Buy Bitcoin in Australia

/Buy Bitcoin in Australia

Buy Bitcoin in Australia 2018-05-24T13:58:35+00:00
Buy Bitcoin in Australia

Buying Bitcoin in Australia Full Guide

Quick inner navigation:

  1. How to Buy Bitcoin in Australia?
  2. Here are some of the local bitcoin exchanges in Australia
  3. Here are some of the worldwide bitcoin exchanges that accept Australians
  4. Payment Methods for Buying Bitcoins in Australia
  5. Bitcoin ATMs in Australia
  6. Buy Bitcoin in Australia Guide
  7. Bitcoins and Taxes in Australia

Almost everyone with a digital presence has heard about bitcoin even if they are not really sure what it is or what it does. Bitcoin was the first popular cryptocurrency that aimed at offsetting the traditional monetary policies by eliminating the use of fiat currency and regulations of central authorities.

Ideally, it is a digital currency that allows peer-to-peer transactions through a distributed network without the need of passing through a regulating or central authority such as a central bank. Unlike euros, dollars and other fiat currencies, bitcoins are never printed. They are computer generated using complex cryptographic calculations aka mining.

Bitcoin was created by an anonymous developer called Satoshi Nakamoto who saw the need of replacing fiat currency and traditional monetary principles. It took a while for the concept to take hold after its creation in 2008/2009. At its inception, it was possible to generate bitcoins using a simple computer and its cost was just a few cents. Years down the line, it has become increasingly difficult to mine the coins and have increased in value tremendously.

How to Buy Bitcoin in Australia?

Buying bitcoins in Australia is quite easy. There are various Australian bitcoin exchanges based in the country that you can use to get bitcoins. There are also a lot of international exchanges that you can access while in Australia.

It is always good to use local exchanges as they offer a more personalized service than international exchanges. You also incur fewer transaction fees since there will no international transfers or foreign exchange. Some international exchanges offer their services in foreign languages that you may be unfamiliar with, but the local exchanges offer services in local languages. If the local exchange you want to use has a physical location, you can visit them easily than when using an international one. That means that the local support system is better than the international exchanges.

Here are some of the local bitcoin exchanges in Australia

Bitcoin Australia  – bitcoin.com.au

This is an Australian local cryptocurrency exchange that deals with bitcoin and Ethereum. The exchange is based in Melbourne. It was launched in 2016 and is fully owned by Australian entrepreneurs. Bitcoin.com Australia is an easy to ease exchange. You simply deposit cash at select Newsagent or bank then wait for the company to send you your bitcoins to your wallet which they assist you to create. There is a 5% transaction fee charged and a GST charge on commission.

This exchange is not anonymous. You have to verify your identity before carrying out any transaction to comply with AML/CTF Australian government regulations. After verification, you can now sell or buy bitcoins from the exchange. The minimum order you can place is $50 while the maximum order value is capped at $2500 with a daily limit of $9000 per every account.

Contacting this exchange is very easy. For urgent queries, you can simply call the number on their website. They also have a chat option and an email address that you can use to seek clarification.

Pros:

  • It is very easy to use.
  • Accepts fiat currencies.
  • Available support for clarifications.

Cons:

  • Stringent verification process.
  • High transaction costs.
  • It is not anonymous.
  • High minimum order.

CoinJar

CoinJar is a BTC exchange platform based in Australia. It allows you to buy, sell and manage your digital currency using fiat currency. It was launched in 2013 and has since grown to be one of the most popular bitcoin exchange platforms in Australia. It is the first of its kind to be backed by venture capital (VC).

CoinJar allows deposits from Australian banks only. It is easier to use your smartphone when using this exchange since it allows you to swipe your debit card to pay for your transactions. It integrates traditional fiat currencies such as the US dollar, Euro, AUD and the British pound. Please note that it does not support any other cryptocurrency apart from bitcoin. You can convert your bitcoin to AUD with ease here.

While verification is easy, you will be required to provide a lot of personal information. This information is for your own security as CoinJar utilizes the two-factor authentication to keep your account secure. You can only transact once you get your details verified by their dedicated support staff.

CoinJar transaction fees are relatively low as compared to other local exchanges. Receiving bitcoins from another wallet is completely free. Cash transfers from CoinJar are charged a fee of just 1% of the transaction value. The speed of these transactions depends on the bitcoin network capacity at the time of placing your transaction. However, transfers from other wallets to CoinJar take just a few minutes.

Once your account is verified, you are assigned your minimum and maximum transaction limit. These limits are not publicized on their website, but you can always reach their customer support for clarification.

Pros:

  • It is easy to open and use.
  • Low transaction fees.
  • Strong security features.
  • Accepts various fiat currencies.
  • Accepts credit cards.

Cons:

  • Limited trading features.
  • Special features such as CoinJar Touch and Swipe available to Australians only.
  • Slow customer support.
  • Does not have transfer options for US customers.
  • It is not open source.

BuyaBitcoin

This exchange is a bitcoin buy/sell platform based in Melbourne, Victoria in Australia. It was established in 2014 and operates solely on buying and selling bitcoins. It is managed by Dominet Digital, a company that runs operations of various bitcoin companies in Australia.

The exchange charges low fees as compared to other Australian exchanges. Every bitcoin purchase incurs a 4.9% commission fee on the value of the transaction. They do not charge any fees for selling bitcoins. The minimum transaction limit is $200 while the maximum limit is $9000 for every account. You will need an Australian bank account and a bitcoin wallet to get the services of this exchange. If you want to convert your AUD to bitcoin, then this is the exchange to go to.

It is very easy to use exchange as long as you have the requirements. You need your email address, your phone number, and your Australian bank account. You do not need to sign up an account to make a transaction. You can simply fill up the form on their website with the required details and proceed with either buying or selling bitcoins.

Pros:

  • Fast, easy and convenient platform.
  • Reliable customer support. They have a phone number, email, and a postal address.
  • No stringent signing up process.
  • Does not store bitcoins in its servers hence enhanced security.

Cons:

  • Limited trading features.
  • Does not support other cryptocurrencies.
  • Not available to non-Australians.
  • High transaction fees when buying bitcoins.
  • High transfer limits. Might not be suitable for a beginner trader.
  • Accepts cash payments only.

Independent Reserve

IndependentReserve or IR is a cryptocurrency trading platform based in Sydney, Australia. It was founded in 2013 with an aim of bringing transparency, openness, and professionalism in the digital currency industry. This is perhaps the best bitcoin exchange Australia has ever had.

IR supports several cryptocurrencies including bitcoin, bitcoin cash, Ethereum and litecoin. It also supports various fiat currencies which include AUD, NZD and USD. You can make payments to this platform using electronic funds transfer, swift transfer and with other supported cryptocurrencies.

IR has a special feature that allows you to convert from one currency to another. For instance, you can deposit AUD and then convert the same to USD. This currency exchange service is dependent on the existing exchange rate at the time of the conversion. It is also possible to fund your account by directly depositing Ethereum, bitcoin or bitcoin cash

IR offers limit buy and sell options, as well as stop limit buy and sell. It also allows for the market buy and sell in which it automatically places a buy or sell order in accordance with the existing market price. The fees depend on your trading volume in a 30-day trading period. It ranges from 0.1% to 0.5%. Any deposits above AUD 100 are free while those below this amount attract a fee of $0.99. All swift deposits above AUD 5000 are free while those below incur a fee of AUD 15.

Any withdrawals with other foreign fiat currencies attract an AUD 20 charge. Please note that the bank you use for these transfers might add their own charges.  All bitcoin and ether deposits are free, while their withdrawals cost 0.0006 BTC and 0.004 ETH respectively. Bitcoin cash withdrawals cost about 0.0006 BCH.

IR transactions are relatively fast. They depend on the type of transaction you are making. Depositing cryptocurrencies takes a relatively short time as compared to fiat currencies. It can take about 15 minutes to deposit bitcoins and about 24 hours for your fiat currency to reflect onto your account. Withdrawals can take longer as IR verifies all of them manually for security reasons. There are no caps on the amount you can deposit. The minimum withdrawal amounts are as follows:

  • Bitcoin is 0.001 BTC
  • Bitcoin Cash is 0.001 BCH
  • Ethereum is 0.01 ETH
  • Fiat Currency is $ 50 which is applicable to all other supported currencies.

While the platform is based in Australia, it is available to traders online. Australian customers, however, have access to more trading features and privileges. Please note that it is a must you verify your identity before making a transaction.

Pros:

  • Reliable customer support service. They have divided the support team into various sub departments to focus on specific issues.
  • Safe and secure with 2-factor authentication. Duress password feature.
  • Manual withdrawal verification.
  • Supports more than one fiat and digital currencies.
  • Low transaction charges.
  • Positive reviews online apart from a few.

Cons:

  • Low liquidity.
  • Slow withdrawal transactions as they manually verify such transactions.

Here are some of the worldwide bitcoin exchanges that accept Australians

There are also international trading exchanges that people in Australia can use for buying bitcoins other than those local ones that we’ve just reviewed. Here is an overview of some of those exchanges.

Coinmama >>

Coinmama is an international exchange platform available in more than 226 countries. It was established in 2013 and has since grown to serve more than 200, 000 customers worldwide. The company is based in Bratislava, Slovakia.

This exchange supports various fiat and digital currencies. The fiat currencies supported are USD and EUR, while the digital currencies supported are bitcoin, ether, bitcoin cash, litecoin, and Cardano. You can make payments using your credit or debit card as long as it is a visa or master card. You can also pay with cash by funding your account through Western Union money transfer.  After you make a purchase, all your coins are sent to a wallet of your choice. The exchange never keeps coins for you. Please note that you cannot sell your digital currencies back to the site or find buyers to buy your coins. The site provides a buy only option.

The site charges 5.5% transaction fee on the value of every purchase you make. You will be charged an extra 5% if use your credit card. The minimum purchase you can make is 0.1 BTC.

The verification process involves providing your personal details. you will have to upload a photo of your ID so that they can verify your identity. This process is in compliance with the financial regulations and security to prevent possible cases of fraud. The verification process takes about an hour and your details are encrypted for protection. The site does not keep any of your credit card information.

Pros:

  • Supports multiple digital and fiat currencies.
  • Safe and secure buying platform.
  • Well established.
  • You buy directly from the site.

Cons:

  • High transaction fees especially when using a credit card.
  • It’s a buy only platform.
  • High minimum order keeping out potential beginner traders.
  • Does not have a smart phone app.
  • Slow customer support.

Cex.io >>

Cex.io is an international digital currency trading platform that was established in 2013. It is now used by more than a million traders all over the world. This site is based in London, United Kingdom (UK). It is registered with Information Commissioner’s Office (ICO) in the UK and European Union (EU) as well as with FinCEN in the USA.

It is a cross-trading platform with a mobile app and provides very high liquidity with instant buying and selling of bitcoin feature. It also allows margin trading with 1:2 and 1:3 leverages on ETH/USD, ETH/BTC, BTC/USD and BTC/EUR trading pairs.

The payment options include credit and debit cards, cash and digital currencies. It is also possible to purchase coins using wire transfer for free. Fees vary from one method of transaction to another. Here is a break down of what you should expect to pay.

  • 9$ + $4.99 for USD.
  • 9% + €4.99 for EUR.
  • 9% + 499 RUB for RUB.
  • 9% + $0.25 for buying using a credit card.

Verification depends on what you want to do with your account. If you just want a simple transaction, then you will need limited details for a first-tier account. You may need your email and may be your phone number. If you want to increase your daily trading limits, then you need to go through their stringent verification process. You will need to produce and upload the following documents;

  • Passport/Driver’s license/ID scans.
  • A picture of you holding any of these documents, but preferably your ID.
  • A picture of you holding your credit card.
  • Any document showing proof of residence.

Basic accounts have a $300 daily limit and $1000 monthly limit on deposits and $500 daily limit and $2000 monthly limit on withdrawals. Basic accounts are allowed to use credit cards only. They cannot use bank transfers. Verified accounts, on the other hand, have $10,000 daily limit and $ 100,000 monthly limit on deposits and withdrawals. They can use both credit and debit cards as well as bank transfers.

It is very easy to use this platform as it does not have complicated trading features. It has a buy/sell icon that you simply click and follow the straight forward steps after that. This requires you to first sign in with your account, fund your account using either a credit or debit card or bank transfer, then proceed to buy the coins you want or if you have them already, you simply click on the sell option.

Cex.io supports various coins including BTC, ETH, BCH, BTG, Dash, XRP, XLM and ZEC. It also supports various fiat currencies including USD, EUR, GBP and RUB.

Pros:

  • Easy and simple interface.
  • Offers margin trading.
  • Supports multiple digital and fiat currencies.
  • Instant buy and sell features.
  • Can use both credit and debit cards as well as bank transfers.

Cons:

  • Relatively high transaction fees.
  • Customer support is slow.
  • Stringent verification for account upgrades.

Paxful >>

Paxful is a one stop shop for bitcoins. It is a peer-to-peer platform that connects buyers and sellers without any middlemen. This site was founded in 2015 by Artur Schaback and Ray Youssef. It is based in Wilmington, Delaware in the US. This company gained popularity by allowing sex workers to receive payments in bitcoins but has since expanded its services to other businesses.

You can buy and sell bitcoins instantly at the click of your computer mouse. You get to receive a free wallet to keep your bitcoins if you wish to speculate on them. Of all the other exchanges, this is perhaps the easiest and the most convenient platforms to buy and sell bitcoins.

Paxful supports multiple payment methods including PayPal, Western Union, gift cards, credit and debit cards and bank transfers among others. Availability of multiple payment method is a plus to many, especially beginner traders.

It is very easy to use Paxful. You simply create an account using your email. Once you create an account, you enter the amount of money you want to spend or the number of bitcoins you want to purchase. Select the currency you want to use after that and the payment method then click buy. If you want to sell, you simply click the sell icon and the amount you want to sell. You can also earn from their affiliate program a passive income by referring people to the site.

As a buyer, you are not charged any fee to buy bitcoins but you should watch out for the varying exchange rates from the different sellers. You pay a service charge of just 1% of the transaction value when selling your bitcoins. The minimum order you can place is 0.001 BTC irrespective of your verification level. You can buy bitcoins using any currency including your local currency as long as this site is available in your locality.

Customer support has a phone number, support and business emails for a quick response.

Pros:

  • You can buy bitcoins with any currency.
  • Easy to register and place a trade.
  • Low transaction fees.
  • Simple verification process.
  • Multiple payment options.
  • Instant buying and selling of bitcoin.
  • Escrow features available.

Cons:

  • You can only buy bitcoin and not any other cryptocurrency.
  • Scammers sometimes find their way to this site so be careful.
  • Varying exchange rates from different sellers.
  • Customer support relatively slow.

Coinbase >>

Coinbase is an online cryptocurrency exchange platform based in San Francisco, California. It was founded in June 2012 and has grown to be among the most popular exchange in the US and the world.

Coinbase offers buying and selling services of various cryptocurrencies. These coins include bitcoin, bitcoin cash, Ethereum and litecoin. You can exchange these coins for fiat currencies like USD and EUR.

Payment methods include bank wire transfers, debit and credit cards. Bank wire transfers take 4-5 days while credit /debit card deposits for small amounts are instant.

Using the platform is basically free including their wallet, but there is a charge for converting currencies. The fee charged depends on your region. There is a flat fee for conversions under $200. This fee is usually disclosed before you initiate the transaction. Credit and debit card fees of 3.99% cuts across all regions in the world.

Pros:

  • Available in many countries around the world.
  • Supports multiple cryptos and fiat currencies.
  • Easy and simple platform.
  • Mobile app available to keep you updated on the latest developments.
  • The site has vault protection for added security.
  • Good reputation.

Cons:

  • Transaction fees a bit on the higher side.
  • A few clients complain of frozen and closed accounts.

Changelly >>

Changelly is an exchange platform founded in 2013 in Prague, Czech Republic and has since grown to host more than one million users. It is a unique platform in that users do not need any kind of verification or even registering. It has a trading robot that connects to other trading platforms like Bittrex and Poloniex. This bot enables instant conversion of multiple cryptocurrencies. You can change any tow digital currencies with ease. This feature allows you to create your own trading pairs.

You can buy bitcoins and altcoins using your credit and debit card but will pay a high 10.5% in fees. Changing digital currencies attract a fee of just 0.5%. However, using fiat currencies may attract a fee of up to 40% on a bad trading day.

It is very easy to use this platform. You simply go to their site and register an account, then buy digital currencies of your choice. If you already have other coins and wish to change them to others, you transfer your coins from your wallet to your Changelly account and carry out the exchange. You will receive an email address confirming your transaction once it is complete.

Changelly customer support is better than most other exchanges. Users assert that their queries are responded to in a matter of hours or less than 24 hours unlike other exchanges that usually take more than 24 hours.

Pros:

  • An easy to use platform.
  • Variety of altcoins and supports fiat currencies.
  • Low fees on crypto exchanges.
  • Quick transactions.
  • Reliable customer support.
  • No minimum or maximum limits.

Cons:

  • Very high fees using debit or credit cards.
  • Does not allow leverage trading.
  • Cannot exchange cryptocurrencies for fiat currencies.

Localbitcoins >>

Localbitcoins is a peer-to-peer bitcoin exchange that allows you to buy and sell bitcoins directly to other traders. Buyers and sellers agree on a price and use the escrow feature to exchange bitcoins and fiat currencies. It is a very appropriate method of buying bitcoins, especially for beginner traders as the transacting parties can connect locally and even meet physically if need be.

Localbitcoins allows payment in any method the transacting parties agree. You will find your local payment methods in the site. The site charges a 1% flat rate on all transactions. Any other charges depend on the payment method the transacting parties agree upon.

There is no verification process with this site. You simply use your email address to create an account though some buyers or sellers may request for additional information.

Pros:

  • Reliable exchange.
  • Low transacting fees.
  • Fast transaction time. Takes about an hour.
  • You can use your local currency.

Cons:

  • Transacting time is dependent on the seller confirming the payment.
  • Fees can be inflated depending on the payment method.

Payment Methods for Buying Bitcoins in Australia

  • Credit Cards

These are either master or visa cards. Most exchanges in Australia accept payments from these cards but most of them attract high transaction fees. Among the exchanges,you can use include; CoinJar, Buyabitcoin, Independent Reserve, Coinmama, Cex.io, Paxful and Coinbase among others.

  • Debit Cards

These are more or less like credit cards. Most exchanges that accept payments through credit cards also accept payments using debit cards.

  • POLi

This is an online payment based in Melbourne, Australia. This method allows people to pay directly from merchants’ websites. You do not need a credit or debit card to use this payment method. It is available in the following exchanges: Independent Reserve, CoinTree, BTC Markets, CoinLoft, BitTrade, and HardBlock. You can use these exchanges to buy bitcoins in Australia.

  • BPAY

BPAY is Bill Payment dApp built on the Ethereum blockchain. It is an easy and convenient way to pay for services and goods online. This service is the most widely used payment method in Australia. Over 170 financial institutions and over 45,000 businesses accept this as a payment method in Australia.

Various exchanges accept BPAY as a mode of payment as it supports both fiat and digital currencies. These exchanges include CoinSpot and CoinJar among others.

  • Skrill

Skrill is a popular payment method in the forex trading industry. It is available in Localbitcoins, VirWox Virtual, Paxful, and Cubits among others.

  • PayPal

PayPal is a popular international digital payment method. It is available in nearly all the countries in the world. PayPal isn’t as popular in the cryptocurrency world considering the charge back feature. There are a few exchanges that have it as a payment option. These exchanges are Localbitcoins, VirWox Virtual, Xcoins and Paxful.

  • Cash

Various exchanges accept cash as the mode of payment. You can deposit that cash directly into those exchanges accounts to receive your coins. Examples of such exchanges include Bitcoin Australia, Coinbase, Binance, CoinTree, Coinmama, Localbitcoins, Paxful, CoinLoft, and Buyabitcoin among others.

  • Bank Transfer

You can fund the exchange of your choice by wiring money from your bank account to the exchange. Here are a few exchanges that allow you to wire money to their accounts: Spendher Bitcoin, XCoins, Quoinex, BTC Markets and CoinCorner.

Bitcoin ATMs in Australia

Like fiat currency ATMs, bitcoin ATMs are sprouting up in countries that support the use of this currency for day to day trading to buy goods and services. However, bitcoin machines are different from your traditional fiat ATMs. Bitcoin machines are connected to the internet. You insert cash and then get a bitcoin receipt valued in bitcoins or you can transfer the coins to the public key. You can also send bitcoins to the machine and sell it.

There are several cities in Australia with bitcoin ATMs. You can easily buy BTC in Australia from these machines and transfer the same to your wallet. Among these cities including Brisbane, Canberra, Launceston, Melbourne, Perth, and Sydney. These cities hold a total of 25 BTC ATMs and more are set to come in the near future. By April 2017, there were plans to integrate bitcoin ATMs to all 3000 ATMs across Australia.

These machines are that popular in Australia to allow traders to cut the time required to cash out their bitcoins in the exchanges. As of July 1, 2017, the Australian government made a decision to treat bitcoin as money, exempt from goods and services tax. Traders would only be taxed when buying or selling bitcoins from the various exchanges. This decision was meant to boost bitcoin trading in Australia and revamp the Fintech industry that was starting to dwindle. Bitcoins and their ATMs are more popular than Australia in Japan and South Korea.

Buy Bitcoin in Australia Guide

Buying bitcoins in Australia follows the same procedure as anywhere else in the world. There are some requirements that you must fulfill first to complete a successful transaction. Let’s go through the step by step process to understand it better.

  • Step 1 – Find a suitable bitcoin wallet

There are so many wallets available that fall into different categories. They include web, mobile, desktop and hardware wallets. The first three are all online wallets that are connected to the internet. They are also referred to as hot wallets. Hardware or cold wallets are the best to keep your bitcoins or any other cryptocurrencies.

While hot storage wallets are prone to hackers and other cyber-attacks, cold storage wallets are safe from such attacks as they store your coins offline. They are also password protected in that even if you were to lose your device, your coins would still be safe. Among the best cold storage wallets are Electrum, Trezor, Ledger and Jaxx.

  • Step 2 – Find a reliable exchange

We have reviewed several that you can check. Check out the fees, the speed of transacting, the payment methods and if the exchange is available in your locality. Once you identify a good and reliable exchange, you sign up for an account, use the most appropriate and the cheapest payment method to fund it, then proceed to buy the coins.

  • Step 3 – Store your BTC safely on your wallet

After buying the coins, do not leave them in the exchanges as they are not safe. Transfer the coins to the wallet of your choice. Transferring involves coping and pasting your wallet’s address to your exchange and initiating the transfer. You will receive a notification once the transaction is completed.

The anonymity of Buying Bitcoins

Many exchanges require that you verify your account before placing any trade. Verification involves sending a photo of your ID/Driver’s license/Passport for identity verification and any kind of a utility bill for residence verification. You are also required to confirm your account using your email as well as your phone number. These processes are meant to safe guard your transactions and prevent possible cases of fraud.

There are accounts that do not require any form of verification. Such exchanges do not even need you to register an account with them. You simply go to their site, request to buy a given number of coins, send the money and your wallet’s address and then wait for them to send you your coins. Such exchanges can be risky as they might disappear with your cash and you won’t have any way of tracing them.

Is Bitcoin Legal in Australia?

Bitcoin is legal in Australia. Australian government passed new anti-money laundering laws giving AUSTRAC, the financial intelligence regulator authority to check cryptocurrency exchanges and the buying and selling of these coins.

Australian Criminal Intelligence Commission (ACIC) had for a long time advocated for the regulation of this industry citing that bitcoins were being used to facilitate criminal activities. The new regulations require that all transactions be recorded to keep track of any possible criminal activities.

Opponents of these laws claim that the laws will be an impediment to the growth of the cryptocurrency industry since these transactions are supposed to be anonymous. Asking for identification even for small amounts would be an impediment to business according to Alexiuc Daniel, owner of Living Room Satoshi. He proposes that there should be an exemption of asking for identification for amounts less than $1000.

Lasanka Perera, director of IR is of a different opinion. He believes that regulation of the crypto industry would be good since it will raise people’s confidence and encourage more people to join. The crypto industry has for long been associated with crime, so regulating it would make it more legitimate. The regulation means that bitcoins and altcoins are now officially recognized in Australia.

Australian Banks and Bitcoin

Banks in Australia have remained skeptical of digital currencies. Cryptocurrency brokers are being forced to opt for other means of trading as Australian banks are putting a lot of impediments forcing CoinSpot which is among Australian most popular exchange platform stopping all AUD deposits.

Most banks cite the lack of proper regulation of the crypto industry as a risk factor to their business. The fact that one can buy some undefined concept then use to pay for goods or services is just out of place according to Adrian Lee, who is a senior finance lecturer at the University of Technology Sydney. Lee proposes that the government should come up with a form of regulation to protect vulnerable investors.

There are other issues involving double taxation and the problem of having cryptocurrencies as a means of everyday transactions. Mostly, these coins are used to trade in the black market hence the need to keep them in check. Grant Spencer, the acting governor of New Zealand Reserve Bank asserts that the only cryptocurrency that has a future is one that will give a tangible value and usefulness to users.

Bitcoins and Taxes in Australia

In Australia, bitcoin is not recognized as a currency. It is recognized as a property or digital asset. It is thus subject to Capital Gains Tax (CGT). When you sell trade or exchange your bitcoin for either another digital currency or fiat currency, or you spend your bitcoins for goods or services, any capital gains you get from such transactions are subject to taxation.

But any losses or gains made from any personal use of bitcoins may be exempted. Personal use involves acquiring the coins for purchasing personal use items.

Investing in bitcoin attracts a capital gain if the capital proceeds you get from disposing of the coins exceed the initial buying price. This excess cash is subject to taxation. You can be entitled to a CGT discount if you hold on to your bitcoins for more than 12 months.

Popular Altcoins in Australia

There are other digital coins in Australia apart from bitcoins. Ether, Litecoin and Ripple are some of the altcoins you can buy in Australia today.

Ethereum >>

Ether is the gas that runs the Ethereum network. Ethereum is a kind of a decentralized internet or a decentralized apps store. It supports the development and management of Dapps. Ether is the token used to pay for services and applications in this network. Currently, you can use AUD to buy ether from CoinSpot, Australia’s most popular cryptocurrency exchange.

Litecoin >>

Litecoin emerged to try and solve the scaling problems that were facing Ethereum and Bitcoin networks. It is an open source P2P cryptocurrency that enables instant and zero cost payments between people and has no central authority. This coin is also available in CoinSpot and you can exchange it for AUD.

Ripple >>

Ripple attempts to connect financial institutions such as banks, payment providers, corporates and digital assets exchanges into one frictionless network. It is basically a remittance network and does not rely on the Proof of Work system. It makes use of a consensus process among validating servers to ensure integrity. This network’s token XRP is available in CoinSpot.

Cryptocurrencies from Australia

Bata Coin

Bata is a cryptocurrency whose token is BTA. It aims at replacing traditional use of trade dollars in traditional barter systems. It is completely decentralized with transactions being handled collectively.

Digi.cash

Digi.cash is a form of electronic cash that enables users to transfer payments from one mobile phone to another. All payments that pass through this system are recorded for verification. This system aims at doing away with the traditional AUD currency that is dependent on central regulating authority hence controlling and limiting the extent to which people can trade.

To Conclude

Trading in cryptocurrencies is lucrative a well as a risky venture. It all depends on your timing and gut feeling. If you are lucky, you can make a fortune. If you are unlucky, you can lose a fortune as well. A while ago, bitcoin was largely unknown. It has since grown substantially making a lot of people millionaires in a very short period.

If you had bought bitcoins worth 100 AUD in 2011, you would have received about 323 bitcoins. The current value of one bitcoin in AUD is 11,541. By now, you would have around 3 million AUD. There is still a chance to make money with bitcoins and altcoins, but we’d advise you to trend carefully as this is a very volatile market.

We are grateful you took you time to go through this lengthy, but informative article. We hope we have given you as much information as possible. We have more of these articles on our site. Please visit to keep yourself informed.

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