How to Buy Bitcoin in Australia | Invest in BTC

Summary: One of the most convenient ways to buy Bitcoin (BTC) in Australia is through a reputable and regulated brokerage platform like Plus500, which offers investors to speculate on the price movements through crypto CFDs.

What is Bitcoin?

Bitcoin (BTC) is a digital currency that was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments (e.g., the Australian Dollar), BTC is decentralized and operates on blockchain technology.

In simple terms, BTC is like digital gold. It can be bought, sold, and used for various purposes, including online purchases, investment, and as a store of value.

How to buy Bitcoin in Australia: Step-by-step

With BTC basics covered, let’s check out the step-by-step process of buying BTC in Australia:

Step 1: Create a brokerage account

To get started, you’ll need to choose a reputable cryptocurrency exchange or brokerage platform. To do so, consider the following:

• Research: Look for well-known and trustworthy cryptocurrency exchanges available to Australian residents. Nevertheless, make sure the platform you choose complies with Australian regulations;

• Sign up: Visit the chosen exchange’s website and sign up for an account. You’ll typically need to provide some personal information, including your name, email address, and a secure password;

• Verification: Most exchanges in Australia require you to complete a Know Your Customer (KYC) verification process. This involves providing identification documents, such as your passport or driver’s license, to verify your identity. This step is crucial for complying with anti-money laundering (AML) regulations.

Where to buy Bitcoin in Australia?

Our go-to brokerage for buying BTC in Australia is Plus500, a well-established and reputable platform with a license from Australian Securities and Investment Commission (ASIC), and offers a user-friendly interface, making it ideal for both beginners and experienced traders. On Plus500, you can trade Crypto CFDs, including BTC, by speculating on their price movements, without actually owning them.

Furthermore, other useful features include:

• Variety of cryptocurrency CFDs;
• Fast and reliable order execution;
• No commissions and tight spreads;
• Advanced analytical tools and chart patterns;
• Leverage of up to 1:30;
• Real-time quotes;
• Convenient deposit options via PayPal, Visa, Mastercard, etc.
• Fast and secure withdrawals.

Step 2: Decide on the amount and buy Bitcoin

Once your account is set up and verified, you can start buying BTC:

• Deposit funds: Log in to your brokerage account and navigate to the funding section. Choose your preferred payment method, such as bank transfer or credit card, and deposit the amount of money you want to use to buy BTC;

• Place an order: After your funds are deposited, you can place an order to buy BTC. You can choose between a market order (buying at the current market price) or a limit order (buying at a specific price you set);

• Confirm purchase: Review your order details and confirm the purchase. Keep in mind that cryptocurrency prices can be volatile, so the final amount of BTC you receive may vary slightly from your initial order.

Step 3: Review the fees and confirm your order

Before finalizing your purchase, it’s essential to understand the fees involved:

• Trading fees: Most exchanges charge a trading fee for each transaction. These fees can vary, so check the exchange’s fee schedule to know what you’ll be charged;

• Withdrawal fees: If you plan to transfer your BTC to a personal wallet, be aware that there may be withdrawal fees;

• Conversion fees: If you’re using a currency other than AUD to buy BTC, there may be currency conversion fees;

• Spread: Pay attention to the spread, which is the difference between the buying and selling prices. The thing is—a wider spread can lead to higher costs.

So, once you’ve reviewed the fees and are satisfied, you can confirm your order.

Trading tips

Now that you know how to buy BTC in Australia, here are some trading tips to keep in mind:

• Diversify: Don’t put all your funds into Bitcoin. You should, instead, consider diversifying your cryptocurrency portfolio to spread risk;

• Stay informed: Stay updated with the latest cryptocurrency news and market trends. Namely, knowledge is your best asset in the crypto world;

• Long-term perspective: While day trading can be profitable, many successful investors in Bitcoin adopt a long-term HODL (hold) strategy, believing in the long-term potential of the asset.

Bitcoin price today

Pros and cons of buying Bitcoin

How to buy Bitcoin in Australia safely

Before you embark on your BTC investment journey, here are some common investing mistakes to steer clear of:

• Ignoring security: Don’t neglect the importance of securing your cryptocurrency wallet and using strong, unique passwords;

• FOMO trading: Avoid making impulsive decisions based on fear of missing out (FOMO). Instead, stick to your investment strategy;

• Overtrading: Excessive trading can lead to higher fees and losses, so be patient and strategic;

• Investing more than you can afford to lose: Only invest money you can afford to lose, as cryptocurrency investments carry risks;

• Ignoring taxes: Be aware of your tax obligations regarding cryptocurrency gains and consult with a tax professional if necessary.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Bitcoin in Australia

Can I buy a fraction of a Bitcoin?

Yes, you can buy a fraction of a Bitcoin (BTC). BTC is divisible, and you can own as little as a tiny fraction of one.

Is Bitcoin legal in Australia?

Yes, BTC is legal in Australia, and it is considered a legal form of payment.

How do I sell Bitcoin in Australia?

To sell BTC, you can follow a similar process to buying, but this time you’ll create a sell order on your chosen exchange.

Can I use a mobile wallet to store my Bitcoin?

Yes, mobile wallets are a convenient option for storing small amounts of BTC. However, for larger holdings, consider more secure options.