The vast majority of Australians either buy bitcoin themselves or know someone who has. If you are new to bitcoin, know that it is not as difficult to buy as you may think. In fact, with Bitaroo it is straightforward to buy bitcoin in Australia.
This page breaks down the steps to getting started, including what you will need, how to fund your account, how to place a buy, and where to keep your bitcoin once you own it.
What will you need?
There are a few ways to buy bitcoin in Australia. One of them is to buy from an established local exchange such as Bitaroo. There are only a few basic things you need before you start:
- An Australian bank account in your own name: AUD deposits must come from an account you hold. Joint accounts are fine, third-party accounts are not.
- Identification: an Australian passport or driver licence, so your account can be verified.
- A bitcoin wallet: not required on day one, but it is best practice to withdraw your bitcoin to a wallet you control. A wallet holds your keys and gives you direct access to your bitcoin.
How to buy bitcoin on Bitaroo
So how do you actually buy bitcoin in Australia? On Bitaroo it is four steps, and most people get through them in a single sitting. Here is what each one looks like.
Create an account
Your first step is to set up an account. Registering a new account on Bitaroo starts here. Signing up asks for one thing: your email address. Enter it, confirm you are human, and an activation link lands in your inbox. Your name and the rest of your details come later, during verification, so there is nothing to prepare before you start.
Verify your ID
Next you verify your identity, which Australian law requires before you can buy bitcoin through a registered exchange. If you would rather follow along, our video on how to sign up walks through it.
Start by clicking the activation link in the email you were sent, then work through the verification steps using either your passport or your driver licence. It happens in the browser and usually takes a few minutes.
Deposit funds
Now you move AUD from your bank account into your Bitaroo account. Note that AUD deposits can be made only from Australian bank accounts in your own legal name, not a third party, though joint accounts are acceptable.
To make the deposit:
- Go to ‘Account -> Deposit’.
- If you want your deposit converted to bitcoin the moment it lands, switch on Auto Buy. Otherwise leave it off and go to step 3.
- Copy either the PayID details or the bank account details, whichever your bank supports. PayID is also known as Osko or the NPP, and a standard bank transfer is sometimes called EFT or direct credit.
- Paste them into your banking app, include the reference shown, and send the payment.
AUD deposits of $1,000 and above are free. Below that there is a $1.95 fee. If you already hold bitcoin elsewhere, the same screen takes on-chain deposits for free, and Lightning deposits for free as well.
Buy bitcoin
Once your deposit has arrived, open Express. Enter the amount of AUD you want to spend, check the rate and the amount of bitcoin you will receive, then press Review to confirm. Express settles in seconds and charges no trading fee.
Express gives you three ways to buy:
- Now: buy at the current rate, straight away.
- Limit: name the price you are willing to pay, and the order fills if the market reaches it.
- Recurring: buy a set amount on repeat, from every ten minutes through to monthly. This is the simplest way to average into bitcoin over time rather than trying to pick a moment.
If you would rather work the order book directly, the Trade screen gives you market, limit and stop orders with live depth and charts. Either way you are paying some of the lowest fees in Australia. Our fee structure sets out every fee in full.
Where should you keep your bitcoin?
Once you have bought bitcoin you need somewhere to keep it. Bitaroo is a trusted Australian exchange and you can hold your bitcoin here, but leaving it on any exchange is not what the wider bitcoin community would call best practice. The point of bitcoin is that you can hold it yourself.
So the next step is to move it into a wallet you control. Our guide to the best bitcoin wallets in Australia covers the options. To move bitcoin from Bitaroo to your own wallet:
- Copy an address from the ‘Receive’ screen in your bitcoin wallet.
- In Bitaroo, go to ‘Account -> Withdraw’ and paste the address into the withdrawal address field.
- Choose how quickly you want the transaction confirmed. Priority, Standard, Economy and Batch each carry a different network fee, with Batch the cheapest and the slowest.
- Select ‘Max’ to withdraw the lot, then confirm.
If you hold a larger amount and want the security of multi-signature storage without running it yourself, the Bitaroo Vault is worth a look.
Can you buy bitcoin with an SMSF?
Yes. If you want to know how to buy bitcoin with an SMSF, start by looking into whether a self-managed super fund is right for you.
People generally give three reasons for holding bitcoin inside an SMSF:
- The tax treatment: complying SMSFs are taxed differently to individuals, both while the fund is growing and once it is paying a pension. How that applies to you depends on your circumstances, so check with your accountant or adviser.
- Diversification: bitcoin behaves differently to shares and property, so some trustees hold it as a long-term store of value alongside more traditional assets.
- Control: an SMSF lets the trustees decide what the fund holds, within the fund’s investment strategy and the rules that govern it.
There are real obligations that come with this, including your fund’s investment strategy, the sole purpose test and how the asset is held and valued. The ATO sets out what it expects in its guidance on crypto asset investments and on self-managed super funds. This page is general information only and is not tax, legal or financial advice.
Read more: Places That Accept Bitcoin in Australia
FAQs
Can I buy less than 1 bitcoin?
Yes, and almost everybody does. You do not buy whole bitcoin, you buy a dollar amount. Enter the AUD you want to spend and you receive the matching fraction of a bitcoin. Each bitcoin divides into 100 million satoshis, so there is plenty of room to start small and add to it over time.
Can I store my bitcoin on an exchange?
You can, but it may not match your own security needs. Bitaroo is secure and you are welcome to hold your bitcoin here, but holding your own keys is the stronger position. For anything you do not need day to day, move it to a wallet you control.
What is the fastest way to buy bitcoin?
Express is the quickest route. Once your account is funded, a buy settles in seconds with no trading fee. If you are funding the account itself, a PayID deposit is usually the fastest way to get AUD in, and a Lightning deposit is the fastest way to move bitcoin in from elsewhere.
Can I buy bitcoin with my super?
Only through a self-managed super fund. You cannot direct a retail or industry super fund to buy bitcoin for you, but you can buy bitcoin through an SMSF that you control. An SMSF carries real reporting and compliance obligations, so read the ATO guidance linked above and speak to your accountant before you set one up.
