How to Buy Ethereum in Australia in 2023
Table of contents
- What is Ethereum?
- How to buy Ethereum safely in Australia
- Where is the best place to buy Ethereum?
- Is it legal to trade Ethereum in Australia?
- Why is Ethereum so popular?
- Frequently asked questions
What is Ethereum?
Ethereum is a decentralised ledger that runs on blockchain technology. It was designed to host decentralised applications (dApps) and execute smart contracts, the first of its kind. Additionally, projects can easily create tokens that reside on the Ethereum blockchain. These types of tokens are known as ERC-20.
Unlike Bitcoin, the Ethereum network runs on a Proof of Stake consensus mechanism, which requires network participants to stake ETH instead of mining crypto.
The Ethereum platform is powered by Ether (ETH), the native cryptocurrency of the Ethereum blockchain and the second largest cryptocurrency in the world based on market cap.
How to buy Ethereum safely in Australia
The safest way you can buy Ethereum (ETH) in Australia is through a reputable crypto trading platform or exchange. Some exchanges offer more crypto assets than others, however, most crypto exchanges will allow trading for popular coins like Bitcoin and Ethereum. Australian Transaction Reports and Analysis Centre (AUSTRAC) monitors and regulates digital currency exchanges so that it complies with national standards, it is highly recommended to go through an AUSTRAC-registered exchange.
Below are four key steps to purchasing Ethereum:
- Create an account with a registered exchange
- Verify your identification
- Deposit Australian Dollars
- Buy Ethereum
For this example, we’ll be using the Swyftx cryptocurrency exchange to demonstrate how you can buy and store Ethereum in Australia. Swyftx is an AUSTRAC-registered exchange with offices located in Brisbane and Sydney. Their beginner-centric Ethereum exchange is very easy to sign up for, and they have Australian-based customer support to help if you need assistance along the way. Other Australian exchanges like Coinspot, Digitial Surge and Coinjar have similar sign-up processes.
Step One: Create a Swyftx Account
Creating a Swyftx account couldn’t be simpler. You will have to supply some basic information – your phone number, full name, and email address. When this is complete you will be asked to create a password. It is important to create a password that is unique and secure. Once your password is created, make sure to write it down and keep it in a secure place or use a password manager like LastPass.
Click here to create your account.
Step Two: Complete account verification
All AUSTRAC registered exchanges require users to complete identification checks by uploading a photo of their identification document. Once you are logged in, you will need to peruse the left-hand menu and select ‘profile’ > ‘verification’. Your account’s verification is necessary for depositing fiat or purchasing crypto.
A form of government-issued identification, such as a passport or driver’s license is required for verifying your account.
To further enhance the security of your Swyftx account, it is strongly recommended that you enable two-factor authentication (2FA). This adds an extra layer of security in case your login details fall into the wrong hands. Google and Microsoft Authenticators are supported by most crypto exchanges.
Step Three: Deposit Funds
Once your account is verified, you can then deposit funds which can then be used to buy and sell Ethereum.
Most exchanges will allow you to deposit through bank account transfers, Swyftx included. You can also deposit funds via your chosen payment method: POLi, PayID or credit or debit card. Swyftx does not charge any fees when you deposit via bank transfer.
If you already have cryptocurrency in an external crypto wallet, you can deposit these assets directly into Swyftx using your new wallet address. These assets can then be swapped for ETH.
Step Four: Purchase Ethereum
Once you have a sum of Australian dollars (AUD) in your wallet, you are able to buy Ethereum instantly. To get started, click Trade and search for Ethereum (ETH).
Once you’re on the Ethereum page, select Buy. A window will then pop up allowing you to input the details of your order. For instance, you can select how much ETH you wish to buy or input the AUD equivalent. Once you have reviewed your order details, simply click Place Order.
Where is the best place to buy Ethereum?
Choosing the best place to purchase ETH can be overwhelming with so many options available. Selecting an Australian-based exchange is recommended as they are almost guaranteed to accept Australian dollars (AUD). This makes it easy to deposit funds to purchase crypto quickly.
It is also important to consider other aspects like the exchange’s security reputation, user-friendliness, customer support, regulation, and trading fees.
Read our comparison of the best crypto exchanges in Australia for more information.
Is it legal to trade Ethereum in Australia?
Yes, buying and selling Ethereum is legal in Australia as long as you’re doing it on an AUSTRAC-registered exchange. However, it is important to note there are tax laws that apply to crypto. As it stands, the Australian Tax Office (ATO) considers digital currencies to be assets, meaning Capital Gains Tax (CGT) applies to profit or losses on your Ethereum investment.
For a comprehensive breakdown of crypto tax, read this Australian crypto tax guide.
Is it safe to buy Ethereum?
No investment is ever guaranteed to be safe. Whilst Ethereum is one of the more popular cryptocurrencies on the market, it is still at the mercy of market volatility. Any crypto purchase you intend to make should be thoroughly researched, so that you properly weigh the risks, and understand how your investment will operate.
There is a lot to learn about your potential ETH investment; however, for a beginner, it is necessary that you understand price volatility, exchange vulnerabilities, and regulatory uncertainty. Doing so allows you to better gauge whether your investment could be considered a ‘safe’ one.
- Regulatory uncertainty: You must be aware that the regulatory ecosystem for cryptocurrency is young and prone to change. Keeping an eye on both national and international shifts may be useful when deciding when, and how, to invest.
- Price volatility: Crypto is a very new market compared to traditional stocks and equities, meaning it has greater exposure to new regulations and reaches new audiences, which can cause the price to fluctuate heavily.
- Exchange vulnerabilities: Scams, theft, hacks, and poor fiscal management, are common exchange vulnerabilities to look out for. Ensure you are engaging with a secure and reputable crypto exchange to protect your Ethereum investment.
If you’re not yet confident to buy Ethereum, some exchanges offer free crypto demo accounts where you can trade crypto with artificial money. This is a great way to learn about the market and practice your trading strategies.
Why is Ethereum so popular?
Vitalik Buterin created Ethereum in 2013, and it then went on to become the first network to facilitate smart contracts. The Ethereum blockchain gained a lot of its popularity by hosting a number of decentralised applications, allowing users to interact with DeFi, play-to-earn crypto games, the Metaverse, and NFTs. Possessing more than $40 billion in Total Value Locked (TVL), the blockchain quickly became the world’s largest smart contract platform.
If you’ve ever engaged with, or heard of, MetaMask, OpenSea, The Sandbox, Axie infinity or UniSwap, you have Ethereum to thank.
Frequently asked questions
As with any investment, you can make an informed decision about whether you think it will be worth your money. However, it’s impossible to predict the performance of your asset with complete accuracy.
If your goal is to interact with the Ethereum blockchain, you will need to own some ETH.
Most exchanges will charge a small trading fee; however, as mentioned above, Swyftx does not charge any fees when you deposit via bank transfer.
There are some services in circulation that allow you to buy ETH instantly using a debit or credit card. Coinspot is one exchange that allows its users to buy crypto instantly using a debit or credit card.
Most exchanges will allow crypto investors to purchase Ethereum with a debit card. This works by allowing you to transfer funds to your wallet from your debit card as a deposit. The eToro exchange permits PayPal deposits; however, this is an outlier amongst many exchanges.