Where to buy Bitcoin in Australia
Independent Reserve
Established in 2013, Independent Reserve is one of the most trusted exchanges in Australia & New Zealand. It caters to retail users, traders, SMSFs and institutions. You can buy Bitcoin using EFT, Osko/PayID, POLi and SWIFT. They use encrypted, geo-dispersed data centres and top tier underground vaults to protect your data and crypto.
| Deposit methods: | EFT bank transfer, POLi, Osko / PayID, SW |
| Tranding currencies: | AUD, NZD, USD |
| Cryptocurrencies: | Bitcoin, Ethereum, XRP, USDT, Litecoin (15 total) |
| Deposit fees: | "EFT, none for deposits over $100. A$0.99 for deposits under SWIFT, Nine for deposits over A$5,000, A$15 for deposits under A$5,000" |
| Withdrawal fees: | "None for AUD, $20 for non-AUD Cryptocurrencies: Vary" |
| Trading fees: | 0.05% to 0.50%, discount on scale |
| Pros: | Insurance on crypto assets, OTC trading desk, automatic dollar cost averaging, 24/7 support, SMSF accounts, tax estimator, |
| Cons: | No mobile app |
| Buy Bitcoin with Independent Reserve |
Independent Reserve
Founded in 2013 in Melbourne, Australia: Cointree offer Bitcoin and over 100 coins. Buy using Australian dollars, NZD and USD. Supported transfer methods include bank transfer (EFT), POLi and cash. Individuals, SMFS, Trusts and businesses can buy Bitcoin. An OTC trading desk is available for large orders.
| Deposit methods: | EFT bank transfer, Osko / PayID, Blueshyft (Post office) |
| Tranding currencies: | AUD |
| Cryptocurrencies: | Bitcoin, Ethereum, XRP, USDT, Litecoin (Over 100) |
| Deposit fees: | No deposit fees |
| Withdrawal fees: | No withdrawal fees |
| Trading fees: | Cash: 0.5% to 0.9%. Coin-to-coin: 0.05% to 0.25% discount on scale. |
| Pros: | Wide range of tokens, clean UI, option to pay bills with crypto |
| Cons: | No mobile app, $20 minimum for trades |
| Buy Bitcoin with Cointree |
Are there restrictions around buying Bitcoin in Australia?
Generally, no. However, you need to be over 18 to use most services and when you buy Bitcoin from Australian or foreign Bitcoin sellers, you will need to verify your identity.
Some vendors may restrict the maximum amount you can purchase at any one time.
For large bitcoin purchases you may wish to use an OTC trading desk or a broker.
Why do I need to verify my identity when buying Bitcoin?
Opening an account with a cryptocurrency exchange and other vendors is similar to opening a bank account. Just as banks require you to provide 100 points of identification, so do the Bitcoin vendors and exchanges. This process is known as KYC or Know Your Customer.
Because cryptocurrency exchanges are online businesses, they may require you to take a couple of extra steps such take a photo/selfie holding your ID (driver licence or passport) and holding a piece of paper with a prescribed message.
Moreover, Bitcoin vendors need to register with AUSTRAC, Australia’s financial intelligence agency. AUSTRAC requires DCEs (Digital Currency Exchanges) to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. That’s why going through a verification process is necessary.
What information do I need to provide when buying Bitcoin?
- First and last name
- Your home address
- Proof of identity (i.e. Driver licence, passport, etc)
- Email address
- Mobile phone number
- A copy of a utility bill
- A selfie holding either your ID or written message
The list is not exhaustive, but having these bits of information on hand will be sufficient in most cases.
How quickly can I buy Bitcoin?
Some Australian exchanges allow you to buy Bitcoin in as little as 5 minutes. This includes the time it takes you to register with a Bitcoin exchange/seller. Otherwise you can expect to be buying Bitcoin with in 1 to 3 days.
Who are reputable Bitcoin providers to buy from?
How do I withdraw my Bitcoin from an exchange?
Firstly you need to create a Bitcoin wallet (learn more about Bitcoin wallets). Once you have created your wallet and copied your public address (equivalent to an account and BSB number), you can request to withdraw your Bitcoin.
How long does it take to withdraw my Bitcoin from an exchange?
Withdrawal times vary between exchanges. Once you have completed your verification process, you may be able to withdraw Bitcoin instantly. Other exchanges may require manual approval, whilst other exchange handle the process entirely manually.
Manual approvals are sometimes required because the exchange wants to ensure there’s no fraudulent or suspicious activity. Although this can be frustrating for some customers, the safe guards are there to benefit you the consumer. For larger withdrawals, staff will most likely need to approve the withdrawal. This is because it’s best practice to ensure 100% of the exchange’s cryptocurrency reserves cannot be hacked. Most exchanges store large portions of their crypto holdings in a cold wallet.