Bitcoin is the most traded cryptocurrency in the world. It is also considered the most liquid cryptocurrency which means it can be converted to cash without impacting its price— making it a favourite amongst crypto investors all over the world.
However, as a crypto enthusiast in Australia looking to invest in Bitcoin, it is important to understand how trading this cryptocurrency works within the Australian jurisdictions. While Bitcoin is a decentralised asset with no government body controlling its flow, there are still some intricacies to investing in cryptocurrency in Australia.
In this guide, we walk you through all you need to navigate the cryptocurrency landscape in Australia. We’ll go from the best methods of buying bitcoins to the best crypto exchange in Australia. Let’s get started.
Various Ways to Buy Bitcoin in Australia
Cryptocurrency is becoming increasingly popular in Australia and more than ever, it is possible to acquire bitcoins and other cryptocurrencies conveniently with just a few clicks. Some of the most popular methods for buying Bitcoin in Australia include cryptocurrency exchanges, Peer-to-peer (P2P) platforms, and Bitcoin ATMs. Let’s delve into how each of them works and which is best for you:
Cryptocurrency Exchanges
Cryptocurrency exchanges, also known as brokers, are web-based marketplaces that provide a platform for people to access the cryptocurrency market. Just like stock brokers, crypto exchanges provide you with diverse speculating tools like price charts where you see the price of Bitcoin against other cryptocurrencies or fiat currencies like AUD and USD. Usually, new investors are advised to use crypto exchanges to buy bitcoins because they offer a hassle-free trading process.
Peer-to-Peer (P2P) Platforms
Unlike conventional cryptocurrency exchanges which play the role of intermediaries, overseeing the transaction between crypto buyers and sellers and managing the order book, P2P platforms eliminate the centralized process by giving its users more control over their transactions. If you prioritize privacy in your crypto journey, then you can use this option when buying Bitcoin. Since trades transpire directly between users on P2P platforms, there are usually little or no transaction fees incurred.
Bitcoin ATMs
Bitcoin ATMs are also quite popular methods for buying Bitcoins in Australia. They are the best option for people who aren’t too familiar with the exchange platforms and want a more transparent trading method. You can find Bitcoin ATMs in public places like shopping centers and airports. As of the time of writing, there are 55 Bitcoin ATMs in Australia.
Bitcoin ATMs in Australia
Bitcoin ATMs are a tangible representation of the crypto revolution in Australia. They are scattered across major Australian cities, offering accessibility to Bitcoin around the clock. What distinguishes Bitcoin ATMs from other modes of buying Bitcoin is their super intuitive interface that even complete novices can use.
If you are looking to buy Bitcoin using an ATM here’s a quick guide:
- Complete the KYC process: The machine will require you to provide an ID or fingerprint verification before transacting on it.
- Provide your Bitcoin wallet address: The next step is to provide the cryptocurrency wallet ID where you’d want the Bitcoin to be transferred.
- Make your order: This step requires you to insert the cash equivalent of the Bitcoin you are looking to buy. Most ATMs limit each transaction to 5 AUD.
- Confirm your order: Only after you’ve confirmed your order can you have a successful exchange.
Additionally, Bitcoin ATMs can charge up to 5% in transaction fees so, you’d want to consider the cost before using the service.
Australia-Based Bitcoin Exchange
When it comes to choosing a cryptocurrency exchange for your Bitcoin trading in Australia, it is often advised to use a locally-based platform for many reasons. Some of them are:
Regulatory Compliance
Australian-based cryptocurrency exchanges operate under the purview of Australian financial regulators, like the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC). These regulatory bodies ensure that Bitcoin exchange platforms adhere to stringent standards regarding customer protection, cybersecurity, and compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. What this means to you as an investor is a higher level of regulatory oversight and security for your assets.
Support for the Australian Dollar (AUD)
Many Australian-based exchanges support
deposit and withdrawal in AUD. It eliminates the need for currency conversion which in turn reduces the associated fees. Using such a platform inadvertently simplifies your trading process and gives you ready access to your funds.
Customer Service and Accessibility
Local exchanges often prioritize customer support with dedicated teams that understand the specific needs of Australian users. This means you get to enjoy faster response times and better assistance when you encounter issues or have questions. Additionally, proximity to the exchange's physical location can make it easier to get face-to-face interactions when necessary.
Trust and Reputation
Established Australia-based exchanges have a reputation to uphold within the local crypto community. Many of them have built trust over the years by providing a reliable and secure platform for trading.
Some notable crypto exchanges Australia has are Independent Reserve, Coinspot, BTC market, Swyftx, Cointree, Mine Digital, and ACX. These are Australian-based platforms also known for providing high security and low transaction fees.
Nevertheless, make sure to check user reviews and feedback before using any exchange platform.
Does Binance Work in Australia?
Binance is one of the global powerhouses in the cryptocurrency world with its services accessible to over 100 countries including Australia. While Binance is not an Australian-based exchange, it is AUSTRAC-registered meaning it complies with the cryptocurrency trading regulations in Australia. It also supports direct AUD deposit and withdrawal and allows Australian investors to fund their accounts using a card or bank transfer.
Conclusion
While Bitcoin trading and cryptocurrency exchange as a whole offer a wealth of opportunities to investors, it is important to know that the crypto landscape is constantly changing. Whether you prefer the convenience of local exchanges, the accessibility of Bitcoin ATMs, or the privacy of P2P platforms, your greatest asset is information. Stay up to date about the ever-changing crypto world and ensure that each investment decision you make stems from a place of thorough research.
Further reading: 8 Brilliant shopping hacks to save you money.
