If you want to buy cryptocurrencies in Australia, here is a step-by-step guide to help with your purchase.
If you are a beginner in the crypto market, finding out how to invest in Bitcoin, Ethereum, Dogecoin, and other digital currencies can be complex. With the current surge in the public interest around these cryptocurrencies, you might decide to purchase without being informed about the process and become frustrated. Purchasing Bitcoin and other cryptocurrencies in some ways is similar to buying shares in a corporation. You can buy them using a broker for a specific price, or through a crypto exchange, allowing you to set your own preferred price in the open market. Here are some detailed tips on purchasing cryptocurrencies in Australia.
Choose your preferred crypto exchange
Buying Bitcoin and other digital assets from a crypto exchange is the easiest way to make a purchase. When choosing an exchange, you need to determine which one has appropriate fees for your investing strategy, the type of customer service you want to have available, and who has a good security track record. A brief guide for preferred exchanges in Australia is below.
Set up your account
After deciding your preferred crypto exchange, you can start creating an account. In this step, you need the information required by the exchange to verify your identity that was outlined above. Be sure to have an image of your photo ID, as well as your mobile device for two-factor authentication ready.
Deposit AUD into your account
Once you finish the identity verification, you can start your AUD deposit by using your preferred method of payment. The payment options include:
Buy Bitcoin and other cryptocurrencies
You can now trade your funds for Bitcoin and other digital assets. You may want to withdraw your crypto assets from the exchange account by using a crypto wallet.
Selecting a well-established and secure crypto exchange is an important step for investing in crypto. There are a lot of available crypto exchanges and platforms, so to help you make an informed decision here are some of the best crypto exchanges to use in Australia.
Digital Surge is a convenient crypto exchange for active traders and long-term holders.
Using this platform, you can easily set up a trading account in as fast as 2 minutes. There are around 300 top digital currencies that are available for trading in the Digital Surge crypto exchange.
Digital Surge’s stand-out feature is the ability to set up recurring buys and automated execution of orders.
Not just in Australia, eToro is popular worldwide and one of the biggest online brokers in the global market. The platform has more than 27 million existing users as of 2022.
It has an impressive track record for its security since it is regulated by numerous top-notch entities, including FCA, ASIC, FINRA, FinCEN, and MiFID.
When executing a crypto trade in the eToro platform, users no longer pay transaction fees since all of eToro’s fees are built into the spread (the difference between the actual price of the crypto and the amount you pay). In each crypto coin, the spread may differ. By using this crypto exchange, users can enjoy the benefits of no deposit/withdrawal fees and account fees.
Among many other crypto exchanges in Australia, Swyftx stands out in terms of the lowest spreads.
For example, Bitcoin has a spread as low as 0.41% on the Swyftx platform. This platform also has a competitive low trading fee of 0.6% and doesn’t charge any fee for fiat deposits and withdrawals. Swyftx allows trading on more than 300 digital assets and offers features such as token swaps, price alerts, and staking. Moreover, you can purchase a crypto coin with as little as 1$ and place recurring buys for digital currencies you are eyeing to invest and hold for the long term.
CoinSpot is known in Australia for its impressive user-friendly features making it simple to use.
CoinSpot supports the buying and selling of over 300 digital assets. The associated portfolio tracker is simple and has a complete overview of your crypto holdings. Setting up an account and verification can be done in just a few minutes and customer service is accessible through live chat 24/7.
One of the best things CoinSpot has to offer is it’s free wallet. CoinSpot charges users a 1% fee for instant buy and sell orders, however, the trading fees can be as low as 0.1% if you use spot trading.
Independent Reserve is a well-established exchange in Australia and its best features include AutoBuy and AutoTrading.
This exchange has a limited coin offering compared to the other exchanges, with less than 30 different cryptocurrencies supported. The platform’s fees are higher than the average fees in the industry.
Identity verification, also referred to as Know Your Customer (KYA), is needed before you can start setting up an account on a cryptocurrency exchange. Every exchange has its own set of rules for setting up an account and you will be required to provide certain documents in this process.
The usual requirements include the following:
By having the above information available setting up an account can be done in a few minutes. Additionally, you will want to use a safe private internet connection and a secure crypto wallet.
After buying your cryptocurrency, it’s best to choose a secure way to store your digital assets and most exchanges provide a wallet for you to use in storing your crypto assets. However, these can be more prone to cyberattacks than storing purchases in a separate and safe crypto wallet.
There are two types of crypto wallets. These are hot wallets and cold wallets.
● Hot wallets use internet access that allows users to transfer, buy, and sell cryptocurrencies in real time. But the use of the internet does make them have a risk of cyber theft.
● Cold wallets use an offline connection when storing digital assets. This provides more security than hot wallets. The problem with cold wallets is that this will involve another step when making transactions making this slower than in hot wallets.