Bitcoin in Australia is slowly gaining traction. At this point, one bitcoin is worth thousands of Australian dollars and it is quite possible that it will continue to rise. This is why more and more individuals are looking to buy bitcoin. Here is what you need to know about the process:
Legalities Involved in Buying Bitcoin
The good news for those wanting to get involved with bitcoin in Australia is that the government is trying to be more open to it. There are making certain moves to ensure that bitcoin is more widely adopted.
For instance, the government is attempting to remove the previous taxation placed on the cryptocurrency. When bitcoin was first introduced, the government decided to treat it as a commodity instead of a currency. As such, it was being taxed at a rate known as double taxation. This means that a 10 percent Goods and Services Tax on not just transactions involving bitcoin but also any goods purchased using the virtual currency. The government has plans in motion to end that law in 2017.
If the bitcoin is not subject to tax any longer, you should be aware that it any income that you make as bitcoin is liable to tax. Therefore, you should be aware of the set of rules regarding the taxation of your bitcoin income.
The other strides that are being made is that the government is looking into regulating the currency. At the moment, there are no agencies involved in overseeing bitcoin. If this does occur, it will fall under the section of anti-money laundering and counter-terrorism financing legislation. If the currency does become regulated, there are more individuals and vendors willing to deal with the cryptocurrency.
Using a Bitcoin Wallet
The first step to buying bitcoin is to have a wallet. You can choose to either get a mobile or desktop version or get a third party to handle your transactions. Unlike with exchanges, bitcoin wallets aren’t created for specific regions. They are available online and on app stores. Therefore, you will be able to download and use the same wallets as many other people all over the world.
Where to Buy Bitcoins
There are essentially four different ways that you can buy bitcoin. These are as follows:
These tend to be the most popular options when it comes to purchasing Bitcoin. This is because this transaction can be completed online. In Australia, however, there are a few exchanges that actually allow you to make the purchase in-person. This will allow you to use cash to buy bitcoins. Most bitcoin exchanges prefer it if you use either a credit card or a debit card to purchase bitcoin. While the cost of processing here is slightly higher, the transaction is almost instantaneous.
There are some exchanges that also allow you to link your bank accounts so that you can transfer money from the account to the exchange. This is suitable if you want to buy a large number of bitcoin. Nonetheless, you may have to wait several days until the bitcoin is transferred into your wallet. Other payment platforms aren’t really an option for purchasing bitcoin. However, there may be some that will allow you to pay via their platform.
Person to Person Exchange
Some people who either want competitive rates or to buy a smaller number of dollars prefer to not deal with bitcoin exchanges. This is why, in Australia, you also have the option to exchange money for bitcoin with another, person to person. You can make the exchanges with smaller agencies or even just one individual to another.
To do this, you should go to a website such as LocalBitcoin.com. Here, you will be connected to people who are holding a certain amount of Bitcoin. If you wish to make a purchase from them, you can do so via cash exchange or through a bank transfer. While this could be preferable if you only want a small number of bitcoin to start with, there are risks involved. It can be difficult to verify the individual who you are buying from, which could increase the risk of you being defrauded.
Buying Bitcoin via Trading Platforms
As with any other currency or asset, you can trade bitcoin on an exchange. The two best examples of this type of trading is forex and binary options trading. With forex, the trade that occurs is very similar to those that takes place in exchanges. You will be trading dollars for bitcoin. In terms of contracts and similar concepts, however, there are certain limitations for bitcoin. This is largely to do with the fact that the cryptocurrency doesn’t always behave in the same manner as traditional currency.
The other way that you can trade with bitcoin is with binary options. There are some binary options brokers that allow traders to receive bitcoin as payment. This means that you can place a trade on a particular asset. You will decide that the value of the asset will either increase or decrease within a certain time period. Once the trade expires, you will receive your initial investment as well as the profit in bitcoin.
One of the easiest ways to buy bitcoins is to use a bitcoin ATM. The first bitcoin ATM in the country was installed in 2013, in Sydney. Since then, there have been numerous machines set up, all across the country. There are currently 15 machines available for use. There are three in Sydney, three in Perth, five in Melbourne, one in Launceston, two in Brisbane, and one in Canberra. There are ATM maps to hep you pinpoint the precise location of these machines.
Here, it is a simple matter of using either money or a credit card to input money into the machine. The rate that is calculated is dependent on what bitcoin is selling for, at that time. There is a verification process and after your identity has been checked, you will be notified of bitcoin being transferred to your wallet. All of the transactions with the ATMs are encrypted.
These are the options available to you to buy bitcoins in Australia. You should ensure that whichever avenue you decide to utilize, that you only rely upon verified and reliable vendors.