How to buy Bitcoin in Australia

How to buy Bitcoin in Australia in 3 steps

1. Choose a trusted crypto exchange

A crypto exchange is basically like an online store, but instead of buying products, you buy Bitcoin and other cryptocurrencies. Below we’ve provided you with some of the best options to choose from.

2. Register and deposit cash

Once you’ve selected the best crypto exchange for your needs, you’ll need to create an account. During sign-up, you’ll create a username and password and provide some personal information. 

Most Bitcoin exchanges are required by law for you to prove your identity (to ensure your pay your taxes and don’t launder money!). So be prepared to take a photo of yourself holding your ID. Once your account has been verified by the exchange’s support team, it’s time to deposit funds/Australian dollars into your account.

Bank account transfers usually incur lower fees than credit cards. So, try to avoid buying crypto and Bitcoin with your credit card if possible.

3. Buy Bitcoin

Once you deposit funds, log into your Bitcoin exchange and look for a button that says “Buy” or “Trade”. Select Bitcoin (and make sure it’s NOT “Bitcoin Cash” (BCH), “Bitcoin SV” (BSV), etc.). Some exchanges will refer to Bitcoin as “BTC”, the ticker code for Bitcoin. Then, enter how much money you’d like to exchange for Bitcoin and click “Buy”.

Congratulations, you now have Bitcoin in your digital wallet!

Best exchanges to buy Bitcoin in Australia

Most trusted exchange

Easiest to use Bitcoin (BTC) exchange

Exchange with most coins

Best apps to buy Bitcoin in Australia

All of the exchanges listed below offer Australians an iOS and Android app with which you can buy Bitcoin.

What are the ways to buy Bitcoin in Australia?

Crypto exchanges

As mentioned earlier, cryptocurrency exchanges are like online stores where you can trade your Australian dollars (AUD) for cryptocurrencies, like Bitcoin, Ethereum, XRP, etc. All reputable exchanges will require you to create an account and verify your identity. Globally there are hundreds of exchanges, so to help you choose the suitable exchange, we recommend you look for:

• Look for an established exchange. The longer they have been in business, the less likely they are to go bankrupt or be a scam.
• Features. Some exchanges focus on ease and a simple buy/sell interface. If you want more control, you may wish to look for exchanges with features such as open “order books”, “limit orders”, etc.
• Fees. Deposit fees, transaction fees (for buying/selling Bitcoin) and withdrawal fees. You could lose as much as 5%+ on fees with the wrong exchange, so shop around!

Bitcoin ATMs

Bitcoin ATMs allow you to put cash in exchange for Bitcoin. Before using a Bitcoin ATM, you will need to have the following things ready:

• Your cash.
• Your ID.
• Your Bitcoin wallet address.

Bitcoin ATMs typically charge much higher fees than regular Bitcoin exchanges. Additionally, you will need to know how to operate a private Bitcoin wallet, to which you send Bitcoin from the ATM.

Peer-to-Peer (P2P) trading

P2P trading Bitcoin, refers to buying Bitcoin directly from another person. There are many P2P websites and apps out there… However, these platforms are susceptible to fraud and don’t offer competitive prices. In other words, you may pay considerably above the “market” price when trading Bitcoin P2P.

Other ways to buy Bitcoin in Australia

Some platforms allow you to purchase gift cards or physical Bitcoin (such as Denarium). However, these are more of a novelty and are typically not the cheapest or the easiest way to invest in Bitcoin.

What are the fees for buying Bitcoin?

Trading fees

Crypto exchanges usually charge a fee when you buy, sell or swap cryptocurrencies. These fees are typically expressed as a percentage of the transaction value (0.5%, 1%, etc.). 

Trading fees vary between crypto exchanges. Sometimes they offer discounts based on your trading volume or if you purchase the platform’s native token.

If you see “maker” fees, this refers to the fees the seller of digital currency pays. If you see “taker” fees, this refers to the fees crypto buyer pays.

Deposit and withdrawal fees

When you deposit or withdraw funds from a crypto exchange, you might be charged a fee. 

Bitcoin exchanges charge fees because their banking partners usually charge a fee for accepting or sending fiat currency. This is due to the high risk associated with crypto assets and most banks not being willing to provide banking services to the crypto industry. This is usually referred to as “debanking”.

Bank transfers, credit or debit cards, SWIFT and other payment methods may have different fees associated with them. Some exchanges offer fee-free deposits if you meet a fee-free threshold.

Typically bank transfers have the lowest fees, while credit cards and debit cards incur the highest fees.

Network fees or miner’s fees

When you send Bitcoin to a wallet or exchange, you’ll need to pay network fees. These fees go to the Bitcoin miners that validate and process your transaction. The networks fees are usually no more than a few cents per transaction.

Network fees fluctuate based on the Bitcoin network’s congestion and the size of your transaction. Typically fees vary from a few cents to several dollars. You can set a custom fee when sending Bitcoin from your private wallet, however, be aware that setting a fee too low could result in slow transaction times (as higher fee-paying transactions take priority).

Most digital currency exchanges usually charge a flat fee for withdrawing crypto. So if you plan to send Bitcoin to your private wallet, it’s a good idea to accumulate it first. Otherwise, regularly moving Bitcoin off the exchange will eat into your profits.

Bitcoin ATM fees

If you use a Bitcoin ATM to buy Bitcoin, you’ll end up paying a higher fee than other methods. Fees vary by ATM provider and location, but usually range from 5% to 15% of the transaction amount.

Peer-to-Peer (P2P) trading fees

When buying Bitcoin through P2P platforms, you might come across fees related to the platform itself, the payment method you choose, or you may pay above the market price for the Bitcoin itself.

To avoid nasty surprises, always check the fee structure on the platform and take into account price movements.

Is it safe to buy Bitcoin?

Bitcoin has a lot of potential for financial gain. However, it comes with some risks:

• Price volatility: Bitcoin’s price can fluctuate significantly. Since its inception, the price of Bitcoin has dropped more than 50% six times. If you decide to invest in Bitcoin, you need to be comfortable with this volatility and be prepared to wait for the price to recover.
• Regulatory risks: Governments around the world have very different stances on cryptocurrencies. Bitcoin is legal tender in some countries and completely illegal in others. How you are taxed on crypto can vary significantly also.
• Security risks: If your Bitcoin is stolen, your chances of recovering that Bitcoin are extremely low. If you choose self-custody, it is important that you can retrieve your “private key”. If you choose to store your crypto on an exchange, there is risks involved. While rare, it’s not entirely uncommon for exchanges to be hacked, misuse customer funds, or become insolvent. 
• Irreversible transactions: Bitcoin transactions are irreversible. Once you send Bitcoin, you cannot get it back unless the other person agrees to return it. Additionally, when entering a wallet address, you need to double-check transaction details, because you won’t be able to call anyone if things go wrong.
• Lack of consumer protection: Unlike with traditional finance, Bitcoin transactions are final. You can’t request chargebacks or refunds.
• Limited adoption: While Bitcoin’s adoption is growing, it’s still not widely accepted as a payment method. So you may not be able to use it at your local supermarket or restaurant. However, most crypto investors mainly look for capital growth opportunities.
• Scams: The crypto space is full of scams. Let us be very clear, if anyone asks you to send them Bitcoin, with the promise of lucrative gains, they are a scammer. Your best bet is to just hold on to your Bitcoin, and wait for it to appreciate in value.

How to sell Bitcoin in Australia

If your Bitcoin is on an exchange

If you bought Bitcoin in Australia using an exchange: 

1. Log in to the cryptocurrency exchange where your Bitcoin is stored.
2. Find the Sell or Trade Bitcoin button.
3. Select Bitcoin (BTC).
4. Enter the amount of Bitcoin you want to sell.
5. Confirm the trade details and hit the sell/trade button.

Once the transaction is complete, you can send the money to your bank account.

If your Bitcoin is in a private wallet

1. Select your cryptocurrency exchange (see our recommendations further up). Make sure the exchange allows you to withdraw money, as some crypto exchanges only allow crypto-to-crypto trading. 
2. Deposit Bitcoin from your private wallet to the exchange. Make sure to deposit to the correct address and that you’re NOT depositing to a “Bitcoin Cash” or “Bitcoin SV” address, as that may result in you losing your Bitcoin forever.
3. Once your Bitcoin arrives in the platform’s wallet, follow the same steps as mentioned above.

How to safely store Bitcoin

Bitcoin has the potential to be one of your most valuable assets, as such, how you store it is an important consideration. Below are the main ways to store your Bitcoin, as well as the advantages and disadvantages of each:

Crypto exchanges

When you buy crypto and Bitcoin in Australia on a crypto exchange, you’re essentially storing it within the exchange’s wallet. This means that you’re relying on the exchange to act in a responsible manner when it comes to your Bitcoin. 

Storing Bitcoin in a crypto exchange account is convenient because you can quickly trade Bitcoin or buy more. Additionally, you won’t have to learn how other crypto wallets work. However, storing Bitcoin on an exchange can be risky, as your account and the exchange can be vulnerable to hacks and other security breaches.

Software wallets (Hot wallets)

A software Bitcoin wallet is an application stored on your mobile or desktop. It allows you to store, send, and receive Bitcoin. They are called “hot” wallets because they are connected to the internet. These wallets are user-friendly but are also potentially less safe than offline wallets (cold wallets). Popular examples of software Bitcoin wallets include Electrum, Exodus, and Mycelium.

Hardware wallet (Cold wallet)

A hardware crypto wallet is a physical device that securely stores your Bitcoin offline. These wallets are called “cold” because they are not connected to the internet, which provides an additional layer of security against hacks and malware. To access your Bitcoin, you need to connect the device to a computer or smartphone. Some popular hardware wallets are Ledger, Trezor, and KeepKey.

Paper Wallets

A paper wallet is a physical document that contains your Bitcoin’s private keys and public keys, usually in the form of QR codes. This method is considered a form of cold storage because it is not connected to the internet. However, paper wallets can be susceptible to damage or loss, so it’s crucial to keep them safe and create multiple copies if needed.

Mobile Wallets

Mobile wallets are apps installed on your smartphone that allow you to store, send, and receive Bitcoin on the go. While convenient, mobile wallets are also considered hot wallets, so they may not be the most secure option for large amounts of Bitcoin. Examples of mobile wallets include BRD, Trust Wallet, and Edge.

Each storage method has its pros and cons, so it’s essential to choose the one that best suits your needs and balances security with accessibility. It’s also a good idea to use a combination of storage methods, such as keeping a small amount in a software or mobile wallet for daily use and larger amounts in a hardware wallet or another cold storage option for long-term security.

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Frequently asked questions (FAQs)