Buy Bitcoin Sydney 2021
Making Crypto Simple
Bitcoin is the new gold – you must have heard these words a million times. You’ve probably come across some fascinating facts about Bitcoin’s growth, or you’ve been reading some financial analysеs and you’re eager to make your first Bitcoin investment. What makes you reluctant is the fact that you don’t know where to start and how to make your first Bitcoin purchase. Well don’t fret – our team has prepared a compact guide on how to buy Bitcoin in Sydney, Australia.
You will also find valuable information about How to buy Bitcoin in Australia.
How to Buy Bitcoin in Sydney
Before anything else, you should know that the process of buying Bitcoin is not as difficult as it may seem from the outside. Over the past decade, the crypto market has evolved quite a bit, so nowadays, everyone can find an interface and a payment method according to their personal preferences.
Still, there are some general factors you should consider when choosing, such as security, fees, interface, reputability, and the time it takes to complete transactions. Based on these factors, you can choose from one of the following ways of buying Bitcoin:
- Buy Bitcoin on Cryptocurrency Exchanges
- Buy Bitcoin with Cash (via an OTC Broker)
- Buy Bitcoin from a Bitcoin ATM (BATM)
Buy Bitcoin on Cryptocurrency Exchanges
We place cryptocurrency exchanges above all other purchase methods due to their proven credibility as e-brokerage services. They allow crypto traders to buy, sell, and exchange Bitcoin either through fiat currency or another digital currency. Some exchange platforms are more responsive to the needs of beginners while others are aimed at crypto professionals and institutions by offering fancy trading tools.
If you want to compare the best cryptocurrency exchange platforms in Australia at the moment, we suggest you read our article on The Best Crypto Exchanges in Australia for 2021. For the purpose of this guide, we’ll use the Australian favorite Swyftx to demonstrate the process of buying Bitcoin, as it’s quite a beginner-friendly exchange.
You can buy your first Bitcoin in four simple steps using Swyftx:
- Create an account
- Verify your identity
- Make a deposit
- Start trading
None of the stages will take you more than several minutes. You need to follow the instructions provided by the platform, adapted for both desktop and mobile users. For security reasons, enable 2FA authentication and proceed with the process of verification. When it comes to payment methods, Swyftx offers the following: bank transfers, POLi, PayID, Osko, BPay, credit, or debit card. It’s up to you to choose either a faster or a cheaper transfer – but you can’t have it both ways.
Buy Bitcoin with Cash
Australia is undoubtedly one of the most progressive countries when it comes to crypto trading. In Sydney, you can find several alternatives for buying Bitcoin with cash if you insist on not disclosing any sensitive personal information of your bank account or credit/debit card.
Over-the-counter (OTC) trading is highly beneficial and safe for large-volume investments. When it comes to massive fiat-to-Bitcoin transactions, OTC desks surpass regular crypto exchanges due to the personalized service and higher liquidity.
Placing a large order on a regular exchange could spread it over several smaller orders. Meanwhile, the Bitcoin price can shift in a disadvantageous direction before the trade is completed. In financial terms, this negative effect is referred to as slippage. OTC trading prevents slippage by setting a single order price at the very beginning.
In addition, buying Bitcoin through OTC exchanges offers higher trading limits and faster processing time. However, you should be aware that such a personalized purchase comes with much higher fees.
In Sydney, buying Bitcoin through an OTC broker is available in several forms. If you’re one of those who prefer more personalized service, Bitcoin Dealers gives you the opportunity to visit one of the local branches in Sydney, Melbourne, and Adelaide, which can be visited without a prior appointment. You might also wish to consider other popular OTC desks in Australia like Caleb and Brown and Bitcoin Australia. Finally, you can always go for a crypto exchange that provides OTC services such as Binance, Kraken, Independent Reserve, or Coinjar.
Flexepin vouchers offer traders a way to complete easy and scam-free Bitcoin purchases without revealing their personal identity and financial information. These pre-paid vouchers can be bought with cash in thousands of retail outlets across Australia like gas stations, convenience stores, etc. The value of Flexepin vouchers ranges from 20 to 500 USD, which is the weekly limit. In order to redeem the voucher for Bitcoin, you simply need to insert the 16-digit Fexepin’s code on the exchange platform that supports Flexepin trading (e.g. Coinjar or Coinloft).
You should also consider the widely-used Blueshyft terminals if you prefer buying Bitcoin with cash. There are over 1,200 Blueshyft locations across Australia, with a purchasing limit between $50 and $5,000. First, you need to generate a QR code online from a supporting Blueshyft exchange (e.g. Coinspot or Coinjar) and process that code at the nearest Blueshyft terminal in person. The process itself is not complicated at all as it only involves providing a phone number and an email address. However, be aware that you will be charged twice: a regular deposit fee plus a newsagent commission.
Buy Bitcoin from a Bitcoin ATM
Bitcoin ATMs or BATMs are a handy and easy way of buying Bitcoin but their fees are around 5% higher than other purchase methods. Buying Bitcoin through a BATM follows a straightforward approach across all machines.
First, you have to go through an ID verification where you’ll be required to submit an ID photo, scanned by the ATM. Furthermore, depending on the BATM model, you’ll be asked to provide either a fingerprint or an SMS code, as part of the KYC process. The next step is to enter your wallet address and select a payment method, where you can choose between cash or debit/credit card, also based on the BATM model. Finally, you need to confirm the transfer, and the amount of Bitcoin you have already bought will be immediately sent to your Bitcoin wallet.
Sydney is currently home to nine BATMs, located mostly in the city center within busy shopping centers, gas stations, and convenience stores.
Frequently Asked Questions
Bitcoin and other blockchain-based currencies like Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Zcash (ZEC) are legal in Australia, which makes Australia exceptionally progressive in the implementation of Bitcoin regulations compared to other highly developed countries. The Australian government declared Bitcoin legal property and subject to Capital Gains Tax (CGT) in 2013. Furthermore, cryptocurrency exchanges that operate in Australia are required to register with AUSTRAC and comply with AML/CFT obligations.
You can sell Bitcoin and other altcoins via cryptocurrency exchanges. Selling your Bitcoin for fiat currency or another cryptocurrency is allowed by the majority of exchange platforms. We recommend you choose a platform that is regulated in Australia, like Swyftx. In order to sell your Bitcoin, you need to sign up with an exchange, complete the verification process, find BTC/AUD in the trading pair section, and select Sell to convert Bitcoin into AUD. After completing these steps, you can withdraw your fiat money to your bank account.
So far, Paypal has been considered one of the most unpopular methods of buying Bitcoin by crypto traders worldwide. Australia is not an exception. However, if you insist on using Paypal to purchase Bitcoin, it is allowed on a few exchange platforms. In most cases, your Paypal account has to be linked to your debit/credit card. Plus, there are significantly high fees. You’re more likely to come across Paypal on peer-to-peer services, like LocalBitcoins and Paxful.
The Australia-based cryptocurrency exchange Swyftx is definitely the best choice for Australian crypto traders. Swyftx is considered an “overall package” as it covers everything a prospective crypto trader needs: high security, low fees, an attractive interface, and a range of payment methods.