More and more people are discovering Bitcoin (BTC) and other cryptocurrencies, which is good for the adoption of digital money on the blockchain. Interest in Bitcoin is also growing in Australia and companies are responding positively. For example, there are various ways to buy Bitcoin in Australia.
Trading Bitcoin is more than just buying and selling. So, what is the best place to buy Bitcoin and what is the most secure way to store a Bitcoin investment? Discover in this article different ways to buy Bitcoin in Australia, how to trade Bitcoin and the ways to store cryptocurrencies.
Various ways to buy Bitcoin in Australia
If you like to invest in BTC in Australia, there are several ways you can opt for. The most common way is by buying Bitcoin through a crypto exchange. By connecting a bank account, credit or debit card to the crypto exchange, it becomes easy to convert fiat currencies into cryptocurrencies.
Investing in Bitcoin with cash is also possible through a Bitcoin ATM. With more than 200 places where a Bitcoin ATM is located, it can be quite a search to find a crypto ATM in Australia. Oceania’s largest country is not much smaller than the United States, but it has remarkably fewer ATMs. By comparison, the city of Los Angeles, with some 2,000 Bitcoin ATMs, has 10 times as many facilities where it is possible to buy Bitcoin with cash.
In addition to buying on an exchange or through a Bitcoin ATM, there is an option to use peer-to-peer (P2P) exchanges. This way makes it possible to buy Bitcoin directly from a person through a marketplace. However, this way is less well known, but it brings several advantages. For example, P2P exchanges often have more liquidity than traditional exchanges, fees are lower and exchange rates are better.
The fourth way to buy Bitcoin is through over-the-counter (OTC) trading. This way, it is possible to easily buy large amounts of BTC. These transactions are concluded directly between two parties; there is no order book involved. This way of buying Bitcoin is especially popular among wealthy investors and institutional parties who trade Bitcoin for very large amounts of funds.
Bitcoin ATMs in Australia
To convert cash to cryptocurrencies such as BTC, Bitcoin ATMs are the ideal devices to complete this exchange. This is also the only way to convert cash directly to cryptocurrencies. Especially in major cities, such as Sydney and Melbourne, there are many Bitcoin ATMs that can be utilized to buy Bitcoin.
In addition to Bitcoin, it is often possible to buy Ether (ETH) and Litecoin (LTC) at these ATMs. There are even ATMs where XRP (XRP) and Dogecoin (DOGE) can be purchased. These altcoins can only be bought. Selling cryptocurrencies is a lot less common at ATMs. However, there are ATMs where it is possible to both buy and sell Bitcoin.
How to trade Bitcoin in Australia?
Trading Bitcoin in Australia can be accomplished within a few steps, such as
It is important to choose a reliable crypto exchange that meets all the requirements and needs of a crypto trader. For example, a cryptocurrency exchange with a good reputation, low fees, a significant user base and a large supply is more attractive than an exchange where trading is expensive and the supply is small.
After choosing a crypto exchange, it’s time to create an account with the exchange in question. By going to a crypto exchange’s homepage and pressing the Register button, the process of creating an account can begin. By providing all requested personal information and setting up two-factor authentication, the account is ready to use.
To ensure that the customers are genuine when the account was created, they must verify their identity. Most exchanges use a Know Your Customer (KYC) process, which requires customers to reveal their identity. This may involve uploading a copy of the person’s government-issued ID and proof of residence.
After creating an exchange account is fully completed, it is time to provide the exchange account with funds. This can often be funded through your bank account or credit card so that the account is endowed with fiat currency and ready for trading on the crypto market.
Trading Bitcoin can begin by placing an order on the exchange. It is possible to buy or sell Bitcoin at a specific price or to place a limit order to execute a transaction when the price reaches a certain level.
Once Bitcoin is bought, it is important to keep an eye on the price. Keep an eye on the market and monitor trades. Most cryptocurrency exchanges allow alerts to be set up, which go off when the price of Bitcoin reaches a certain level.
Australia-based Bitcoin exchange
Residents of Australia can use a lot of different crypto exchanges, including well-known platforms like Crypto.com and Coinbase. Major exchanges like these have millions of users and a large selection of cryptocurrencies, but what are the crypto exchanges to buy Bitcoin in Australia?
There are also several cryptocurrency exchanges based in Australia. Each exchange has its own fees, services and assortment. Therefore, it is wise to research exchanges well before choosing one. The following are the available options when looking for an Australian cryptocurrency exchange:
- BTC Markets
- Independent Reserve
Does Binance work in Australia?
It is also possible for Australians to use Binance for cryptocurrency trading. Tens of millions of crypto investors buy their cryptocurrencies here and use Binance’s services, such as crypto staking or margin trading. With more than 600 different tokens in their range, this platform is of interest to many investors.
To use Binance for Bitcoin trading in Australia, an account will first have to be created on the platform and then the verification process must be completed. This may involve uploading a copy of your government-issued ID and proof of residence. Once the account is verified, it is possible to fund it with a supported payment method and start buying and selling cryptocurrency.
How to store Bitcoin in Australia?
When investing in Bitcoin, not only is the method of buying important, but also the way the cryptocurrencies are stored. Like fiat currencies, digital currencies can be stolen, so that's why it’s important to protect the Bitcoin investment as best as possible. There are several crypto wallets that can be used, each of which has its own advantages and disadvantages.
Many beginner crypto investors use an exchange wallet. This is the wallet used when trading on an exchange. This is the easiest way to store cryptocurrencies,but also the riskiest medium. With an exchange wallet, the private keys and seed phrase are owned by the exchange itself, so the crypto investor has no control over the cryptocurrencies in the exchange wallet.
This is why a software wallet is considered a better option. Crypto investors who use a software wallet own private keys and, therefore, have full control over their own coins. Do not share this code with anyone, as this is a unique key that opens the door to the cryptocurrencies in the wallet. Software wallets are available as desktop wallets and mobile wallets, allowing users to use their cryptocurrencies anytime and anywhere.
However, software wallets are not considered the most secure option because tokens are stored online. The most reliable crypto wallet is a hardware wallet. Hardware wallets are physical devices that store Bitcoin and altcoins offline. They offer an extra layer of security because they are not connected to the internet. As a result, hardware wallets are less vulnerable to hacking.
Bitcoin taxes Australia: How much tax on Bitcoin profits?
In Australia, Bitcoin and other cryptocurrencies are treated as property for tax purposes. This means that buying, selling and trading causes capital gains tax to potentially be paid. This tax must be paid on the profits made.
The Australian Taxation Office (ATO) has issued guidance on the tax treatment of Bitcoin and other cryptocurrencies. According to the ATO, Bitcoin transactions are subject to capital gains tax if the Bitcoin has been owned for more than 12 months. For investors, who have owned Bitcoin for less than 12 months, profits are being treated as ordinary income.
In addition to tax regulations, the Australian Securities and Investments Commission (ASIC) has issued guidance on the use of Bitcoin and other cryptocurrencies in the country. According to ASIC, Bitcoin and other cryptocurrencies are not legal tender in Australia and are not regulated by the government. However, companies dealing in Bitcoin and other cryptocurrencies may be required to hold an Australian Financial Services Licence (AFS).