Self Managed Super Funds Investing In Bitcoin & Other Cryptocurrencies
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Alright, so you want to invest your superannuation into Cryptocurrency, firstly you’ll need to set up a Self Managed Super Fund (SMSF).
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 Swyftx, it’s easy to sign up, you can use AUD, and they have 70+ coins available for you to purchase (including Bitcoin).
We’ve laid out the steps on how to invest into Cryptocurrency with your SMSF below! And further down we’ve got a more detailed guide on setting up an account with Swyftx in case you get stuck.
If you need some more information before you are ready to get started, check out our FAQs.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided. We highly recommend speaking to your registered tax professional before investing your superannuation and checking out the Australian Tax Office Crypto SMSF information.
How To Invest In Cryptocurrency
With Self Managed Super Funds
Thousands of Aussies are choosing to invest their superannuation in Bitcoin (BTC), Ethereum (ETH) and other Cryptocurrencies. Thankfully this is becoming very easy with platforms such as Swyftx offering excellent features and useful information such as EOFY reporting.
- Register for an account with Swyftx
- Verify your account.
- You’ll be assigned an account manager who will help you with any queries
- Choose your portfolio of Cryptocurrencies
- Store your chosen Cryptocurrencies on a hardware wallet such as the Ledger Nano X
You’ll need to create a Self Managed Super Fund account on Swfyx which will require the following information for your SMSF trust:
- Registered Trust Name
- Registered Trust Address
- Trust ABN
- Copy Of The Trust deed
- Trust Beneficiary Details
How To Get Started With Bitcoin Exchange
Setup Your Account
As mentioned above, Swyftx 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 SETUP MFA (2-factor authentication, adds an extra step for logging in to your account, very easy to setup), you can find this on your Profile page under "Security".
Verify Your Account
Before you do anything on Swyftx you'll have to verify your account. It has the fastest verification process we've tested so it won't take long.
Click in the left navigation bar on "Profile" then the "Verification" tab
You'll have to verify your email, mobile number and identity to begin trading.
You will then have to fill in all of your personal information including documents, don't be alarmed uploading this information, every exchange requires it. It's to ensure your safety and make everyone on the platform accountable.
You'll first need to deposit AUD on the platform so you can buy an sell cryptocurrency. You can also deposit Bitcoin straight into the platform if you already have some and would prefer trading with that.
Click the left navigation on Deposit AUD
You can then either choose BPAY or PayID to Deposit AUD on the platform.
Once your account is verified and you've added AUD or BTC you can start buying and selling cryptocurrency.
Go to Trade
This page lists all the coins that Swyftx has available (which is a lot). You can simply click on any of the cryptocurrencies in the left section under "Assets" or search for your desired cryptocurrency.
Once you've decided what you want to buy you can indicate how much AUD you want to buy of each coin.
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 Swyftx platform.
If you have already purchased Bitcoin on another platform then you can easily transfer it to Swyftx and sell it within their platform. From there you can withdraw straight to your bank account.
You can also easily sell it to another cryptocurrency within the platform.
Where To Buy Bitcoin
We highly suggest using Swyftx to buy and sell Cryptocurrency. We've done a comparison of the top 10 exchanges in the world for Australians to use and Swyftx clearly deserves the top spot.
Swyftx is by far our most recommended 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. On top of this they have low fees and are upfront about any transaction fees they do charge whereas some exchanges charge much more in spreads. This is the most trusted exchange in Australia and arguably one of the best exchanges globally.
Why Bitcoin For Self Managed
Many Australians are choosing to invest a portion of their superannuation in Bitcoin because it has had a good track record so far. People also believe that digital currency is the future so it makes sense to invest in it long term. Cryptocurrencies are highly speculative but there is no doubt that Blockchain is changing the world, whether digital currency takes over is definitely another question. Nobody can know if it is the future but people are willing to risk a portion of their savings on the fact that it is. Like any sort of investment, this is high risk and it’s recommended to talk to a financial advisor or accountant. Luckily if you do choose to invest a portion of your superannuation through your SMSF into Bitcoin it’s very easy in Australia with a number of exchanges that will make it possible.
What About Cryptocurrency
Currently, in Australia, there aren’t any superannuation investment funds that support Cryptocurrency. This means that your only option is to set up your own Self Managed Super Fund (SMSF) and manage it yourself. This is often better because it allows you to choose the exact percentage you want to invest in Cryptocurrency compared to other options. It is expected that over the next few years there will be options to use investment funds that support Cryptocurrency with your saved superannuation.
Frequently Asked Questions
Cryptocurrency is a complex topic and when considering investing your superannuation it is highly recommended to do lots of research. We’ve included information below with some of the most common questions we get.
Is Bitcoin taxed in Australia?
Yes, Bitcoin is taxed in Australia and it’s constantly undergoing change. We highly recommend looking at the ATO for the most up to date information and speaking to a financial advisor or accountant. At the moment, tax depends on a number of factors including the frequency of trading which would classify you as an investor or trader each of which change the way you are taxed.
How do I get Cryptocurrency in Australia?
In Australia you get Cryptocurrency through Cryptocurrency exchanges, just like stock exchanges. These platforms allow you to sign up, connect up your bank account and deposit AUD. From there you can buy/sell/trade any Cryptocurrency and you can even transfer it to international exchanges for better fee rates.
What’s the best site to buy Cryptocurrency?
The best site to buy cryptocurrency is, in our opinion, Swyftx. They have 70+ cryptocurrencies to choose from and the setup is pretty easy. That being said, definitely have a look at our full comparison of the best exchanges in Australia for more information on the options available.
Where should I store my Cryptocurrency?
If you are investing your superannuation into Cryptocurrency it’s most likely that you won’t be frequently trading but rather holding your Cryptocurrencies for a long period of time. In this case we would highly recommend using a hardware wallet such as the Ledger Nano X, this is a safe device to keep your Crypto. You can keep your Cryptocurrency on the exchange you bought it from but this isn’t recommended, there is a chance that the exchange can go bust and your funds will be lost. This has happened in the past to quite a few exchanges so it’s smart to play it safe and store it on a hardware wallet.
What is a crypto wallet?
A Cryptocurrency wallet is essentially somewhere you can store your various coins in a safe digital environment. From your wallet you have the ability to send and receive various Cryptocurrencies. Currently, exchanges have these wallets integrated into their system but it’s not recommended to keep your funds on an exchange long term as it could potentially have issues and shut down. It’s much safer to store your funds in a hardware wallet, there are plenty of options with this which you can read more about here.