How to Buy Ethereum in Australia 2023
Most crypto traders will agree that Ethereum has been on par with Bitcoin, the world’s most prominent and dominant crypto asset. The digital currency’s success is largely due to its completely different approach to decentralised finance. Even though it has never overtaken Bitcoin as the primary cryptocurrency, judging by asset value and market cap, Ethereum’s purpose and use cases suggest it’s a 1A and 1B argument rather than A versus B.
The fact that these two crypto coin giants do not share a lot of properties and are utilised in completely different ways only solidifies their place in the crypto economy. In many ways, Ethereum provides users with a lot more bang for the buck because it can be put to use in a plethora of scenarios. Let’s dive a bit deeper and figure out how and why Ethereum rose to the very top of the crypto world before we discuss how to buy Ethereum in Australia.
What Is Ethereum?
Ethereum can be viewed as a public blockchain service that provides its users with the means to execute trades and transactions without relying on a third party or a central authority to facilitate or mandate the process.
Ethereum employs automated contracts and protocols. This way, the connection and interaction between two distinct parties are administered through Ether (ETH). For every blockchain block that is brought to existence, the Ethereum miners are rewarded with some ETH for their efforts and contribution. Even though the official name of the Ethereum blockchain’s currency is Ether, the name Ethereum is also used to refer to the token.
The blockchain itself is a mecca for developers looking to code decentralised apps, also known as dApps. The best part is that you can use these apps in an infinite number of ways. Everything from facilitating and processing trades to executing contracts is on the table. Most dApps are designed to be crypto-adjacent and facilitate cryptocurrency buying, selling, and trading. Ready to convert your car into an Ethereum token? The potential of Ethereum is so vast and all-encompassing that it sounds like it came directly from the pages of a 70s sci-fi novel.
However, traders who just want to make use of Ethereum as a monetary device are able to do so at will. Much like its BTC counterpart, ETH can be put to use as a payment currency or a tradable digital asset. Ethereum lends itself to advanced futures and speculative trading. The currency is undisputed when it comes to the derivatives market too.
Ethereum started off and still runs its processes by employing a Proof-of-Work (PoW) blockchain. However, due to environmental concerns, the cryptocurrency is moving towards a new and improved Proof-of-Stake (PoS) blockchain in its second iteration – Ethereum 2.0.
Believe it or not, smart contracts aren’t a novel thing at all. Yes, no one had heard of them before the digital age, but smart contracts actually date back to the 1990s, when a cryptographer who went by the name Nick Szabo came up with the concept of a trustless protocol that would be exclusively driven by smart protocols.
It took a bit of work and a lot more time than expected, but with the launch of the Ethereum network, Mr Szabo’s concept idea finally came to life. Not only that, but it proved itself as a superior and more effective method of executing trades and bringing decentralised applications to life. For the first time since the dawn of the economy, traders were able to leave all the heavy lifting to AI and not rely on a third party for any aspect of their deal.
Smart contracts are self-executing pieces of coding that roam on the blockchain network. Their function is to move blocks of code from one point to another. Once the smart contracts establish that the trade preferences are in sync with both trading parties, they automatically complete the transaction process. When an action is executed, the Ethereum blockchain makes a real-time update that sets the transaction in stone.
But that’s just the tip of the iceberg. Smart contracts can be put to use to oversee much more complicated and multi-layered processes such as the development of full apps and transaction workflows. The best part is that, since there is no human factor involved, all of the operations are executed in the quickest possible times, which in turn makes them very cost -ffective.
Developers can take to coding Ethereum smart contracts without too much hassle. The platform makes use of Solidity and there are multiple ready-made templates that can be dropped in where needed. Power to the people by removing them from the equation? Who would have thought?
The Story Behind Ethereum (ETH) and the Ethereum Price
The creation of the Ethereum blockchain is ascribed to Vitalik Buterin, a Canadian software developer born in Moscow. Because he was completely infatuated and taken aback by the potential of Bitcoin and blockchain finance, he decided to dedicate his time to expand on the concept and move it in a different direction.
By 2013, he had the Ethereum white paper in order and presented his idea to the world as the Next-Generation Smart Contract and Decentralized Application Platform. Soon thereafter, Buterin, along with his small team of confidants, launched a crowdsourcing campaign through which the Ethereum token raised north of $18 million dollars. The Peter Theil fellowship alo backed the ICO and granted the new platform $100,000.
When Ethereum was finally a reality in 2015, the crypto came through the gates with an offering of 72 million tokens. The scale of the project has proven difficult to manage throughout the years, and Ethereum has seen its fair share of mishaps and forks on the road. The network was continuously bombarded with security threats and malicious attacks. Nevertheless, ETH preserved and managed to rise through the crypto ranks. By 2017, the ETH native token offering had gone up an insane 13,000%. In 2021, the ETH token was officially valued at $3,000.
Apart from being volatile and expanding at the speed of light, Ethereum also had a few other weaknesses in terms of reliability and performance. The first thing to consider is that, even though developers are able to code their own decentralised applications and program their own smart contracts, they have no way of accessing or modifying the set code. The smallest of bugs can turn everything on its head and crash the whole operation.
The second and probably the more worrying thing is that Ethereum mining is very harmful to the environment. The Ethereum blockchain network is dying for an update and switching to Ethereum 2.0 that will make it significantly quicker and more effective. However, there are a lot of ties that need to be transferred from the original to the new network, which will take a great amount of time, since new smart contracts and transactions keep flooding the network by the second.
The fact that Ethereum isn’t set in its ways and relies on a supply and demand model for its growth means that it’s prone to inflation. In essence, the blockchain network is able to generate as many tokens and apps as needed because there is no high ceiling in place. This can prove very scary for large-scale investors down the line, which is why a lot of big names have decided to bypass Ethereum and deal in Bitcoin or other prominent blockchain solution providers.
How to Pay for Ethereum With Australian Dollars (AUD)
At this point, Ethereum has crossed the $500 billion mark on the market, which makes it one of the best selling digital assets in the history of cryptocurrency. Due to Australia’s crypto-friendly economy and regulations, Aussie traders are able to take full advantage of the network and its offerings.
Beginner traders should stick to regulated and centralised crypto platforms that offer fiat payment methods and AUD deposits. By taking advantage of Australian Dollar purchases, they can skip the tedious step of going through third-party exchanges. Other important features to consider are the trading platform’s customer support, fee structure and mobility. Everyone should be better off doing business through a platform that has low fees and provides a mobile app that’s compatible with both iOS and Android systems.
Choosing an international platform can also prove to be beneficial and worthy in a lot of cases because a lot of crypto trading platforms provide services that are favourable and applicable to the Australian market. Choosing a crypto trading platform can prove to be quite challenging because there are literally thousands to choose from, and every one of them claims to be the best one.
Instead of going through dozens of trading platforms, new traders should narrow their focus to one that provides stability and meets their needs on purchases and payments. ETH is supported by almost all of the prominent crypto trading exchanges, so traders can jump ship and switch trading platforms at a dime. In Australia, one of the most popular and in-demand choices is crypto-juggernaut Swyftx. So, that would be a good place to start.
Buying Ethereum via Bank Transfer
Traders are able to purchase ETH by employing regular bank transfers. This way, users are able to make use of the fiat-to-ETH offerings. Bank transfers are supported by a plethora of native Australian crypto exchanges including Independent Reserve, Coinspot, BTC Markets, and of course Swyftx.
In order to get started, the only thing that traders need to do is connect their bank accounts with their crypto exchange accounts and make a successful AUD deposit. Most regulated and centralised Aussie crypto exchanges will ask new users to undergo AML and KYC verification processes and activate the 2FA (two-factor authentication) feature for further protection.
Traditional bank transfers might take a little longer to process, but they are guaranteed to come at the lowest fees. Processing time can vary but usually do not take more than six hours.
Buying Ethereum With BPAY, Osko, POLi, and PayID
Traders are able to purchase and deploy funds online through multiple providers. Most services allow for instant currency swaps, online payments and fiat-to-crypto purchases. Users from Australia are able to take full advantage of outlets such as POLi, PayID, BPAY, and Osko when dealing in Ethereum. The most utilised and popular crypto exchange that offers a plethora of deposit and purchasing options is none other than Swyftx. The platform doesn’t employ any deposit fees when it comes to fiat payments that surpass $200. However, traders can also go with CoinSpot, as it administers a 0.9% fixed deposit fee across all BPAY transfers.
Buying Ethereum With Credit Card and Debit Card
Of course, most traders will be interested in what a crypto exchange platform can offer them in terms of credit card and debit card payments. Australian traders are able to buy ETH by employing their credit and debit cards across multiple exchanges on the Australian crypto markets. However, the fee structures when taking the credit card route can be quite high, so make sure that you have a more cost-effective strategy in place for the long run.
Of course, Aussie traders are also able to use international crypto trading platforms that offer favourable fees, support high liquidity, an extensive market cap, and high trading volumes. The best in the business, at least according to daily and monthly traffic counts, seem to be Binance and Coinbase. Both crypto exchange trading platforms employ a reasonable fee structure on credit and debit card purchases. Binance’s fee comes at a shockingly low 1.99%, while Coinbase makes do with a 3.99% fee. In comparison, the standard fees on credit card and debit card purchases usually go into the 7 or 8% territory.
Buying Ethereum OTC
OTC desks or over-the-counter desks are the most direct method of exchanging feats for crypto. They are best suited for high-volume traders or investors and corporations that want to bypass all the obstacles that come up when they’re employing the services of a centralised cryptocurrency platform.
It’s very difficult to find a match on a trading exchange order book for large scale numbers. So, traders who want to get rid of large volumes such as 100,000 USD, are forced to split their purchase into smaller chunks in order to find a suitable party that is willing to take the deal.
This can cause a lot of headaches as the buying and selling price of ETH is constantly in flux. This makes it impossible for traders to calculate the total slippage of their trade. When dealing in volumes that go into the millions, traders can potentially lose thousands of dollars just by the fluctuation of ETH’s price on the crypto market.
By employing the services of an OTC brokerage, traders are able to count on a fixed price and then set their calculations and strategies against that. Aussie traders can take full advantage of crypto trading platforms that provide separate OTC broker desks. Some of the most sought after ones include Genesis, CoinJar, and CoinSpot.
Buying Ethereum With PayPal
Instant purchase providers such as PayPal are a staple for Australian traders but they are usually supported at P2P (peer-to-peer) exchanges, where traders are left to their own devices when it comes to setting up the trade. Vendors such as LocalBitcoins make it possible for traders to execute trades between two parties without the need of a mediator or admin to facilitate the process. Since all the terms are up for negotiation when employing the services of a P2P outlet, there is a good chance that the other party will not accept PayPal as a payment provider due to its outrageously high commissions on crypto-trading purchases and swaps.
A Few Words Before You Go…
To sum up, the crucial thing is for traders to choose an Ethereum exchange that has competitive prices, offers novices step-by-step support and guidance and a user-friendly interface where they’ll be incentivised to trade ETH for long periods of time. The employment of blockchain technology does come with trading fees and transaction fees, but there is always a way to cut those down to the very basics by employing the most suitable exchanges, features and services.
Frequently Asked Questions
Is it possible to get free Ethereum?
Even though it’s not out of the realm of possibility for a trader to acquire some free Ethereum along the way, it’s not something that users should hang their hat on because those opportunities are far and few in between. Beginner traders are able to acquire free mini-packs of Ethereum for completing tasks or participating in surveys and research, but this amount is not enough to provide for a sustainable income plan.
What is the difference between Ethereum (ETH) and Ethereum Classic (ETC)?
Most new traders frequently get confused when they come across Ethereum Classic (ETC). Naturally, their first thought is: Is it connected to Ethereum? Well, where there is smoke, there is usually fire. Before they went their separate ways, Ethereum and Ethereum Classic were one and the same. The ETH token was split at the core following a controversial hack that left over $50 million in unregulated damages. The Ethereum team couldn’t find common ground on how to address and remedy the situation, so they went their separate ways. So, yes, ETH and ETC do stem from the same token; however, they now represent standalone coins and are by no means interchangeable.
Can I sell Ethereum in Australia?
Yes, traders are able to sell Ethereum just like they are able to sell Bitcoin. Cryptocurrency exchanges make it possible for users to open market orders where they can list their ETH and set it against fiat currencies or different cryptocurrencies. However, the process of selling a digital asset is usually a bit harder to pull off because you’re not entering an already-set-up market and choosing what suits you best; rather, you’re the one setting up the proposal and waiting for someone to come along and take interest in your offer.
Not to worry, even entry-level exchanges are very user-friendly and a breeze to navigate. The process isn’t different per se; it’s just that the crypto exchange is looking for a suitable match from the traders that are looking to buy, and buyers usually know exactly what they’re after.
Can you trade Ethereum on Swyftx and CoinSpot?
About The Author
This page was last updated on August 23, 2022