Australia legalised cryptocurrency in 2017 and has plans to create a licensing framework for cryptocurrency exchanges where Australians can buy and sell various cryptocurrencies. Bitcoin is the de facto leader of cryptocurrencies, and it has been able to maintain its top position for several years.
If you wish to buy bitcoin Australia, you can buy them through a reliable cryptocurrency exchange. However, buying and storing bitcoin is not like buying precious metals or other paper currencies. Here are some basics you need to understand before buying bitcoin in Australia.
Understanding the Supply and Demand Factor
The price of one bitcoin is around 59,754.52 AUD. The bitcoin’s price is affected by the supply and demand factor. Bitcoin is different from traditional currencies, as it is not issued by any central bank or backed by any government. Also, buying a bitcoin is not the same as purchasing stock issued by a corporation.
The supply of assets plays a vital role in the bitcoin price. If you look at the timeline, the supply of bitcoin has steadily decreased since 2016. The supply of bitcoin slowed from 6.9% in 2016 to 4.4% in 2017, which further dropped to 4% in 2018. On the other hand, the growing popularity of digital currencies has attracted retail investors, which has led to a surge in bitcoin prices.
Now that you have understood the bitcoin price relation with the supply and demand factor, here are the steps involved when looking to buy bitcoin in Australia.
Choose a Bitcoin Exchange
As per recent data, the number of Australians owning crypto rose to 28.8% in 2021, up from 18.4% in 2020. Australia has simplified rules related to crypto investments, which is why you can buy bitcoin at different trading platforms. To buy bitcoin, you need to register and create an account on the crypto trading platform. Here are the steps to create an account at the bitcoin trading platform.
To create an account on the crypto trading platform, you need to enter details like name, address, email address, and phone number that will become part of your profile. You need to also provide identity documents for verification. The id verification is mandatory to prevent money laundering.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 aims to prevent money laundering and financing of terrorism. The AML/CTF Act imposes certain obligations on the financial sector. Some documents that are accepted for verification are:
- Government-issued photo-id
- National identity card
The verification process is almost instant, and you can use the account to buy bitcoin almost immediately.
After the verification is complete, you can deposit funds into your account through various methods like credit/debit card, bank transfer, OSKO, and PayID. Upon receiving the funds, you can immediately purchase bitcoins from the crypto exchange.
Get Yourself Crypto Wallet
Cryptocurrency is different from traditional paper currencies, and it needs special storage to keep it safe. Before you buy bitcoin or any cryptocurrency, you need to get yourself a bitcoin wallet that is a virtual wallet used to store your bitcoins. A bitcoin wallet is just like your physical money purse that holds your paper currency and debit/credit cards. The only difference is that it is a virtual wallet in a digital space.
Once you buy bitcoins from crypto exchanges, they will become instantly available in your bitcoin wallet that stores your bitcoins as pieces of data. Most crypto trading platforms in Australia have an integrated bitcoin wallet, and you don’t need to register for it separately. It is linked to your crypto trading account, and you don’t need to do anything to get your bitcoins in your wallet (the ones you have purchased)
You can choose to keep the bitcoins safe in your bitcoin wallet and sell them when the prices skyrocket.
To sum up, cryptocurrency is a new and attractive investment avenue that assures good returns. If you wish to reap the benefits of this new form of trading, you can do so without any hesitation.