With cryptocurrency becoming all the rage, Aussies are investing in these digital assets in droves – with big payoffs for a lot of lucky investors who get in early.
Cryptocurrencies such as Bitcoin come with associated risks and investors are usually told to invest in what they can afford to lose. While the risks can be high, the returns can pay off.
If you’re looking to buy Bitcoin in Australia, or any other crypto asset, we have a simple and short guide for you below to make the process as pain-free as possible.
What is Bitcoin
To kick off our article, we have to take a look at what Bitcoin is. The coin is essentially a cryptocurrency that operates in an entirely digital way on a framework known as the blockchain.
This blockchain allows Bitcoin to remain decentralised and operate without an exclusive single party owner, which means the coin is essentially more ‘open’ and is priced based on a system that is ‘fairer’ than one developed by banks or national governments.
How to Buy Bitcoin in Australia
When it comes to investing in your own Bitcoin, you will need to have a trading account on a platform that enables buying, trading, selling and swapping of digital assets. Keep in mind that the process of setting up a trading account is a lot smoother in 2021 and takes far fewer documents and points of ID now that regulation has become more efficient.
In this article, we will take a look at buying bitcoin in Australia with Independent Reserve as our exchange of choice.
Buying with an Exchange
One of the easiest methods of buying Bitcoin in Australia is through an exchange like the one mentioned above. With these platforms, you’re essentially able to set up an account, verify your identity and work to invest in BTC with AUD and move on from there.
It is also good to know that with a local crypto exchange, you won’t need to rely on an exchange for AUD to USD or GBP to get started, making the process a lot smoother and enabling a slightly lower-fee investment process.
Setting up an Account
There are generally just a few steps to set up an account on an exchange and these include:
1. Register Your Account
Set up your profile on an exchange by offering your name, phone number, email address and any other required ID information.
2. Verify the Account
This can typically be done in just a few minutes and without any major documentation. A simple email or SMS code will generally do the trick here and you’re set to deposit funds.
3. Deposit Local Funds
Depending on the exchange you’ve chosen, you will be able to deposit funds in AUD. There is typically a range of platforms offering funds transfer features for crypto investment and these include PayPal, OSKO, PayiD and more.
4. Start Trading
Once you have a verified account and funds ready, you can begin to trade Bitcoin in Australia.
Unlike traditional fiat currency, Bitcoin and other crypto-assets need specialised wallets for the storage of currency and so you will want to make sure you have a wallet on hand to deposit your coins.
Digital wallets allow you to store your coins securely and access them quickly to transfer funds. However, for our readers who are looking to buy and hold Bitcoin for a long period of time, a hardware wallet may be your best bet.
Hardware wallets are essentially a USB-like storage device that is offline. One pro is that it is much safer than leaving your funds on the exchange. A drawback is that you can’t transfer or trade your funds as quickly as a digital wallet that’s connected to the internet.
Using Your Bitcoin
Eventually, when Bitcoin becomes more stable, people will use it as an actual currency so you purchase goods and services. For now, Bitcoin has become a store of value or as the Winklevoss twins like to call it “Gold 2.0”. The idea is that Bitcoin is an appreciating asset and the longer people hold onto it the more valuable it will become. The difference between Bitcoin and Fiat money (i.e. AUD) is that Bitcoin has a finite supply and Australian Dollars do not. You can’t make more Bitcoin but you can print more AUD. This just one of the many traits of Bitcoin that make it attractive to investors.
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