More and more people are acquiring Bitcoin (BTC) and other cryptocurrencies, which is good for taking digital money on the blockchain. Demand for Bitcoin in Australia is growing and companies are responding positively. For example, there are different ways to buy Bitcoin in Australia.
Bitcoin trading is more than just buying and selling. So, what is the best place to buy Bitcoin and what is the safest way to store your Bitcoin investment? In this article, discover different ways to buy Bitcoin in Australia, how to trade Bitcoin and ways to store cryptocurrencies.
Different ways to buy Bitcoin in Australia
If you want to invest in BTC in Australia, there are many ways you can choose. The most common way is to buy Bitcoin through a crypto exchange. By linking a bank account, credit or debit card to cryptocurrency, converting fiat currencies to cryptocurrency becomes easy.
Investing in Bitcoin cash is also possible through a Bitcoin ATM. With over 200 locations where Bitcoin ATMs are available, it may be the most searched for crypto ATM in Australia. Oceania’s largest country is not much smaller than the United States, but has surprisingly fewer ATMs. By comparison, the city of Los Angeles, with nearly 2,000 Bitcoin ATMs, has 10 times as many establishments where Bitcoin can be purchased with cash.
In addition to buying through an exchange or Bitcoin ATM, there is also the option of using peer-to-peer (P2P) exchanges. In this way, it is possible to buy Bitcoin directly from someone in the marketplace. However, this method is not widely known, but it brings many advantages. For example, P2P exchanges often have more liquidity than traditional exchanges, with lower fees and better exchange rates.
A fourth way to buy Bitcoin is over-the-counter (OTC) trading. In this way, it is possible to easily buy large amounts of BTC. These transactions are completed directly between two parties; There is no order book. This way of buying bitcoins is especially popular with wealthy investors and institutional parties who trade bitcoins with large amounts of money.
Bitcoin ATMs in Australia
To convert cash into cryptocurrencies like BTC, Bitcoin ATMs are ideal tools to complete this exchange. This is the only way to convert cash directly into cryptocurrency. Especially in major cities like Sydney and Melbourne, there are many Bitcoin ATMs that can be used to buy Bitcoin.
In addition to Bitcoin, Ether (ETH) and Litecoin (LTC) can also be purchased at these ATMs. There are also ATMs where you can buy XRP (XRP) and Dogecoin (DOGE). These altcoins can only be bought. Selling cryptocurrencies is much less expensive at ATMs. However, there are ATMs where you can buy and sell bitcoins.
How to trade Bitcoin in Australia?
Bitcoin trading in Australia can be done in a few steps, e.g
It is important to choose a reliable crypto exchange that meets all the requirements and needs of a crypto trader. For example, a cryptocurrency exchange with a good reputation, low fees, a significant user base, and a large supply is more attractive than an exchange where trading is expensive and the supply is low.
After choosing a crypto exchange, it’s time to create an account with the exchange in question. The process of creating an account can be started by going to the crypto exchange home page and clicking on the register button. By providing all requested personal information and setting up two-factor authentication, the account is ready to use.
When the account is created, customers must verify their identity to ensure they are genuine. Most exchanges use a Know Your Customer (KYC) process, which requires customers to identify themselves. This may include uploading a copy of the person’s government-issued ID and proof of residence.
Once the exchange account is created and fully completed, it is time to fund the exchange account. This can usually be funded through your bank account or credit card so the account is denominated in fiat currency and ready to trade on the crypto market.
Bitcoin trading can be started by placing an order on the exchange. It is possible to buy or sell Bitcoin at a certain price or to order a limit to execute the transaction when it reaches a certain level.
Once a Bitcoin is purchased, it is important to monitor its value. Monitor the market and monitor transactions. Most cryptocurrency exchanges allow alerts to be set, which will go off when the price of Bitcoin reaches a certain level.
Australian based Bitcoin exchange
Australian residents can use many different crypto exchanges, including popular platforms such as Crypto.com and Coinbase. Major exchanges like these have millions of users and many cryptocurrencies, but what are the best crypto exchanges to buy bitcoin in Australia?
There are also several cryptocurrency exchanges based in Australia. Each exchange has its own fees, services and amenities. So it is wise to research the exchanges thoroughly before choosing one. Here are the options when looking for an Australian cryptocurrency exchange.
- BTC markets
- Independent Reserve
Does Binance work in Australia?
Australians can also use Binance for cryptocurrency trading. Tens of millions of crypto investors buy their cryptocurrencies here and use Binance services, such as crypto staking or margin trading. With over 600 different tokens in their range, this platform appeals to many investors.
To use Binance for Bitcoin trading in Australia, an account must first be created on the platform and then the verification process must be completed. This may include uploading a copy of your government-issued ID and proof of residence. Once the account is verified, it is possible to fund with the supported payment method and start buying and selling cryptocurrency.
How to store Bitcoin in Australia?
When investing in Bitcoin, not only is the method of purchase important, but the way cryptocurrencies are stored is also important. Just like fiat currencies, digital currencies can be stolen, so that’s why it’s important to protect your Bitcoin investment as much as possible. There are several crypto wallets that can be used, each with its own advantages and disadvantages.
Many beginner crypto investors use an exchange wallet. This is the wallet used when trading on an exchange. This is the easiest way to store cryptocurrencies, but the most dangerous medium. With an exchange wallet, private keys and pedigree are owned by the exchange itself, so the crypto investor has no control over the cryptocurrencies in the exchange wallet.
This is why a software wallet is considered a better option. Crypto investors using software wallets have private keys and therefore have full control over their own coins. Do not share this code with anyone, because this special key is the one that unlocks the cryptocurrency in the wallet. Software wallets are available as desktop wallets and mobile wallets, allowing users to use cryptocurrencies anytime and anywhere.
But since tokens are stored online, software wallets are not considered the most secure option. The most secure crypto wallet is a hardware wallet. Hardware wallets are physical devices that store Bitcoin and altcoins offline. Since they are not connected to the Internet, they provide an additional layer of security. As a result, hardware wallets are less vulnerable to hacking.
Bitcoin Taxes Australia: How Much Tax on Bitcoin Profits?
In Australia, Bitcoin and other cryptocurrencies are considered assets for tax purposes. This means that buying, selling and trading results in capital gains tax. This tax should be paid on the profit.
The Australian Taxation Office (ATO) has issued guidance on the tax treatment of Bitcoin and other cryptocurrencies. According to the ATO, bitcoin transactions are subject to capital gains tax if you own the bitcoin for more than 12 months. For investors who have owned Bitcoin for less than 12 months, the profits are being treated as ordinary income.
In addition to tax regulations, the Australian Securities and Investments Commission (ASIC) has issued guidelines on the use of Bitcoin and other cryptocurrencies in the country. According to ASIC, Bitcoin and other cryptocurrencies are not legal tender in Australia and are not regulated by the government. However, companies operating in Bitcoin and other cryptocurrencies may be required to hold an Australian Financial Services License (AFS).