How to buy Bitcoin in Australia
Bitcoin has gained increasing attention in 2021 as cryptocurrencies gain traction around the world. Here is how to buy bitcoin in Australia.
Investors looking for decentralized assets (and potentially large gains) in post-COVID-19 Australia are turning to cryptocurrencies in droves.
Bitcoin in particular is generating excitement among Australians after its price hit record highs in March 2021, and again the following month. As a finite resource, its volatility proves to be exciting for many market watchers.
For those looking to get started in the space, Investing News Network has put together a step-by-step guide on how to get started buying bitcoin in Australia – and how to stay safe while doing so.
Buy bitcoin in Australia
Bitcoin is a decentralized digital cryptocurrency not issued under the authority of a government.
As a digital unit of account, every bitcoin transaction is carried out online through a peer-to-peer network. Transactions are then collected in blocks, with new blocks attached to previous blocks – hence the term “blockchain”.
More and more places in Australia are accepting bitcoin as a form of payment, although this is seen as somewhat risky due to its price fluctuations. Many enthusiasts prefer to hold bitcoins for the long term instead.
There are different ways to buy bitcoin in Australia. These include buying from a bitcoin cryptocurrency exchange, using a bitcoin broker, or choosing to use a peer-to-peer exchange.
Here’s a quick overview of how to do it:
- Choose your platform – Start by selecting the platform you want to use to buy bitcoins. There are different options available in Australia, each with different costs associated with them. Research and comparison of platforms will be essential here in order to select the features that will best suit your personal situation.
- Register your account – Register your account with your chosen cryptocurrency exchange. Usually, creating your account involves verifying your email address and identity.
- Determine and deposit your funds – After verifying your account, you can choose from a range of payment methods to start depositing funds. The options can be a wire transfer, or you can use a debit card or a credit card. Go to the buy or buy section of the website. There is usually a choice between how much you want to buy or how much you want to spend.
- Complete your purchase – Check your details and complete your purchase. Congratulations, you have purchased bitcoin. Your bitcoin will usually be sent to your account.
How to Safely Store Bitcoin in Australia
After making a purchase of bitcoin, how can it be stored? Buyers have several choices.
Using a crypto wallet
In Australia alone, there are believed to be over 70 cryptocurrency wallets on the market. A crypto wallet, sometimes referred to as a digital wallet, is software that allows users to store and transact with cryptocurrencies like bitcoin.
A crypto wallet has a private key which allows the owner to access all the funds stored in the crypto wallet; it also has a public key that works like a bank account number, allowing other people to send digital funds.
Use a hardware wallet
Sometimes referred to as “cold storage,” a hardware wallet stores cryptocurrencies completely outside the Internet. These devices look a bit like a USB stick and are used to store users’ private keys for bitcoin.
In order to trade cryptocurrencies held in a hardware wallet, owners must move the coins to an exchange, which comes with some security risks.
Hold an exchange
If setting up a crypto wallet is too complicated, it is also possible to store cryptocurrencies in a wallet connected to the same exchange where the coins were purchased.
This option is generally not recommended by crypto experts because it means that the owner of the coin does not control the private key of the wallet, which means that he does not fully own his cryptocurrency. It also makes bitcoin holders a target for thieves, and since bitcoin is a decentralized currency, there is little hope of recovering it once stolen.
Steps to Sell Bitcoin in Australia
Bitcoin is a compelling buy, but sometimes an investment comes to an end.
When it’s time to cash out, bitcoin holders must first decide whether they want to sell their bitcoin for Australian dollars or exchange them for another cryptocurrency. Here is how the process can be completed:
- Log into your account on your favorite cryptocurrency exchange.
- Deposit your bitcoins into your cryptocurrency account.
- Select the amount to sell and complete the process.
- Withdraw your Australian dollars or transfer your new digital currency to your crypto wallet.
Alternatively, if you have a very large amount of bitcoin to trade or sell, you can use any of the 32 bitcoin ATMs in Australia to quickly switch to cash.
To learn more about bitcoin in Australia, click on the link below:
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Disclosure of Securities: I, Ronelle Richards, do not hold any direct investment interest in any of the companies mentioned in this article.