How to buy Bitcoin in Australia

A how to guide for Australian Bitcoin buyers

Andrew Butler | 2019

If you are looking to buy Bitcoin in Australia you’re in the right place. Bitcoin (BTC) is the number one traded cryptocurrency in Australia.  Use this article to learn how to buy Bitcoin with your Australian Dollar.

1. How to buy Bitcoin with Easy Crypto Australia

Easy Crypto Australia specialises in super-fast BTC purchasing. The following animations will help you buy Bitcoin in Australia almost instantly.  If you want to dig a little deeper, we recommend you read the entire article. 

Step 1


buy bitcoin in australia step 1

Step 2


 

buy bitcoin in australia step 2

Step 3


 

buy bitcoin in australia step 3

From here, you log in to your bank via POLiPay (or alternatively use a standard bank transfer, using the button below) pay for the transaction and you should have your Bitcoin in minutes!


2. What is Bitcoin?

 

Bitcoin is the culmination of years of debate, trial, error and problem solving. It is a digital ecosystem that can transmit monetary value across the border-less, worldwide Bitcoin network. A single unit of Bitcoin is referred to as a ‘Satoshi’ (after the founder of Bitcoin) and the network is accessible from almost any device imaginable.

Bitcoin is used for multiple purposes. It is seen as a store of value, a transactional currency and a virtual ‘gold’. It even has the ability to create ‘smart contracts’ (not to the extent of Ethereum however). In addition, Bitcoin is an open source software which can be scrutinized and developed on by anyone in the world.

Traditional currency uses a mix of virtual and physical value. A centralised ‘bank’ controls the supply and distribution of money. Bitcoin does it differently. There is no one person that has central control over Bitcoin, it is decentralised. To change anything to do with Bitcoin there must be consensus between the majority of users. This is very hard to achieve, which in turns gives the digital currency very high stability and safety.


blockchain australia


Bitcoin transactions are stored on a blockchain which is a ledger of everyone’s accounts and transactions from the beginning of Bitcoin (the genesis block). Your Bitcoins are protected by high level encryption and digital signatures, which are theoretically impossible to crack. Bitcoin can be traded on the open market using, exchanges such as Easy Crypto.

New Bitcoins are created through a process known as ‘mining’. Miners use specialised hardware (CPU’s, ASIC’s) to do two things. First, they create new Bitcoin by attempting to be the first to solve a randomly generated mathematical problem. Secondly whilst doing this they are facilitating the confirmation of transactions between people on the Bitcoin network. This process of verification is called ‘Proof of Work’ or POW. It is in all miners’ best interests to honestly complete this task, as any variance to exactly what the network expects will block that miners’ transactions and make their participation null and void. In completing this task, the miners are helping secure the Bitcoin network, facilitate transactions and earn Bitcoin for their work.

Lastly Bitcoin is a revolution.

3. Which wallet will suit you for storing your Bitcoin? 

There is a plethora of wallet options for Bitcoin users in Australia to store your BTC.

More information: Our definitive guide on Crypto Wallets in Australia

Wallets for Bitcoin can be found int Desktop, Mobile, Hardware and paper wallet formats.  We will cover Desktop, Mobile and Hardware wallets.  Paper wallets are not covered in this article.

Desktop Wallets 


Exodus 

Being the most popular cryptocurrency in Australia, Bitcoin teams up perfectly with the popular Exodus Wallet. Exodus has a slick user interface, is easy to use and is popular both in Australia and across the world. Recently Exodus has launched a mobile version, for both Android and iOS.
The Exodus wallet is perfect as a first wallet, as well as catering for those who require more advanced features. The wallet allows you to send and receive Bitcoin, create a Bitcoin wallet address and also backup your wallet for safe keeping. Advanced users will enjoy it’s integration with the Trezor Model T, creating a seamless user experience combined with safety.
Cryptocurrency enthusiasts can also add digital assets other than Bitcoin to the Exodus wallet. It supports the majority of mainstream crypto including Ethereum, XRP, Litecoin and more.

 

 

Bitcoin Core Wallet (official)

The Bitcoin Core Wallet is Bitcoin’s official wallet from the development team. As expected, this wallet is the safest option for securing your Bitcoin. However, ease of use suffers when using the official wallet, due to having to download the entire Bitcoin blockchain to synchronize to the most recent transaction prior to use. This can take a considerable amount of time to download and must be kept in sync. Once setup, the wallet is reliable and has a medium learning curve for new users. It is probably worth your time if you want to delve a little deeper into the Bitcoin ecosystem.

 

Electrum Wallet

electrum wallet australia

The Electrum wallet is a ‘Bitcoin only’ wallet downloadable on Windows, Macintosh, Linux and if you are looking for a mobile version, Android.  The Electrum wallet is popular worldwide, and this is no exception in Australia.  The wallet focuses on security, with two-factor authentication, secure private key generation (only stored locally), ability to export private key to other wallets, decentralized servers and multisig ability. 

As mentioned above Electrum only supports Bitcoin.  This is a positive for Bitcoin only holders, as the developers are focused on the best possible experience for Bitcoin only.  On the down side, if you are looking to purchase and hold ‘alt’ coins, you will require more than one wallet.  It all depends on your priorities.  The wallet has a low to medium learning curve for users, it’s user interface is serviceable but not elegant.  One it is setup, you will find your Electrum wallet as a solid, reliable choice.

 

Jaxx Liberty 

The Jaxx Liberty wallet (previously only known only as Jaxx) is a popular Bitcoin and altcoin wallet, available on a range of devices. Jaxx is popular in Australia due to its positive track record with security, its features and ease of use. Speaking of features, Jaxx includes, local private key storage, backup function, passphrase protection and a built-in block explorer. The wallet is pleasing on the eye with an intuitive user interface, great for beginners and veterans alike. Jaxx Liberty is a 3rd party wallet and does not have an open source codebase; in the eyes of some this may be a concern. Overall Jaxx delivers a smooth, easy to use experience for not only storing Bitcoin, but a range of 80+ different cryptocurrencies. You can find it on Mac OSX, Windows, Linux 32/64, Android, iOS and on the Google Chrome web store.

Mobile Wallets 


Trust Wallet

If you are looking for a portable wallet solution for your Australian device (such as a mobile or tablet) then look no further than the Trust wallet.  The Trust Wallet was recently acquired by global crypto giant Binance and is user friendly, safe and simple to set up.  Trust wallet can store Bitcoin as well as most other popular cryptocurrencies.  It includes safe private key storage, anonymous use, decentralized application integration and a slick user experience.  You can download it for iOS and Android compatible devices.

 

 

Wallet of Satoshi

Wallet of Satoshi is a Bitcoin (lightning) mobile wallet available for both Android and iOS operating systems. Lightning is a new way to spend Bitcoin, created to increase the speed and ease of Bitcoin transactions.

The Wallet of Satoshi (brought to you by the creator of Living Room of Satoshi) is a zero-configuration Australian based Bitcoin wallet that focuses on user experience and simplicity. You can easily top up your wallet using Australian Dollar (AUD) and spend in multiple retailers around Australia.

4. Other tips when buying Bitcoin in Australia

Tax 

Before you buy Bitcoin in Australia, please do your research around the unpredictable nature of Bitcoin and the cryptocurrency marketplace in general.  You can read about the tax implications directly from the Australian Tax Office and if possible, speak to an accountant who is well versed in digital currency investment.  As a summary, a tax event will occur if you convert AUD to BTC, BTC to AUD or BTC to another cryptocurrency (e.g BTC to ETH).  The official stance on digital currency from the ATO can be found here.

 


Security

Crypto wallet security is extremely important when storing your Bitcoin. If you fail to take the correct precautions you are at risk of losing your Bitcoin either through your own negligence (forgetting passphrase, not backing up wallet) or through a scam or crime. Remember Bitcoin is a decentralized asset; meaning you are completely in control of your own Bitcoin and if you do not store it correctly, there is no central authority that can return it to you. If you are new to crypto, ensure you start with small amounts. Practice sending and receiving small amounts between yourself and a friend or family member. Ensure the passphrase you use is extremely strong and that you backup your wallet if that function is available.

Learn about storing your Bitcoin safely: Password Security Tips

 

Using a block explorer

A block explorer is used to track transactions on the Bitcoin blockchain.  Due to all BTC transactions being traceable, the blockchain explorer can advise you the following details about your transaction:

  • Date
  • Time
  • Wallet address sent to
  • Wallet address sent from

One of the more popular Bitcoin explorers is located hereAfter your first transaction, it is a good idea to put your wallet address in the block explorer to see how it works and become familiar with it going forward.

5. Bitcoin Frequently Asked Questions (FAQ)

Q. When was Bitcoin created?

A. 3 January 2009.

Q. Who created Bitcoin?

A. Bitcoin was created by the anonymous person or group of persons under the anonymous handle of ‘Satoshi Nakamoto’.

Q. What is one unit of Bitcoin called?

A. One unit of Bitcoin is called a ‘Satoshi’ after the creator. A satoshi is 0.00000001 of a Bitcoin (as a whole Bitcoin is divisible by 8). Every Bitcoin contains 100 million Satoshis.

Q. What is the difference between Bitcoin and Ethereum?

A. Bitcoin was the first cryptocurrency to introduce a blockchain. It was created to become a peer to peer digital currency. Ethereum was created after an Initial Coin Offering (ICO) to fund raise towards creating a new type of cryptocurrency. Ethereum has its own programmable code, to enable user to make ‘smart contracts’. Further to this, users can create their own cryptocurrency tokens and dAPPs (decentralized applications). So Ethereum has extended the use case of the blockchain beyond just a digital currency. In both cases they have their positives and negatives, depending on what one is trying to achieve.

Q. How is Bitcoin created?

A. Bitcoin has no central authority. It is created through the process of mining. Anybody can mine Bitcoin and be rewarded for it. Mining does two things; it verifies transactions and creates new Bitcoin.

Q. How many Bitcoin are there?

A. There is a cap of 21 million Bitcoin which is expected to be all mined by approximately 2140.

 

Interested in Ethereum?  Check out our guide here.