Buy Bitcoin Melbourne 2023
Making Crypto Simple
Nowadays, when the world is shifting towards the digital economy, your interest in Bitcoin seems like a logical sequence of events leading to the most important question: How do I buy Bitcoin?
Our team has prepared a guide you can use as a starting point for your crypto journey in Melbourne, Australia. We’ll show you that the process of buying Bitcoin doesn’t have to be difficult or limited to a single payment option. You can pick and choose!
To gain more in-depth knowledge on the matter, we recommend that you read our article on How to Buy Bitcoin in Australia.
How to Buy Bitcoin in Melbourne
If you ask experienced crypto traders what’s the best way of buying Bitcoin, you’ll be overwhelmed by the number of different approaches they have. Some crypto traders prefer cash as they find digital accounts rather challenging. Some insist on instant transfers and go for Bitcoin ATMs. Others stick to their debit/credit cards despite the extremely high fees.
Nonetheless, the majority of them use cryptocurrency exchanges and link them to their bank accounts, a method considered to be the most secure and convenient. Still, there is no single answer. The cryptocurrency market in Australia has developed to the extent that you can choose whatever fits your individual purchase habits. These are the main three methods worth trying:
- Buy Bitcoin on Cryptocurrency Exchanges
- Buy Bitcoin with Cash (via an OTC Broker)
- Buy Bitcoin from a Bitcoin ATM (BATM)
Buy Bitcoin on Cryptocurrency Exchanges
Cryptocurrency exchanges are web platforms where traders can buy, sell, or exchange cryptocurrencies for other regular or digital currencies. Crypto exchanges require an account and an ID verification for accessing their market platforms and professional trading tools.
With over 60 different exchange platforms available on the Australian market, we can’t provide you with the specifications involving the fees, security level, interface, and time to complete a transfer for each one of them. For that reason, we’ll use Swyftx, the best crypto exchange in Australia, to show you how to navigate the Bitcoin purchase process in a nutshell. If you want to learn more about the exchanges’ individual features, you’ll find all the information on our list of the best sites to buy bitcoin in Australia.
First, visit the Swyftx website or download their mobile app, available for both Android and iOS. Before you start the verification process, enable 2FA authentication by clicking on the Security tab. The verification process isn’t as complicated as it may seem at first. You just need to complete an application and submit a scanned copy of your ID.
You can deposit some AUD to your account once the verification has been completed. Go to Quick Deposits, find Deposit AUD, and choose a payment method. You can also use the Deposit shortcut at the top of your Dashboard. Swyftx offers several methods of depositing AUD: bank transfers, POLi, PayID, Osko, BPay, credit, or debit card. Regardless of the payment method, deposits under 200 USD are charged 2 USD per transfer.
Buy Bitcoin with Cash
Australia is one of the few countries where you have several alternatives for buying Bitcoin with cash. That being said, your choice isn’t limited to peer-to-peer exchanges and OTC brokers only, as the former are not recommended due to poor customer security protection, while the latter, although trustworthy, are only suitable for high-volume investments.
Flexepin prepaid vouchers are available in all convenience stores in Melbourne and let you make a smooth Bitcoin purchase. Find an exchange that accepts Flexepin (Coinloft, Paxful, LocalBitcoins) and insert the QR code. As simple as that. For your information, these prepaid vouchers are limited to $500 per week.
Access to Bitcoin has become much easier in Australia with Blueshyft terminals. There’s a broad network of 1,200 Blueshyft locations across Australia that can be redeemed with newsagents that support this platform. All you need is some cash (the minimum amount is 50 AUD), an email address, and a valid phone number. No further identity verification is needed, as the process itself doesn’t last more than 30 minutes.
First, you’ll have to generate a QR code from an exchange that allows Blueshyft (CoinSpot and CoinJar). Next, your code needs to be processed directly at the Blueshyft iOS terminal to complete the transaction. There is a fixed 4% transaction fee.
As previously mentioned, over-the-counter services are designed to meet the needs of large-volume investments. OTC desks are represented by brokers who directly find a seller for your desired amount of Bitcoin.
They are better than regular crypto exchanges primarily because you can easily buy a large amount of Bitcoin in a single trade. Regular Bitcoin exchanges can limit your potential gains when it comes to such amounts as your “massive” order is usually broken down into several smaller pieces.
Meanwhile, the price of Bitcoin can go up faster than the time it takes to fill out the small orders separately, resulting in a more expensive deal than initially expected. This negative impact cryptocurrency exchanges have on large amounts is called slippage.
With OTC brokers, you get high liquidity and privacy as your orders are not publicly displayed on the market. Plus, you get personal assistance during the entire process. In Melbourn, you have plenty of OTC options nowadays, such as Caleb and Brown and Bitcoin Australia.
However, do detailed research before choosing one since some OTC desks are known to be rather non-transparent regarding their fees. You can also rely on well-established crypto exchanges that offer this type of service like Kraken and Binance.
If, for some reason, you feel most secure with a face-to-face service, you can visit the Bitcoin Dealers office located in the heart of Melbourne’s CBD and get advice for anything you want to know about buying Bitcoin in exchange for cash.
Buy Bitcoin from a Bitcoin ATM
A Bitcoin ATM or BATM is another hassle-free way to purchase Bitcoin in Melbourne. The number of BATMs available in Melbourne is 13 according to Coinradar, more than Sydney and Perth. All in all, these numbers are likely to grow if we take into consideration the increasing Australian enthusiasm for Bitcoin trading.
So, why are BATMs becoming so popular when you’re aware of the extremely expensive transaction fees? First, it’s because of the straightforward process of buying Bitcoin even though some of the BATMs do require verification of identity in compliance with the Anti-Money-Laundering legislation in Australia. All you need to do is follow the instructions on the screen and choose the payment method, either your debit/credit card or cash, depending on the BATM’s model. Your Bitcoin will be sent to your digital wallet address ATM (at the moment).
Frequently Asked Questions
Yes. The Reserve Bank of Australia declared Bitcoin legal in December 2013. Since then, Bitcoin has been treated as property and all potential profits from it are subject to Capital Gains Tax (CGT). According to the Federal Government’s financial intelligence agency, AUSTRAC AML/CTF, you need to perform a KYC (Know Your Customer) check before taking any actions related to cryptocurrency trading.
Swyftx is definitely the best cryptocurrency exchange on the Australian market. It’s superior to its competitors due to its highly competitive fees, fancy interface, and excellent customer support. This Australia-based exchange offers trading with over 100 cryptocurrencies and flawless security.
You can sell and buy your favorite altcoins via cryptocurrency exchanges. The selling of Bitcoin (BTC) and other blockchain-based cryptocurrencies like Ethereum (ETH), Litecoin (LTC), and Ripple (XRP) is supported by the most reputable exchanges in Australia. After choosing a suitable exchange platform, sign up for an account, finish the process of verification, and follow the instructions and conditions provided on the platform.
Your Bitcoin is stored in a digital Bitcoin wallet that keeps a collection of private keys. They serve as a password to protect your funds against unauthorized access. Therefore, high security is the key factor when choosing a bitcoin wallet. There is a wide range of wallets available to meet your trading needs nowadays but a major distinction is made between hot (software) and cold (hardware) wallets that keep your keys offline. Hardware wallets are considered to be far safer.