Bitcoin in Australia
Contrary to popular belief, you don’t need to be a tech geek or finance guru to buy Bitcoin. Cryptocurrency exchanges have simplified the process of buying cryptocurrency over the past decade to break down the barriers to entry and enable just about anyone to buy Bitcoin quickly and easily.
This guide provides information on everything you should consider when buying Bitcoin, how to buy Bitcoin in Australia in 2021.
Bitcoin is legal in Australia
Australia was one of the earliest countries in the world to declare Bitcoin legal when, in December 2013, the governor of the Reserve Bank of Australia (RBA) indicated that there is no law preventing Bitcoin from being transacted in Australia.
Today, all digital currency exchanges in Australia have to be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Like any registered financial institution and digital currency exchange in Australia, Binance Australia is subjected to the same anti-money laundering and counter-terrorism financing (AML/CTF) rules as well as being compliant with all Australian laws.
Why Invest in Bitcoin
Unlike traditional ‘fiat’ currencies controlled by governments, such as Australian dollars or US dollars, Bitcoin is a decentralised asset, meaning that no government or company controls the cryptocurrency. In times of political and financial instability, Bitcoin cannot be seized, withdrawals cannot be halted, and transactions cannot be blocked.
In contrast to governments and reserve banks that have the ability to print an infinite amount of money (which decreases the value of each dollar due to inflation), Bitcoin’s fixed supply is governed by open-source software that is non-inflationary by design which dictates that the amount of bitcoins will never exceed 21 million. Over 18.5 million bitcoins are already in circulation and estimates indicate that up to 4 million of these circulating bitcoins are unrecoverable, making the digital asset incredibly scarce in comparison to fiat currencies and even gold.
The last few years have seen significant strides made across the world in furthering the adoption of Bitcoin. From global payment providers enabling support for the cryptocurrency to major companies converting part of their assets to Bitcoin, all signs point to Bitcoin continuing its institutional legitimation as the unrivalled money of the internet.
How to Buy Bitcoin in Australia in 2021
There are three main types of platforms available when it comes to purchasing Bitcoin: exchanges, brokers, and peer-to-peer (P2P) exchanges. When choosing where to buy your Bitcoin, it’s important to consider the fees, security, and reputation of the platform to ensure that you get the most bang for your buck without compromising the safety of your money.
Crypto exchanges like Binance use order books to match cryptocurrency buyers with sellers on an open market. These platforms are typically the cheapest option from the three in terms of fees and rates. Australia has a number of reputable cryptocurrency exchanges to choose from, with Binance Australia being the most popular and largest digital asset exchange ecosystem. Binance Australia offers instant zero-fee AUD deposits via PayID/Osko (NPP) directly into your Binance account, allowing you to start trading in minutes.
Brokers are retailers that buy or sell cryptocurrency directly to and from users via a third party exchange’s order book. Think of them as ‘resellers’ of services offered by exchanges like Binance Australia. These platforms usually offer simple and well-targeted options for beginners looking to purchase Bitcoin as there is no order matching required, though fees and rates are generally higher and trading functionality is limited. Binance offers a broker model allowing you to buy crypto with credit or debit card or via your cash balance.
Peer to Peer (P2P) Bitcoin & Crypto exchanges allow a community of buyers and sellers to exchange Bitcoin between themselves on their own terms. A seller will set the terms of the trade (i.e. the rate and payment method) by posting a public advertisement and a buyer will accept those terms by completing the purchase on those terms. Prices may vary depending on each seller on Binance Australia’s Peer to Peer Crypto & Bitcoin exchange platform, though anyone using these platforms should remain especially vigilant and only buy Bitcoin from trusted sellers.
A Step-by-Step Guide on How to Buy Bitcoin with AUD
Once you’ve selected the exchange that’s right for you, you can buy Bitcoin in just 3 steps! Read on below as we take you through the step-by-step process of buying Bitcoin on Binance Australia.
1. Register your account
To register for a new account, enter your email at the Registration Page and create a secure password. After activating your account by entering the activation code sent to your email, head over to the Identification section of your Account Settings to verify your identity by entering the details of your driver’s licence, Australian passport, or international passport. Your account will be verified within seconds and you’ll be ready to make your first deposit!
For more information on the identity verification process, see our step-by-step guide on how to verify your account.
Tip: We strongly recommend that you enable two-factor authentication (using Google Authenticator and/or SMS verification) in your Account Security Settings.
2. Deposit AUD
AUD Deposits to your account can be made from over 100 Australian banks using PayID/Osko and are usually instant. To make a deposit, login to your Binance Australia account and click Deposit AUD on the homepage. Then, enter your deposit amount and
click Continue. Your unique PayID email address will be generated and will look something like this: NAME0123456789@au.binance.com
Open your mobile bank app or internet banking and choose to pay anyone using an email address. Paste your unique PayID email address into the field in your mobile bank app/internet banking, enter your deposit amount (no description required), and confirm the transfer.
Tip: Your bank likely has an online guide available if you’re having trouble finding where to send a PayID email address transaction from in your mobile bank app/internet banking.
Once your transaction has been processed by your bank, your deposit amount will be reflected in your Binance Australia account, which is typically instant. However, your first PayID transfer (and sometimes other transfers, such as particularly large deposits) may take 24 hours to clear, subject to your bank’s policy.
For more information on PayID/Osko deposits, see our step-by-step desktop deposit guide or our step-by-step mobile deposit guide.
3. Buy Bitcoin
Now that your account has been funded, you can exchange your AUD for Bitcoin and other AUD/cryptocurrency pairs. Binance Australia offers two options for buying Bitcoin: the instant buy method and the advanced trading method.
Tip: Only selected cryptocurrencies have an AUD trading pair, though most cryptocurrencies have a Bitcoin (BTC) trading pair. Simply convert your AUD to BTC to trade other cryptocurrencies.
The instant buy method offers a quick and easy option for purchasing Bitcoin using your AUD balance without any prior technical trading knowledge. Simply enter the amount of your purchase in AUD, select BTC, and confirm. Your Bitcoin will then be credited to your Spot Wallet.
Tip: Keep in mind that you don’t have to buy a whole Bitcoin as it can be divided into as low as eight decimal places (most other cryptocurrencies are also highly divisible, too).
The advanced trading method requires some basic knowledge of market trading, including familiarity with bid/ask prices and limit/market orders. To buy Bitcoin using this method, place a limit order (which allows you to set your buy price) or market order (which executes your order quickly at the market price) and, once your order has been filled, your Bitcoin will be credited to your Spot Wallet.
For more information on navigating the advanced trading method on Binance, view our spot trading guide or take a deep dive into trading with our in-depth trading guide.
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