The Australian government takes a reasonably friendly stance towards blockchain technology and cryptocurrencies. This means that crypto is completely legal in the country and investors can purchase any digital currency they like, provided they pay capital gains taxes on their assets when they sell them. Australian citizens can create accounts and buy digital currency via international and local crypto exchanges like Coinbase, Binance and CoinSpot.
The Australian government has even experimented with creating a central bank digital currency (CBDC) for the Australian dollar. However, it is unclear at this time whether their plans imply a full-fledged digital dollar. The regulatory agencies that oversee cryptocurrency-related activities in Australia are the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO). So long as citizens play by the rules, they are free to trade and deal as much as they would like in cryptocurrency.
Over the years, crypto exchanges have established themselves in Australia in tandem with rising interest from investors. Popular Australia-based exchanges include CoinSpot, Swyftx and CoinJar. This guide will explain how to buy crypto in Australia and will also highlight some things you should consider as part of your venture into digital asset ownership.
Buying Crypto in Australia
Buying and investing in digital currency in Australia is becoming a much more streamlined process, much like trading securities. Citizens need only open an account with a crypto brokerage to start trading. Australians can hold virtual currency in wallets and trade different currencies once they have registered for a brokerage account.
What Will You Need in Order to Buy Crypto in Australia?
Before setting up an online account with a crypto exchange, you will need to verify your identity by providing specific documents. Different exchanges will have different rules when it comes to account setup but the following things are good to have to hand to make the process faster:
- You may need to upload photos of your Australian driver’s license or passport as a form of ID
- Access to a private and secure internet connection (public WiFi poses security issues)
- A cell phone you can use for two-factor authentication (2FA)
- A bank account you can withdraw from in order to deposit AUD to your chosen exchange
- A secure method of cryptocurrency storage. Most brokerages will offer a good built-in wallet or secure vault system that you can use
How to Buy Crypto in Australia
Once you have all these things ready and have set up your account on an exchange, you are ready to buy cryptocurrencies like Bitcoin, Ether and other altcoins. You’ll need to take the following steps in order to make your first purchases:
- Sign into your crypto exchange account via your private WiFi connection.
- Select the option to buy crypto, then make sure you have selected the correct digital asset you are trying to buy. For example, you can choose between coins that include Bitcoin, Ether, Binance Coin or Cardano. Different exchanges will have other currency options available, so you make sure they support the crypto you would like to invest in before setting up an account.
- Choose how much you would like to purchase and make sure you have enough AUD or other fiat currency deposited in your account in order to cover the transaction.
- Preview your purchase and make sure you are comfortable with the current price of the cryptocurrency and are familiar with the market’s overall trend at the time.
- If the details look correct, click “buy” to complete your purchase. You can then store your new assets on the exchange's built-in wallet or transfer them to other hot or cold storage.
Cryptocurrency Prices in Australia
Australian crypto investors will easily be able to view all crypto pricing data via their exchange or using CoinMarketCap’s live pricing tracker. CoinMarketCap is among the most trusted and cited price-tracking website for crypto assets globally.
Buying Bitcoin in Australia
As Bitcoin has risen so much in value, many investors will not be able to purchase a full Bitcoin. Instead, brokerages will allow you to buy fractions of a Bitcoin. For example, you can choose to buy 0.003 BTC or even less. the smallest available unit of Bitcoin is called a satoshi – equivalent to 0.00000001 BTC. Exchanges offer many ways to trade Bitcoin and other cryptocurrencies. You can choose to buy and hold on to your Bitcoin, or trade it using short-term strategies like day trading or swing trading.
Buying Ether in Australia
Ether is a widely traded asset in Australia. Almost all exchanges will support Ether, as it is the second-largest crypto by market cap and is one of the most popular investments in the crypto space. Just as for Bitcoin, you will be able to buy fractional amounts of Ether.
Buying Binance Coin in Australia
Binance Coin is currently the third-largest crypto by market cap. The Binance platform is the easiest way to buy Binance Coin. You can do this by setting up an account with Binance.com, making sure you have the aforementioned ID documents to hand.
How to Store Your Crypto After Your Purchase
Once you’ve purchased your crypto, you will need to choose a way to store your new digital assets securely. Crypto exchanges offer their own wallets for you to store your crypto but these can be more vulnerable to cyber theft than storing purchases in an independent, secure wallet.
See CMC Alexandria’s full guide to wallet storage here. The following two are the main options that Australian crypto investors can choose between when it comes to storage:
Hot Wallets: Hot wallets are connected to the internet, allowing users to transfer or trade crypto assets quickly. Due to their connectivity, hot wallets are more vulnerable to cyber theft. Hot wallets include exchange wallets, desktop wallets and mobile wallets.
Cold Wallets: Cold wallets store your crypto assets offline, making them more secure. They are, however, slower to make transactions with. Cold wallets include paper wallets (keys and QR codes printed on paper and stored away safely) and hardware wallets (keys stored on a specialized device).