With a value of over $3 trillion in the second half of 2021, the cryptocurrency market has witnessed exponential growth in recent years. Much of this growth has been boosted by retail traders seeking to generate market-beating returns. With that said, it is important for crypto investors in general and Australian ones, in particular, to grasp the investment process before stepping into the market. This article will provide an in-depth guide on how to buy crypto in Australia and how to attain the maximum returns – all in just a few minutes!
What is cryptocurrency?
A cryptocurrency is a virtual or digital currency which is based on cryptography, making it almost impossible to counterfeit. Most cryptocurrencies are decentralised networks powered by blockchain technology—a distributed ledger maintained by a network of computers. Cryptocurrencies are not issued by any central authority, which theoretically safeguards them against government influence or manipulation and makes transactions on the blockchain easy to review and track.
Where to buy or sell cryptocurrency in Australia?
Although there are several cryptocurrency brokers and exchanges in Australia, it is important to select a legitimate and secure crypto exchange. The top-leading Australian crypto exchanges are always the best choices as they are registered with AUSTRAC, which helps prevent money laundering and terrorist funding.
For instance, CoinSpot is the best platform to buy cryptocurrency in Australia since it has long been reputed for its world-class security, 360+ cryptocurrencies, competitive trading fees and spreads, staking services, and in-platform NFT marketplace as well as 24/7 customer support. If you’re interested in finding out more, here’s a comprehensive review of CoinSpot.
How to buy cryptocurrency in Australia?
There are five simple steps to buy cryptocurrency in Australia as outlined below:
Step 1: Compare the best crypto exchanges
The first step is to compare exchanges and choose the best one, and you can refer to our review of Australia-based crypto exchanges. We’ll show you how to acquire cryptocurrency using screenshots from a CoinSpot account, so we recommend signing up with CoinSpot to follow along effortlessly.
Each individual has distinctive investment preferences and trading goals in the crypto sphere. Some want the most extensive assortment of cryptocurrencies, while others favour Australian-based and personalised customer support. Some want all the advanced trading features, while others opt for the simplest method to buy crypto and let their investment grow.
These are some things that should be considered before you buy any cryptocurrencies from any exchange:
- The authenticity and security
- The number of coins/tokens supported
- Ease-of-use interface
- Trading features and tools
- Trading fees, spreads and any extra fees
- Customer-support service
- Educational content and tutorials
- Method of payment
- Ability to purchase coins directly with AUD (possible with most Australia-based exchanges)
Gone are the days when purchasing crypto in Australia was such a challenge. However, with numerous Australia-based and international cryptocurrency exchanges, it may be daunting to find the one best suited to your trading preferences. You can click here for a detailed guide on things to consider when selecting an exchange in Australia.
On another note, if you live in Australia and want to buy cryptocurrency directly in AUD (without incurring costly and sometimes hidden conversion fees), you can choose a local exchange that provides this service. Asking the customer support via live chat or email can be helpful to figure this out, and test the quality and credibility of their services. This is critical if you’re just entering the crypto sphere.
Take your time, do in-depth research, read customer reviews, and seek for an exchange that is transparent about who it is and what fees it charges.
Step 2: Open Your Account on Exchange
Once you’ve figured out which cryptocurrency exchange best meets your requirements, you need an account. You will need an account that provides you with a digital wallet to store your funds and make purchases. CoinSpot provides an excellent digital wallet, and if you want to open a CoinSpot account, you have to follow these simple steps.
To begin, click the “Register” button. A registration screen will display, prompting you to enter your email address, password, and referral or affiliate code (optional).
After that, tick the reCAPTCHA checkbox, read the terms and conditions, then click “Create Account.”
After clicking Create Account, you will be alerted that “Your account has been established” and requested to finish the account verification process. To proceed, click “Complete Verification.”
You will get an email, and after clicking the “Confirm Email” button to verify your email address, you will be directed to the registration page.
Step 3: Provide Your Detailed Information
Select “This is a personal account” under the Account Type section and provide your account holder information. Ensure that you type your Australian mobile phone number correctly.
You must submit your identity documents after completing the Account Holder Details form. Bear in mind that these documents must be sent in either .jpeg or .png format.
For further details on how your documents are reviewed, please read the CoinSpot’s Accepted Verification Documents.
Once your documents have been uploaded, click the “Submit for Verification” button. If you are unable to click Submit for Verification, please ensure that your Australian Mobile Phone Number was entered properly.
Now, your mobile phone number must be verified.
After verifying your mobile phone number, you will see an on-screen notification indicating your Verification Status.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, comprehensive identity verification is required when depositing or withdrawing AUD from CoinSpot. You may get a call from a CoinSpot representative to verify your account’s credentials before your account is fully verified. This is an important security procedure and helps to prevent identity theft or fake CoinSpot accounts from being created.
Step 4: Depositing AUD Into Your Account
You can deposit funds into your CoinSpot account in AUD using POLi, PayID, BPAY, direct deposit, or cash deposit.
For low-level accounts, the daily deposit limit is $2000 AUD, and it can be increased once your account has been verified (you can contact CoinSpot customer support for assistance). You can add funds to your CoinSpot account in a variety of ways, and each deposit method is subject to a 24-hour time limit.
Step 5: Buy Crypto on The Exchange
By clicking the “Buy/Sell” option, you can search for and see the information of over 360+ cryptocurrencies (current price, price change over the last 24 hours, etc.).
If you’re looking to purchase in bulk to diversify your portfolio and reduce transaction fees, you can use the CoinSpot’s Bundles feature on the CoinSpot Dashboard.
After selecting your coins/coin bundles, you then need to enter the AUD amount you want to purchase. In the picture below, Bitcoin (BTC) is chosen as an example of the cryptocurrencies you can buy on Coinspot.
A confirmation box will open. To complete the purchase, click “Confirm Buy” once you have read and agreed to the conditions of the confirmation pop-up.
To sell your coins, click the “Sell” button and enter your wanted AUD amount.
A confirmation box will open. To complete the transaction, click “Confirm Sell” once you have read and agreed to the conditions of the confirmation pop-up.
Should I Buy Cryptocurrency?
The answer to this question will differ among investors since each one has their own investment goals and risk tolerance. Cryptocurrency is quite volatile compared to other asset types; therefore, entering the crypto market should be a decision made with great caution.
As stated by The Times, the cryptocurrency market is available 24 hours a day, seven days a week – something that is not true of the share market. Traders often uncover lucrative opportunities over the weekend, even during periods of low trading volumes. Digital currencies can also aid in your portfolio diversification and act as a hedge against inflation.
Is Crypto Legal in Australia?
Given the rapid use of cryptocurrency in Australia, it is reasonable to wonder if crypto is legal in Australia. The answer is Yes. Australia is among the first nations in the world to embrace cryptocurrencies. Bitcoin can be used to purchase a variety of items and services both online and offline.
The nation has adopted a progressive stance in making cryptocurrencies legal. In 2017, the cryptocurrency was declared legal, bringing it into compliance with the 2006 Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF 2006). Bitcoin was also exempted from earlier regulations that imposed double taxes under the goods and services tax (GST). Instead, as it was deemed property, it was liable to Capital Gains Tax (CGT).
In addition, the Australian Transaction Reports and Analysis Centre (AUSTRAC) published a comprehensive regulatory framework in 2018. All crypto exchanges operating in the nation were obliged to register with AUSTRAC. The exchanges also need to comply with AML/CTF requirements for identifying and maintaining records of their users.
In 2019, the Australian Securities and Investments Commission amended its regulations on initial Coin Offerings ICOs and other cryptocurrency-related activities. Apart from cryptocurrency exchanges and trading, Australia has legalised Bitcoin mining.
Benefits of Buying or Selling Cryptocurrency
Investors can reap a lot of benefits when making wise investments in cryptocurrency. Let’s explore some of the primary ones.
High Returns Potential
If you invest in cryptocurrencies in Australia, you will be buying an asset class that has performed spectacularly in recent years. According to data compiled by UpMyInterest, Bitcoin (BTC) has returned more than 60% in each of the last three years – and a whopping 302.8% in 2020 alone, which explains why so many people purchase Bitcoin in Australia. Although bitcoin is more volatile than conventional asset classes such as stocks and bonds, it is perfect for high-risk investors.
Portfolio Diversification
Investing in diverse portfolios of cryptocurrencies can help spread the risk and optimise your risk-reward ratio. It’s worth noting that some stocks and equities have historically had negative connections with certain coins. For instance, a Medium article showed that BTC has a negative link with PayPal and Block Inc (previously Square), implying that it might help decrease the risks associated with these stocks.
Store of Value
Bitcoin has long been regarded as a store of value, with many market analysts believing that the cryptocurrency could be a feasible substitute to gold. Gold has historically been the go-to asset for hedging against inflation, which is a concern in many nations at the moment. As more investors acquire BTC, there is a possibility that it may develop into another safe-haven asset during times of financial instability.
Staking Rewards
Some cryptocurrencies can be “locked up” to facilitate the validation of transactions on the underlying blockchain network, enabling investors to receive interest on their holdings. Staking operates similarly to putting funds into a bank account, albeit the returns are often much larger than those from FIAT deposits. For instance, Staked.us reports that real-world profits on Polkadot staking may reach as high as 1414.7% per year!
Inclusive Financial System
Those who lack access to the regular financial system can enjoy certain advantages of cryptocurrencies. It’s because everyone can participate in the crypto sector due to its decentralised and permission-less nature.
Individuals do not need authorisation from any financial body or government to participate in the crypto ecosystem. (However, it’s worth noting that China prohibits Bitcoin mining.) People also do not need to hold a bank account. Today, billions of people are “unbanked,” as they do not access the financial system, which includes bank accounts. With crypto, all they need is a smartphone to effectively have their own bank.
When to Buy or Sell Crypto in Australia?
Investing efficiently in crypto is not simply a matter of understanding which to purchase – it’s also critical to know when to invest. As seen with various cryptocurrencies last year, the crypto market offers an environment conducive to triple-digit (and even quadruple-digit) profits. Thus, how can you guarantee that you execute your crypto trades at the optimal moment to maximise your profits?
The optimal strategy to do this is to “purchase the dip.” However, this is easier said than done since it’s hard to know what “the drop” will be. However, completing a detailed technical analysis can help investors discover the points where price reverses whilst in a downtrend, enabling them to purchase cryptocurrency at a price point that maximises potential profits.
A critical method for determining these price points is to find major support regions on the price chart. For example, detecting the points might provide purchasing opportunities if the 1H, 4H, or Daily periods exhibit a definite rejection. Not all support levels will hold, but traders may limit this risk by putting their stop losses below support – that way, if the stop loss is triggered, the trade idea is discredited anyway.
Moving average indicators are another approach that investors may apply. According to Yahoo Finance, these indicators use the “average” of a defined number of price points to illustrate the broad trend without including the more dramatic price fluctuations.
The notice shows the Bitcoin price with the 200-day exponential moving average (EMA) marked in blue. The moving average also functions as a support level, which means that any rejections from the trendline may provide an opportunity for price reversals. As with horizontal support levels, these indicators are not failsafe – but when used in conjunction with other forms of research, they can yield high-probability trade suggestions.
Frequently Asked Questions
Where to securely keep my bitcoin after my purchase?
When you purchase cryptocurrencies via brokers, you will instantly get a wallet address to store your cryptocurrency. This wallet enables you to send and receive crypto to and from any other wallet safely (fees may apply depending on the exchange).
Is it legal to purchase cryptocurrency in Australia?
Yes, it is legal in Australia to purchase, sell, and exchange crypto.
Is it safe to purchase cryptocurrency in Australia?
Purchasing, selling, and trading cryptocurrency in Australia is secure if you use a reputable crypto exchange. For instance, you can select CoinSpot, the leading Australia-based crypto exchange that provides multi-layered security, ensuring that you can purchase crypto with peace of mind.
What are the most popular cryptos people buy?
When deciding which cryptocurrency to purchase, the best strategy is to do your own research first. As of this writing, there are over 18,000 cryptocurrencies, so it’s important to do some research before you make your first crypto purchase. By and large, the most popular currencies are those with the highest market capitalizations, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and Avalanche (AVAX), to mention a few.
Can I purchase cryptocurrency with a credit card?
Yes. You can use a credit card to buy crypto. While credit cards have higher transaction fees, they are convenient, fast, and eliminate the need for cash on hand. Those looking for a more cost-effective way to buy cryptocurrency can use a bank transfer. Unlike credit cards, bank transfers often take days to complete.
What can I buy in Australia using Bitcoin?
Australia is home to a large number of cryptocurrency enthusiasts, many of whom are also business entrepreneurs. This is why bitcoin may be used to buy or pay for a wide range of products and services, including medicine, entertainment and fitness services, food and drinks.
