A step-by-step guide to invest, buy, and sell Bitcoins in Australia in 2021.
Over the last few years, Bitcoin has become popular as an investment method. After companies like Tesla and MicroStrategy invested billions of dollars in Bitcoin, the prominence of Bitcoin as an investment instrument is rising. Moreover, digital assets are growing popular as trading instruments as well.
The adoption of Bitcoin and other cryptocurrencies has already gone mainstream. A central theme that's becoming evident in 2021 is the institutionalization of cryptocurrencies. Institutionalization of digital currencies refers to how banks, exchanges, payment providers, merchants, fintech entities, and brokers participating in the digital assets industry. Many believe this is the right direction, as the world prepares global scale usage of Bitcoin.
Bitcoin has also become prominent in Australia, as an investment instrument and to be used as a trading activity. In this article, we explore the different aspects of engaging in digital assets in Australia and how to buy Bitcoin in Australia in 2021.
Why Purchase Bitcoin?
Bitcoin is Speculative - The price of cryptocurrencies is volatile. This makes Bitcoin both a risk and an investment vehicle. When people purchase bitcoin, they are speculating its price will go upwards, and they will earn interest on the surge. Besides, economic experts compare Bitcoin with gold, which are both hedges against inflation. Only that in this case, Bitcoin is the digital version of gold.
Diversification of Investments - Investors allocate different percentages of their investment portfolio to different interest-earning assets. Bitcoin could be an n-th fraction of the portfolio. Additionally, people are worried about government-controlled fiat, which is subject to manipulation and inflation due to debt and economic breakdown.
Payment Method - Bitcoin is a payment method that's cheaper, faster, and easy to transfer from one party to another. There are no middlemen when sending Bitcoin payments, and the system is decentralized, trustless, and convenient.
Checklist For Buying Bitcoin
You need a digital wallet to store Bitcoins and other cryptocurrencies. There are two main types of crypto wallets: hot and cold storage. To know more about different wallet types and different functions, please refer to XanPool's in-depth guide about cryptocurrency wallets.
Apart from cryptocurrency wallet, below are some of the things that you should be aware of:
Bitcoin costs $54,500 at the time of writing and you could own a fraction of it. You can buy as low as $10 worth of Bitcoins; which is expressed as a decimal of the whole.
Choose a reputable platform that will enable you to convert your Bitcoins into fiat currency and vice-versa. Some of the features that you should look for in a cryptocurrency payment gateway includes reliability, speed, liquidity, safety, data privacy, and security.
A suitable payment method that best suits your needs, location and convenience. It is essential to check if the crypto payment gateway is offering services in your country. For instance, at XanPool we offer services to buy or sell more than 20 digital assets including Bitcoin across eight countries. In addition to this, we offer local payment methods to ensure a convenient and smooth process to exchange cryptocurrencies with fiat.
Are Cryptocurrencies Legal in Australia?
The Australian Transaction Reports and Analysis Centre (AUSTRAC) declared the enactment of a robust regulatory framework for crypto exchanges. This was followed by an update of the requirements required to take part in digital asset trading and initial coin offerings.
Beforehand, Australia had announced cryptocurrencies and exchanges as legal and declared them subject to Anti Money Laundering and anti-terrorism regulations. Australia has been proactive in supporting Bitcoin and other altcoins, its latest developments bearing testament to its appreciation to enforce compliance around the industry.
The law even requires you to register with AUSTRAC when opening a Bitcoin exchange.
Trading Volume of Bitcoin in Australia
Crypto trading volumes against the Australian Dollar indicate a favorable trendline; which shows that atleast $17,000,000 of BTC/AUD have been traded in the last 24 hours.
The above numbers of different cryptocurrencies paired against the Australian Dollar (AUD) show that the country encompasses several Bitcoin holders (HODLers).
How to Buy Bitcoin in Australia in 2021
XanPool offers a cryptocurrency payment gateway to buy or sell Bitcoins or any other cryptocurrency in Australia.
Step 1: To buy Bitcoin from XanPool, select your country from its dropdown menu. After you select Australia, it will automatically display the price of Bitcoin in AUD (Australian Dollars).
Step 2: Enter the amount of Bitcoins that you want to buy and click on Xchange.
Step 3: In the next step, enter your wallet address where you wish to send your purchased BTC. Alternatively, you can also choose to send your BTC to Okex wallet.
Step 4: XanPool offers Asutralia's local payment method 'PayID' to seamlessly buy Bitcoins. Send the money by manually entering the receiving PayID number with the text given into any mobile banking applications that support the PayID money transfer function.
One key advantage of buying through XanPool is that there is a wide range of cryptocurrencies for enthusiasts who want to try new digital currencies. Besides, you can buy and sell Bitcoin in Australia with your local currency through your preferred payment methods.
What You Should Know Before Purchasing Bitcoin
You should know that Bitcoin is volatile. It could be $58,000 one minute , $60,000 the next minute or $48,000. Understand the market fundamentals that drive the price of Bitcoin. In the crypto world, you could win or lose.
If you are buying bitcoin as an investment vehicle, ensure this is a long-term investment and that you are going to cash out in months or years. The price could plummet rapidly, often causing you to fear, which might end up causing you to withdraw whatever your investment at a loss.