Bitcoin has swiftly taken the lead in cryptocurrency trading in Australia. The market shows no signs of slowing and continues to garner trading activity nationwide, illustrated by the rising number of Bitcoin ATMs and digital exchanges each year.
This is a perfect time to enter into Bitcoin trading, as opportunities abound. See the guide below for instructions on how to begin your journey into cryptocurrency and buy bitcoin in Australia.
Bitcoin in Australia
Bitcoin is a booming industry worldwide, and Australia is one of the best examples of its exponential growth.
- In the first week of January, a single Bitcoin reached a value of $54,390 (USD41,962). This is more than twice its value during its 2017-18 peak of $25,900 (USD20,000).
- Between 2015-2020, the Australian cryptocurrency industry grew by 88.2%. During this time, the most “well-established” cryptocurrency was Bitcoin.
- By 2020’s end, almost 20% of all Australians owned Bitcoin, and 78.2% were either breaking even or profiting from their trades. It’s no wonder that the market will continue expanding, so now’s the best time to get involved in the trade.
Ways to Buy Bitcoin Locally
There are so many ways to buy Bitcoin locally in Australia, as the market continues to proliferate and become more accessible. Once you’re ready to get in on the action, consider one of the following methods for buying Bitcoin from local sellers.
Buy Using Cash in Hand
Cash is perhaps the most versatile of all the Bitcoin buying alternatives. There are several ways to carry out these transactions, including via peer-to-peer exchanges and ATMs discussed below:
- Peer transactions: Crypto exchanges like Paxful allow buyers and sellers to filter available opportunities using cash only, in-person payments. Browse sell offers in your area to find one with an acceptable price and an acceptable payment method. Look for sellers with a good reputation from previous buyers with verified purchases. Contact the seller, tell them you want to buy Bitcoin, make a deal, and arrange a meetup. Admittedly, this isn’t a very popular option at the moment, considering the global pandemic. However, it may become more common once things return to normal.
- Cash deposits via bank accounts or other institutions: Bitcoin.com.au allows cash deposits into bank accounts detailed in transaction confirmation emails. As an alternative, you can also scan QR codes and pay with cash in-person at participating locations.
You will need to record these transactions yourself or store a confirmation number or purchase receipt if buying through a P2P or Bitcoin.com.au.
Use a Peer-to-Peer Exchange
On a local P2P, you can trade directly with other Bitcoin buyers and sellers in your area. So, you can carry out the entire trade without any middlemen whatsoever. This enhances every exchange’s privacy and ensures that the negotiation only becomes public once the order (discussed below) is submitted.
Another favorable characteristic of P2Ps is the versatility in accepted payment methods. For example, exchanges like Paxful offer more than 300 unique payment options, none of which require buyer fees.
Further, Paxful gives Bitcoin traders and investors control over whether a transaction requires verification or not. For example, as you scroll through Australia’s top offers, individual sellers will list their specific criteria.
Some prefer online payments via PayPal with no verification, others require physical card transactions with photo ID, and more yet work with bank transfers only. On P2Ps, everyone has the utmost control over their experience with buying Bitcoin.
Trade-In a Gift Card
As mentioned above, gift cards are another popular method of buying and selling Bitcoin.
One major benefit of buying Bitcoin with a gift card is that you are not confined to the legal restrictions often imposed on most digital transactions. Instead, you get nearly instant access to your cryptocurrency thanks to the seamlessness of gift card trade-ins with virtually no hassle.
Some of the most popular gift cards accepted by Paxful’s top Australian Bitcoin sellers include:
- Steam Wallet
Use an Australian Post Office
To make cryptocurrency exchange more accessible, The Australia Post and Bitcoin.com.au joined forces to open more than 3,500 post offices nationwide to Bitcoin buyers and sellers.
Using the Post Billpay feature, you can submit cash and card payments in exchange for cryptocurrency. The instructions below will assist you in taking advantage of this historical, convenient service:
- Select “Buy Bitcoin” on the Bitcoin.com.au website.
- Enter the number of Bitcoin you want to buy and your wallet’s digital address.
- If it’s your first-time buying Bitcoin, the site will prompt you to verify your identity via a verification number provided by phone call, or another method.
- Complete the transaction by visiting an Australia Post Office with the confirmed transaction displayed on your mobile device.
Use Bitcoin ATM
Bitcoin ATMs are rapidly gaining popularity in Australia. Many expert Bitcoin investors say that this method offers more anonymity than carrying out your transactions online.
Plus, the cash payments also mean that you don’t have to have a bank account to buy and sell Bitcoin, guaranteeing widespread accessibility.
Areas where you’ll find these ATMs include Melbourne, Sydney, Brisbane, and Adelaide, primarily.
To streamline the process of locating a compatible ATM near you, use Coin ATM Radar. You’ll find an interactive map displaying available ATMs and the cryptocurrencies you can trade using their services on their site.
How to Pay for a Bitcoin?
Now that you’ve chosen your exchange, it’s time to buy! As mentioned above, there are a few ways you can pay for Bitcoin, and the available methods depend on your selected exchange type. The most common payment options are described below.
Buy Bitcoin with a Bank Transfer
Bank transfers are some of the most common ways to pay for Bitcoin. You’re most likely to find these on centralized crypto exchanges, as they are widely accepted by banks worldwide.
The average Bitcoin transaction fees you can expect in Australia range from 5-10% for the most part. For example, buyers who operate through Bitcoin.com.au usually pay a 5% commission per purchase. At times, there may be a 2% surcharge for using Blueshyft and flexepin payment options.
Buy Bitcoin with a Cash Deposit
As mentioned above, cash transactions are incredibly flexible, but also less secure than other payment methods. Some secure ways to pay for Bitcoin with cash include:
- Submitting a cash deposit through your or the seller’s bank
- Pay directly to a Bitcoin ATM
- Secure exchange platforms like Coinjar and Coinspot:
- Coinjar: By selecting “Quick Deposit,” you can deposit cash into your account with a 1.5% Blueshyft processing fee. You can deposit between $50-5,000 every 24 hours and up to $10,000 each month from select locations.
- Coinspot: This exchange also has a Quick Deposit feature that generates a QR code. Scan this at a participating Blueshyft Newsagents location, and go in-person to deposit your cash payment.
Buy Bitcoin with a Credit Card
Buying Bitcoin with a credit card is the most straightforward payment option across all exchanges. Whether you’re at an ATM, on P2P exchanges like Paxful, or more centralized platforms like Bitcoin.com.au, the process is relatively simple:
- Make an account on the exchange (if necessary).
- Input the amount of Bitcoin you want to buy.
- Verify your identity.
- Input your wallet’s address.
- Submit your card information.
- Receive your Bitcoin.
Buy Bitcoin with PayPal
PayPal is a favorite amongst individual Bitcoin buyers and sellers. It’s one of the most familiar, easy-to-use money transfer services available, and it operates just as smoothly for Bitcoin transactions.
Crypto exchanges like Bitcoin.com.au don’t typically accept PayPal, so you’re more likely to find it on P2Ps like Paxful.
Fortunately, there are no hidden fees in PayPal transactions for cryptocurrency buyers on this platform. Just make sure that the seller you’re doing business with accepts payments this way, and you’re good to go.
Buy Bitcoin with BPAY
One of the best integrations of BPAY for Bitcoin is available through Digital Surge. They’re backed by a thorough exchange and order book, eliminating the need for transactions to be processed via a third party.
No matter who you’re buying from, Digital Surge and BPAY will ensure your transaction is kept private and secure. Keep in mind, though, that any instant Bitcoin purchase or sale comes with a 0.5% fee.
Buy Bitcoin with Another Cryptocurrency
An often overlooked option for buying Bitcoin is using other existing cryptocurrency to secure your purchase. This is the best alternative for those looking to accumulate a diverse cryptocurrency investment portfolio or gradually transition into Bitcoin from another currency.
Some of the most popular cryptocurrencies used in Australia include:
- Bitcoin (yes, you can buy Bitcoin with Bitcoin!)
Make sure your seller accepts these currencies for their transactions.
Is Bitcoin Taxed in Australia?
You may be subject to taxes when using Bitcoin in various transactions. According to the Australian Taxation Office, this cryptocurrency is not taxed like the Australian dollar or foreign currency. Instead, it’s viewed as a capital gains tax (CGT) asset.
This means that when you “dispose” of your Bitcoin by engaging in the exchange types below, a portion or total of the cryptocurrency’s value can be taxed:
- Selling or gifting the Bitcoin
- Trading or otherwise exchanging the cryptocurrency
- Conversion of Bitcoin to fiat currency (i.e., Australian dollars)
- Paying for bills, goods, or services
- Exchanging cryptocurrency for another form of cryptocurrency
There are some exceptions to taxation when using cryptocurrency for personal applications, so do your best to research all possible taxes and charges per transaction.
Buying Bitcoin locally in Australia requires extensive research, as there are seemingly endless choices of trustworthy crypto exchanges and payment options.
With this guide, you can learn to select the most convenient and secure buying method and make the most of your Australian Bitcoin trading experience.