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Bitcoin has been the best performing asset of the last decade which has garnered it a lot of mainstream attention. To this day, it is the biggest and most well-known cryptocurrency in existence. This crypto asset has helped shape the global future of money. Institutional and retail investors alike are looking to Bitcoin as a profitable long-term investment.
Investing in Bitcoin in 2022 is a simple task, with various exchanges and brokers in Australia providing platforms to buy, sell and trade Bitcoin, as well as other cryptocurrencies.
This beginner’s guide will break down how to invest in Bitcoin in Australia in 2022 in simple 4 steps.
What is Bitcoin?
Bitcoin is a peer-to-peer decentralised digital currency. Similar to how regular fiat currencies like the Australian dollar (AUD) operate, Bitcoin acts as a store of value or method of exchange. All Bitcoin transactions are peer-to-peer which means they happen directly between network participants, removing the need for a third-party intermediary (I.e. central bank) to facilitate them. Check out our introduction to Bitcoin on Swyftx Learn.
Bitcoin and many other cryptocurrencies use blockchain technology to maintain security and keep a record of past transactions. Blockchain is a type of distributed ledger technology that keeps an unchangeable record of transactions across a network of computer known as ‘nodes.’ The Bitcoin network was the first-ever blockchain, created by Satoshi Nakamoto.
Bitcoin is created through a process called ‘mining.’ This involves several computers around the world competing to solve complex maths problems in order to verify transactions. When a Bitcoin is mined, the successful miner will receive a portion of the mined Bitcoin as a reward. You can learn how Bitcoin mining works with our in-depth guide.
How to invest in Bitcoin in Australia
Investing in Bitcoin in Australia has never been easier. When cryptocurrency was first entering the market, the process for buying Bitcoin was tedious and required “tech-savvy” expertise.
However, in 2022, there are several exchanges and brokers that have simplified the process of purchasing Bitcoin. Swyftx is a cryptocurrency exchange that lists Bitcoin and hundreds of other cryptocurrencies. Swyftx offers a web platform and mobile application, so you can trade Bitcoin whenever, wherever.
Below we’ve outlined how to buy and invest Bitcoin on our trading platform in just 4 simple steps.
- Register for a Swyftx account: The first step in the process to buying Bitcoin in Australia is to create an account. Signing up to Swyftx is free, you’ll be required to provide a few personal details like your full name, email address and phone number. Then create a highly secure password, and agree to our terms and conditions.
- Verify your identity: In order to keep your account safe and secure, we ask that our users verify their email, telephone and government-issued ID (driver’s license or passport). That way we can make sure your account is safe and only being used by you. The ID verification step typically takes no longer than 3 minutes to complete and you won’t be required to submit any documents.
- Send Deposit: Once your account has been activated you will be able to deposit funds into your Swyftx account using your preferred payment method. Users can immediately deposit up to AUD$50,000 into their accounts using various payment methods including bank transfer, POLi, PayID, OSKO, crypto deposit and debit card.
- Purchase cryptocurrency: Once your deposit is confirmed, you can purchase Bitcoin by navigating to the buy tab on the Swyftx trading app. Select how much BTC you wish to buy and select which order type you’d like (market order, limit order, stop order, recurring order). Then simply confirm your purchase.
You can view a dedicated Swyftx review on the Crypto News Australia website.
Bitcoin and Cryptocurrency regulation in Australia
Australia has taken a more progressive approaches to cryptocurrency in the country. This is because Australian regulatory bodies encourage innovation and growth in the financial sector. This was evident when the regulation that double-taxed cryptocurrency under the good and services tax (GST) was removed.
In 2017 cryptocurrencies like Bitcoin were declared legal in Australia as long as they abide by the rules set out in the Anti-Money Laundering and Counter-Terrorism Financing Act. Cryptocurrencies are therefore subject to Capital Gains Tax (CGT), similar to regular stocks.
Read: Cryptocurrency tax in Australia guide
As of 2018, digital currency exchange providers or ‘DCE’s’ are required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). This includes the Swyftx cryptocurrency exchange.
Additionally, Australians can now invest their Self-Managed Super Fund (SMSF) into Bitcoin and other cryptocurrencies. Through an exclusive partnership with New Brighton Capital, Swyftx users can put Bitcoin into a self-managed super fund (SMSF). Using this tax benefit, crypto assets are taxed at a rate of merely 15%. Compare that to some other countries or tax mechanisms that tax your crypto at as high as 26% or even 30%.
Crypto exchanges are the main way to buy and sell Bitcoin and other digital currencies in Australia. Other popular channels to buy Bitcoin include brokers and P2P exchanges. There are also more options becoming available for cryptocurrency retirement plans.
How to pay for Bitcoin
If you have a specific payment method in mind to buy Bitcoin in Australia, it’s best to check that the digital asset exchanges you’re looking at offers that payment option, as some exchanges may not accept all forms of payment. Swyftx supports the following deposit methods:
- Debit card
- Bank transfer
- POli
- PayID
Once your the funds have arrived in your account, you can invest in BTC instantly.
Buying Bitcoin with a Debit card
Buying Bitcoin with a debit card isn’t very common. This method of payment was only recently introduced with a lot of exchanges. Some exchanges may allow their users to purchase Bitcoin directly with debit cards, however, this is usually accompanied by higher transaction fees as this requires third-party payment integrations. Swyftx allows users to deposit funds into their accounts using a debit card with no change in trading fees.
Buying Bitcoin with bank account transfer
The majority of cryptocurrency exchanges will permit bank transfer and related payments services like PayID, OSKO and POLi. This is typically the cheapest and quickest payment as transfers are near-instant. Swyftx supports deposit options like bank account transfer, POLi, PayID and OSKO.
Buying Bitcoin with cash
Although it’s not common, if you want to buy Bitcoin with cash, it is possible to do so in Australia. The most common way of doing this is through a peer-to-peer exchange where you can arrange to meet with Although it’s not common, if you want to buy Bitcoin with cash, it is possible to do so in Australia. The most common way of doing this is through a peer-to-peer exchange where you can arrange to meet with someone in person to exchange cash for BTC. Additionally, there are a number of Bitcoin ATM’s scattered across the major Australian cities. These ATM’s allow a person to purchase Bitcoin and other cryptocurrencies by using a credit card or cash. Check out this Bitcoin ATM map to find the closest crypto ATM to you.
How to choose the best cryptocurrency exchange to buy Bitcoin
Not all crypto exchanges are the same. Finding the best Bitcoin exchange or Bitcoin brokers for you will depend on a number of key factors.
We have listed a few of these key factors below:
Security: Security must be an absolute priority for any crypto exchange. This is because scams and cyber theft are becoming more common, especially in the crypto industry. At a minimum, an exchange should have two-factor authentication (2FA), biometric authentication for mobile and breached password detection to protect their user’s accounts
Fees: One of the more common key factors that influence a person’s decision on choosing a crypto exchange is the trading fees. This is a fee that is charged for any buy or sell Bitcoin order. Compare trading fees between Australian exchanges.
Customer support: Australian-based customer Support is a very important aspect especially for beginner traders. Understanding the crypto world and how to invest Bitcoin can be difficult. A good customer support team can assist with any problems with transactions.
Reviews: Reviews are a good indicator of an Exchange’s reputation. Some of the larger review aggregators in Australia include Trustpilot and ProductReview.com.au.
Where can I store my Bitcoin?
When Bitcoin trading, It is important to keep your cryptocurrency in a safe place, knowing where to store your crypto can protect it from hackers and thieves. A Bitcoin wallet is a mechanism that is required for sending, receiving and storing digital currencies. When you create a Swyftx account you are automatically assigned a digital wallet. There are said to be two categories of crypto wallets. These are hot storage wallets and cold storage wallets.
Hot vs Cold Wallets
While one of the largest differences between wallet types is established when a wallet is considered hot or cold, the real difference between wallet types doesn’t have much to do with temperature. The juxtaposition here lies in whether a wallet is connected to the internet or not. Hot wallets are connected to the World Wide Web, whereas cold wallets are stored offline. Cold wallets are often considered better due to the fact that hot wallets leave your digital assets susceptible to internet thieves.
App or mobile wallet Wallets
If you’re the type of person who is always on the go, Swyftx offers a mobile wallet for your smartphone device. After you purchase BTC on Swyftx, it be immediately become available in your personal Swyftx wallet. Alternatively, you can transfer your BTC to an external wallet. The are a number of crypto wallets available in Australia to choose from.
Buying large amounts of Bitcoin
If you’re looking to trade over $100,000 of Bitcoin (AUD) or any other listed cryptocurrency, you can head to the Swyftx OTC page. Here, you can book in a consultation with one of our industry-leading experts that can assist you with your Bitcoin OTC order.
How to send Bitcoin to another wallet
When you buy Bitcoin from a trading platform like Swyftx, it is automatically stored on your behalf in what is referred to as an exchange wallet. From there you can transfer to an external wallet such as a browser or app wallet (i.e. MetaMask), software wallet or hardware wallet. You can do this by going to the withdraw page on your Swyftx app and inputting the public wallet address of the wallet you’d like to send to. It is always advised that you first send a small test amount before sending the full amount, just in case something goes wrong (i.e. you put in the incorrect wallet address).
Related: Find out more about how to send BTC to a Bitcoin wallet.
Wrap up
If you’re still not comfortable in investing in cryptocurrency, you can contact our customer support team or try out of crypto demo account which lets you trade crypto with zero financial risk. This can help you gain confidence by practicing crypto trading.
The Swyftx platform offers one of the most advanced user interfaces in the industry and is stocked with modern trading tools, to aid you in your crypto journey. Users can sign up for Swyftx account and invest in Bitcoin in just 4 easy steps. You can also buy Ethereum, Cardano, Polkadot and 300+ other cryptocurrencies.
Once you have your account set up and deposited funds, you can choose to put your crypto offline in a cold wallet or keep it on the website. At Swyftx, we care about our users and recommend offline storage with a hardware wallet like a Ledger Nano because long term security reputation.
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