Bitcoin is the world's largest and most popular cryptocurrency with a market capitalisation of
over US$ 800 billion. This digital token can be purchased as a long-term investment
or make payments for certain goods and services.
This video will tell you how to purchase
Bitcoin in Australia and the three top crypto exchanges for trading Bitcoin.
What are the various ways of purchasing Bitcoin in Australia?
Here are several ways to purchase Bitcoin in Australia.
Bitcoin ATM
In Australia, Bitcoin can be purchased using a Bitcoin ATM. If you want to
purchase Bitcoin using cash, this may be a suitable option. However, Bitcoin ATMs are
a costly source to obtain the digital coin as they charge between 5% and 20% as fees,
which is over 10 times higher than the fee charged by online crypto exchanges.
Bitcoin Exchange
The most convenient way to purchase Bitcoin in Australia is through a
Bitcoin exchange. You can open an account online and purchase Bitcoin in only a few
minutes. These exchanges store Bitcoin and other cryptocurrencies on behalf of their clients.
Bitcoin exchanges also have some of the lowest fees for purchasing Bitcoin in Australia.
You could spend as little as 0.75% in exchange fees on a platform like eToro.
Newsagents
One can also purchase Bitcoin over the counter from newsagents in Australia.
Here, you can make payments either in cash or using cards (both credit and debit
cards). There are over 1,200 participating newsagents in Australia who deal in Bitcoin.
However, the fee charged by newsagents is very high; they normally charge around 5%,
much higher than the fee charged by online crypto exchanges.
Now let's talk about Australia's most well-known crypto exchanges?
eToro
According to eToro, it is the world's most popular social trading platform
for Bitcoin. On eToro, you can open a free account. There are no management or ticketing
fees and no added broker fees. For trading in Bitcoin, eToro charges a spread of 0.75%.
Once you buy Bitcoin on eToro, it will be transferred to your digital wallet.
Due to its ease of use, minimal fee structure
and rapid account set-up processes, eToro is a preferred medium to trade in Bitcoin.
eToro is specifically useful for novice traders because of its
CopyTrader functionality that allows users to imitate the strategies of expert traders,
increasing their chances of making profits while reducing risks.
Coinbase
Founded in 2012 by Brian Armstrong, Coinbase is an online exchange to deal in cryptocurrencies.
It also specialises in providing storage facilities for cryptocurrencies.
The FCA regulates its E-Money Services.
Through Coinbase, you can access over 100 cryptocurrencies and can trade in over
80 crypto-to-crypto pairs. Making transactions on Coinbase is affordable as well; you require
a minimum deposit of US$2 (AU$2.7), and the commission charged by the exchange varies
between 0.5% and 4.5% per trade, depending on the cryptocurrency you want to trade.
Binance
Binance is another crypto exchange that can be considered for trading in Bitcoin as it
is the world's biggest crypto exchange in terms of trade volume and speed.
A wide range of cryptocurrencies and low trading fees are two of its biggest advantages. If you
trade in crypto-to-crypto pairs, you have to pay a flat trading fee of 0.1%. You can reduce trading
fees further by using its native cryptocurrency, Binance Coin (BNB), for paying trading fees.
There are different trading fee tiers, with lower fees for users who hold enough
BNB coins and maintain certain monthly trading volumes.