Cheapest Way to Buy Bitcoin in Australia 2023
Interest in acquiring digital assets is constantly on the rise. The world is increasingly moving away from paper money and towards adopting blockchain-based cryptocurrencies — with Bitcoin (BTC) being by far the most popular among them, followed by other altcoins such as Ethereum (ETH), Litecoin (LTC), XRP, and countless more. If you’ve decided to invest in cryptocurrencies yourself, you’ll most likely start by buying Bitcoins.
Like any other investment, Bitcoin trading comes with its risks. Yet, people are drawn to crypto assets even more than traditional stocks, likely precisely because of their volatility – the fact that there’s money to be made, fast. There’s also the fact that crypto assets are revolutionary in a way and have their own unique characteristics. For instance, cryptocurrency tokens work in a way that makes it difficult for a government body to confiscate crypto without the owner’s involvement.
You can choose between several different ways to buy and sell Bitcoin in Australia. The price of Bitcoin fluctuates constantly, but in recent years, a single BTC has cost tens of thousands of USD and AUD. Therefore, when deciding on such a serious investment, you want to ensure you’ve found the cheapest way to acquire some BTC assets.
To find what method of buying Bitcoin suits you best, it’s worth taking a look at some of the most popular buying options. Choose one that allows you to make transactions fast and guarantees the best prices at the moment. Below, we share details on the cheapest way to buy Bitcoin in Australia, as well as alternatives to them.
Ways to Buy Bitcoin in Australia
Once you set your mind on buying Bitcoin, the real journey begins. Hundreds of different websites compete for clients who want to minimize trading fees and get the best deal.
When faced with deciding which method to use to purchase Bitcoin or other cryptocurrencies, each user will have their own set of preferences. If you’re looking for the cheapest way to buy, you want to consider the potential costs and the final price for the same digital token. We’ve listed the most common platforms and best bitcoin trading sites below.
These platforms offer investors the simplest way to buy Bitcoin or other cryptocurrencies like Ethereum directly, but they do have commission fees. Some of them, such as Robinhood and Webull, offer 0% commissions and make an excellent option for newbies. You can pay via bank transfer in fiat currency.
Online Cryptocurrency Exchanges
These are, in essence, trading platforms that allow users to buy, sell, and trade with each other in an open-market setting. Rather than selling as retailers, the exchanges operate as an intermediary between sellers and buyers. You can trade with fiat money from your bank account or exchange digital currencies. Crypto exchanges often offer both desktop or browser-based apps as well as mobile apps for Android and iOS. They also come with the lowest fees among online crypto trading platforms.
Bear in mind that to send and receive crypto through exchanges, you’ll need to have a Bitcoin wallet. Bitcoin wallets can come as either hardware or digital wallets. Different Bitcoin wallets will also differ in whether they give you access to the private keys you need to access your Bitcoin assets. Hardware and desktop software wallets leave you in charge of your private keys, whereas online wallets (such as those crypto exchanges offer) keep your private keys for you.
Buying Directly From Another User
Peer-to-peer exchange platforms offer a decentralized exchange mechanism whereby users can directly negotiate the price before transactions. There’s no third-party or central authority involved in the process. Instead, the platform provides a software-based matching of sellers and buyers based on specific requirements they have indicated.
Using a Bitcoin ATM
Bitcoin ATMs are physical machines that allow you to buy Bitcoin directly, typically with cash, credit, or debit card. However, if you’re looking for low fees, this option should be your last resort. Bitcoin ATMs are the most expensive option for buying Bitcoin in terms of how much they’ll charge you for the service, although they do make up for it with their ease of use.
Cheapest Way to Buy Cryptocurrencies
It’s key to remember that when it comes to buying Bitcoin with fiat currency, besides convenience and low price, the security of the transaction also comes into play. Moreover, it’s hard to unequivocally determine which way to purchase BTC will be the cheapest due to the market’s high volatility and various promotions that may only occur on a particular day.
That being said, peer-to-peer (P2P) trading seems to be the most profitable method of buying BTC. When exchanging directly, you can avoid various commissions and directly set the price. The price can get quite attractive if the person on the other side wants to get rid of their Bitcoins fast or needs cash.
P2P exchanges resemble a marketplace since people selling Bitcoins negotiate directly with those interested in buying. The platforms allow for direct contact between the two parties. They can agree on a preferred payment method, including a credit card, debit card, PayPal, cash, and more. You can often also pay them through payment methods typical for the Australian market, such as Osko, Poli, Bpay, or PayID. This opens up the potential to start trading with maximum privacy.
Exchanges such as Localbitcoins and Paxful specialize in P2P trading. Needless to say, though, watch out! You don’t really know who sits on the other side and whether the exchange will actually take place or end up being a scam. It’s worth seriously considering whether to sacrifice a few percent of the trade in favour of the safety of the transaction.
The Fastest Way to Buy Bitcoin in Australia
A quick way to buy Bitcoin is to sign up for a crypto exchange with no obligatory identification. If you are new to the cryptocurrency market and don’t have an account on any cryptocurrency platform yet, but you want to buy Bitcoin quickly, you can use a platform that doesn’t require identity verification. You can certainly create an account on the exchange and go through the verification process, but this will be more complicated and time-consuming.
The easiest and fastest way to buy cryptocurrencies is to use an online Bitcoin exchange with BLIK support. Such cryptocurrency brokers do not require identity verification up to a certain amount, so their service is intuitive and fast. You’ll receive your cryptocurrencies in just a few minutes to the Bitcoin wallet indicated during the transaction.
All you have to do is go to the platform’s website and enter the amount of Bitcoin you want to buy. The calculator will automatically calculate the Bitcoins you are entitled to at the current exchange rate.
After clicking the ‘Trade’ button, you’ll be prompted to enter the address of the Bitcoin wallet you want to send funds to and the BLIK application code. Once you have entered the necessary information, tick all the consents and confirm the transaction. Remember to enter your real email when requested since that’s where you’ll receive the transaction confirmation.
Using Crypto Exchanges
The most common way to buy Bitcoin is to use a cryptocurrency exchange service. There are many crypto exchanges operating across the globe. Perhaps the most notable examples include Binance and Coinbase, two of the most famous crypto exchanges in the world. Other less popular international platforms that allow you to buy crypto include Kraken, Coinmama, eToro, and countless others.
Some of these cryptocurrency exchanges offer a SWAP function for directly exchanging different crypto-asset trading pairs against each other. The SWAP function works almost the same way as exchange offices for fiat money but usually with a lower commission for exchanging crypto.
Disadvantages of Buying Bitcoin at a Cryptocurrency Exchange
On crypto exchange platforms based in Australia, transactions up to a certain amount in Australian dollars don’t require any verification, but bigger purchases need to be confirmed with a text message code sent to a previously provided phone number. These limits definitely count as a disadvantage.
Moreover, when buying Bitcoin at a cryptocurrency exchange, you have an additional exchange commission, which usually hovers around 5%.
Buying Bitcoin on Forex
If you don’t care about owning a cryptocurrency in your portfolio and you’re only interested in speculating on its ups and downs, you can also use trading platforms offered by brokers. Forex brokers and applications allow you to trade cryptocurrencies commission-free from your phone.
In this case, you are not actually buying the asset but rather betting on its future price. This way, you’re also bypassing most of the transaction fees and commissions that exchanges would charge you for trading in cryptocurrencies.
Forex brokerage providers make money on the spread, which amounts to the difference between the selling and buying price of Bitcoin (or other cryptocurrencies). In some models, forex brokers earn their share directly on their clients’ losses.
A Few Words Before You Go…
There’re many ways to buy BTC in Australia, with different payment options available. Beginners are advised to be patient and cautious above all. Before you make a purchase, it’s a good idea to get to know the available options and make your first transaction for a small amount. That way you’ll be aware of what to look out for with larger amounts.
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This page was last updated on August 23, 2022