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How to Buy Bitcoin in Australia

Last updated 11th May 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
$200
Exclusive Promotion
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.
2
Coinmama
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Easy to use tool
High profit potential
Offers Phone Support
3
Atani
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Popular among traders
Fast system for trading
Popular for beginners
4
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

Your capital is at risk when using the above platforms

Key Takeaways

  • Best 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?

Centralized Exchanges:

Lets you buy Bitcoin using traditional currencies 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 exchanges, providing trading features such as trading on margin and opening short positions.

Local Exchanges

These have certifications specific to your jurisdiction.Swyftx for example accepts payments in AUD.

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 crypto, view your balance, send 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 currencies. 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. Sign up
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 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 your coins 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

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

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 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 them.

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.

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 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

Cons

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 bank transfers.

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.

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. 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 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 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.

FAQs

Do I Need To Pay Tax on Profits in Australia?
Can I Buy Bitcoin Without an ID in Australia?
Do I Have To Be 18 To Buy Cryptocurrency?
Danny Maiorca

Danny Maiorca

Danny is a freelance writer specialising in technology and finance. Prior to working for himself, he spent several years working within those sectors in London. Since then, Danny has relocated to Denmark.