How to Buy Bitcoin in Australia: Step-by-Step Guide & Best Platforms Compared

When you think about how to buy Bitcoin in Australia, it’s easy to get confused because the rules are unclear. 

To put it simply, yes, you can indeed buy Bitcoin in Australia, provided you do from a regulated exchange that complies with AUSTRAC guidelines.

In this article, we’ll discuss step by step how to buy cryptocurrency in Australia, the platforms you can use, the payment options you have, and the fees you might have to pay. 

Best Places to Buy Bitcoin in Australia  – Quick Overview

How to Buy Bitcoin in Australia, Step by Step

Here’s a detailed step-by-step guide on how to buy crypto in Australia. Do note that Bitcoin.com.au also has a mobile app you can use to complete the process below. However, we’ve chosen its website to demonstrate the process.

Step 1 — Register an Account

First things first, you’d need an exchange account to buy/sell Bitcoin or any other crypto. For this, we’ve Australia’s top exchange, Bitcoin.com.au. Open the website and click the ‘Sign Up’ option on the top-right corner.

Next, you’ll need to choose a username, enter your email address, and create a password. Once done, go ahead and verify your account. For this, you’ll receive an email: open it and click the ‘Activate my account’ button.

Step 2 — Set Up Your Account

Now, you’ll need to choose what kind of account you want: Personal, Company, SMSF, or Trust. Remember, the KYC norms and documents required will depend on this choice. For the purpose of this guide, we’ve chosen ‘Personal’.

Next, enter your legal first and last name, then your date of birth. Ensure that these details match those on your legal documents.

Step 3 — Complete Your KYC

After this, you’ll have to provide your home address and enter your phone number. You’ll also have to verify your phone with a One-time-password (OTP) received via SMS.

This is the first step of your KYC process. Once you log in to your account, find the KYC option and follow the prompts. 

You’ll need to upload documents like a government-approved ID, your photo, and residential proof. It’s best to complete KYC first up, since it would make the next steps smoother. 

Step 4 — Make Your First Deposit

Now that KYC is out of the way, you’re ready to make your first deposit. Find the ‘Deposit’ button in the top-right corner and choose the payment method you prefer: credit/debit card, PayPal, bank transfer, or PayID. 

All of these methods are free, except international debit/credit card where you’ll need to pay a 3.5% fee. 

Simply follow the prompts, regardless of the method you choose. The best part? Bitcoin.com.au processes your funds almost instantly. 

Step 5 — Make Your First Purchase

You’re now ready to make your first Bitcoin purchase. Click the ‘Buy/Sell’ option on the top bar of the dashboard and select ‘Bitcoin.’ You’ll have two options: either enter the amount you want to spend in AUD or enter the amount of Bitcoin you want to buy. 

For simplicity, we’ve chosen the first option. Enter the amount (say, A$ 5,000), and the platform will automatically show you the amount of Bitcoin you’ll get. 

Click on ‘Buy Bitcoin’ at the bottom, and you’ll see the estimated fees. You can readjust your purchase amount to ensure the sum doesn’t exceed your balance.

Click on ‘Buy Bitcoin’ again to complete your transaction, which may take a few seconds to process. Once done, you’ll see your purchased Bitcoin on your main dashboard. 

BUY BTC ON BITCOIN.COM.AU

Things to Know When Buying Bitcoin in Australia

Sure, it’s pretty simple to buy BTC Australia, but there are a few more things you need to be aware of before you head on to make your first purchase.

Fees

Buying or selling cryptocurrencies entails several fees such as network charges, platform fee, and payment processing fees. Let’s briefly go through each one:

1. Network fee – This is the fee you pay to validators or miners when you move crypto on-chain (for example, withdrawing crypto from exchange to personal wallet). This is usually called the miner fee for Bitcoin and ‘gas’ fee on the Ethereum blockchain. It’s worth noting that no part of the network fee goes to the platform, and you’ll have to pay this for any crypto transaction, regardless of the exchange you choose.
2. Platform fee – This fee is separate from the network fee and is charged by the platform you use for buying/selling cryptocurrencies. For instance, Bitcoin.com.au charges a 1% trading fee on buying and selling. The actual fee will depend on various factors such as the platform you choose, the size of your buy or sell, and so on. Ensure you read the ‘fee’ page of the platform before making a transaction.
3. Processing fee – This fee is charged by your payment processor, such as a bank, when you deposit or withdraw funds from crypto exchanges. This also depends on the payment method. For instance, credit and debit cards may have a higher fee of 1%-3%, while direct bank deposits may be free.

KYC

Platforms that provide crypto services are classified as ‘Digital Currency Exchange Providers’ (DECs) under the Australian law, and all DECs are required to comply with AUSTRAC rules, wherein Know Your Customer (KYC) norms are compulsory. 

So, all reputed crypto exchanges will require you to provide documents such as government-issued ID, residential proof, and live selfie to confirm your identity.

Availability

Banks undertake several precautionary measures to protect their customers from falling prey to crypto and investment scams. 

Similarly, banks such as Westpac, CBA, and NAB have their own crypto-protection methods and may impose a monthly cap on such transactions. So, you might need to check with your bank to understand the types and volume of transactions you can make.

Usually, it is a good idea to use reputable AUSTRAC-registered exchanges, which are less likely to be blocked or restricted by financial institutions. 

Alternatives

Users in Australia have a few more ways to buy crypto. The first is Crypto ATMs (CATMs), where you can insert cash or a card and receive crypto directly in your online wallet.

Although these are many CATMs duly registered with AUSTRAC, there are also many rogue machines being run by scammers. These unregistered machines are the epicenter of CTAM frauds since they lack proper safeguards.

Scammers often instruct victims to use CATMs, since cash transactions are harder to reverse. These transactions leave minimal digital footprint, and when combined with disposable online wallets, they become difficult to track. 

The next option you have is peer-to-peer (P2P) platforms, where you can trade crypto with other people without intermediaries. Sellers can post their ads and buyers can respond to them, connect with the seller, send them funds, and receive crypto in their wallet. 

The platform facilitates this transaction through an escrow account, holding the funds until both parties complete their obligations.. 

However, P2P transactions rely a lot on trust and the chances of counterparty risk is pretty high. For example, the seller may send less crypto than agreed upon or even dispute the transaction on receiving the payment and file for a chargeback. The buyer, on the other hand, may furnish fake payment proofs. 

This is why it is always recommended to use an approved AUSTRAC-compliant crypto exchange in Australia. Not only are they cheaper, but also more reliable with several security structures in place, giving you complete peace of mind.

Best Platforms to Buy BTC in Australia Compared 

You’re now well-prepared to fire away your first crypto transaction in Australia. But where to buy Bitcoin in Australia? 

To help you out, here’s a crisp table with all the best crypto exchanges in Australia right now. We’ve compared them side by side so that you can make an informed decision.

How to Buy Bitcoin in Australia: Takeaways

First things first, rest assured that you can indeed legally buy Bitcoin in Australia – just make sure you do so from a designated crypto exchange and complete your KYC as mandated by AUSTRAC. 

You have a few platform options, such as Bitcoin.com.au and Independent Reserve. Both these exchanges offer a wide selection of cryptos and are compliant with local regulations. 

Make sure you check platform fees and confirm your bank allows crypt-related payments before initiating a transaction. 

Lastly, avoid CATMs or P2P platforms as they aren’t as secure as Digital Currency Exchange Providers. Also, none of the above is financial advice. Kindly do your own research before investing.

BUY BTC ON BITCOIN.COM.AU

FAQs

1. Can you buy BTC in Australia?

Yes, you can buy $BTC in Australia through regulated crypto exchanges such as Bitcoin.com.au and Independent Reserve. However, buyers need to comply with KYC norms and prove their identity before they can own BItcoin, as required by AUSTRAC. Both these platforms support various payment modes such as domestic and international debit/credit cards, bank transfers, and PayID and are pretty easy to use.

2. What is the best app to buy Bitcoin in Australia?

Bitcoin.com.au is the best app to buy Bitcoin in Australia. The app is simple to use with a slick and intuitive user interface. First, you’ll need to sign up using your email ID and phone number, deposit funds, and then execute your first transaction. The platform offers 35+ spot crypto options to choose from. Once you complete the purchase, you can view all your holdings on its centralized dashboard.

3. Can you buy crypto without KYC in Australia?

No, you cannot buy crypto in Australia without completing KYC requirements as mandated by AUSTRAC. This is done to meet anti-money-laundering requirements and prevent instances of frauds and scams. For this, you would be required to provide a photo identity proof, residential proof, and a live selfie on some platforms.