If you are new to the crypto world, you may be wondering what the best Bitcoin trading sites are in Australia. There have been an increasing number of cryptocurrency exchanges come online in recent years, but which ones are the best? In Australia, there are a variety of exchanges you could use but to help make your choice easier, here is a guide on what we think are the top 10 Bitcoin trading sites in Australia.
Before we begin, these trading sites are not a definitive list of all sites, and they are chosen based on determining factors such as site performance, security, fees, support, etc.
Must read >> Our article on The Best Crypto Exchanges for Australia, in which we go into greater detail on which exchanges might be suitable for trading bitcoin and other cryptocurrencies, deposit methods, and our top picks for beginners and advanced traders.
1. Swyftx
Swyftx is an Australian-based crypto exchange where you can buy, sell and trade 300+ crypto-assets. Swyftx is an AUSTRAC registered Australian cryptocurrency exchange and trading platform with tiny spreads, low fees and non-inflated market prices. Trade with stop losses, take profits and triggered orders on a mobile and desktop-ready modern web-based cryptocurrency exchange.
2. Binance Australia
Binance Australia is one of the most popular trading sites for Australia and worldwide. Residents of Australia are able to use the Binance website and mobile apps to trade Bitcoin with other cryptocurrencies. Many people use Binance for trading as it has a trusted reputation worldwide and low fees, high trading volume, and lots of crypto trading pairs.
3. CoinJar
CoinJar is a very well-known exchange in Australia and the reason it is so popular is due to the fact you can purchase Bitcoin via BPAY for a fee of just 1%; it’s PayID supported, Credit/Debit card supported, with 0% trading fees on CoinJar Exchange. People say that CoinJar is very easy to use as it has a clean interface, making it simpler for beginners. The platform has a good reputation and has been around for a long time (since 2013), so Aussie locals find it trustworthy. CoinJar supports AUD and GBP fiat currencies and supports up to 24 different cryptos.
4. Crypto.com
Crypto.com Exchange is provided by one of the world’s fastest-growing exchanges with over 10 million users worldwide. The exchange allows you to buy, sell and trade more than 100 cryptocurrencies via your web browser. The exchange is linked to the crypto.com mobile app so you can transfer coins from the app to the exchange for trading.
6. Zipmex
Zipmex is a regulated digital asset exchange in Australia offering high liquidity, low spreads, instant fiat deposits and withdrawals. Their platform has trading fees as low 0.2% per transaction and your digital wallet assets are also insured for up to US$100 million through BitGo.
6. Changelly
Changelly will allow you purchase Bitcoin; however, it will only let you buy it with Litecoin, Dogecoin, and other digital currencies. The benefits of using this service is that it is fast and easy to buy Bitcoins with Altcoins, also the fees are reasonable for bigger traders. The only disadvantage is that you need digital currency to purchase Bitcoins.
7. BuyaBitcoin
BuyaBitcoin is an Australian Bitcoin exchange, and you can use it to purchase Bitcoin. The pros of using this service are that your coins will be delivered within an hour; also, the only way to verify is via a mobile number, to increase security. The service is also easy to use and has very fast performance. However, many people have said that the fees (4.9%) are too high.
8. Coinmama
Coinmama is a great Bitcoin trading site as it allows customers in nearly every country to purchase Bitcoin with a debit or credit card. Coinmama is seen to be a reliable and a trusted broker, although it has some of highest fees for a credit or debit card Bitcoin broker.
9. LocalBitcoins
LocalBitcoins is a service that helps you match Bitcoin buyers and sellers, and the main payment method for purchase is cash deposit. On the other hand, users will be allowed to advertise exchanges for the payment method they prefer. LocalBitcoins allows users to purchase Bitcoins via an in-person meeting while the transaction is being facilitated and secured by LocalBitcoins. The advantage of using LocalBitcoins is that private and in-person exchanges require no personal information. However, among the disadvantages are that you have to beware of scammers and it is more difficult to purchase larger amounts of Bitcoin compared to larger exchanges.
10. Coin Loft
Coin Loft is an Australian broker enabling you to purchase Bitcoin via credit card, cash deposit, POLi, and Flexepin. Using Coin Loft can be beneficial in various ways – when you purchase Bitcoin with cash, your coins will be delivered within an hour. It also supports a wide range of payment methods and is the only Australian service that accepts Flexepin. The disadvantage is that it has rather high fees, such as a 4% fee for cash purchases and 9% cumulative fee for credit card purchases. You will also have to verify your identity even for cash payments.
11. Mycelium Local Trader
Mycelium Local Trader is similar to LocalBitcoin in that it will help you find your local Bitcoin sellers. Once it has matched you with your seller, you will then meet up in-person and begin the trade. The benefit of using this service is that there are no fees, so it is cheap and easy to purchase Bitcoins with cash. It’s also a private way to purchase Bitcoins as no personal information is required.
Think we might have missed one? Please let us know and we will add it to the list.
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Bitcoin has experienced a massive surge in value over the last couple of years, breaking the $20,000 AUD threshold and catapulting cryptocurrency into the mainstream media. Despite this dramatic increase in popularity and adoption rates, there are still many issues left unresolved with the Bitcoin network.
While Bitcoin may be the undisputed champion of the cryptocurrency arena, there are more than 1,300 different digital currencies, crypto coins and tokens that are currently being traded on the cryptocurrency markets. While most of these altcoins are either redundant or highly niche-specific, there are few key cryptos that present cryptocurrency investors with viable and potentially promising alternatives to Bitcoin.
What’s Going Wrong With Bitcoin?
Satoshi Nakamoto, the mysterious creator of Bitcoin, originally devised the cryptocurrency as a “peer-to-peer electronic cash system” that would revolutionise, democratise, and decentralise the current international financial paradigm. The massive increase in popularity and value that Bitcoin has experienced over the past year, however, has left the Bitcoin network slow, unwieldy, and far from this original objective.
The core issue with the Bitcoin network at this point in time is a specific parameter called “block size limit”. The “block” in “blockchain” refers to a cryptographically encoded list of all transactions that have occurred over the network in the previous 10 minutes. In 2010, the size of each block was limited to 1 megabyte in order to prevent hacking attacks, but with the massive increase in transaction frequency that has occurred recently, this block size limit is now crippling the Bitcoin network.
The 1 megabyte block size limit means the Bitcoin network can only support a potential maximum of seven transactions per second, which means transactions can sometimes take as long as 24 hours in average transaction times or longer to complete during peak periods.
Bitcoin network participants that help process transactions will treat transactions with higher fees as high priority, resulting in transaction fees as high as $55 USD in January 2017. There are a number of solutions that aim to solve these issues, such as the Lightning Network layer, but these developments present their own unique issues.
The birth of the Lightning mainnet can be viewed live as a new layer grows organically on top of the Bitcoin network. For comparison, it’s possible to view a 3D live visualisation of the current Bitcoin Network on Bitnodes. The nature of the Lightning Network solution, however, means that the network will be centralised around major hubs as illustrated in the visualisation below:
Lightning Network Testnet Visualisation Courtesy of Steven Roose.
Centralisation is antithetical to the core tenets of blockchain technology, so there is an understandable amount of controversy within the Bitcoin and blockchain community as to whether the Lightning Network will solve the issues that plague the Bitcoin network at this point in time.
The high value of Bitcoin has also led many investors to “HODL”, a humorous acronym derived from a typo in a Bitcointalk Forum post in 2014 that refers to “holding on for dear life”. Many investors purchase Bitcoin in order to use it as a method of storing value, not for use as currency, promoting hoarding.
Lastly, the extreme surge in Bitcoin popularity has captured the attention of regulatory bodies around the world. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently been provided with new powers to investigate Bitcoin traders, while new legislative amendments force crypto exchanges to disclose user information. As a result, more Australian crypto traders are seeking privacy-focused cryptocurrencies.
Fortunately, there are many highly innovative high market cap cryptocurrencies that have the potential to challenge Bitcoin as the de facto king of cryptocurrency. We’ll now proceed to examine the best Bitcoin alternatives for 2018 and find out what makes them prime competitors:
Litecoin is a rising star in the cryptocurrency ecosystem and is focused heavily on facilitating seamless day-to-day payments. Created by Charlie Lee, a former Google thought leader, Litecoin has dramatically increased in popularity since the third quarter of 2017.
Litecoin has maintained a position in the top 10 highest market cap cryptocurrencies for several months now, and is designed with practicality in mind. Lee, speaking at a Coinbase talk in March 2017, elaborated on his vision for Litecoin:
“Bitcoin can be used for like moving millions of dollars between banks, buying houses, buying cars. It’s really secure … Litecoin can be used for cheaper things.”
Litecoin performance over 2017 courtesy of CoinMarketCap.com
Litecoin Features: The technological architecture behind Litecoin allows it to offer significantly faster transaction times than Bitcoin – more than 400% faster. Litecoin also offers a total cap of 84 million individual coins, which makes it more viable as a daily payment method.
One of the most important differences between Litecoin and Bitcoin is the hardware required to participate in mining. Litecoin implements the Scrypt algorithm for cryptographic encryption, which requires less specialised hardware than Bitcoin’s SHA-256 algorithm. This difference could draw more network participants in assisting with network maintenance, speeding up overall growth.
Why Litecoin? With a lower barrier to entry for mining, faster transaction speeds, and a lower per-unit cost, Litecoin is a solid alternative to Bitcoin. With Charlie Lee announcing an upcoming marketing campaign, now could be the ideal time to get on board the Litecoin hype train.
Bitcoin Cash is a “fork” of the original Bitcoin blockchain ledger. Launched in July 2017, Bitcoin Cash was created when a team of developers decided they would improve upon the Bitcoin core by increasing block size and implementing a number of other changes. This split is referred to as a fork in the blockchain ecosystem.
The primary goal of Bitcoin Cash is to improve transaction times and decrease transaction fees by increasing the size of each block to 8 megabytes instead of just 1. Bitcoin Cash, or BCH, has been a highly successful cryptocurrency since launch. The price of BCH jumped dramatically to around $2,000 in November 2017 when a proposed fix called “SegWit2x” that was intended to resolves issues in the core Bitcoin blockchain failed.
The value of Bitcoin Cash almost doubled to $4,000 in December 2017 when highly popular platform Coinbase announced its support of the coin. Vinny Lingham, who is referred to as the “Bitcoin Oracle”, has stated that he believes Bitcoin Cash will surpass Bitcoin as the number one cryptocurrency:
“The one need is global fast cheap payments … When I look at it from a products standpoint I think the greater demand is for peer-to-peer cash than for digital gold.”
Bitcoin cash performance over 2017 courtesy of CoinMarketCap.com
Bitcoin Cash Features: The higher block size of Bitcoin Cash allows the network to resolve more than 50 transactions per second, which dominates the 7 transaction per second limit in place with Bitcoin. Bitcoin Cash transaction fees are also significantly lower, with fees averaging around $0.001. Transactions on the Bitcoin Cash network are currently taking just 10 minutes to resolve.
Why Bitcoin Cash? Bitcoin’s Lightning Network layer may claim to provide faster transaction times and lower fees, but Bitcoin Cash is already delivering on these promises. If the Lightning Network layer fails to succeed in addressing the issues that plague Bitcoin, then it’s likely Bitcoin Cash could depose Bitcoin as king of the crypto world.
Ethereum is the second-largest cryptocurrency by market cap, and is vastly different to Bitcoin in many ways. Created by Vitalik Buterin in 2013, Ethereum has exploded over the past year, increasing in value by more than 12,500 percent.
While both Bitcoin and Ethereum are based on blockchain technology, Ethereum is far from a simple cryptocurrency. Ethereum is a blockchain platform, using “Ether” as a currency token. Ethereum is designed to function as a blockchain platform that enables the creation and execution of “smart contracts”, which are immutable programs executed on the Ethereum blockchain that control the transfer of cryptocurrency or other crypto-assets.
Ethereum is often described as the “World Computer” – it can be used to create decentralised applications that manage energy distribution, decentralise digital marketing, or even allow users to share their computer’s processing power in a vastly distributed supercomputer.
Ethereum creator Vitalik Buterin has elaborated on the highly flexible and scalable nature of the Ethereum blockchain:
“You could run StarCraft on the blockchain. Those kinds of things are possible. High level of security and scalability allows all these various other things to be built on top.”
Ethereum performance over 2017 courtesy of CoinMarketCap.com
Ethereum Features: The Ethereum network is currently able to handle around 15 transactions per second, or TPS. Recent comments made by Buterin, however, reveal that the Ethereum blockchain will soon rival Visa, at around 2,000 TPS.
Ethereum is a highly flexible, dynamic and intelligent blockchain platform that is far more functional than Bitcoin, and is currently the driving force behind the most disruptive blockchain-based projects currently under way.
Why Ethereum? Bitcoin may be the highest-value cryptocurrency, but Ethereum is most definitely here to stay. Ethereum-standardised tokens, or “ERC20” tokens, are used in most initial coin offerings – a technique used by blockchain startups to generate seed capital outside of traditional VC sources.
Ethereum is also set to switch from the energy-intensive “proof of work” consensus method that is currently used in Ether mining to a faster, cheaper and more accessible “proof of stake” method.
Stellar Lumens is a blockchain network that is specifically about “cross asset transfers of value”. Simply put, Stellar is focused on lowering the cost of transferring assets, such as currency, between individuals.
While Bitcoin has the same fundamental purpose, Stellar is a decentralised, hybrid blockchain that is geared towards streamlining monetary transactions. Stellar Lumens, or XLM, make transactions cheaper, faster and more reliable. However, XLM offers less functionality as a method of storing value when compared to Bitcoin.
Stellar performance over 2017 courtesy of CoinMarketCap.com
Stellar Features: Stellar Lumens addresses three primary issues with the current asset transfer paradigm – high transaction costs, slow settlement times, and a lack of liquidity in lesser-used currencies. Stellar Lumens solves these issues by charging a fee of 0.00001 XLM for each transaction. At current market rates, it would be possible to process 100,000 transactions for just under $0.50 USD.
Stellar network transactions are processed within less than 4 seconds, which makes it the fastest network online. As XLM can be used as a bridging currency, it dramatically increases liquidity and makes exchanging lesser-known currencies cost-effective and easy.
Why Stellar Lumens? Stellar has recently announced partnerships with IBM, Deloitte, and Stripe, making it a highly attractive cryptocurrency to those interested in tokens that integrate with existing financial systems.
Where to Buy Stellar Lumens: Buying XLM can be a little trickier than purchasing other cryptos in this list. You’ll need to obtain some cryptocurrency to trade for XLM, or get started with an exchange that supports fiat deposits.
Swyftx is one of Australia’s top crypto exchanges with over 300 available cryptocurrencies including XLM. Check out our Australian Exchange Guide to learn more about Swyftx and other Australian exchanges. If you’re looking for some pointers on how to purchase other cryptocurrencies that can be traded for Stellar Lumens, take a look at our Australian Bitcoin Buying Guide.
Dash is another top ten market cap cryptocurrency and, like Litecoin, is focused on addressing the issues of scalability that are currently troubling the blockchain network. Dash is the brainchild of Evan Duffield and is a Bitcoin fork, but unlike Bitcoin Dash it is heavily focused on protecting the privacy of users.
Since launch in 2014, Dash has experienced a dramatic increase in value. If you invested just $1,000 in Dash at the 2014 price of $0.03, you’d now be sitting on a wallet holding more than $25 million USD worth of the privacy-focused cryptocurrency.
Dash performance over 2017 courtesy of CoinMarketCap.com
Dash Features: On the Bitcoin blockchain, it’s possible for anybody to see which wallets are sending how much Bitcoin and where. Dash uses a complicated anonymisation strategy called coinjoin mixing that obfuscates transaction ownership by processing the transactions of multiple parties as one single transaction. This process makes it impossible to determine who received funds, who sent them, or the amount transferred.
This anonymisation technique does slow down transactions per second rates somewhat, but still allows Dash to process around 48 TPS, which is 7 times faster than Bitcoin. Dash also offers a much more attractive transaction fee, with an average of $0.10 per transaction.
Why Dash? The highly secure, private and anonymous nature of Dash could make it a major competitor to Bitcoin as regulatory authorities around the world and within Australia tighten their grip on the explosive cryptocurrency market.
Where to Buy DASH:
CEX.IO makes it possible to purchase Dash by funding your trading account with AUD via bank transfer, and credit/debit card payments.
Final Thoughts
Bitcoin may be struggling through some growing pains as the network matures, but it’s still the most valuable and widely used cryptocurrency in the world. The upcoming Lightning Network implementation may provide Bitcoin users with a solution to Bitcoin’s scalability issue, but the alternative cryptocurrencies listed above are all worth careful consideration.
Protecting your digital currency is arguably one of the most important aspects of investing in the cryptocurrency market. While cryptocurrencies may offer a wide range of advantages over traditional fiat currencies (such as the Australian Dollar), they are far more susceptible to hacking attacks and require a careful approach to storage.
If you’re already investing in Bitcoin or another cryptocurrency, then it’s likely that you already own at least one crypto wallet, which is where you store Bitcoin and cryptocurrency. Wallets basically consist of two elements — a private key and a public address. Your public address is used to receive cryptocurrency, while your private key is used to access your wallet and send cryptos.
It’s essential to keep your private key highly secure, as it provides access to all of the cryptocurrency in your wallet. Should your private key fall into the wrong hands it’s likely that your wallet will be emptied with no chance of recovering the lost funds.
There are many different types of crypto wallets used today. The most commonly used type of crypto and Bitcoin wallet is a hosted, or “hot ” wallet. These solutions are typically provided by exchange platforms or cryptocurrency brokers and are far less secure than “ cold ” wallets — their offline counterparts.
The biggest security issue presented by hosted wallets is the potential of a hacking attack against the platform that provides it. The Mt. Gox hack, which occurred over several years, resulted in the loss of more than $460 million worth of bitcoin. Another popular exchange, still active also experienced a Bitfinex hack in 2016 that resulted in the loss of $75 million worth of Bitcoin — although users were eventually compensated.
The most secure method of storing your cryptocurrency is with a cold wallet, which is not connected to the internet. Hardware wallets are dedicated devices that contain a cold wallet and add a variety of strong security measures. There are, however, a number of hosted “hot” wallet solutions that offer greater security than the average exchange wallet (explained below in the Hot Wallets section).
In this article, we’ll take a look at the most secure wallet solutions available and break down their key features to help you determine the safest way to store cryptocurrency.
A cold storage wallet is a highly secure offline wallet that keeps your cryptocurrency holdings disconnected from the internet. There are physical wallets typically found in the form of “hardware wallets”, which are purpose-built devices similar in size to a USB drive.
It’s important to note that you should only ever purchase a hardware wallet form the manufacturer to eliminate the threat of tampering. Never purchase a hardware wallet secondhand or from Ebay. See news article: Man’s Life Savings Stolen from eBay Reseller Hardware Wallet.
The Trezor was the first Bitcoin hardware wallet to hit the market and is largely considered to be the “gold standard” of cryptocurrency cold storage security. The Trezor connects to any computer via a USB cable and offers users multiple layers of security that virtually eliminate the threat of a third party gaining access to your private keys.
Each Trezor is protected by a PIN code and adds another layer of security by requiring users to press a physical button on the device itself to confirm transactions. If a device is lost or misplaced, Trezor provides users with a randomly-generated 24-word “recovery seed” that can be used to recover the wallet it contains and the funds therein.
The Trezor can also be secured with two-factor authentication and supports Bitcoin, Dash, Litecoin, and all ERC20 tokens. The device also boasts a convenient OLED screen that can be used to confirm transaction amounts.
Importantly, the Trezor offers extremely high privacy levels. None of the Trezor hardware wallets possesses serial numbers, which means Satoshi Labs — the creator of the Trezor — has no way of tracking your actions. The Trezor can be used with a variety of software wallets, including Electrum, MyCelium, and MultiBit HD.
The Ledger Nano S is the cheapest hardware wallet with a screen on the market and is the most popular option. Offering a simple and easy setup with any computer, the Nano S comes with a range of security features that are similar to those offered by the Trezor.
Like the Trezor, the Ledger Nano S offers physical buttons, which add an extra security layer, and the option of two-factor authentication. The Nano S also requires PIN code confirmation for any transaction — after three incorrect attempts, the device wipes itself.
This complete device wipe doesn’t result in the complete loss of your wallet, fortunately — the Ledger Nano S offers the same 24-word recovery phrase feature as the Trezor. Although these two devices seem virtually identical, the difference can be found in the architecture of the devices themselves.
The Trezor can be considered to be a “mini computer”, while the Ledger Nano S consists of two secure chips. It’s also possible to set up a Ledger Nano S without a computer, which makes it a better option for highly security-minded individuals.
Paper Wallet
Price: Free (just the cost of paper to print it out)
The idea of a paper wallet may sound strange, but with this technique, it’s entirely possible to store billions of dollars in cryptocurrency on a single piece of paper. A cryptocurrency wallet, as mentioned previously, consists of a private key and a public key. A paper wallet is simply these two keys printed out on a piece of paper.
Paper wallets typically include QR codes in order to streamline the process of either receiving crypto or adding keys into a software wallet to make transactions. The obvious advantage of a paper wallet is that it is completely immune to hacking, hardware failures, or any other digital attack vector.
While paper wallets are essentially unhackable, they are subject to the same risks as any other high-value paper document. Paper degrades, can be destroyed, or can be misplaced. If you’re considering creating a paper wallet, it’s essential to treat it with the same level of security as you would any other high-value asset. If you lose a paper wallet, you’ll never be able to access the cryptocurrency it holds ever again.
If you’re interested in creating your own Bitcoin paper wallet, BitcoinPaperWallet.com makes the process relatively easy.
USB Sticks
Do not use regular USB sticks to store your Cryptocurrency. The regular USB sticks offer no security, they usually have a short lifespan and are prone to the occasional corrupt drive syndrome.
Hot Wallets
While it’s best to keep the majority of your cryptocurrency holdings secured on a hardware wallet or another cold wallet solution, there are a number of hot wallet solutions that provide greater security than others.
When assessing a hot wallet solution it’s important to assess the way in which the platform handles user funds, the authentication and security options available to users, and the security track record of the platform.
There is some contention in the cryptocurrency community as to whether software wallets — which are downloaded and installed on a computer — are defined as hot crypto wallets. While software wallets can be disconnected from the internet, they can still be attacked if a hacker gains access to your machine.
Software wallets are far more secure than hosted wallets but are still technically “hot” wallets.
Exodus
Price: Free (they make a small fee when you trade coins using the software)
Exodus is a software wallet solution that offers a robust, sleek design and a large feature set that has made it one of the most popular hot wallets available. Functioning as a desktop software wallet, Exodus supports a broad spectrum of cryptocurrencies and, importantly, integrates with the ShapeShift.io instant cryptocurrency exchange platform.
Exodus is a “lite wallet”, which means it’s far more agile than software solutions that require users to download the entire blockchain onto their computer or mobile device. The Exodus solution leaves private keys in the hands of users but is only as secure as the computer it is installed on.
The Exodus wallet also offers users a range of different analysis tools that can be used to organize assets, as well as track asset value in real-time with live market updates. As a bonus feature, Exodus also makes it possible to customize the look and feel of the wallet with a variety of different themes.
Eden
Price: Free (they make a small fee when you trade coins using the software)
Eden is the highly advanced evil twin of Exodus which delivers a powerful set of tools designed specifically for professional cryptocurrency investors and traders. It is important to note that while Exodus is stable and has really good support, Eden is delivered as unsupported & experimental. Exodus makes it clear that the Eden solution is not for beginners, even going so far as to recommend that users don’t recommend it to their “noob friends” as they will likely “get stuck doing tech-support for them”.
At this point in time, the Eden solution is experimental and thus may cause issues with wallet balances, so it’s probably best to avoid using it to manage large sums of cryptocurrency. If you’re looking for a digital wallet solution that delivers all of the functionality of Exodus along with support for Bitcoin Cash, Factom, Ethereum Classic, Ripple, and more, however, Eden is worth trying out.
Although Eden has more than 20+ coins available, if you can’t find what you’re looking for then we recommend using an Exchange such as Swyftx where you can buy and trade hundreds of coins.
Final Thoughts
Most professional cryptocurrency traders and investors lock away the greater part of their cryptocurrency capital in a hardware wallet solution, transferring it to a hosted wallet or exchange when trading. Regardless of the amount of capital you’ve invested in the cryptocurrency market, it’s essential to ensure your crypto holdings are secure with a dedicated cold wallet.
The rapidly growing cryptocurrency market has exploded in value and popularity over the last year. With Bitcoin prices fluctuating heavily, some are now saying it is a great time to buy in ahead of the inevitable bull market.
If you’re ready to get started with cryptocurrency investing, you’ll need to start by purchasing some Bitcoin. It’s the most popular and most trusted coin. This can be difficult and confusing for newer investors, as there are many different ways in which Bitcoin can be purchased.
Recent regulatory crackdowns and geopolitical issues around the world have placed Bitcoin under intense scrutiny, which has made it more difficult in some cases for investors to purchase cryptocurrency with fiat currency (such as Australian dollars).
While these events have made it slightly more difficult to buy bitcoin in Australia it’s still relatively easy to buy with the right method. In this guide, we’ll break down the five safest, simplest, and most reliable Australian Bitcoin exchanges.
What to Know Before Getting Started
Before jumping in and buying Bitcoin from any of these platforms, it’s important to ensure you understand how a Bitcoin wallet works. In order to receive your Bitcoin, you’ll need to provide your chosen Bitcoin broker with a valid wallet address.
You may also want to learn how to keep your coins safe and consider investing in a hardware wallet such as the Trezor or Ledger Nano S if you intend to purchase a large amount of Bitcoin.
There are a number of factors to consider when selecting a Bitcoin broker:
Payment methods: It’s possible to purchase Bitcoin with payment methods such as BPAY. Some platforms allow users to buy Bitcoin in person at a local news agent. Due to recent disruption from the big four banks both POLi and credit/debit card purchases are generally unavailable in Australia, although some highly compliant platforms still provide POLi payments.
Fees: A Bitcoin broker will charge a fee for their service, which will vary from broker to broker.
ID verification requirements: All Bitcoin brokers operating in Australia are required to comply with Know Your Customer and Anti-Money Laundering laws, which means you’ll need to verify your identity before buying. The sole exception to this rule is LocalBitcoins, which makes it possible to purchase Bitcoin completely anonymously with cash in person.
Swyftx is one of Australia’s top-rated exchanges, boasting high TrustPilot scores and offering over 300+ tradeable crypto assets including Bitcoin, Ethereum and Solana. The exchange is highly secure being AUSTRAC registered and ISO27001:2013 certified giving its users peace of mind that their data and investments are safe.
Swyftx is a feature-rich trading platform, one of its stand-out features is its ‘demo mode. This feature lets beginner crypto investors practice trading with US$10,000 in a risk-free simulated environment. Other notable features include recurring orders, trigger orders and price alerts.
Swyftx users can also earn interest on their Bitcoin investments with the exchange’s new Earn feature. This feature lets investors daily rewards on their Bitcoin and other cryptocurrencies when they add it to their Earn wallet. There are no associated fees with Earn and the funds can be pulled out of Earn at any time with no cost.
Swyftx is also great for any investors looking to purchase large amounts of Bitcoin (BTC). The exchange has one of Australia’s top-rated OTC desks, where investors can speak with an industry-leading expert about making high-volume trades over $100,000 AUD.
Payment method
There are numerous deposit methods on Swyftx’s exchange including; PayID, Bank Transfer, OSK, POLi and credit/debit card. Many of these payment methods allow for near-instant transactions.
Fees
Swyftx charges a trading fee of 0.6% which is lower than the Australian average. No fees for charged for deposits or withdrawals.
Independent Reserve is one of the most popular options for purchasing Bitcoin and other cryptocurrencies in Australia and operates as a fully-functional exchange. This means that you don’t need to set up a separate wallet to buy Bitcoin from Independent Reserve as they offer a hosted wallet solution.
Independent Reserve is the first Australian crypto exchange to be insured by a leading global insurer and the first crypto exchange to have an integrated KPMG tax tool.
The identity verification process for Independent Reserve involves uploading both a standard photo ID and proof of address documents as well as an extra step in which new users are required to confirm their account with a security code sent in the mail.
Independent Reserve also provides an easy-to-use exchange that can be used to sell or buy Bitcoin for fiat currencies. Capital generated from the sale of Bitcoin on Independent Reserve can be withdrawn directly to your bank account.
Independent Reserve also supports 13 popular cryptocurrencies including ETH, LTC, BCH, XRP, XLM, EOS, REP, GNT, BAT, OMG, ZRX and PLA, and allows users to trade in USD, AUD and NZD.
Payment Methods:
For AUD deposits, Independent Reserve offers Electronic Fund Transfer (EFT), Osko (PayID), and POLi. SWIFT payments are available for USD and NZD deposits and withdrawals.
Fees:
EFT deposits under $100 AUD are subject to a $0.99 processing fee, while larger deposits are free. SWIFT deposits over $5,000 are free, while smaller deposits are charged a $15 fee. Withdrawals from Bitcoin wallets hosted by Independent Reserve cost 0.0003 BTC. Bitcoin deposits are free, and AUD withdrawals are free. ‘Premium Account’ holders benefit directly from this insurance, the highest levels of support, reduced trading fees, and the very best of the platform.
CoinJar was the first Australian cryptocurrency platform to launch with support from venture capital funding and, like Independent Reserve, offers exchange and hosted wallet services. CoinJar stands out from the crowd with a slew of features that include a dedicated smartphone app and even a “CoinJar Swipe” debit card that allows users to spend cryptocurrency directly in fiat currency.
It’s possible to use CoinJar as a simple hosted cryptocurrency wallet anonymously, but in order to purchase Bitcoin you’ll need to verify your identity by providing proof of identity and proof of address documents.
Payment Methods:
CoinJar supports Blueshyft (which makes it possible to fund your Bitcoin purchases with cash in person), BPAY & PayID (instant deposits via NPP/Osko). As of Oct 2018, they no longer support POLi deposits.
Fees:
BPAY transfers are free from fees on the CoinJar platform while Blueshyft payments are subject to a processing fee of 1.5%. Although the fees are lower than Coinbase, we have found the price of Bitcoin on CoinJar to be slightly more expensive.
Coinbase is the undisputed king of cryptocurrency brokerage, and boasts almost 8 million users around the world. Based in San Francisco, Coinbase is available in 32 countries internationally and supports a selection of cryptocurrencies that includes Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
The Coinbase platform is not an exchange, and thus doesn’t make it possible to actually trade Bitcoin, but does offer hosted wallet solutions for all of the aforementioned cryptocurrencies. The Coinbase identity verification process involves both ID and phone number verification, but due to a massive surge in users the verification process is delayed at the moment – some new users are reporting verification times of more than one week.
The biggest drawcard of Coinbase is the simplicity and ease of use the platform offers. Instead of confusing new users with order books and trading screens, Coinbase delivers a straightforward buying process that doesn’t leave much to interpretation. Another drawback is that they restrict how much you can buy per week, with limits increasing with use.
Payment Methods:
As Coinbase is based internationally, it doesn’t support POLi payments. The only way to purchase Bitcoin via Coinbase in Australia is via credit or debit card, which requires identity verification. All Bitcoin purchases made via this method are instant, however.
Fees:
Coinbase charges a rate of 3.99% for all credit and debit card purchases in Australia.
Caleb and Brown is an award-winning digital currency brokerage registered with AUSTRAC. Founded in 2016 with a vision to become the conduit between cryptocurrency and the financial services industry, Caleb & Brown gives clients a sensible means to legally and safely engage in the cryptocurrency market with an experienced brokerage team providing an unparalleled service for both new investors and seasoned traders.
List of services includes: Retail Brokerage – access to over 1600 cryptocurrencies; OTC Trading desk; Cryptocurrency Education; Crypto Security and Wallet Set Up services; Crypto Tax Assessment services; ICO liquidations.
Caleb and Brown specialise in high-volume trading of digital currencies from $5,000 up to $100 million. They are Australia’s only brokerage service that enables same-day trading up to $2 million in purchases prior to banking deposit clearance for verified clients. Caleb & Brown was named FinTech start-up of the year at the 2018 Stockbroker and Financial Advisers Association (SAFAA) conference.
Payment Methods:
Simple bank-to-bank transfer from any local and international banks with KCY/AML verifications. Accepts all major international currencies.
Fees:
Caleb & Brown charges a commission varying between 2%-4% depending on the volume of the trade. NOTE: Caleb & Brown quotes a spot price derived as an average of international exchanges. No further spread is added to the spot price quoted.
BTC Markets is a slightly more complicated cryptocurrency platform geared towards experienced investors and traders. Based in Melbourne, BTC Markets is a full-service exchange and offers hosted wallet solutions.
Purchasing Bitcoin on BTC Markets is slightly more complicated than the other platforms in this guide. In order to buy Bitcoin with BTC Markets, users need to deposit AUD into their account and then trade on the BTC Market BTC/AUD exchange. This process may be somewhat intimidating to newer investors, but does present a range of different order types for experienced investors.
Payment Methods:
BTC Markets supports both POLi payments and BPAY. POLi payments under $500 typically clear within minutes, while BPAY payments can take up to two business days.
Fees:
Depositing AUD into a BTC Markets account with BPAY is free, while POLi payments incur a $3.30 fee.
Digital Surge is a crypto exchange based out of Brisbane, Australia. The exchange is focused on making crypto trading easy for beginners with a simple sign-up and verification process. Digital Surge users can easily track their portfolio and trade Bitcoin thanks to the crypto exchanges’ intuitive and minimalistic interface.
Digital Surge is also one of the cheapest Australian exchanges, offering customers trading fees as low as 0.1%. The exchange also has numerous trading features like price alerts, recurring orders and trigger orders. Users can also earn daily interest on 12+ cryptocurrencies thanks to Digital Surges’ new staking feature.
Payment Methods:
Digital Surge accepts payments via BPAY, POLi and PayID. The exchange currently does not accept credit card payments or bank transfers.
Fees:
All purchases made through Digital Surge come with a transaction fee that ranges from 0.1 to 0.5% depending on trade volume.
CoinTree is an Australian cryptocurrency exchange that allows users to purchase Bitcoin as well as trade a variety of different altcoins. Like Coinbase, CoinTree is designed with ease of use in mind and is geared towards newer cryptocurrency investors.
CoinTree has been in operation since 2013, and has gathered a significant amount of support in the Australian cryptocurrency community. The CoinTree platform also provides users with hosted wallet solutions.
Interestingly, CoinTree also makes it possible to pay bills using Bitcoin. Users are able to pay any common Australian bill by entering the biller code and customer reference number into the platform. CoinTree then provides the total converted rate into Bitcoin and pays the bill, fee-free.
Payment Methods:
CoinTree allows users to deposit cash directly into their account at any Australian bank, as well as POLi payments. Credit card or debit card purchases are not currently supported.
Fees
CoinTree offers extremely simple fees – all Bitcoin transactions are charged a 3% rate, while all other transfers are free.
CoinSpot is an Australian FinTech company founded in 2013 with a well-regarded reputation and customer service. CoinSpot also provides a competitive affiliate program receiving 25% of the commission fees they take on anyone you refer to them.
In terms of use, its website is clean and is fairly easy to use and buy Coins, with Bitcoin and more than 20 coins listed. But like most other exchanges here you cannot trade coins, only buy and sell. If you want to trade other coins, you’ll have to transfer your Bitcoin to an exchange such as Binance.
Payment Methods:
POLi, BPAY and Cash.
Fees:
For Bitcoin and Litecoin, the fee is 0.9% and for other coins it’s 2%-3% depending on the coin.
LocalBitcoins is wildly different from the other platforms presented in this guide. Using LocalBitcoins it’s possible to purchase Bitcoin completely anonymously with cash in person, but it can be somewhat riskier.
LocalBitcoins is essentially a marketplace that allows individuals to either buy or sell Bitcoin in person with cash or via bank transfer, PayPal, and many other payment methods. To buy Bitcoin on LocalBitcoins you’ll need to search for sellers in your local area and select your payment method.
LocalBitcoins provides users with a hosted wallet. When purchasing Bitcoin, a seller will place Bitcoin in escrow with the LocalBitcoins platform. When payment is complete the seller will release the escrow to the buyer’s wallet. If you decide to use LocalBitcoins to purchase Bitcoin anonymously, always be sure to check the seller’s profile page for positive feedback.
Payment Methods:
Cash, Paypal, Bank Transfer, Western Union, BPAY and more.
Fees:
The price of Bitcoin on LocalBitcoins is determined by the seller and varies wildly. You may find that purchasing Bitcoin anonymously is more expensive than using a more reputable broker platform. LocalBitcoins also charges a fee when Bitcoin is transferred to another wallet from their hosted wallet. An explanation of LocalBitcoins’ outgoing Bitcoin transfer fees can be found here.
Final Thoughts
Despite heavy resistance from incumbent financial institutions and major price fluctuations, Bitcoin is here to stay. Whether you choose to purchase Bitcoin from an exchange, a broker, or from an anonymous stranger, always be sure to remain cautious and keep your cryptocurrency details highly secure.
Two of Australia’s most popular fintechs have announced an historic merger that will create the country’s first digital and traditional finance powerhouse.
The partnership between digital asset broker Swyftx and share trading and superannuation platform Superhero will establish an A$1.5 billion financial services giant. The combined group will count over 800,000 customers at completion.
Swyftx co-founders Alex Harper (left) and Angus Goldman (second from right) with John Winters (right) and Wayne Baskin of Superhero.
The merged business will become the first in Australia to offer access to both decentralised and traditional finance, supporting trading and investing across cryptocurrencies, equities and superannuation.
The proposed merger represents a significant step for both businesses in terms of their evolution from disruptive tech players into a single, major financial institution that can grow across domestic and international markets.
Alex Harper, co-founder, Swyftx
In July 2021, Superhero released its flagship superannuation offering, Superhero Super, allowing Australians the opportunity to invest their retirement savings in a range of portfolios, including direct ASX-listed shares and ETFs.
We are thrilled to announce this merger and offer our customers the opportunity to invest in traditional and digital assets across a single platform. The Swyftx team has achieved amazing things since launching in 2018 and we can’t wait to join together to offer investors an even better investing experience.
John Winters, co-founder, Superhero
A Closer Look at the Merger
Swyftx grew its investor base by around 1,200 percent last year, and is Australia’s top-rated digital assets exchange – providing access to more than 320 digital currencies and crypto interest-earning features.
Co-founded in 2018 by Alex Harper and Angus Goldman, the business currently has more than 600,000 retail and corporate investors on its platform.
Superhero is an Australian-owned and operated platform that offers its customers access to share in trading and a super fund. On its platform, customers can access more than 2,500 ASX-listed companies and ETFs with A$5 brokerage fees and over 4,500 US stocks and ETFs with US$0 brokerage.
The combinedbusiness will support 800,000 investors across New Zealand and Australia, with offices in Brisbane, Sydney, London and Vancouver. Swyftx expanded its bases to New Zealand in August of 2021. The merger is expected to be completed in early FY23, and on completion, Swyftx says it will offer its customers access to:
one login across both platforms;
one customer support team; and
one platform that tracks and manages cryptocurrencies, equities, and superannuation.
Fancy owning a piece of a rapidly growing and trusted Australian crypto exchange? Brisbane-based digital asset platform Coinstash is growing at a rapid rate and now presents Australian retail investors with the opportunity to own a piece of the action:
Coinstash is crowdfunding!
We've given you a sneak peek of what the future of finance look like, and we are motivated to invite you to the Coinstash journey.
AUSTRAC-registered Coinstash is officially offering prospective investors to register interest in an opportunity to participate in its second equity crowdfunding round.
At Coinstash, we believe cryptocurrency is one of the biggest and most transformative inventions of the 21st century. Our mission is to financially empower our clients by bridging the gap between traditional finance and the world of crypto.
Ting Wang – CEO & Co-Founder
This follows an enormously successful A$2.8 million crowdfunding raise in 2021. In fact, last year proved to be an enormously successful one for Coinstash, which demonstrated exponential growth across a number of key metrics. In particular, customer growth exceeded 500 percent, while trade volume increased by 322 percent.
Currently, the exchange has more than 20,000 registered users who trade more than 340 cryptocurrencies. Part of the company’s success is no doubt attributable to recently launched Coinstash Earn, a loyalty program where customers can earn rewards of up to 24 percent on their crypto assets.
Coinstash Earn program. Source: Coinstash
Exciting Future For Brisbane and Crypto
According to its website, Coinstash has a number of exciting plans scheduled for launch prior to the end of 2023, subject to regulatory approval. These include:
Coinstash Borrow – where customers can borrow Australian dollars (or crypto) using their crypto holdings as collateral.
Coinstash Spend – a crypto credit card where customers’ crypto holdings would be a factor in determining their credit limit.
These exciting initiatives offer additional evidence that Coinstash is much more than an exchange. As crypto investors increasingly demand yields on their crypto, not to mention the capacity to borrow against it, Coinstash appears well-positioned to capitalise on these trends.
Having surpassed the 1 million downloads milestone earlier this year, the decentralised private messaging App ‘Session’ has now released a new feature enabling private peer-to-peer phone calls.
In late 2021, the closed beta was released for Session calls. After a six-month closed beta period where beta testers were able to provide essential feedback, Session calls have entered an open beta – meaning anyone can now access the ability to make calls on Session.
Calls can only be made to people in your contacts list
Calls are P2P
How to enable calls?
Android:
Open your app settings by tapping on your profile picture in the top left corner
Tap Privacy
Enable the Voice and video calls option at the bottom of the menu
iOS:
Open your app settings by tapping on your profile picture in the top left corner
Tap Privacy
Enable the Voice and video calls option at the bottom of the menu
Desktop:
Open settings by pressing the cog on the left of the screen
Click privacy
Toggle the Voice and video calls switch
Beta Notes
As this release is still a beta release, an active search for any bugs or issues with the release is ongoing.
Looking forward, onion-routed calls are coming and they are dependent on Lokinet integration with Session; however, it must be first ensured that current P2P calls implementation is robust and secure. Session’s onion-routed calls will be a first of its kind in a consumer grade communication application, let alone a decentralised application.
Session is anonymous — with no phone numbers, emails, or any other identifying information being needed to create an account. Within the space of a few minutes, you can download the app, sign up, and start having conversations in full privacy. This means that just like our messaging service, this technology was applied to calls.
Session is now one of the easiest, most secure, most private ways to conduct a phone call — and all without a phone number.
Session 101: Path View.
You probably already know Session is decentralised — but did you know that you can view the path your message takes through that network?
Australians have doubled their exposure to crypto as an asset class in self-managed super funds (SMSFs), according to the latest available figures.
The most recent SMSF statistical overview report released by the Australian Tax Office (ATO) shows 0.6 per cent of the SMSF cohort held cryptocurrency as at June 30, 2020, compared with 0.3 per cent the previous year.
Crypto Exposure in SMSFs Growing Fast
This equates to A$227 million of a total of $8.4 billion invested in SMSFs, with crypto held in about 3,600 funds out of a total 600,000. The average crypto investment component is $34,000, a small figure in relative terms but growing fast.
Comparing the 0.6 percent of SMSF exposure to the 18 percent of all Australians who hold crypto, there is a clear gap waiting to be exploited that only emphasises the vast potential of the self-managed superannuation space.
There are 597,000 Australian SMSFs, encompassing 1.1 million members, with total assets valued at $822 billion, or 25 percent of the $3.3 trillion invested in all Australian superannuation funds. A total of 25,300 SMSFs were opened last year (up to June 21), with the net number of funds quadrupling the previous year’s figure – making 2021 the biggest year for SMSFs since 2015.
About New Venture Wealth
Melbourne-based New Venture Wealth’s stated aim is to simplify investing in crypto through a self-managed super fund. Since it was founded in 2020, the company has specialised in the provision of crypto-based SMSFs and focuses on maintaining a high level of customer service, care and contact.
A convenient feature of New Venture Wealth is that customers can at any time talk directly to staff who are SMSF experts, chartered accountants or auditors. Customers can also rest assured that compliance requirements are upheld every step of the way.
Free Webinars This Month
New Venture Wealth is running free webinars during May with the focus on educating beginners about how they can get into crypto via an SMSF. Each webinar runs for about 30 minutes and covers topics such as:
what is an SMSF?
how does the ATO allow crypto as an asset class for an SMSF?
One of Australia’s largest cryptocurrency exchanges, Swyftx has announced its intention to break into mainstream financial markets with the launch of one of the world’s most competitive interest rate offerings.
Swyftx is the first Australian cryptocurrency exchange to launch an ‘at call’ Earn feature that offers interest on assets like Bitcoin, Ethereum and USDT without any lock-in periods.
Earn services work by flipping the traditional lending model on its head, with customers converting fiat into crypto and then lending those digital assets back to the platform in return for interest.
Swyftx Chief Executive Officer, Ryan Parsons, said the exchange’s Earn feature was one of the most competitive in crypto:
“Australia has among the highest levels of crypto adoption in the world and you’re going to see this translate into service offerings that are hyper-competitive,” said Parsons.
“Very few global exchanges are offering crypto users the level of interest rates that we are without also having lock-in periods.
Over the next two to five years, we expect Earn and other crypto innovations to totally transform the way Australians and other nationalities choose to diversify and manage their wealth.
Ryan Parsons, Chief Executive Officer, Swyftx
Australian-owned Swyftx was founded in 2018 by high-school friends Alex Harper (then 27) and Angus Goldman (also 27). It is the country’s top-rated cryptocurrency exchange, with around 600,000 customers across the country, up from 220,000 customers this time last year.
Its customers will be able to earn interest, fee-free, by converting fiat into a variety of digital assets, including Bitcoin, Ethereum, and stablecoins like USDC and TAUD (True AUD).
Different digital assets will attract different levels of interest that reflect the underlying fundamentals of each individual asset, including price volatility. Popular stablecoins USDC and USDT will attract interest rates of up to 6.7%, with other assets like Bitcoin and Ethereum attracting up to 5.1%.
Parsons said he expected Swyftx Earn to appeal to a broad cross-section of Australians. Around 25% of adults in the country own, or have owned cryptocurrency in the past.
“Our expectation is that you’ll start to see many more Aussies using crypto wealth services as they become more familiar with digital assets,” said Parsons.
“We’re looking at significant pockets of traditional finance and thinking, ‘you know what, we can out-compete you’.”
Swyftx is offering consumers the ability to earn up to 5.3% in interest on the Australian stablecoin TAUD, paid out in TAUD. This means users can generate returns while minimising the typical volatility found in crypto. There will be zero fees for buying, selling and earning on TAUD.
Investors will be able to withdraw funds from Earn at any time, with no exit fees or notice period. However, the feature is not covered by the Australian Government’s Financial Claim Scheme and rates are variable.
