How to Buy Bitcoin in
Making Crypto Simple
If you are looking for a super quick breakdown on how to buy Cryptocurrency in Australia you can find our step-by-step below. We highly recommend Swyftx since it’s very easy to use, they have the lowest fees in Australia, their support team is truly excellent and you’ll be assigned an account manager. Alternatively, have a look at our list of the best cryptocurrency exchanges in Australia.
How To Buy Bitcoin in Australia
- Register an account on Swyftx
- Enable 2-factor authentication
- Verify your account
- Deposit AUD
- Click on “Trade” in your dashboard
- Search for “Bitcoin” and click “Buy Coin”
- Enter the amount of AUD you want to spend or how much BTC you want to buy
- Click “Buy BTC”
- If you have any trouble with the above steps, you can reach out to their support team 🙂
If you are looking for more detailed guides, you can find them below.
Where To Buy Bitcoin
We’ve reviewed over 100 exchanges across the globe and have been doing this for many years. We are confident that Swyftx is the best exchange in the world for Australians to use.
Learn More About Bitcoin
Are you looking to invest in Bitcoin but feel it might be too late to join the party?
We’re here to reassure you there’s no such thing at all! Bitcoin is topping the charts as the most popular cryptocurrency for a long while now, and it’s not going to hand over the crown any time soon.
To help you get started, we’ll give you a crash course on Bitcoin and its history, followed by the pros and cons of trading BTC, explaining where to buy your first coins in Australia, and where to store them after.
Bitcoin (BTC) is a cryptocurrency, or the world’s first digital currency both generated and protected using cryptography. It’s a form of electronic cash that can be exchanged on a decentralized network and stored on a digital ledger called the blockchain.
The History of Bitcoin
Bitcoin’s story began in 2008, at the height of the global financial crisis that would change the world forever.
The first indicators appeared in August 2008, when an anonymous individual registered the Bitcoin.org domain. Two months later, on October 31, Satoshi Nakamoto, whose real identity remains a mystery to this day, published Bitcoin’s white paper under the title Bitcoin: A Peer to Peer Electronic Cash System.
It’s a nine-page document that explains how this system works in great detail. It begins with an introduction to the reasons why we need a decentralized payment system and digital coins like Bitcoin (more on that later!), the challenges developers have been facing, and how a timestamp server based on cryptographic proof or work can solve the double-spending problem.
On January 3, 2009, Nakamoto mined the first and founding Bitcoin block, called the Genesis block. On January 12, he sent 10 BTC to Hal Finney, a cryptographer and an early Bitcoin investor, completing the first Bitcoin transaction.
Incoming transactions are verified by Bitcoin “miners”, volunteers who spend computational power to solve a complex algorithmic problem by running a hash function and timestamping the new data. The verified transactions are permanently stored on the blockchain in blocks of data, protected from any outside interventions.
On October 5, 2009, New Liberty Standard was the first one to set an exchange rate for Bitcoin against the US dollar. The rate was based on the price of electricity required to mine BTC. Back then, $1 equaled around 2,300 BTC! Imagine how lucky early Bitcoin buyers would be today.
By 2011, the first crypto exchanges were launched, Bitcoin trading was in full swing, and this interest drove its price up. However, 2017 was the most lucrative year for Bitcoin. Throughout the year, the coin had the biggest bull run ever, culminating in its all-time high of $20,000 in December 2017.
Even though Bitcoin’s price quickly slumped down, its momentous success helped Bitcoin enter into mainstream consciousness and show traders around the world it was here to stay. Bitcoin has remained a popular investment and continues to gain widespread adoption in Australia and the world.
Why Was Bitcoin Created?
Now that we know how Bitcoin works, let’s talk about why anyone would want to use a currency with these particular features.
The traditional and still most common way of making transactions and purchasing goods is to rely on government-issued “fiat” currencies and centralized financial institutions (banks) to help us spend these coins, send them to someone else, or receive them ourselves.
These transactions include a service fee added to the remittance and take longer wait times. The situation is grimmer for cross-border payments. In a tech-savvy era where information gets from one corner of the world to another within seconds, it’s ridiculous to have to wait for 4-5 days to send your money across the globe.
And don’t forget that you’re paying hefty fees to third-parties for these money transfers. International transfers require a change of currency and dealing with exchange rates, and for your bank to reach out to the bank of the receiver abroad.
So, how are Bitcoin transactions different?
First of all, the fact that Bitcoin transactions take place on a decentralized peer to peer network makes the intervention of middlemen redundant.
Next, to make a transaction you don’t have to reveal your real identity. Each user gets a pseudonym in the form of an encrypted address or in Bitcoin terms “public key”. If you want to receive BTC, you need to give this address to the person sending them.
Moreover, users save money on service fees as Bitcoin transactions incur just a tiny transaction fee as a motivation for the miners to keep doing their job. Typically, verifying transactions on Bitcoin’s blockchain takes ten minutes.
Bitcoin’s Pros and Cons
The one thing that Bitcoin has been most criticized for is its unstable nature as a store of value. The evidence for this lies in the frequent price fluctuations that make it hard for merchants to put BTC prices on their products, and for customers to know the real value of the coins they own.
On the other hand, a lot of traders like the volatile nature of digital currencies because they open room for speculations and potential profit in the future. This is why Bitcoin is among the number one investments, both short-term and long-term.
There have been a lot of situations in the past where centralized financial institutions experienced serious security breaches or hacks that caused them to shut down. As a result, their clients’ transactions have been either postponed or canceled, including some instances where their funds were completely lost.
For many people, Bitcoin offers a higher level of security. If an outsider wants to attack Bitcoin’s blockchain and direct transactions to his/her account in order to steal them, that person has to overpower the peer to peer network and change all previously time stamped data. This is virtually impossible.
How to Store Your Bitcoin
In Australia and around the world, traders purchase and sell BTC on crypto exchanges. They either used fiat to crypto exchanges if they want to deposit fiat currencies or crypto to crypto exchanges if they already own some digital assets.
Most of these platforms are centralized, which means they oversee users’ transactions and offer escrow services. They either link buyers and sellers or operate as brokerages which sell the coins directly to their users at current market rates.
Some popular crypto exchanges to check out in Australia are Swyftx, CoinSpot, and Independent Reserve.
Once you’ve bought your coins, you’ll need a wallet to store them. The most common type of digital wallet is the online software wallet, provided by most crypto exchanges or by other third-party platforms.
We recommend using these wallets temporarily, as you have to rely on the platforms’ security measures for protection. Look for platforms that store the coins in cold storage and include features like 2FA and address whitelist.
A much safer alternative is to invest in a hardware wallet, a USB-like device that stores your private key. The hardware wallet remains offline most of the time, except to complete payments, so there’s no risk of getting hacked and losing your funds.
Alternative Ways of Buying Bitcoin
Although centralized exchanges remain the most popular Bitcoin marketplaces, let’s take a look at some alternative ways of buying Bitcoin in Australia:
Peer to Peer Exchanges
Peer-to-peer or decentralized crypto exchanges are different from centralized exchanges because they don’t take custody of your funds. They usually employ an order matching protocol that links buyers and sellers without an intermediary. The transfer between the two wallets happens with the help of smart contracts.
Peer-to-peer exchanges give you more privacy and power over your funds, values that lie at the core of Bitcoin’s philosophy.
For those who’ve never heard of them, Bitcoin ATMs, or BATMs for short, are kiosks where you can purchase BTC from an automatic teller machine. Most of these ATMs support buying but not selling bitcoins, i.e. they let you withdraw BTC to your public wallet address.
Bitcoin ATMs accept cash or credit cards and link you with a Bitcoin marketplace (trading platforms, brokerages, peer to peer exchanges, etc). They’re really practical, especially when you’re traveling and don’t have access to the Internet. Plus, you don’t have to provide an ID. The only drawback is the 5-10% fee.
Typically, you can find BATMs in retail stores, shopping malls, supermarkets, and airports. You can also use websites like Coin ATM Radar which has an interactive map that tracks the nearest ATM machine in Australia. You can even download the app to your mobile device.
Amazon Gift Cards
Another alternative way to buy Bitcoin is by swapping one of the popular Amazon Gift Cards. Maybe you received one from a friend of yours, or you’re thinking about giving one to your dearest.
These cards come in preset $10, $25, $50, and $100 amounts unless you choose a custom price between $25 and $500. To exchange them for Bitcoin, you just need the right platform. Popular and reliable choices are Price and Paxful.