HomeHow to Buy Bitcoin in Australia

How to Buy Bitcoin in Australia

Last updated 29th Jul 2022
Disclosure

The Australian Prudential Regulation Authority (APRA) plans to conduct consultations on requirements for the financial treatment of crypto-assets, expected to be undertaken in 2023.

If you’re based in Australia and are keen on buying Bitcoin, this article will show you how along with country-specific considerations like those around platforms, regulations, and taxes.

Best Brokers To Buy Bitcoin in Australia in 2022

Here are some of the best providers of Bitcoin in Australia:

1
eToro
Minimum Deposit
$10
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User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Key Takeaways

  • Best Trading Platform: eToro

  • Top Payment Method: Credit and debit card, bank transfer

  • Security Measures: Activate 2-factor authentication, never reuse passwords, and store coins in a private wallet

  • Regulatory restrictions are expected

What Options Do I Have When Buying Bitcoin In Australia?

Here is a breakdown of some types of Australian Bitcoin exchanges:

Centralized Exchanges:

Lets you buy Bitcoin using traditional currencies such as Australian Dolars, but retain control over any coin you buy until you send it to a wallet that you control. Coinbase, for example, offers a similar experience to traditional brokerage firms and Bitcoin exchanges, providing trading features such as trading on margin and opening short positions.

Local Exchanges

These have certifications specific to your jurisdiction. Each cryptocurrency exchange has different payment options. Swyftx for example accepts payments in Australian dollars. There are multiple trading options on this exchange that allow you to conveniently trade Bitcoin how you want to.

Decentralized Exchanges

Peer-to-peer marketplaces for Bitcoin and other cryptocurrencies; connecting buyers and sellers directly. Bisq lets you buy BTC with a range of currencies.

Brokers

These involve trading cryptocurrencies via a dealer network.

Brokers like eToro offer an extensive set of features that can help you navigate strategies and risks. You can use technical analysis tools and even a copy trade function.

Bitcoin Wallets

Let you buy Bitcoin and other cryptos, view your balance, check your Bitcoin transactions and connect to applications. Bitcoin.com Wallet, for example, is beginner-friendly and lets you buy your first BTC directly from the wallet.

Bitcoin ATMs

Can be used to purchase Bitcoin with fiat currency. Coinatmradar to show you the closest Bitcoin ATM in your location along with supported currencies.

How To Buy Bitcoin in Australia?

Bitcoin is the most popular cryptocurrency on the market so you will find that it’s offered virtually everywhere. Here are the specific steps involved in buying BTC from eToro in Australia:

1. Creating an account
2. Verify your account
3. Fund your account
4. Purchase your Bitcoin

Where To Buy Bitcoin in Australia?

Coinbase and eToro are popular options for both beginners and experienced users in Australia. Here’s a quick comparative breakdown:

Coinbase

Coinbase is an ideal Bitcoin exchange and it is also one of the world’s largest cryptocurrency exchanges. As well as giving you the ability to buy BTC quickly, you can use the Coinbase wallet to store Bitcoin or any other digital currency securely.

You can even manage your portfolio on the go using the mobile wallet.

Pros and Cons of Coinbase

Pros

User-friendly interface
Provides a platform to increase your cryptocurrency knowledge
Earn interest if you use the Coinbase wallet

Cons

Much higher fees that some other competitors, unless you use Coinbase Pro
Australian users are not allowed to sell Bitcoin on Coinbase

eToro

eToro can be considered as a trading platform and a crypto exchange.

Buying Bitcoin on eToro is straightforward. You can use the service to buy and sell Bitcoins in Australia and keep an eye on Bitcoin’s market rates using price charts to easily check the Bitcoin price.

Compared to Coinbase, eToro lets you buy BTC using a broader range of payment methods — including PayPal and more. If you have no prior crypto trading experience, you can copy successful strategies from others.

Pros

Connect with other Bitcoin enthusiasts
Buy BTC using several payment methods
Low minimum deposit amounts
Copy Trade functionality

Cons

Fewer cryptocurrencies are supported than some other platforms
Withdrawals can take a while when demand is high

What Are the Regulations and Taxes When Buying Bitcoin in Australia?

Since switching its restrictive double taxation policies on cryptocurrencies to a more favorable capital gains tax law (CGT) in 2017, public investment in digital assets has risen substantially.

It was announced in January 2022, that regulations to provide more consumer protections are set to come into force. These regulations will require businesses who trade cryptocurrency to have an Australian Financial Services License (AFSL). This could mean that some Bitcoin exchanges and brokers will lose their licenses to operate in Australia. While it is unclear how new policies will translate into costs for continuing platforms, they may be transferred to consumers.

Other Considerations When Buying Bitcoin Australia

Different Fees:

  • Some platforms will charge users a certain percentage for both buying and selling, possibly in the form of commissions or maker-taker fees. This will vary from platform to platform and is of particular concern for day-traders. Some platforms also charge deposit fees.

Volatility:

  • Bitcoin has witnessed tremendous growth. Still, cryptocurrencies are notoriously volatile and BTC is no different. Never invest anything you’re not willing to lose.

Crypto investment strategy:

  • Whether you’re a long-term investor or a day trader should inform decisions like where you purchase your investment and how you store your digital currency.

What Payment Methods Can I Use To Buy Bitcoin in Australia?

There are multiple deposit methods available and these vary by country and by platform.

If you would like to buy Bitcoin Australia, below are some payment methods accepted by most brokers and exchanges, including eToro:

Credit and Debit Cards

Arguably the easiest way to pay for Bitcoin is through your debit or credit card and it typically takes only a few minutes to complete.

To fund your account with a credit or debit card, the process is similar to buying something online with it. Once you’ve entered your bank account details and security number, your funds should appear in the account shortly after.

Pros

Easy to use
Accepted on most cryptocurrency exchanges
Fast transactions

Cons

Card fees are some of the highest
Not ideal for more significant transactions

Bank Transfer

Another popular way to buy BTC is to fund your account via bank transfer. Doing so is simple; enter your bank details and the amount you want to add to your account.

Like credit and debit cards, most cryptocurrency exchanges will facilitate transactions via a bank transfer.

Pros

The best option for larger transactions
Straightforward process
Ideal for both depositing and withdrawing

Cons

Transactions take longer; you’ll need to wait between 1-3 days for wire transfers in many cases, and 3-5 business days for bank transfers.

PayPal

PayPal is the world’s most popular digital wallet, with over 300 million active users who use it to store their digital currency.

To buy BTC using PayPal, connect it to your chosen brokerage/exchange account and deposit the amount that you require.

Pros

Fast transactions
Simple sign-up process
High levels of security

Cons

Many cryptocurrency exchanges don’t offer PayPal support yet

Apple Pay

Apple Pay is a handy way to pay for your shopping and it is accepted in many stores around the world.

Fortunately, it is also accepted as a payment method on some cryptocurrency platforms.

Pros

Instant transactions
No extra sign-ups are needed if you already have an Apple device
Secure transactions

Cons

Apple Pay isn’t accepted at many crypto exchanges
You can’t use Apple Pay if you’re an Android user

How To Store Coins

If you’re day trading on an exchange, it may make sense to store your funds on the platform for quick trading but otherwise, we recommend that you store your coins in wallets. A wallet is a place to securely store bitcoin outside of a crypto exchange.

Different types of wallets exist:

Digital cryptocurrency wallets:

  • Otherwise known as soft wallets, come with private keys and allow you to store a number of different crypto assets online. These can come in the form of a mobile or web application; web wallets and even desktop applications, like the Exodus wallet. These are easier to access than hardware wallets.

Hardware wallets:

  • Hardware wallets are small devices that require you to physically approve Bitcoin transactions. These devices are often considered one of the safest options. An example of a highly rated Bitcoin wallet is Ledger Nano X.

Final Thoughts

Enlisting a brokerage or crypto exchange may be your best bet as a beginner in Australia, some of these; like eToro, have tools and functions to help guide you along the way. It’s always best to compare fees between options and select a platform that supports your choice of payment.

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Danny Maiorca

Danny Maiorca