You keep hearing about it, but what exactly is bitcoin and how do you buy it? Read on for finder.com.au’s definitive guide.
There are two main ways to buy bitcoin in Australia.
- Use a bitcoin broker. This is probably the easiest way to buy bitcoin. If you just want to get it done quickly and easily, and have no plans to become a cryptocurrency trader, then this might be the way to go. The downside is that convenience comes at a cost, and you pay a bit more for the brokerage services.
- Buy from an exchange. Cryptocurrencies like bitcoin are traded on exchanges. If you want to buy bitcoin as cost-effectively as possible, or plan on doing more trading in future, then choosing a reliable exchange might be what you want to do.
Where to buy bitcoin (BTC) in Australia
- Buy with Australian dollars
- Huge selection of altcoins available to buy/sell
- Beginner-friendly interface
- Fund your account with cash, BPAY and POLi
- Compliant with AML/CTF laws
CoinSpot Cryptocurrency Marketplace
CoinSpot Cryptocurrency Marketplace
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Quick guide: How to buy bitcoins in Australia
- Register for an account with CoinSpot.
- Enable 2-factor authentication.
- Verify your account.
- Click “Deposit AUD”.
- Transfer funds into your account.
- Click “Buy/Sell” at top of screen.
- Search for bitcoin and click on “Buy BTC”.
- Enter the amount of BTC you want to buy or the amount of AUD you want to spend.
- Review transaction details.
- Click “Buy BTC”.
Compare bitcoin brokers and exchanges
HiveEx.com is an over-the-counter (OTC) cryptocurrency platform specialising in high-volume trades.
- Tap into HiveEx.com’s global network of high liquidity trading partners
- Trade between $10,000 and $100m for a fixed price
- Access competitive rates compared to traditional exchange trading
- Receive your coins in your wallet fast, with same day settlement options
- As an AUSTRAC registered company, HiveEx.com is fully compliant with industry-standard AML and CTF obligations
How to begin and what to do first
Before getting started, you need a place to put your bitcoin. That means either getting a wallet or looking for a broker/exchange that offers you a wallet as part of its service.
Cryptocurrency wallets in Australia: How to choose
If you’re a cryptocurrency beginner, there are probably three basic types of wallets you might consider.
- Desktop - Simple, secure, easy to use and popular, this wallet is in the form of a program you download to your computer. It’s quick and easy, but you want to be sure that your computer is free of viruses or malware.
- Smartphone - The same as above, but it’s an app for your phone instead.
- Hardware - An option for holding your currency securely offline in a more physical form. These wallets are like USBs or hard drives that hold your cryptocurrency.
You can compare hardware wallets here. They can be a good combination of security and familiarity for anyone who’s not entirely confident with new technology, and they can also be a good physical backup to have on hand.
How to buy bitcoin in Australia
You can get bitcoin in three simple steps.
Step 1 - Create a wallet
You can download and create a wallet online. The wallet is where you hold your bitcoin, and there are plenty of options, such as Blockchain.info. This wallet is widely used, backed by millions in venture capital and is designed to be simple and reliable. To set it up securely, just follow the prompts in the security centre. It's much like downloading and installing any other software.
Step 2 - Find a bitcoin service and make your payment
Choose a service you like and make your money transfer. The quickest and simplest way is to find a broker to buy bitcoin on your behalf, but you might also create an account on an exchange if you're looking for better value for money and want to get more deeply involved in cryptocurrency.
You will probably need to verify your identity with the service, depending on how much bitcoin you want to buy. This is done by providing proof of identity. Bitcoin is infinitely divisible, so you can buy just a tiny fraction of a coin if you want.
To buy from a broker, you send them money and they send you bitcoin. To buy from an exchange, you send money to your account and then use it to buy bitcoin on the open market.
Step 3 - Receive your bitcoin
Provide your wallet address to receive your bitcoin. The address will look like a long string of numbers and letters, about 15 digits long. It's easy to find with most wallets. On Bitcoin.info, you can find your wallet address in the Request tab.
Brokers and exchanges will request the address. Remember that you won't be able to receive bitcoin if you haven't provided it.
Once the transfer has been initiated, it will usually show up in your wallet in under an hour. Brokers will usually give a set timeframe in which you can expect to receive your bitcoin, while exchanges will often show their transfer times in "confirmations." Depending on how busy the network is, each bitcoin confirmation is roughly ten minutes. So if an exchange says your coin is sent in four confirmations, you can broadly expect it to take about 40 minutes before it's visible in your wallet.
How to choose a broker or exchange
Decide whether you’re happy to pay premium prices for a reliable bitcoin seller, or if you’re happy to go on the exchanges and hunt for a bargain instead.
To pick one, you should look at the following:
- Whether they are exchanges or buying/selling services. At an exchange, you’ll be trading with other users while a buying/selling service, or broker, can simply sell you bitcoin.
- Accepted payment methods. POLi lets you make quick and free bank transfers and is one of the most widely accepted payment methods when buying bitcoin in Australia. If that suits you, then most providers can offer it. If you’re looking for alternatives such as paying with cash, BPAY, credit card or PayPal, you might have to search more widely.
- Whether you need your own wallet. If you have your own wallet, then you don’t need to worry about it. If you don’t, then you might want to start with a provider that offers its own in-built wallet.
- Whether they require verification. Most reputable services will require you to verify your identity, but some will still let you conduct smaller transfers without verifying your identity. Verification can take a day or two, so if you’re in a hurry or want to transact anonymously, you might want to look for the no-verification providers. Otherwise, simply be ready to provide some identification after signup.
We’ve assembled here a list of some legitimate services for your consideration. All you have to do is pick one that suits your needs, follow the steps provided and transfer some Australian dollars, other supported fiat currency or cryptocurrency for bitcoin.
How to get bitcoin without buying it
There are other ways to get bitcoin as well.
The following are the main ones:
- Charge bitcoin for goods and services. You can request payment in bitcoin instead of AUD.
- Mine bitcoin. It’s now extremely hard for any individual to make money from mining bitcoin. However, if you’re still interested, learn more about bitcoin mining here.
- Earn free bitcoin. Although time-consuming, there are a handful of legitimate ways to earn small amounts of free bitcoin through online games and bitcoin faucets.
How to trade bitcoin and other cryptocurrencies
If you’re interested in getting more involved in trading cryptocurrencies, then the exchanges, rather than the brokers, might be where you want to be.
You’ll find brokers willing to buy bitcoin from you, but typically you’ll probably be able to find better prices by selling to other users on an exchange instead.
A full-feature exchange that lets you set limit orders and do more all round than simply trade at current market value can also be worth exploring with an asset as volatile as bitcoin.
What’s the cheapest way to buy bitcoin?
The cheapest way is probably to charge bitcoin for goods or services, or receive bitcoin donations. But the most cost-effective way to buy bitcoin might be to purchase them from an exchange during a slump in the market.
What’s the quickest way to buy bitcoin?
The fastest way is probably to use a service like buyabitcoin.com.au that doesn’t require verification.
On platforms like this, people can buy the equivalent of up to AUD$9,000 in bitcoin as easily as entering their email address, their wallet info and transferring funds.
And getting a wallet can be as quick as going online and downloading one.
What’s the easiest way to buy bitcoin?
The easiest way to buy bitcoin in Australia is probably to use a reliable and simple bitcoin broker service. Some will even let you pay cash over the counter in a bank, or at a Smart ATM.
How does bitcoin work?
For users, bitcoin works the same as any other currency. Just like using your credit card or making a transfer for an international transaction, using a bitcoin exchange allows you to send a certain currency digitally to someone else. Bitcoin.com gives each user a digital wallet to store, send and receive bitcoin.
The bitcoin network works by using a public ledger called the blockchain. This ledger contains all processed transactions and is used to check a transaction’s validity by using digital signatures.
The value of bitcoin is established much the same as any other currency, with the exact value depending on the number of people using bitcoin and the number of bitcoin in circulation. The value of bitcoin can also be affected by relatively small events, trades or business activities.
Historical rate chart of BTC and AUD
How to sell bitcoin in Australia
The counterpart of buying bitcoin is selling it. Unless you're using it to pay for things directly, or trading it for other cryptocurrencies, selling bitcoin is how to actually get your money's worth from it.
Read the full guide to your bitcoin selling options, and how to get the best bang for your bit.
Who uses bitcoin?
Although it’s a digital currency, a wide range of businesses who exist both online and offline use and accept bitcoin. Bitcoin can be used to make payments online and in physical stores and any user can make these payments as long as they have the recipient's address. There is also no need for a merchant account to be set up in order to receive payments.
Popular Australian-based bitcoin exchanges
The table below outlines some other global platforms which facilitate the purchase, exchange and sale of bitcoin.
| Coinbase | CoinMama | LocalBitcoins.com | Luno |
| Buy bitcoin and other high market cap altcoins with PayPal, credit card and more. | Buy bitcoin and Litecoin with your credit card, Western Union, Moneygram and more. | An in-person trading service that trades bitcoin for cash. | An exchange servicing parts of Asia and Europe (formerly BitX). |
| CEX.IO | 24change | XMLGold | VirwoX |
| Buy and sell bitcoin at competitive rates using credit card and more. | An automated buy/sell bitcoin service | An exchange service that works with bitcoin and other digital currencies. | Purchase bitcoin with PayPal and credit cards. |
| SpendBitcoins.com | ANXPRO | Paxful | Indacoin |
| Uses over the counter transfers for bitcoin purchases. | Bitcoin exchange based in Hong Kong which supports all major global currencies, even offering its own Bitcoin Debit Card. | Connect with bitcoin buyers and sellers through this peer-to-peer network. | Use a credit/debit card to buy bitcoin and other cryptocurrencies without having to verify your identity. |
Hi, I have been trading the FX market for a few years and I am now looking to try Crypto Currency trading.
Do Coinspot, BTC or Independent Reserve offer a trading platform, by this I mean a charting package so I can get in and out of long or short trades based on price movement displayed on a chart.
I have made a mistake in the past of trading Crypto CFD’s and found the expiration of the contract a real problem, difficult if you wish to hold onto a trade.
So, yes, I want to be able to buy/sell for either short or long term at my discretion and I would prefer some sort of charting package included in opening an account.
Thanking you in advance.
Hi Martin,
Thank you for your inquiry.
Thank you for sharing this information with us. You may want to look at the forex exchanges that offer cryptocurrency on this page. They may offer charting packages and maybe a familiar option for a fx trader.
I hope this information has helped.
Cheers,
Harold
Can I transfer from PayPal to my bitcoin wallet
Hi,
Thanks for your inquiry.
If you’re looking for alternatives such as paying with cash, BPAY, credit card or PayPal, you might have to search more widely. You can select the payment method you want among their list of supported payment methods. Kindly note that it’s important to research a payment method and check its risk level before you start trading with it.
Best regards,
Rench
I have been offered to make 13,000 dollars in 24 hours by the inventors of bitcoin. Are they for real?
Hi Joe,
Thanks for reaching out to us. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
Bitcoin, like other crypto coins, is extremely volatile and the value of the currency remains unpredictable. News and seemingly unrelated events affect its price greatly, sometimes positively, sometimes negatively. However, if you’d like to take the plunge and invest in bitcoin, here are two ways to do that:
– Get paid in bitcoin
– Invest in bitcoin
You may get more information on this page.
May I ask for the name of the bitcoin that’s offering you, so I can check and see if we have a review of them.
Best regards,
Rench
Hi Guys, I am interested in investing bitcoin (all types of bitcoin like 40x bitcoin) is there any legit sites out there, I mean real site.
Thanks for your help :)
regards,
Nelson
Hi Nelson,
Thanks for your inquiry
Please click here to see a table that outlines some sites and companies which facilitate the purchase, exchange and sale of bitcoin.
Hope this information helps
Cheers,
Arnold
is $1000 enough to invest in bitcoin and make a decent amount of money? if not how much money should i invest in bitcoin
Hello Cameron,
Thank you for your inquiry.
There is really no straightforward answer to this question except that you should only “invest as much as you’re willing to lose”.
Bitcoin is a highly-volatile form of investment and fluctuations can be more rapid than trading stocks. Even with low buying capital, if trading goes robustly upward, you can have significant gains. There can also be instances when you had huge capital but dismal returns due to a flat movement.
If you need professional advice on how to proceed, you can speak to a bitcoin broker or a financial adviser.
Hope this helps.
Cheers,
Jonathan
I am inquiring about the cost of purchasing one 40 X bitcoin. , in Australia dollars.?
regards Siga
Hi Siga,
Thank you for your inquiry.
As per checking you are already in the correct page. You can click the go to site link available above for further details.
I hope this information has helped.
Cheers,
Harold
What is the min amount to open a wallet an how do i go about it
Hi Frederick,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
That would depend on where you will be setting up an account or a wallet. You may review and compare the options or websites available on the table above and see which one would suit your needs. You can proceed by contacting them directly for additional information.
I hope this helps.
Cheers,
Danielle
I wish to buy Bitcoin40X but cannot find a way. Is there a market?
Hi Frank,
Thank you for your inquiry.
As per checking you are already in the correct page. Please click “go to site” link for further details.
I hope this information has helped.
Cheers,
Harold
How do I buy the new Bitcoin 40x
Hello Steve,
Thank you for your inquiry.
You may click “Go to Site” green button of our featured bitcoin merchant on the panel to be redirected to their page. You may consult them directly to determine if such product is available.
Hope this helps.
Cheers,
Jonathan
I live in Australia should I buy locally or invest offshore?
On average how long should I invest in bitcoin if I was to buy $10.000 bitcoin ?
When could I experience my first return?
Do I look after my investment or will I be appointed a financial advisor that will grow my investment?
Hello Barbara,
Thank you for your inquiry today.
Investing locally or offshore is a decision depending on your risk tolerance. Generally, if you are a starting investor, it may better for you to start locally as offshore trading can be exposed to a lot of global mishaps. Once you got a clearer feel of how the trading would work, that’s the time you may want to expand outside.
As for the term of investing and returns, bitcoin is one of the most volatile type of investments and can work in a binary set-up with other currencies. It fluctuates almost every few minutes and can be very drastic. If you wish to have more stability in your returns, you may consider staying few weeks to months, even years, but then again there is no guarantee if you take a gain or more losses.
If you have some investment and trading background, a bit of research and self-taught resources online can somehow help you straighten out. You may start on a smaller amount and then gradually increase it once you feel more comfortable. Hiring a financial advisor is fine as long as you hire a good one, but then again no one knows how the market behaves and it boils down to how much money you’re willing to lose or pay for someone else.
Hope this helps.
Cheers,
Jonathan