How To Buy Cryptocurrency In Australia: A Complete Guide

Do you want to learn how to buy Crypto in Australia? If so, you are at the right place. The information online can easily overwhelm anyone, particularly those planning to enter the crypto space.

The global popularity of digital currency and investment in Crypto is increasing exponentially. Great returns, high market volatility, anonymity, no government interference, high liquidity, and 24 hours trading are a few strong reasons that claim that cryptocurrency is here to stay.

This guide will give you a basic introduction to cryptocurrencies, the best trading platforms available, and instructions on how you can buy crypto in Australia.

If you don't have a crypto trading account yet, we recommend the best broker for Australia and worldwide, eToro - You can create an eToro trading account HERE.

(Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.)

1. What Is Crypto?

Crypto is a digital currency that uses a decentralized system to record trade transactions in place of regulating authority. This digital/virtual asset can be in the form of a cryptocurrency, token, or coin that doesn’t have a physical form.

Crypto depends on cryptography and blockchain technology to offer security and protect users from fraudulent transactions and counterfeiting.

2. What Types of Crypto Are Available To Trade In Australia?

Crypto in Australia is categorized based on its capabilities. We have listed some of the most common types below:

Bitcoin

This native crypto-asset works on the decentralized Bitcoin network system that records trade transactions in a blockchain. ‘Bitcoin miners’ use computer-intensive software to verify transactions moving through the Bitcoin network.

Ether

This is another native crypto-asset used on the open-source platform called “Ethereum”, which works using blockchain technology.

Litecoin

Litecoin is a network and crypto-asset based on a global ‘payment’ network, and it was created by altering Bitcoin’s open-source code. The network processes transactions at a quicker rate than the Bitcoin network.
 

Ripple

It is a database users use to store and transfer value in any crypto-assets or currency on a protected network. It is a network that enables real-time transfers of currencies between users.
 

Stablecoin

It has low (or no) price volatility. They track the value of a government-issued currency and try to stabilize its market value using algorithms.

3. How Is Crypto Used?

Initially, Crypto was developed as a digital asset to be used as money. Later, businesses started accepting crypto as a payment method for services and goods. A few ATMs also allow people to withdraw it as cash. 

Crypto is a hypothetical longer-term investment in Australia.

4. How Does Crypto Work?

One can purchase or sell crypto using money on a crypto trading platform in Australia. Cryptocurrency will be kept in hardware or digital wallet.

The user’s wallet is encrypted using a set of unique codes or private keys. This code authorizes all outgoing transactions that take place on the blockchain network. A hardware wallet stores private keys on a safe hardware device offline, which offers protection from hackers since the device is disconnected from the internet.

If you want to sell or buy Bitcoin, crypto holders can choose from many brokers and crypto exchanges. They have the flexibility to exchange Bitcoins for AUD or a wide range of cryptocurrencies. Whatever gains you make after selling crypto, you must show it as investment income when filing your tax return.

5. Steps To Buy Crypto In Australia

Buying a cryptocurrency can be difficult for first-timers. With so many cryptocurrencies to trade in, and numerous online exchanges, it is easy to get confused. Don’t fret.

This step-by-step guide will help you start your crypto journey and learn to invest like a Pro.

Step 1: Choose The Right Trading/ Exchange Platform

If you don't have a crypto trading account yet, we recommend the best broker to buy crypto, eToro - You can create an eToro trading account HERE. (Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.)

The first step is to decide where and how to buy crypto. 

Crypto trading platforms are classified into three main categories:

Cryptocurrency Exchanges

It is the simplest way to buy crypto in Australia. Due to the presence of several exchanges, it is beneficial to compare them based on the following factors to find the best one:

• Supported cryptocurrencies

• Trading fee

• Ease-of-use

• Centralized/Decentralized

• Trading features

• Fiat currency (USD/AUD/NZD)

• Accepted Payment methods 

• Customer support

• Hidden fee

• Customer Reviews and Rating

• Support for Wallets

• Exchange fee

Cryptocurrency exchanges offer better exchange rates and lower fees than brokers. They offer access to a wide range of coins and let users actively trade cryptocurrencies in the market.

The only downside is that they are a little complicated to use. Traders need to have a basic understanding of trading to execute trades using this mode. Binance and Independent Reserve are two well-known and trusted cryptocurrency exchanges in Australia.

Bitcoin Brokers

They are retailers that sell digital currencies, including Bitcoins. If you are looking for the simplest and quickest way to buy Bitcoin, choose this option. Bitcoin brokers provide user-friendly platforms to help traders execute trades.

Brokers allow users to pay with fiat currencies using the most common payment methods but charge higher fees than the other two categories. Popular cryptocurrency brokers in Australia are eToro, CoinSpot and CoinJar.

Peer-to-Peer Exchanges

Peer-to-peer exchanges look like noticeboards on which people post notices related to purchasing and selling crypto with their prices. These exchanges let crypto buyers and sellers contact each other and make arrangements.

The ability to trade with different payment methods and increased privacy attract traders to this platform. However, higher prices than the market exchange rate and the presence of scammers on this platform make it less appealing.

Even though the method uses escrow services to safeguard buyers and sellers from scams, you need to do your due diligence before entering into a trade. Paxful and LocalBitcoins are the best examples of peer-to-peer exchanges to trade crypto in Australia.

Regardless of which method you choose, you should invest time in conducting research and reading customer reviews. Look for the one that is established, reputable and transparent in its working, policies, and pricing.

Step 2: Open A Crypto Trading Account

After choosing a platform, you need to register with them to start trading in crypto. The process to create an account is nearly the same on all trading platforms:

You need to Sign in by providing your full name, email address, residential address, and proof of ID (passport/driver’s license) to verify your identity. Upon successful ID verification, you can start buying and selling cryptocurrencies.

If you don't have a crypto trading account yet, we recommend the best broker for Australia and worldwide, eToro - You can create an eToro trading account HERE.

(Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.)

Step 3: Set Up Your Bank Account

Before you start, set up two-factor authentication, add your bank account, and choose a preferred payment method. The most common payment modes include Poli and PayID. Osko doesn’t charge a fee for local fund transfers (in AUD).

Step 4: Fund Your Trading Account

To buy cryptocurrency, you need to have enough funds in your trading account. So, the next step is to deposit funds into your trading account via acceptable deposit methods, such as bank transfers. After a successful transaction, you will see funds under the Accounts section.

Step 5: Buy Your First Crypto

With a verified account and adequate funds to trade, let’s start with the crypto buying process:

When Using A CryptoBroker

The trading interface differs with many brokers, but the crypto buying steps are generally the same. To initiate a buy trade with Bitcoin, users have to enter the amount they want to buy.

The broker will show you the cost and the available payment methods available. You need to select a suitable payment option and initiate the buy trade.

A successful transaction will get you Bitcoins in your account. You can either send it to someone or withdraw it from your wallet.

When Using A Trading Platform

Deposit funds into your account. Next, search for the currency pair you wish to trade, such as BTC/AUD (to buy Bitcoins using Australian dollars) on the exchange website. You can place a market or limit order to buy crypto at the current price or a specific price.

When Using A Peer-To-Peer Exchange

To buy crypto, look at the seller’s offer to pay you an acceptable price and allow a suitable payment method. Make sure the seller has a good reputation score before making the deal. Contact the seller and work your way to execute the transaction.

6. How To Choose A Crypto Exchange In Australia?

The presence of hundreds of trading platforms can easily overwhelm everyone. For a newbie, it can be confusing and challenging to choose the best Crypto exchange.

Here are 12 pointers to help simplify your decision-making process:

• Reputation: Read user reviews to get a better idea of the reputation, efficiency, and credibility of an exchange

• Location: Go for local exchanges as they accept the local currency, such as AUD, and local payment methods, like BPAY and POLi Payments. It saves paying expensive international transfer fees associated with the overseas exchange.

• Check its regulatory status: The exchange you choose should be compliant with financial services regulations and applicable Australian consumer rights laws. Most Australian exchanges are regulated and conform with AUSTRAC’s AML/CTF reporting obligations that guard against terrorism financing and money laundering.

• Security features: Choose the trading platform that implements better consumer protection and robust security features such as PGP-encrypted emails and 2-factor authentication to protect you from online fraud,

• Brokerage Charges: Most platforms charge different trading fees, transaction fees, and deposit and withdrawal charges. It is best to compare various crypto platforms on this parameter to find the right one.

• Transaction limits: Find out if there are any limitations on the minimum or maximum amount of bitcoins you can purchase. Is there a single transaction limit for funds to withdraw from the account within a 24-hour duration?

• Supported currencies: Do you want to buy other cryptocurrencies along with Bitcoin? Choose the exchange that gives you the freedom to buy and sell Bitcoins on various platforms.

• Customer support: Find out the type of customer support the exchange has. Check the different ways to contact the customer support team to resolve queries, such as live chat, call, email, etc.

• Liquidity: Look for larger platforms that offer higher liquidity to users.

• Make sure the platform offers an Easy-to-use and User-friendly interface and Page Navigation.
• It should accept a wide range of Payment Methods to buy Bitcoins easily
• Check the types of trading features, including educational content offered 

7. Comparison Of The Best Crypto Trading Platforms In Australia

Are you confused about where to buy Crypto in Australia? Refer to the below comparison list that shows the different trading features of the top Australian exchanges to help you make an informed decision.

8. Process To Buy Crypto Currency On Popular Platforms:

eToro - (Our Recommendation!)

eToro offers the facility to buy both crypto and non-crypto assets. This implies that users can trade several commodities and stocks using this same platform. You can trade CFDs and advanced trade types.

The platform is for both beginners and advanced traders. Whether you are a frequent or infrequent trader, eToro lets you make investments in Bitcoins convenient and easy. With its copy trade feature, you can imitate the trade strategies of other traders and execute your trades quickly and effortlessly.

Features of eToro:

• Seamless investment portfolio management

• Swift account setup process

• Ease of use

• Low trading fees

• Secured operational licenses from regulatory bodies such as FCA and ASIC

• No deposit fees and account opening charges

Step-by-step process to buying Bitcoin Using eToro:

1. Visit eToro.com, and click the ‘Join Now’ button to Open an account.

2. Submit your ID and address proofs as part of the KYC process 

3. Make a minimum deposit of $50 via credit card, bank transfer, debit cards, Skrill, Neteller, or e-wallet

4. Search for Bitcoin by typing “BTC” in the search bar.

5. Next, type the number of Bitcoins you want to buy 

6. Click on ‘Open Trade’

(eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Crypto assets are unregulated and highly speculative. There is no consumer protection. You risk losing all of your capital. Refer to our Terms and Conditions. See full disclaimer.)

Independent Reserve

The Independent Reserve is yet another trusted and reputed Australian exchange that lets you buy and sell different types of cryptocurrencies. Here is a 7-step process to get your first crypto using this service.

1. Visit the Independent Reserve website and click on the “Create account” button.

2. Sign-up by providing your username, password, and a few personal details 

3. Once this is done, verify your email and set up 2FA, which is recommended for cryptocurrency exchanges.

4. After email verification, you need to verify your identity before you can execute trades on the platform. Provide your ID and proof of address as a passport or driver’s license to verify your identity.

5. Provide your bank account details. Click on “Accounts” in the menu, and click on “Add a bank account” in the sub-menu.

6. Choose any of the following options and submit the details:

• Australian bank account

• Overseas bank account 

• PayID instant bank deposits

1. Once your bank account is connected to the platform, search for your preferred currency, and click on “deposit”. Choose from the different payment modes such as Electronic Funds Transfer, POLi, Osko, and PayID to transfer funds from your bank account to the Independent Reserve account.

2. With adequate funds in your account, you can buy crypto at the market/ current price or a specific limit price. Go to the trade page. Enter the amount of BTC you want (or AUD equivalent). Now Click on “Preview” buy order. Now confirm the trade. You should see the BTC balance under Accounts.

This completes the entire process to buy and sell crypto on Independent Reserve. 

Swyftx

Swyftx is an Australian exchange that provides the largest selection of Cryptocurrencies. Users enjoy trading features such as recurring orders, automatic orders, integrated viewing charts, and combined order books.

Swyftx also offers a ‘trading in demo mode’ feature that enables new investors to trade cryptos using mock currency and real-time data. It is a good option to practice trading before starting with real money.

Swyftx provides a digital wallet facility for traders to store their crypto assets for an extended period. A cold storage wallet is a great way to keep crypto safe online.

Now that you know the features of Swyftx, let us get started with the crypto buying procedure:

1. Create your account by providing your name, phone number, and email address. Create a strong password to secure your Swyftx account

2. The next step is to verify your email address, phone number, and personal identification (by uploading an accepted photo ID and address proof) 

3. Enable 2-factor authentication

4. After successful account creation and verification, you can now deposit Australian Dollars (AUD) in your Swyftx account from your bank account using any of the below ways:

• PayID

• POLi

• Bank transfer

• OSKO

• Debit/credit card 

DigitalSurge

Are you looking for a simple, enjoyable, safe, and easy-to-understand way to trade Cryptos in Australia? Digital Surge lets you manage and grow your investment portfolio efficiently.

Here are a few more reasons to choose DigitalSurge for all your crypto trading needs:

• User-friendly and unique trading experience

• Secure Multicoin personal hot/cold wallets 

• Get Verified and start trading within 2 minutes 

• Deposit and withdraw crypto assets in seconds

• Low transparent trading fee

• Regularly updated Multi-layered security 

• 2 Factor Authentication

• Personalized trading advice from Crypto Experts

• Quality Learning Resources

• Secure and immediate 24*7 deposits via POLi, and PayID

Follow the below steps to start making smart and profitable crypto trades using DigitalSurge

1. Visit the Digital Surge website and create an account using your Email address or Facebook account 

2. Once the sign-up is done, verify your email address and account. Successful verification is necessary before you can make deposits and buy crypto on the platform. 

3. Click 'Deposit funds' to Deposit AUD via PayID or POLi to your wallet instantly. Payments through PayID don’t incur fees and happen instantly.

4. Select your preferred payment method

5. Once the funds arrive in your Digital Surge account, you are ready to buy cryptocurrency. 

• Click the 'Buy & Sell' button

• Type the name of cryptocurrency you want to buy in the 'Search assets' bar

• Type the number of AUD you wish to spend to buy your crypto 

• Click on the 'Buy' button to own your first cryptocurrency

CoinBase

Coinbase Australia is a digital crypto exchange created in 2012 by Brian Armstrong. Besides buying and selling crypto assets, the platform enables traders to store their cryptocurrencies in specialized storage facilities.

Its user-friendly interface provides easy and quick access to information and features. It makes it quite attractive for new traders and crypto enthusiasts. The abundant learning material makes it easier for users to learn more about the crypto market.

Other features of Coinbase in Australia:

• Access to more than 81 crypto-to-crypto trading pairs and 100 cryptocurrencies

• Requires a minimum deposit of only $2 (2.7 AUD) 

• Charges between 0.5% to 4.5% for each trade that makes transactions affordable 

Steps to buying crypto using Coinbase:

1. Visit the Coinbase website and “Sign In” to the platform.

2. Click on Buy / Sell button present on the upper right-hand side.

3. Choose the digital asset you wish to buy, and Click the Buy panel 

4. Specify the amount you want to buy in your local currency or crypto.

5. Choose your preferred payment method.

6. Click Preview and review your transaction details. 

7. Click on the Buy button to confirm your purchase.

Repeat the process to make subsequent trades.  

Follow the above steps to buy Bitcoins using Coinbase Android / iOS mobile app.

CoinSpot

Are you 16 years or above and want to trade? CoinSpot could be the ideal trading platform to enable you to trade in cryptocurrencies. Founded in 2013, CoinSpot is the largest, most established, and most trusted exchange platform in Australia.

Its simple and fast signup and intuitive interface make it popular among new traders. All you need is valid ID proof, an Australian mobile number, and your email address to be fully on board on the platform.

Let’s begin with its distinctive features:

• 2 million customers

• Built-in 2 Factor Authentication to ensure heightened security 

• Buy, Sell, or Swap over 350+ cryptocurrencies including Bitcoins, Dogecoins, Litecoins 

• Get started in minutes and begin trading your cryptocurrencies

• Get instant 24/ Helpdesk Support via Live Chat 

• Use the CoinSpot website or Coinbase Android or iOS app to trade Bitcoins on the go

• Certified with Sci Qual and Blockchain Australia

• The lowest fees (starting from 0.1%)

• 24/7 premium customer service by real people 

• Easy and fast registration and verification

• Clear display of transaction histories

• Support immediate and free AUD deposit methods such as Direct deposit, credit cards, PayID and POLi

• Focus on essentials and minimum extraneous features that make it lightweight, user-friendly, and fast 

Steps to buy and Trade Crypto using Melbourne-based CoinSpot exchange:

1. Visit CoinSpot website 

2. Register for an account with CoinSpot by providing your email address and creating a password  

3. Verify your account using phone number, email address, photo ID, and address proof. Once verified, you can start trading crypto on this platform.

4. Enable 2-factor authentication 

5. Deposit funds (in AUD) using any of their approved deposit methods to get funds into your account

6. Search for the Crypto asset you want to buy, enter the AUD amount, and click on the “Buy” button. 

7. To sell a crypto asset, enter the amount of cryptocurrency you wish to sell or the AUD worth of coins. Specify your desired selling price and click on the “Sell” button. 

Repeat the above steps “in order” for subsequent crypto trading transactions.

9. What Are The Risks Associated With Buying Bitcoins?

Before investing in Bitcoins, you should understand the risk factors associated with them:

• It’s highly volatile, and its value can rise and fall sharply in a short time. Being a very new asset class, Bitcoins are highly unpredictable and risky investments.

• As there is no intermediary involved in Bitcoin transactions, those who trade in Bitcoins are solely responsible for the security of their Bitcoins. It implies if your account gets hacked or you lose your private keys, there is no way to get your money back.

• Once a transaction is initiated to the Bitcoin network, you cannot cancel it. Due to this reason, you need to double-check the recipient’s address before you make a Bitcoin payment to them.

• The financial bodies and regulators for Bitcoin keep changing. Even if your country has a supportive Bitcoin regulatory environment, it is vital to understand how events in other countries impact this digital currency positively and negatively.

• Due to being a highly speculative investment, its value depends on investor opinion, media hype, etc.

• Unlike conventional financial products, there is no official prospectus or product disclosure statement about how the crypto-asset operates. Due to this, people are unfamiliar with the processes of crypto-asset networks.

Looking at the increasing Crypto scams and unregulated nature of Bitcoins, it is necessary to do your research before you buy, sell and hold Bitcoin.

10. What Are The Common Crypto Tools That Experts Use?

Today, various crypto trading tools are used with AI to predict future trends. These advisory tools help save a lot of time when researching crypto. Some of them are:

• Price Prediction Tools

• Block Explorers

• Mining Tools

• Exchanges

• Portfolio Trackers

• Analytics Tool

• Research Report Tools

• Trading Bots

11. What Are The Top Platforms To Buy Crypto in Australia?

The safest way to buy virtual currencies in Australia is through a reputable broker. Here are the most trusted and highly recommended Crypto investment and trading platforms to make your purchase a breeze.

• eToro: Best Overall Platform (Our Recommendation)

• Coinbase and CoinSpot: Best Platform for Newbies

• Capital.com - Best CFD Platform

• Binance: Low Fees Platform

• Capital.com: Most Technologically Advanced platform

12. What Are The Ways Available To Pay For Bitcoin?

The acceptable payment method to buy Bitcoin depends on the Australian cryptocurrency exchange you choose. Not all exchanges accept all payment methods. It is important to visit the exchange site to learn about acceptable payment methods.

Here we have listed the most common payment methods to buy Bitcoin:

Fund Transfer From Your Bank Account 

Domestic bank transfers are free, near-instant, and widely accepted by Australian exchanges such as CoinSpot, BTC Markets, Swyftx, Independent Reserve, and more.

In the case of an overseas cryptocurrency exchange, bank transfer payment options may appear as SWIFT payment or wire transfer. Such payments can take up to a week for the transfer to happen and attract higher transfer fees and currency exchange fees.

A good way to use a specific overseas exchange is to buy cryptocurrency with local currency and later deposit it onto the exchange.

Credit card or Debit card

Several Bitcoin trading platforms, such as Coinmama, Binance, and Coinbase, allow one to buy Bitcoin using credit cards. However, credit card transactions are a quick and convenient mode of purchase but attract relatively high fees (1.5% to 3%) and cash advance fees.

Due to the associated risk of chargeback fraud, this payment mode is not acceptable on peer-to-peer exchanges.

Debit cards aren't as commonly accepted as credit cards, but some Bitcoin brokers allow people to buy cryptocurrency using this payment method. If you need to make payment only through a credit/debit card, you need to look for an exchange that accepts this payment mode to purchase Bitcoins.

Cash

Here are the 3 ways to buy Bitcoin with cash:

• Using a peer-to-peer exchange

• Arranging cash with someone who lives in your area

• Find a local Bitcoin ATM, deposit cash, and get it converted to BTC

• Via Newsagent. You cash to the newsagent, who will scan the QR code and credit Bitcoins to your exchange account

PayPal

Just like credit cards, buying bitcoins via Paypal is seen to carry the risk of chargeback fraud. It also doesn’t have the best security track record. It is the payment method least accepted by cryptocurrency exchanges to buy Bitcoin.

eToro and xCoins are a few options that offer the facility to buy Bitcoins with PayPal.

Alternatively, you can link your PayPal account with a credit card and buy this digital currency with that credit card. You must note that buying via PayPal can incur additional fees that depend on the exchange.

Using Crypto

Many crypto exchanges list Bitcoins or BTC in various trading pairs. You should find crypto exchanges that give you the best features at nominal costs. Find a crypto exchange that lists the trading pair you want and compares the advantages and drawbacks of each platform.
 

13. What Are Decentralized And Centralized Exchanges?

In centralized exchanges like Swyftx, all investment and trading transactions are governed by a central authority. They are licensed and comply with KYC and AML regulations. Centralized exchanges offer heightened security, escrow services, match crypto buyers and sellers, and even provide coins.

On the other hand, decentralized exchanges are peer-to-peer platforms that allow crypto traders to buy, exchange and sell cryptocurrencies anonymously. As such exchanges are unregulated, banks do not process crypto transactions. Each transaction on the platform happens mutually between the parties involved in the transaction.

Are you unsure of which exchange to choose? If you don’t mind identity disclosure) but want to use a safe and trusted exchange, go with a centralized one. However, if you want to make anonymous transactions, and are okay with the risks involved in keeping funds online, choose a decentralized platform.

14. Frequently Asked Question (FAQ's):

Is It Legal To Buy Crypto In Australia?

Yes. As per Australian regulations, anyone can buy, sell, and trade cryptocurrencies.

Is It Safe To Buy Crypto In Australia?

It is only safe to buy, sell, and trade crypto in Australia using a trusted and reputable crypto exchange. The built-in multi-layered security of Australian exchanges gives peace of mind to traders.
 

How Much Time Does It Take To Buy Crypto?

The time needed to buy a Crypto (specifically Bitcoin) depends on the trading platform and payment method. Where credit card purchases are processed immediately, it may take 1 to 2 business days in the case of local bank transfers.

However, if it is an overseas bank transfer/wire transfer, it could take up to a week to clear.

What Are The Best Places To Store Cryptocurrency After Buying?

After you buy a Bitcoin, it goes to your account on the exchange. Keeping Bitcoins in exchange accounts isn’t the safest option.

The reason is that your account may get hacked, or you lose access to your exchange account, thereby losing Bitcoins.

Due to this, it is usually safer to transfer Bitcoin to your wallet and keep it there. To do this, You need to create a personal Bitcoin wallet address and transfer your crypto there. However, you should note that you will need to pay fees that may apply based on the exchange.

If your exchange doesn’t provide a wallet, you can register for a free 3rd -party wallet online. However, due to the associated risk with storing funds online, you should consider online wallets only as a short-term solution.

A relatively safer option is to invest in a hardware wallet. This wallet looks like a USB and locks your money with a private key known only to you. It implies that only you can access this wallet. Since it remains disconnected from the Internet, it can’t be hacked or affected by malware.

What Are Bitcoins?

Bitcoin is the oldest and biggest virtual currency (by market cap). It is a decentralized digital crypto-asset offering a feasible alternative to conventional fiat currency.
 

In 2008, Satoshi Nakamoto published the Bitcoin technical specs and objectives. He open-sourced its underlying blockchain technology in the following year.

Bitcoin holders can directly transfer their coins to other Bitcoin holders present on a peer-to-peer network. All transactions are tracked on a public ledger called a blockchain. Bitcoin miners validate each transaction and update the ledger constantly.

Bitcoin has a limited supply restricted to 21 million coins. Each Bitcoin is divisible by 0.00000001 BTC, which makes it possible to purchase less than one Bitcoin coin.

Why Buy Bitcoin?

The steep fall in stock markets, the decline in asset values, corporate losses, and rising inflation are some factors that have driven investors to look for the best store of value to safeguard their wealth.

Hard-cap limit of Bitcoins and a maximum supply of 21 million coins have made it an attractive investment option leading investors to add this digital asset to their balance books.

What Is Bitcoin Mining?

Bitcoin mining refers to creating bitcoins using high-powered computers. Such computers can solve complex mathematical puzzles to verify transactions and form new blocks.
 

A person who uses specialized computers to solve a problem is called a Bitcoin miner. Every successful solution gets him a block reward that comprises a predetermined number of Bitcoins.

How To Buy A Bitcoin Using Your Crypto Assets?

Do you want to use your cryptocurrencies to buy more Bitcoins? You can do so by following a few general steps:

• Choose the exchange 

• Create an account

• Enable 2-factor authentication

• Click on the "Funds" tab 

• Choose "Deposits" in the submenu

• Choose the digital currency you wish to deposit and scan the QR code or provide the wallet address

• Transfer the digital currency from your external personal wallet into your account

• Click on the "Exchange" tab 

• Choose between a "Basic" or "Advanced" trading view

• Find the trading pair, such as "BTC/DASH"

• Choose a Market, Limit, or Stop-Limit Order

• Enter the number of Bitcoins you want to buy 

• Review the transaction details

• Click on the "Buy BTC" button to complete the trade.

It is a general process, and may vary slightly from one trading platform to the other. 

How To Get Bitcoins Without Buying It?

Do you want to know ways to get Bitcoins without buying them? Try the below options:

• Request payment for goods and services in Bitcoin instead of AUD. Nowadays, many stores offer this facility to Bitcoin holders in Australia. 

• Mine existing Bitcoin to earn money and buy more Bitcoins. 

• Legitimate online games and Bitcoin faucets may earn you a few free Bitcoins.

Is It Possible To Buy Bitcoins Anonymously?

Yes. Here are the ways that will let you disguise your identity when buying a Bitcoin:

• Use a peer-to-peer platform to trade directly with a Bitcoin seller

• Use a Bitcoin ATM to deposit cash (anonymously), get it converted to Bitcoin, and transfer it to your Bitcoin wallet.

• Use a prepaid credit card mode to buy Bitcoins on the trading platform without providing your ID proof.

• Trade altcoins for Bitcoin on an Australian exchange that does not need proof of ID.

Do You Need To Pay Tax On Bitcoin Investments?

Yes. Bitcoin earnings are taxable. Bitcoin holders must pay tax on any capital gains they make on selling them for AUD or any other currency. Tax obligations are also applicable to Bitcoin miners.
 

What Is The Quickest Way To Purchase Bitcoin?

Buying Bitcoin using a Bitcoin ATM is the fastest way to earn Bitcoins. Find a nearby Bitcoin ATM, deposit cash, and convert it to BTC fast.
 

What Is The Simplest Way To Purchase Bitcoin?

Find a trusted Bitcoin broker that provides a convenient platform to invest in Bitcoins. It is an easy way to pay with AUD and buy Bitcoins. Choose a bank transfer or credit card payment mode for quick processing of transactions.

Can I Purchase Bitcoin With Leverage?

Yes. Some crypto brokers in Australia offer the facility to buy Bitcoins with leverage. Check the trading features of individual brokers to find those that provide this facility.

What Factors Determine The Bitcoin Price?

The price of a Bitcoin depends on several factors that include:

• Supply and demand

• Its current popularity (the number of people who use it at that instant)

• Ease of trade 

• The supposed value of the currency

• Its underlying blockchain technology

Can I Buy Bitcoin In The Form Of A Stock?

No. Since Bitcoin is not a company, you can not buy/store/sell Bitcoins like a stock on the exchange. However, a few Bitcoin-related businesses or Bitcoin mining companies' shares are publically traded.

The price of such shares rises and falls with the fluctuation of Bitcoin prices. You can consider trading in such stocks.

15. Conclusion

We hope that this guide has motivated you to try out crypto trading.

Proper research, comparison of trading platforms, designing an investment strategy, and choosing the correct crypto that aligns with your goal will give you a head start over other crypto players in the market.

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