The vast majority of Australians either buy bitcoin themselves or know someone who has. If you are new to the world of bitcoin, know that it’s not as difficult to buy as you may think. In fact, with Bitaroo it is incredibly easy to buy bitcoin in Australia.
This page will help break down the most important steps to getting you started with bitcoin, including what you will need, how to fund your account, where to buy bitcoin in Australia and much more.
What will you need?
If you want to purchase bitcoin in Australia there are a few ways to do it. One of those ways it to buy from an established exchange such as Bitaroo. There are only a few basic criteria you will need to meet, as well as some requirements to ensure that bitcoin transactions are smooth. Here are three easy steps to follow:
- Have a bank account with sufficient funds: To buy bitcoin, you will need to deposit AUD from your bank account to your Bitaroo account.
- Decide on how you want to purchase bitcoin: Next, choose how you want to buy bitcoin. It is usually easier and safer to go with an exchange like Bitaroo, which offers high security and low fees.
- Get a secure bitcoin wallet: While not a necessity, it is considered best practice to withdraw and protect your bitcoin. Using a wallet means you can securely store your keys and gain easy access to your bitcoin.
How to buy bitcoin on Bitaroo
So, how do you buy bitcoin in Australia? One of easiest ways is to use an exchange like Bitaroo. To successfully make a purchase, you will need to follow a few simple steps. Here’s how to do just that.
Create an account
Your first port of call is to set up an account with your chosen exchange. Registering a new account on Bitaroo starts here. You’ll need to enter your legal name, choose an email and password, and agree to our Terms of Service. Then you can add some additional profile information.
Verify your ID
Next you will need to verify your identity so that you can legally buy Bitcoin through Bitaroo. If you find yourself getting lost, our video on how to sign up will keep you on track.
Start by verifying the email address you registered, then you will need to follow our user-friendly verification process, including using either your passport or driver’s licence to get officially verified.
Now it’s time to make a deposit from your bank account into your new Bitaroo account. Note that AUD deposits can be made only from Australian bank accounts under your own legal name (not a third party), but joint accounts are acceptable.
To initiate the deposit, follow these steps:
- Go to ‘Account –> Deposit’.
- If you want to Auto Buy, toggle the ‘Auto Buy’ function. Otherwise, proceed to step 3.
- Choose your payment method: ‘PayID’ (also known as OSKO and/or NPP) or ‘Direct Credit’ (also known as EFT or standard bank transfers).
- Copy deposit details, paste them into your bank account’s payment screen and send the payment across.
Once your deposit has arrived in your Bitaroo account, click the ‘Trade’ button. To either buy in the market or with a limit price, switch the ‘Type’ in the purchasing form to ‘Market’ or ‘Limit’. Changing the fields in ‘Price’ or ‘Amount’ will show you how much BTC you can buy. Then click the large green ‘Buy BTC’ to accept the transaction.
Where should you keep your bitcoin?
After you have set up your account, deposited AUD and purchased bitcoin via Bitaroo, you will need a place to securely store your BTC. While it’s true that Bitaroo is a highly trusted exchange and you can always keep your bitcoin on the exchange directly, it’s not best practice among the wider BTC community.
Instead, what you will want to do is get one of the best BTC wallets to store your bitcoin securely. A wallet will securely hold your key and allow you quick access to your BTC. To move your bitcoin from Bitaroo to your chosen wallet, simply:
- Copy an address from the ‘Receive’ page on your bitcoin wallet.
- Go into your Bitaroo account page and click the ‘Withdrawal’ tab, then paste the copied text into the ‘Withdrawal Address’ field.
- Choose how fast you want the funds cleared – Economy, Standard or Priority, with different fees for each.
- Select ‘Max’ to withdraw all your bitcoin, then hit confirm.
Can you buy bitcoin with a SMSF?
Yes. If you want to know how to buy bitcoin with a SMSF, you can look into whether a self-managed super fund is right for you.
Overall, purchasing bitcoin with a SMSF has a number of benefits, such as:
- Healthy tax breaks: In Australia, SMSF regulations declare that income is taxed at 15% while long-term gains at just 10%. Any income earned from assets held within a retirement pension are taxed at 0%.
- Hedge against other markets: Buying bitcoin is one way you may be able to hedge against the more traditional markets, providing a long-term store of value.
- Grow your nest egg: With your SMSF able to buy bitcoin, you can grow your super balance for a more comfortable retirement.
Read more: Places That Accept Bitcoin in Australia
Can I buy less than 1 bitcoin?
Yes. In fact, the vast majority of people who buy bitcoin do so by purchasing BTC fractionally. Buying an entire bitcoin is expensive, and depending on the day you purchase it could be worth AUD$35,000 or more. One satoshi is the smallest unit of BTC: this can be bought through an exchange like Bitaroo, with minimum effort and time spent on your part.
Can I store my bitcoin on an exchange?
Yes, but it may not align with your own security needs. While Bitaroo is highly secure and allows you to buy and hold your BTC on the exchange directly, it’s recommended that you store bitcoin in a wallet for added security.
What’s the fastest way to buy bitcoin?
On Bitaroo, there’s a helpful Express function that allows you to purchase BTC extremely quickly. While you can follow the standard route of buying bitcoin at either a market price or with a limit, using Bitaroo Express means you will get your BTC sooner and more conveniently.
Can I buy bitcoin with my super?
Yes, you can legally buy bitcoin with your superannuation in Australia, but only if you have a self-managed super fund set up to do so. There are a number of regulations and rules you will need to comply with, so make sure you are aware of the ATO’s requirements for SMSF bitcoin purchases.