How to Buy Bitcoin in Australia with a Credit Card
Do you want to buy Bitcoin with a credit card but don’t know how? We understand if you are just entering the world of cryptocurrency, understanding how Bitcoin works and how you can buy Bitcoin in Australia can be quite challenging.
It’s important to know that many credit card companies may not accept cryptocurrency purchases and they may block them all together. As we have seen the Commonwealth Bank Blocks Credit Card Purchases Of Virtual Currencies in early 2018. If they don’t block it, some banks may even process cryptocurrency purchases as cash advances which command higher fees. Before you delve into buying Bitcoins with a credit card, you should check if your credit card company accepts cryptocurrency purchases and you should also understand the potential fees that may come with this.
To help you understand the process of buying Bitcoins with a credit card, here is a quick guide. This may help you make sense of cryptocurrencies and it can help you get your hands on some Bitcoins using your CC.
Before you begin buying cryptocurrency, you will need a way to store your Bitcoins, such as a Bitcoin wallet. A Bitcoin wallet, or cryptocurrency wallet, is exactly as it sounds. It’s a way for you to store your cryptocurrencies and there are a variety of storage methods, depending on your needs.
“Bitcoin, unlike most traditional currencies, is a digital currency. Thus, the approach to this kind of currency is completely different, particularly when it comes to acquiring and storing it. As Bitcoins don’t exist in any physical shape or form, they can’t technically be stored anywhere. Instead, it’s the private keys used to access your public Bitcoin address and sign for transactions that need to be securely stored. A combination of the recipient’s public key and your private key is what makes a Bitcoin transaction possible.”
Source: Coin Telegraph (https://cointelegraph.com/bitcoin-for-beginners/what-is-bitcoin-wallets)
The first step is to set up a crypto wallet where you can securely and safely store your coins. Bitcoin wallets do not hold Bitcoins, it actually stores private keys which is a public Bitcoin address that allows you to make transactions. There are many options to choose from such as:
- Desktop Wallets – Such as Exodus and Electrum, they can be downloaded to your laptop or computer and it can store your private key on your hard drive.
- Mobile Wallets – Like Coinomi, having a mobile wallet will allow you to manage your Bitcoins on-the-go from your iOS or Android device.
- Hardware Wallets – Such as Trezor and Ledger Nano S, it offers offline storage for your private keys.
Select a Cryptocurrency Exchange
After you have setup your crypto wallet, you will then decide how and where you will buy your Bitcoin. There are a large number of platforms you can choose from and they can be divided into 3 main sections:
Many people agree that brokers are able to provide the simplest and quickest way to purchase Bitcoin. They enable you to pay for your digital currency using fiat currency (like AUD). In addition to this, they can offer a user-friendly platform that lets you purchase Bitcoin using familiar payment methods such as credit cards and PayPal. However, the disadvantage is that they often charge higher fees than other options. Two popular Bitcoin brokers are CoinSpot and Coinbase.
Cryptocurrency trading platforms offer a way to purchase Bitcoin by trading other cryptocurrencies. Platforms such as Huobi and Binance, many people agree that they tend to provide lower fees than brokers and offer access to a wider range of cryptocurrencies. However, to use this trading platform you will need to already own another cryptocurrency to use this type of exchange.
Peer-to-Peer Bitcoin Exchanges
Peer-to-peer exchanges let the user trade directly with another user. The way it works is that the seller will have the freedom to select the price they want and the accepted payment method they want. Using this method will let you trade with privacy. LocalBitcoins and Paxful are some examples of peer-to-peer exchanges.
The last thing to do is to buy Bitcoin through your chosen platform. To buy with a credit card, there will most likely be many Bitcoin brokers and exchanges that will permit you to use your credit card. Platforms such as Coinmama and Coinbase will allow you to use a credit card and they enable quicker purchases. On the other hand, people claim that using a credit card the transactions will have higher fees.
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The world of cryptocurrency is constantly changing. You can stay up to date with the latest Australian Crypto news here. Or, if you would like to learn more about digital currencies, then please visit our Guides section for more tips, advice, and information.