The popularity of Bitcoin (BTC) and other cryptocurrencies is on the rise, which is a positive development for the adoption of digital currencies on the blockchain. Australia is also witnessing a growing interest in Bitcoin, and companies are responding favorably. There are multiple ways to buy Bitcoin in Australia, and in this article, we will explore these options, as well as how to trade Bitcoin and store cryptocurrencies securely.
Diverse Methods to Purchase Bitcoin in Australia
If you wish to invest in BTC in Australia, there are several avenues you can explore. The most common method is to buy Bitcoin through a cryptocurrency exchange. By linking your bank account, credit card, or debit card to the exchange, you can easily convert fiat currencies into cryptocurrencies.
Another option is to purchase Bitcoin with cash through a Bitcoin ATM. While there are over 200 Bitcoin ATMs in Australia, finding one can be a bit challenging. Despite being nearly the size of the United States, Australia has significantly fewer ATMs compared to the city of Los Angeles, which boasts around 2,000 Bitcoin ATMs.
In addition to exchanges and ATMs, you can also use peer-to-peer (P2P) platforms to buy Bitcoin directly from individuals on a marketplace. This lesser-known method offers several advantages, such as higher liquidity, lower fees, and better exchange rates compared to traditional exchanges.
Lastly, over-the-counter (OTC) trading allows for the easy purchase of large amounts of BTC. These transactions are conducted directly between two parties without involving an order book. OTC trading is particularly popular among wealthy investors and institutional players looking to trade Bitcoin in large volumes.
Bitcoin ATMs in Australia
Bitcoin ATMs serve as convenient devices for converting cash into cryptocurrencies like BTC. They are the only means to directly convert cash into digital currencies. Major cities in Australia, such as Sydney and Melbourne, are home to numerous Bitcoin ATMs where you can buy Bitcoin.
These ATMs often support the purchase of other cryptocurrencies like Ether (ETH) and Litecoin (LTC). Some ATMs even offer XRP (XRP) and Dogecoin (DOGE). However, selling cryptocurrencies at ATMs is less common, though there are a few ATMs that facilitate both buying and selling Bitcoin.
Trading Bitcoin in Australia
Trading Bitcoin in Australia is a straightforward process that involves a few steps. It is vital to choose a reliable cryptocurrency exchange that meets all your requirements. Look for an exchange with a solid reputation, low fees, a large user base, and a wide range of available cryptocurrencies.
Once you have selected an exchange, create an account by visiting the exchange’s homepage and clicking on the Register button. Provide the requested personal information and set up two-factor authentication to ensure the security of your account.
To verify your identity and ensure the authenticity of your account, most exchanges follow a Know Your Customer (KYC) process. This usually involves uploading a copy of your government-issued ID and proof of residence.
After completing the account registration and verification process, you can fund your exchange account. This can typically be done using your bank account or credit card, allowing you to deposit fiat currency into your account for trading on the cryptocurrency market.
To start trading Bitcoin, place an order on the exchange. You can either buy or sell Bitcoin at a specific price or set a limit order to execute a transaction when the price reaches a certain level.
Once you have purchased Bitcoin, it is important to stay updated on the market and monitor your trades. Most cryptocurrency exchanges allow users to set up alerts that notify them when the price of Bitcoin reaches a specific level.
Australia-Based Bitcoin Exchanges
Australian residents have access to several cryptocurrency exchanges, including popular platforms like Crypto.com and Coinbase. These exchanges have millions of users and offer a wide selection of cryptocurrencies. However, there are also several Australian-based cryptocurrency exchanges with their own fees, services, and cryptocurrency offerings. It is advisable to research these exchanges thoroughly before making a decision. Here are some options for Australian cryptocurrency exchanges:
– ZenGo
– Swyftx
– CoinSpot
– BTC Markets
– Independent Reserve
Is Binance Available in Australia?
Australians can also use Binance for cryptocurrency trading. Binance is a well-known platform with tens of millions of users who buy cryptocurrencies and utilize Binance’s services like crypto staking and margin trading. With over 600 different tokens available, Binance attracts many investors.
To trade Bitcoin on Binance in Australia, start by creating an account on the platform and completing the verification process. This may require uploading a copy of your government-issued ID and proof of residence. Once your account is verified, you can fund it with a supported payment method and begin buying and selling cryptocurrencies.
Securely Storing Bitcoin in Australia
When investing in Bitcoin, it is crucial to consider how you will store your cryptocurrencies. Just like fiat currencies, digital currencies can be stolen, so it is important to protect your Bitcoin investment. There are various types of crypto wallets available, each with its own advantages and disadvantages.
Many novice crypto investors use exchange wallets, which are provided by the exchange they trade on. While this is the easiest way to store cryptocurrencies, it is also the riskiest. With an exchange wallet, the private keys and seed phrase are owned by the exchange, leaving the investor with no control over their coins.
A software wallet is generally considered a better option. With a software wallet, investors own their private keys and have full control over their coins. It is important to keep the private key confidential, as it is a unique code that grants access to the cryptocurrencies in the wallet. Software wallets are available as desktop and mobile wallets, allowing users to access their cryptocurrencies anytime and anywhere.
However, software wallets are not the most secure option as they store tokens online. The most reliable way to store Bitcoin is by using a hardware wallet. Hardware wallets are physical devices that store Bitcoin and other cryptocurrencies offline. They provide an extra layer of security since they are not connected to the internet, making them less susceptible to hacking.
Bitcoin Taxes in Australia: Capital Gains Tax on Profits
In Australia, Bitcoin and other cryptocurrencies are treated as property for tax purposes. This means that buying, selling, and trading cryptocurrencies may incur capital gains tax on any profits made.
The Australian Taxation Office (ATO) has provided guidelines on the tax treatment of Bitcoin and cryptocurrencies. According to the ATO, Bitcoin transactions are subject to capital gains tax if the Bitcoin has been held for more than 12 months. If the Bitcoin has been owned for less than 12 months, the profits are treated as ordinary income for investors.
In addition to tax regulations, the Australian Securities and Investments Commission (ASIC) has issued guidance on the use of Bitcoin and cryptocurrencies in the country. ASIC states that Bitcoin and other cryptocurrencies are not legal tender in Australia and are not regulated by the government. However, companies dealing in Bitcoin and cryptocurrencies may be required to hold an Australian Financial Services Licence (AFS).