how to buy bitcoin
Step 1 . Find an Exchange and Create an account
For beginners, fees, AUD support and ease-of-use might be your top priorities when choosing where to buy (Bitcoin) BTC. Once you’ve chosen the platform you want to use you will need to create an account.
You will need to provide some photo ID like a driver’s licence or passport to complete the process. You may also be required to take a selfie to prove your identity in accordance with Australian law.
BTC Markets
‘Trade with confidence on Australia’s fastest crypto exchange.’*
Australian Based
- Multiple layers of account security.
- Fast trade executions with 99.99%.
- 100% Australian-based support.
- Trade crypto on the go with App.
Independent Reserve
‘Helping Australians Invest in Crypto Since 2013’*
Since 2013
- ISO 27001 Certified
- 24/7 Support
- Sydney Based
- Instant Deposits (Credit Card)
CoinSpot
Everything you need to start a new business.
Great For New Users
- Home for 2.5 million people
- Blockchain Australia Certified
- Melbourne Based
- Two-factor authentication
$btc
Learn How to Buy Bitcoin
Step-by-Step Guide to Buying Bitcoin
Bitcoin $BTC
What is Bitcoin?
Bitcoin is a decentralised digital currency that enables peer-to-peer transactions without the need for a central authority.
It was created in 2009 by an anonymous individual or group known as Satoshi Nakamoto.
Powered by blockchain technology, Bitcoin offers security, transparency, and the potential for high returns, making it an attractive investment option.
Getting started
Step 2. Choose a payment method
It’s possible to deposit funds using bank transfer, debit or credit card, PayPal and more, but using bank deposit to a crypto exchange can mean you don’t pay any fees. Alternatively, you may already have a specific payment method in mind, so you could instead start by choosing an exchange that supports it – such as finding a platform that accepts credit card
- Choose a secure wallet
- Research exchanges
- Understand market trends
purchasing
Step 3. Purchase your Bitcoin
Depending on which platform you choose, there may be a number of ways to buy Bitcoin (BTC) in Australia. The spot market is typically where fees are lowest but it may require some getting used to if you’ve never used an investment platform before. The easiest method is usually using the “instant purchase” option, but this is likely to come with higher fees.
protect your investment
Step 4 - Safely store your Bitcoin
Once you’ve bought Bitcoin, you have the choice of keeping it on the exchange or platform you bought it from, or transferring it to your own crypto wallet. While it can be more convenient to leave it on the exchange, it’s generally recommended you move your Bitcoin to a private wallet for added security and safety. Find out more about storing your bitcoin.
- Use hardware wallets
- Enable two-factor authentication
- Regularly update passwords
Questions answered
How To Buy Bitcoin FAQ’s
Common Questions About Bitcoin in Australia
Are there any fees for buying Bitcoin?
Yes, there are usually fees associated with buying Bitcoin, including exchange fees, transaction fees, and withdrawal fees. These fees vary by exchange and payment method, so it’s important to review fee structures before making a purchase.
What are the tax implications of buying Bitcoin in Australia?
In Australia, Bitcoin and other cryptocurrencies are considered assets and are subject to capital gains tax (CGT). This means that any profit made from selling Bitcoin is taxable. It’s important to keep detailed records of all transactions and consult a tax professional for guidance.
What is the difference between a Bitcoin exchange and a Bitcoin broker?
A Bitcoin exchange is a platform where users can buy and sell Bitcoin directly with other users, while a Bitcoin broker facilitates the buying and selling of Bitcoin for a fee. Brokers often offer more convenience and simplified processes but may charge higher fees.
Can I use Bitcoin for purchases in Australia?
Yes, many Australian merchants and online platforms accept Bitcoin as payment. You can use Bitcoin to buy goods and services, pay for travel, and even donate to charities. Some Australian businesses that accept Bitcoin include certain cafes, online retailers, and service providers.
What is KYC and why is it necessary?
KYC (Know Your Customer) is a verification process that requires users to provide identification to comply with legal and regulatory standards. In Australia, KYC is mandatory for cryptocurrency exchanges to prevent fraud, money laundering, and other illegal activities.
How do I track the price of Bitcoin?
You can track the price of Bitcoin using various financial news websites, cryptocurrency market aggregators (like CoinMarketCap or CoinGecko), and mobile apps designed for real-time price tracking.
What is dollar-cost averaging (DCA)?
Dollar-cost averaging (DCA) is an investment strategy where you buy a fixed amount of Bitcoin at regular intervals, regardless of its price. This approach reduces the impact of market volatility and avoids trying to time the market.
What is the best time to buy Bitcoin?
There is no definitive best time to buy Bitcoin due to its market volatility. Some investors use strategies like dollar-cost averaging (DCA), which involves buying small amounts regularly to mitigate the impact of price fluctuations.
What is a Bitcoin wallet?
A Bitcoin wallet is a digital tool that allows you to store, send, and receive Bitcoin. Wallets can be software-based (online or mobile apps) or hardware-based (physical devices). Popular options include Ledger, Trezor, Electrum, and Exodus.
What is dollar-cost averaging (DCA)?
Dollar-cost averaging (DCA) is an investment strategy where you buy a fixed amount of Bitcoin at regular intervals, regardless of its price. This approach reduces the impact of market volatility and avoids trying to time the market.
Why Bitcoin Matters
Empowering Financial Freedom
- Decentralization and transparency
- Limited supply ensures long-term value
- Open-source and community-driven innovation
Why Bitcoin Matters
Bitcoin matters because it represents a paradigm shift in the way we think about money, power, and financial freedom.
By decentralising control and democratising access, Bitcoin empowers individuals to take charge of their financial lives, unhindered by borders, institutions, or governments.
As a secure, transparent, and immutable store of value, Bitcoin offers a beacon of hope for those disenfranchised by traditional systems, and a catalyst for innovation in the digital age.
Its existence challenges the status quo, ignites new possibilities, and forever changes the fabric of our global economy.
“Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.”
— Nassim Nicholas Taleb
Safe and Cost-Effective Methods
Safeguard Your Investments During Volatility
#1 · Use Reputable Australian Exchanges. Buying Australian Matters.
Why:
Australian-based exchanges comply with local regulations, offering better protection under Australian law. They are also more likely to have secure systems in place to protect user funds and data.
Top Choices:
Swyftx: Offers two-factor authentication (2FA) and biometric login, along with a transparent fee structure.
Independent Reserve: Known for its robust security measures and insurance against hacks.
Cost - Effectiveness:
Compare fees across exchanges. Some, like BTC Markets, offer lower trading fees, especially for high-volume trades, which is crucial during volatile times when you may want to trade quickly and affordably.
#2 · Utilize Dollar-Cost Averaging (DCA)
Why:
DCA involves buying small amounts of Bitcoin at regular intervals, regardless of the price. This strategy reduces the risk of making large purchases at high prices during volatile periods.
How to Implement:
Set up automatic purchases on platforms like CoinSpot or Swyftx. These platforms allow you to automate your DCA strategy, buying a fixed amount of Bitcoin weekly or monthly.
Cost - Effectiveness:
This method helps in averaging out the purchase price, reducing the impact of short-term volatility. You avoid the stress of trying to time the market, which can often lead to costly mistakes.
#3 · Use Limit Orders to Control Purchase Price
Why:
Limit orders allow you to set a specific price at which you want to buy Bitcoin. This ensures that you don’t overpay during sudden price spikes, a common occurrence during market volatility.
Best Practices:
Most Australian exchanges like Independent Reserve and Coinspot offer limit orders. Set your buy price at a level you’re comfortable with, and let the exchange do the rest.
Cost - Effectiveness:
This method helps in averaging out the purchase price, reducing the impact of short-term volatility. You avoid the stress of trying to time the market, which can often lead to costly mistakes.
#4 · Consider Peer-to-Peer (P2P) Platforms
How it Works:
P2P platforms like Paxful or LocalBitcoins allow you to buy directly from other users, often at better rates. Ensure the platform offers escrow services, which hold the Bitcoin until both parties have fulfilled their part of the deal, reducing the risk of fraud. There is still considerable risk in this process.
Cost - Effectiveness:
P2P platforms often have lower fees compared to traditional exchanges, especially when buying in larger amounts. You can also find sellers offering Bitcoin at competitive prices during market dips.
#5 · Secure Your Bitcoin with Cold Storage
Why:
Once you’ve purchased Bitcoin, moving it to a cold wallet (offline storage) like a Ledger Nano S or Trezor ensures it’s safe from online threats. Cold storage is critical during volatile times when exchange hacks and phishing attempts are more common.
Cost - Effectiveness:
While there’s an initial cost to buying a cold wallet, it’s a one-time investment that protects your Bitcoin from being stolen, which is invaluable in the long term.
#6 · Monitor the Market and Stay Informed
Why:
Staying informed about market conditions can help you make better decisions. Use tools like CoinGecko or TradingView to set alerts for significant price movements or news updates.
Cost - Effectiveness:
By staying informed, you can avoid panic selling or buying, which are common during volatile times and often lead to financial losses.
