Alright, so you want to buy some Bitcoin. First things first, a quick crash course on buying crypto in general.
Cryptocurrencies are bought through exchanges. Exchanges are platforms you need to sign up for (like forums/apps or any other website with user accounts). Once you’ve signed up, you can log in, deposit credits/money (preferably AUD) into your account. And then you can use that money to buy cryptocurrencies on the platform/exchange.
In Australia, we have quite a few options when it comes to cryptocurrency exchanges. Long story short, our favourite platform at the moment is CoinSpot, it’s easy to sign up, you can use AUD, and they have 100+ coins available for you to purchase (including Bitcoin).
We’ve laid out the steps on how to get started below!
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1. Setup Your Account
As mentioned above, Coinspot is our go-to for trading cryptocurrencies in Australia, definitely if you're starting out. It's the most trustworthy exchange available and it makes trading buying, selling and switching coins incredibly easy.
After creating your account the first thing you'll want to do is Enable 2FA (2-factor authentication, adds an extra step for logging in to your account, very easy to setup), you should see the message below at the top of your page while on the dashboard.
2. Verify Your Account
Before you do anything on CoinSpot you'll have to verify your account.
Click top right on Account > Settings > Verification.
Complete the 6 steps to verify your account, don't be alarmed uploading this information, every exchange requires it. It's to ensure your safety and make everyone on the platform accountable.
3. Connect Bank Account
You'll need to connect up your bank account if you want to buy coins on the platform.
Click top right on Account > Settings > Bank Details.
Fill in the required bank information.
4. Buy Coins
Once your account is verified and you've added your bank account details you can start buying and selling cryptocurrency.
Go to Buy > View All Coins
This page lists all the coins that CoinSpot has available (which is a lot). Simply click on Buy and input the amount of the coin you want to purchase or the amount of AUD you want to spend.
We highly suggest paying with POLi as it allows for near-instant transactions.
Easy as that! You now have bought some cryptocurrency. We highly recommend moving your cryptocurrency to a hardware wallet if you are planning on holding it for a while. If you are planning on day trading, or trading fairly regularly we suggest keeping it on the CoinSpot platform.
Where To Buy Bitcoin
We highly suggest using CoinSpot to buy and sell Cryptocurrency. We've done a comparison of the top 10 exchanges in the world for Australians to use and CoinSpot clearly deserves the top spot, you can see our full CoinSpot review here.
1. CoinSpot Exchange
CoinSpot is by far our most recommend exchange for Australians. They have an easy to use platform and an online wallet that makes trading simple for new users. They have a strong sense of community and are constantly posting updates and adding new coins to their portfolio. This is the most trusted exchange in Australia and arguably the best exchange globally.
What is Bitcoin?
Bitcoin is the Godfather of cryptocurrency. It was developed in 2009 by Satoshi Nakamoto. No one knows who Nakamoto is, or if he’s even one person.
What is the History of Bitcoin?
Many people believe it could be a group of people. Regardless, whoever Satoshi is, they solved the most significant problem with digital currency – double spending. It happened through the use of blockchain technology.
A peer-2-peer-based platform that cut out the middleman and made validation for transactions by multiple parties a must. Now, Bitcoin is one of the highest stores of value and is even usable on sites like Overstock, Expedia, Amazon (for gift cards only) and even to purchase Xbox games.
But a lot of the craze around Bitcoin isn’t just about using it with anonymity. It’s also about trading it. The hype has caused the cost of a single Bitcoin to more than quadruple in only a few months at the end of 2017.
Why was Bitcoin Created?
Bitcoin was created to be a decentralized, anonymously spent currency. People can use it to buy merchandise, pay for services or goods – even internationally, with cheap fees and without being traced. The currency is not tied to any country, government or financial institution of any sort. Small businesses like it as well since they don’t have to deal with expensive fees like those associated with credit cards. Many people directly buy bitcoins as a type of investment, similar to stocks and bonds. Of course, the key is, everyone investing in the currency wants it to go up in value.
The cryptocurrency is often traded on international bitcoin exchanges, where people can buy or sell them. They can use multiple currencies, some of which are altcoins (alternative cryptocurrencies to bitcoin, like Bitcoin Cash, Monero, IOTA, and Verge). One of the most significant exchanges in the world is Coinbase, which is a leading exchange. There is also Bitstamp and Bitfinex, among others. Unfortunately, Bitfinex was hacked in 2016, so the world of Bitcoin isn’t without its own set of risks.
Another aspect of Bitcoin, one that is said to be highly lucrative, is Bitcoin mining. Mining is when an individual or group uses powerful, highly specialized computers to set up mining operations. The machines work to solve complex math equations. The equations are essentially blockchains that make bitcoin such a secure currency. If any part of the blockchain is altered, it renders the entire chain obsolete until the correct data is entered into the chain.
Who is Bitcoin For?
Bitcoin is for anyone looking to get involved in a decentralized, global currency based platform – one that is anonymous, completely secure and private (not just in Australia of course, we also have a page explaining how to buy Bitcoin in Canada). It’s an ideal currency for investors and giant corporations as well. Even larger car manufacturers are starting to adopt the cryptocurrency for use in their business. Bitcoin is also for people looking to store money outside of the control of conventional banks or other financial institutions. Any cryptocurrency works as a type of digital currency, stored in digital wallets on a user’s computer or phone. The wallet acts as a type of virtual bank account, only there are no regulations like those found in a traditional bank, the fees are much lower, and it is entirely anonymous. Users can send and receive Bitcoins, pay for goods, services and anything else. The wallets are not insured by the FDIC in any means though. So, if something happens to your Bitcoin, you’re the one at a loss.
Even though each Bitcoin transaction is recorded in a public log – names of the users are completely hidden. Only wallet IDs are noted. This keeps the deals private and allows buyers to purchase anything without tracks, to either involved party. This is why it has become one of the currency choices for people gambling online, buying drugs, guns or participating in other illegal activities. And it is one of the reasons that organizations like the FBI and NSA are trying to regulate it.
What Are Bitcoin’s Pros and Cons
One pro is, Bitcoin is the first successfully created digital store of value. It’s also completely anonymous and can be purchased by anyone looking to stay under the radar.
It’s also growing at a surprising rate, which is also one of the cons of the cryptocurrency. Bitcoin is a highly volatile currency, with spikes going up and down daily – sometimes ranging in the thousands of dollars for one coin.
It offers utterly anonymous currency exchange – and again that is another of the cons at the same time. Because of the anonymity that Bitcoin provides, federal agencies are always on the lookout for it. As long as you stay within legal boundaries, you have nothing to worry about.
And lastly, no one truly knows the future of Bitcoin – it could be here today and gone tomorrow, but that is highly unlikely with the amount of attention it’s getting.
How has Bitcoin Inspired Other Cryptocurrencies?
Bitcoin may be the first of the digital currencies, but it certainly isn’t the last. Since the release of Bitcoin, there have been hundreds of altcoins released to the market, all of which are designed to complement Bitcoin rather than compete with it. Each also has unique improvements intended to help a niche group or merchants. Other than Bitcoin, the most considerable cryptocurrencies are Ethereum, which uses apps a currency (like NEO, “the Ethereum of China”); Ripple, for more significant financial institutions; and Litecoin, the silver to Bitcoin’s gold. It’s only the beginning for Bitcoin, but definitely not the end.