June 10, 2017
How I bought bitcoin and cryptocurrency in Australia
My initial experimental foray – in 2014 – was through ANXPRO – detailed here. At that time ANXPRO had a system to transfer AUD from your Australian bank account. ANXPRO no longer allows AUD to be transferred to Hong Kong. It also doesn’t pay out back into your Australian account. It only pays out in HK dollars in cash! Not a good idea if one wants to convert one’s bitcoins to cash.
HENCE one has to buy either through bank transfer or through credit card. I don’t like hard cash buying options which leave no record of the purchase (I want to maintain a full record, for any future capital gains purposes).
I HAVE USED THE FOLLOWING RECENTLY
COINBASE – this is an American company. It requires you to upload ID (drivers licence) and then one can buy using credit card for UP TO $300 AUD per week(Coinbase has increased my limit to $500). Disadvantage: 5 per cent commission.
Since Australians can no longer create an account with ANXPRO, having a coinbase account is good since it allows for creation of a “wallet”. Having a wallet is ESSENTIAL unless one has the technical savvy to download the entire blockchain on one’s computer and create one’s own wallet (not recommended for small time users like me).
I purchased $300 worth of Litecoin and was able to successfully transfer them to my ANXPRO wallet. Details here. You don’t need to transfer the money, since Coinbase itself provides a wallet.
BITTRADEAUSTRALIA: This DOES NOT provide a wallet. It allows to purchase through bank accounts at 5 per cent commission (a thing called POLI – which requires linking one of the many permissible bank accounts to BittradeAustralia).
I was able to purchase $100 worth of Bitcoin and transfer to my ANXPRO wallet. Details here. Have thereafter made further purchases.
Advantage: It is quick and you can lock in your price immediately. Disadvantage: It charges 5 per cent commission.
COINMAMA: I’m now trying Coinmama. It takes a few days to register your account, so I think it is a good idea to register with multiple companies, and buy from the one that gives the best deal.
REVIEW OF EXCHANGES CUSTOMISED TO AUSTRALIA
This is a good review. I’ve also registered with Independent Reserve.
OTHER EXCHANGES TO REGISTER WITH
LONG TERM STORAGE OPTIONS
Everyone seems to recommend NOT to store the coins on exchanges (e.g. ANXPRO/ Coinbase), given the risk of people breaking into them or the exchange going bust or stealing the money.
People say that one could use the following longer term options:
- Mobile phone: Using mobile apps such as Mycelium (Android) or Xapo (iPhone). These store the private keys to your funds on your phone. Most wallets use scannable QR codes to send and receive.
- Computer hard disk: Bitcoin Core. This is hugely problematic and complicated. I DO NOT RECOMMEND IT for amateurs like myself.
- Hardware wallet: Such as Trezor.
- Paper wallet if one is going to keep the coins entirely offline for long term investment