More and more people are discovering Bitcoin (BTC) and other cryptocurrencies, which is good for introducing digital money into the blockchain. Interest in bitcoin is also growing in Australia and companies are responding positively. For example, in Australia there are different ways to buy bitcoin.
Bitcoin trading is more than just buying and selling. So, where is the best place to buy bitcoins and what is the safest way to store bitcoin investments? Find out in this article about the different ways to buy bitcoins in Australia, how to trade bitcoins and how to store cryptocurrencies.
Different Ways to Buy Bitcoin in Australia
If you want to invest in BTC in Australia, there are several ways you can choose. The most common way is to buy bitcoins through a crypto exchange. By connecting a bank account, credit or debit card to a crypto exchange, it becomes easy to convert fiat currencies into cryptocurrencies.
Investing in bitcoin cash is also possible through a bitcoin ATM. With over 200 Bitcoin ATM locations, finding a crypto ATM in Australia can be tricky. The largest country in Oceania is not much smaller than the United States, but it has far fewer ATMs. By comparison, the city of Los Angeles, with 2,000 Bitcoin ATMs, has 10 times as many places to buy Bitcoin with cash.
In addition to buying on an exchange or through a Bitcoin ATM, there is the option to use peer-to-peer (P2P) exchanges. Thus, it is possible to buy Bitcoin directly from a person through the marketplace. However, this method is less known, but it provides a number of 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 trading. Thus, one can easily buy a large amount of BTC. These transactions are made directly between the two parties; no order book. This way of buying bitcoins is especially popular among wealthy investors and institutional individuals who trade bitcoins for very large amounts of funds.
Bitcoin ATMs in Australia
For converting cash into cryptocurrencies such as BTC, Bitcoin ATMs are ideal devices to complete this exchange. It is also the only way to directly convert cash into cryptocurrencies. Especially in major cities such as Sydney and Melbourne, there are many Bitcoin ATMs that can be used to buy Bitcoins.
In addition to bitcoin, these ATMs often sell ether (ETH) and litecoin (LTC). There are even ATMs where you can buy XRP (XRP) and Dogecoin (DOGE). These altcoins can only be bought. Selling cryptocurrencies at ATMs is much less common. However, there are ATMs where you can both buy and sell bitcoin.
How to trade Bitcoin in Australia?
Bitcoin trading in Australia can be done in a few steps, for example:
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 on the respective exchange. By going to the home page of the crypto exchange and clicking on the “Register” button, you can begin the process of creating an account. After providing all the requested personal information and setting up two-factor authentication, the account is ready to use.
To guarantee the authenticity of customers when creating an account, they must verify their identity. Most exchanges use a Know Your Customer (KYC) process that requires clients to reveal their identity. This may include uploading a copy of your government-issued ID and proof of residence.
After the creation of the exchange account is fully completed, it is time to secure the exchange account with funds. This can often be funded through your bank account or credit card so that the account is backed by fiat currency and ready to trade on the cryptocurrency market.
Bitcoin trading can be started by placing an order on the exchange. Bitcoin can be bought or sold at a certain price, or a limit order can be placed to execute a transaction when the price reaches a certain level.
Once a bitcoin is bought, it is important to keep an eye on the price. Follow the market and follow the trades. Most cryptocurrency exchanges allow you to set up alerts that are triggered when the price of bitcoin reaches a certain level.
Bitcoin exchange in Australia
Australians can use many different crypto exchanges, including well-known platforms such as Crypto.com and Coinbase. Major exchanges like this one have millions of users and a large selection of cryptocurrencies, but where can you buy bitcoin in Australia?
There are also several cryptocurrency exchanges in Australia. Each exchange has its own commissions, services and range. Therefore, it is wise to study the exchanges long before choosing one of them. Below are the options available when searching for an Australian cryptocurrency exchange:
- BTC Markets
- Independent Reserve
Does Binance work in Australia?
Australians can also use Binance to trade cryptocurrencies. Tens of millions of crypto investors buy their cryptocurrencies here and use Binance services such as staking or margin trading. With over 600 different tokens in its range, this platform is of interest to many investors.
To use Binance to trade Bitcoin in Australia, you first need to create an account on the platform and then complete the verification process. This may include uploading a copy of your government-issued ID and proof of residence. Once your account has been verified, you can fund your account with a supported payment method and start buying and selling cryptocurrencies.
How to store bitcoins in Australia?
When investing in bitcoin, not only the way you buy it is important, but also the way you store the cryptocurrency. Like fiat currencies, digital currencies can be stolen, so it is important to protect your bitcoin investment as best you can. You can use several crypto wallets, each of which has its own advantages and disadvantages.
Many novice crypto investors use an exchange wallet. This is a wallet used when trading on an exchange. This is the easiest way to store cryptocurrency, but also the most risky. In an exchange wallet, the private keys and seed phrase belong to the exchange itself, so the crypto investor cannot control the cryptocurrencies in the exchange wallet.
This is why a software wallet is considered the best option. Crypto investors using a software wallet own the private keys and therefore have full control over their 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 and mobile wallets, allowing users to use their cryptocurrencies anytime, anywhere.
However, software wallets are not considered the most secure option as the tokens are stored online. The most reliable crypto wallet is a hardware wallet. Hardware wallets are physical devices that store bitcoins 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: what is the tax on bitcoin profits?
In Australia, bitcoin and other cryptocurrencies are treated as property for tax purposes. This means that buying, selling and trading result in the payment of capital gains tax. This tax must be paid on the profits received.
The Australian Taxation Office (ATO) has released guidance on the taxation of bitcoin and other cryptocurrencies. According to the ATO, bitcoin transactions are subject to capital gains tax if the bitcoin is owned for more than 12 months. For investors holding Bitcoin for less than 12 months, the profit is considered ordinary income.
In addition to tax rules, 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 with bitcoin and other cryptocurrencies may be required to hold an Australian Financial Services License (AFS).