How to buy Crypto in Australia (2021)

Summary: The safest and easiest way to buy Cryptocurrencies in Australia is through CoinSpot. They are Australia's largest and most trusted digital asset exchange with over 2 million users.

By
James Glennon
on
October 17, 2021
Digital Asset Investing
How to buy Crypto in Australia

How to buy Cryptocurrency in Australia

A quick breakdown of how to buy crypto in Australia with CoinSpot, which is the largest exchange in the country with 2 million users.

  1. Sign up to a trusted Crypto exchange like CoinSpot.
  2. Verify your personal or company identity.
  3. Connect your Australian Bank account.
  4. Deposit AUD into your CoinSpot account via the "Deposit" page.
  5. Select the cryptocurrency you want to trade.
  6. Input the AUD amount and click "Buy"!

Is Crypto Legal in Australia?

The cryptocurrency space has fewer safeguards than are in traditional investment platforms such as the Australian Securities Exchange. As a result, many digital currency buyers have lost their savings to exchange scams and hackings. For this reason, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has stepped in to regulate the crypto industry. 

AUSTRAC kicked off its anti-money laundering and financial intelligence mandate in 2018 and has registered 312 cryptocurrency exchanges. However, the Australian government has a friendly stance towards the nascent space, making cryptocurrency investing 100% legal. 

That said, Cryptocurrencies were declared legal and subject to income and capital gains tax in 2017 by the Australian Taxation Office (ATO).

How to buy Crypto in Australia

Generally speaking, we recommend CoinSpot as Australia's best cryptocurrency exchange. They have the largest user base in Australia with over 1 million accounts, which is the most out of any cryptocurrency exchanges in Australia by a wide margin.

Below is a simple guide to help you make your first step to buying Crypto in Australia with CoinSpot:

1. Create a crypto exchange account

The cryptocurrency exchange account creation process is easy. Using a secure internet connection, navigate to a secure link for CoinSpot , click 'create account' and input your username and unique password. 

Complete your 2-factor authentication (2FA) process and verify your email account.  Some accounts may require more information for KYC and AML verifications. Worry not, though. This process will only take a few minutes of your time. 

Some of the data that they may ask to wrap up this process includes:

  • Your email address
  • Phone number
  • Proof of residence as selfies where you are holding your passport or driver's license

2. Select your payment method

To complete the account opening process, you will need to link your account to a bank account to make AUD deposits and withdrawals. While you can send direct AUD deposits to your trading account from your bank account, PayID/Osko and Poli deposits and withdrawals will accrue fewer charges.

Then, send your preferred AUD deposit to your new crypto trading account. You can connect to CoinSpot with the following bank accounts:

3. Storing your crypto

You may need a crypto wallet. While most exchanges do observe high-security measures, leaving your cryptocurrency private keys on an exchange's wallet on a long-term basis increases your investment risks. 

Use hot wallets such as MetaMask for quick and free private key storage. Long term hodlers should purchase secure cold wallets from reputable sellers such as Ledger, Trezor or KeepKey.

That said, CoinSpot has passed several security audits and I personally keep my coins on their exchange.

4. Buy the cryptocurrency of your choice

If you have deposited Australian Dollars into your CoinSpot account successfully, you are now ready to buy over 300 different cryptocurrencies like Bitcoin, Ethereum and Shiba Inu.

Ensure that you have adequate AUD funds to cover your transaction costs. Cryptocurrency purchases are not reversible because blockchain records are immutable. Watch out, therefore, for asset selection or order quantity errors. 

Preview your crypto purchase's value and only buy if you are content with your asset's price tag. Double check all details and click 'buy' to wind up the transaction. Finally, move your crypto assets to your wallet if your intention is long-term holding.

What is the Best Place to Buy Crypto?

When making a digital currency exchange selection, you should consider its ease of use, customer reviews, and transaction fees. Its security, payments methods, number of altcoins on offer and support of Aussie dollar purchases will also have an impact on your overall trading experience.

Feature CoinSpot Independent Reserve SwyftX Binance Australia
Trading Fees 0.1% - 1% 0.5% 0.6% 0.2%
Cryptocurrencies 250+ 30+ 200+ 250+
Year Founded 2013 2013 2017 2017
Deposit Options Bank Transfer, Cash, PayID/Osko and POLi Bank Transfer, PayID and OSKO Debit Card, Credit Card, Bank Transfer Debit Card, Credit Card, Bank Transfer
Fiat Currencies AUD AUD, NZD, USD and SGD AUD and NZD AUD + 15 more
Website Visit Visit Visit Visit

Some of the other questions that you should have answers to when choosing an exchange platform include:

  • What is your crypto investment and trading strategy? Are you a long term hodler and are only interested in major coins such as bitcoin?  Are you an active trader and have an interest in trading altcoins? Active traders should pick exchanges that have high liquidity, trading volumes and advanced trading features and tools.
  • Are you comfortable undergoing identity verification? All centralized registered exchanges have KYC and AML compliant user verification procedures. If you want to maintain privacy, use decentralized exchanges instead.
  • Would you prefer to buy Crypto on TD Ameritrade, CommSec or another traditional finance exchange platform?

Exchange Selection Tips

Your expertise in the digital currency sector will highly impact your cryptocurrency purchase experience. For this reason, beginner investors should work with exchange platforms that accommodate their need for an easy-to-use interface. 

Exchanges such as Swyftx have demo accounts that will significantly ease your crypto trading learning process. Easy Crypto, on the other hand, has an easy-to-use platform interface for beginner traders.

Intermediate traders will find exchanges that have a wide selection of coins more suitable. Tools such as margin and leveraged trading will be a bonus. CoinSpot, for instance, has a wide variety of altcoins on offer. 

The advanced trader will go for platforms that have features such as cryptocurrency derivatives. These high-speed crypto products are a favourite for risk taking, deep liquidity demanding and high-volume trading users.

get started with coinspot
James Glennon

I spent 5 years as a Commercial Lawyer in Australia before stumbling across the innovations behind Bitcoin and the cryptocurrency space. Ever since, I have been committed to learning more and educating the broader Australian community about Bitcoin, hard money, investing and decentralized finance.

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