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Your Guide to Buying Bitcoin in Australia

Contrary to popular belief, you don’t have to be a finance or tech expert to purchase Bitcoin. Today, Australian cryptocurrency exchanges have made the process of buying crypto very simple, which has made it possible for just about anybody to be able to quickly and easily buy Bitcoin. 

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Australia was actually one of the very first countries in the world to declare Bitcoin legal. In December 2013, the governor of the Reserve Bank of Australia said that there are no laws preventing the sale and purchase of Bitcoin in the country.

However, there are some legal guidelines to follow, with all digital currency exchanges in Australia required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). Cryptocurrency exchanges, like any other registered financial institution in Australia, will also be subjected to anti-money laundering and counter-terrorism financing rules. 

Reasons to Invest in Bitcoin

Bitcoin is decentralised, meaning that it is not controlled by a single government or company. Unlike fiat currencies, Bitcoin and other cryptocurrencies cannot be seized, transactions cannot be blocked, and withdrawals cannot be halted in times of financial and/or political instability. This is in contrast to traditional or ‘fiat’ currencies. 

Unlike governments and reserve banks that are able to print an infinite amount of new money, therefore decreasing the value of each dollar as a result of inflation, Bitcoin has a fixed supply, which is governed by non-inflationary, open-source software.

The number of Bitcoins will never exceed 21 million, and over 18.5 million Bitcoins are currently in circulation. As a result, this digital asset is very scarce in comparison with fiat currencies and other assets such as gold. 

Another reason to invest in Bitcoin is that over the past few years, we have seen huge strides made worldwide when it comes to increasing Bitcoin adoption. There have been several major companies that have converted parts of the assets to Bitcoin and today, many global payment providers now support the cryptocurrency. 

Where to Buy Bitcoin in Australia

When it comes to purchasing Bitcoin, there are three main types of platforms that you can use. These are cryptocurrency exchanges, brokers, and peer-to-peer exchanges. There are several different factors to consider when deciding where you would like to purchase your Bitcoin. Consider the fees charged, user-friendliness if you are a complete beginner, and the security and reputation of the platform. 

Cryptocurrency exchanges like CoinSpot match crypto buyers with sellers on an open market. These platforms tend to be the cheapest option in terms of fees and exchange rates. Before signing up, consider the payment methods accepted and check that you are able to purchase Bitcoin in your desired fiat currency. You can also find crypto-to-crypto exchanges, where you can use another cryptocurrency such as Ether to purchase Bitcoin. 

Brokers are retailers that buy and sell crypto directly from and to users via a third-party exchange. They are resellers of the services offered by cryptocurrency exchanges. Typically, they are ideal for beginners since they are simple to use and there is no order matching required, although it’s worth being aware that fees and rates for brokers tend to be higher. 

Finally, Peer to Peer (P2P) Bitcoin and cryptocurrency exchanges allow a community of sellers and buyers to exchange cryptocurrency between themselves and on terms that they set themselves. Sellers will set the terms of the trade, such as the asking rate and payment methods accepted, and buyers can decide whether or not to accept the terms and make the purchase.

Prices may vary depending on each seller. If you would like to use this option to purchase Bitcoin, it is worth using a platform that offers a seller rating feature to ensure that you are only buying from reputable, trusted sellers. 

Buying Bitcoin with AUD

Once you have found the platform that is right for you, purchasing Bitcoin is just a few easy steps. Whether you’re using an exchange, broker, or peer-to-peer platform, you will usually be required to register and verify your account before you can get started. You will also need to deposit fiat currency, such as AUD$, to your account to make your purchase with.

Most cryptocurrency exchanges provide you with a wallet that you can use to store your Bitcoin and other cryptocurrencies, although it is worth setting up your own external wallet to transfer your money to in order to avoid any security issues. Finally, once you’ve deposited fiat currency, follow the specific steps on your chosen platform to purchase the amount of Bitcoin you want, and complete the transaction. 

Today, Bitcoin is rising in value and becoming increasingly more mainstream. If you’re looking to invest, there are more options than ever before available. 

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Guest Author

Crypto Journalist and Editor of guest articles in CoinPedia. Also, Outreach & Partnerships Manager. Contact me: Partner@coinpedia.org

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