peer to peer trading platforms that are decentralised and good for Aussies looking to buy cryptocurrency without revealing their identities.
It is a little more difficult to find these platforms, and it’s important to be very wary of your use of these, though they are still an option for anonymity-inclined investors.
Be sure to note that these platforms can be a little murky at best and there aren’t too many that offer customer support services or scam protection either, so when it comes time to sell cryptocurrency or invest in it, be as wary as possible.
To a rather simple and secure way of investing in cryptocurrency, there is a PayPal option through platforms like Kucoin. You can max out at $10,000 and you’re able to make sure that you’re staying relatively safe in that PayPal acts as the intermediary between your payments and investments.
Super Funds or SMSFs
A few exchanges offer avenues for using SMSFs or Self Managed Super Funds for investment in cryptocurrency. This may be a little riskier of an avenue to take, though the option is there should you wish to go that route.
Be sure to take a look at some official online regulations and requirements prior to moving forward with investing your super in crypto though.
Final Things to Note
With all of those ways to buy cryptocurrency in Australia out of the way, it’s important to keep in mind that there still remains a fair bit of risk in investing in altcoins and Bitcoin.
Not only is there the traditional volatility risk, but also the chance of having your coins stolen or hijacked should you give out your wallet number or other information that links directly to the coins you’ve purchased.
Always be sure to vet exchanges that you’re looking to use and take a look at user reviews and experiences. It’s also highly advised to take a look at whether each platform abides by Australian Government regulation into anti-money laundering activities.
It is also a good idea to speak with an advisor for financial advice and reach out to crypto support teams before making large investments or launching any sized investment in cryptocurrency in Australia.