How to Buy XRP in Australia

By Ben Knight August 17, 2023

In Short

XRP is one of the cryptocurrency market’s most prominent coins and regularly sits in the top 10 assets based on market cap. Thanks to the coin’s popularity, many well-known crypto trading platforms offer XRP. That said, the easiest way for beginners to add XRP to their crypto portfolio is by using a centralised exchange such as Swyftx.

guide how to buy xrp in australia

Where to buy XRP in Australia?

Centralised exchanges are the best way for inexperienced investors to buy XRP. The top companies in this space typically implement excellent security measures, consumer protections in case of theft, and simple fiat-to-crypto on-ramping solutions.

XRP is a commonly sought-after digital currency listed on most major centralised exchanges, like Swyftx. In general, Australians should look for a reputable investment platform that accepts AUD and suits their broader financial goals. If the business running the exchange is based in Australia – even better. 

Veteran crypto traders may wish to acquire XRP through other means. This can include using a peer-to-peer exchange or a platform that offers derivatives. However, not all of these businesses support depositing AUD, which can result in costly conversion fees.

Another option for seasoned investors is using decentralised exchanges (DEXs) to buy XRP. Such platforms typically have minimal sign-up requirements and lower fees than their centralised counterparts. That said, only some of these exchanges accept fiat currency and they can be quite difficult and risky to use. 

How to buy XRP in 4 steps

Choose an exchange

The first step is to compare crypto exchanges and pick one best suited to your financial goals. There are several factors to consider when deciding on a platform – transaction fees, crypto and fiat currencies supported, security history and brand reputation.

Create and verify an account

The majority of prominent crypto trading platforms offer a streamlined process for making an account. Most investors only need to supply a valid email address and mobile phone number to quickly register a new exchange account. 

However, due to Australia’s Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, users are unable to deposit or withdraw AUD (or another fiat currency) until they verify their identity. This process used to be time-consuming, but most modern exchanges have automated account verification and it now only takes a few minutes.

To verify a Swyftx account, new users must provide proof of identification. This can be done using government-issued documents such as a Driver’s License or a Passport. Performing the verification process on a supported smartphone will make taking photos of these documents a smoother experience. 

Deposit AUD

Before buying XRP, investors must fund their accounts with a supported fiat currency. In Australia, most prominent exchanges such as Swyftx support AUD deposits. Several deposit methods usually exist, including direct deposit via PayID and Osko or credit/debit card payments. Swyftx does not charge any deposit fees themselves, however, small costs may be passed on from the provider’s side.  

Buy XRP

Now that the investor’s account is loaded with cash, it’s time to buy XRP. Executing the purchase is usually quite simple – the user must navigate to the exchange’s “Trade” hub, click “Buy” and select “XRP” from the list of supported coins.

Then finally, enter the amount of AUD to be spent (or XRP to be purchased) and submit the order. Double-check all the details are correct, including the fees being charged, before confirming the transaction.

Once complete, the XRP should hit the exchange’s native wallet within a few minutes.

What is Ripple and XRP?

XRP is one of the crypto industry’s oldest blockchain projects, coming to life in 2012. Backed by developers David Schwartz, Jed McCaleb and Arthur Britto, XRP intends to disrupt the current financial industry by making international payments faster, cheaper and more secure.

The project, once named Company New Coin and then Ripple, is built atop the XRP Ledger. The Ledger is an open-source, public blockchain that improved on previous technology’s scalability and efficiency. Renowned for its low fees, XRP can be sent across the Ledger for less than $0.0002 in gas fees with a 3-4 seconds confirmation time.

DID YOU KNOW

Despite what many think, Ripple and XRP are not interchangeable. Ripple refers to Ripple Labs, the company responsible for building the XRP Ledger and associated cryptocurrency. On the other hand, XRP is the native token of the XRP Ledger network.

Ways to store XRP

Exchange wallet

Exchange wallets are the most convenient and fastest way to store XRP. Most reputable exchanges, including Swyftx, come with native wallets built into the platform. This means whenever an investor purchases XRP, it is automatically stored in a wallet linked with their exchange account.

Top-tier centralised exchange wallets come with multiple layers of security, including storage in a mix of hot and cold wallets and industry-standard encryption. However, events such as FTX’s collapse in 2022 have led investors to reconsider the safety of exchange wallets. 

For the most part, platforms like Swyftx offer secure storage options for those wishing to hold onto XRP long-term. That said, investors should always consider non-custodial alternatives too. 

Hardware wallet

Hardware wallets like the Ledger Nano and Trezor T are considered the safest method of digital asset storage. These wallets come as a physical device resembling a mini hard drive or USB dongle. Hardware wallets must be connected to a computer to be used, which means they are inaccessible to hackers when disconnected.

This process makes hardware wallets a little inconvenient to use for day traders, and they can be a little costly.

Online wallet

Online wallets is an umbrella term for browser extensions, desktop applications or websites that support storing XRP. Also known as hot wallets, there are several excellent, non-custodial products that can be used to safely hold an XRP portfolio, including:

  • Atomic Wallet
  • Exodus Wallet
  • Trust Wallet

XRP payment methods

On Swyftx, there are four ways for investors to deposit AUD to buy XRP. 

Perhaps the most popular deposit method is a direct bank transfer. Most Australian bank providers now support Osko, which means direct deposits will hit your Swyftx account within seconds. This fast and free method has a minimum deposit of $30 AUD, and a maximum daily deposit of $50,000.

PayID is a common payment method in Australia that lets investors pay others based on a registered email or mobile number. The convenient payment method can be used on Swyftx for free and near-instant AUD deposits. PayID shares the same deposit limits as bank transfers.

Investors can also use the payment gateway POLi to send money from their bank account to Swyftx via an online portal. Like others, this payment method is near-instant and completely free. The minimum POLi deposit is $30 AUD, while the maximum daily deposit is $20,000.

Finally, investors can use their debit or credit cards to deposit AUD and purchase XRP. Swyftx is partnered with payment gateway Stripe to facilitate these transactions, which charge a 1.99% fee on all deposits. Only Visas and Mastercards can be used, and the maximum daily deposit is $15,000.

The different ways to buy XRP

Spot buy

Spot buying, or spot markets, are instant markets facilitated by cryptocurrency exchanges using an order book. Spot buying allows investors to purchase XRP at the current market price, or, to set up an order that executes when XRP hits a certain value. 

Someone that spot buys XRP is essentially buying the asset from someone else who has agreed to sell XRP at that price. This way of purchasing XRP requires the associated trading account to be funded with fiat currency like AUD, or another cryptocurrency.

Instant buy

Instant buying XRP can have a few different connotations, but generally refers to buying cryptocurrency without any funds in the trading account. Investors enter the amount of XRP they wish to buy, or AUD they want to spend. Then, they can attach an eligible debit or credit card to immediately purchase the desired asset. 

This method of buying XRP generally doesn’t allow customers to designate a purchase price – they must buy XRP at its current market value, with plenty of fees sprinkled on top.

What to consider before buying XRP

Regulation

Regulation should always be a major consideration for investors before investing in any crypto asset. However, this is especially true for XRP, as the blockchain project became embroiled in a legal battle with US regulators the Securities and Exchange Commission (SEC).

The project’s native token – also named XRP – came under fire from the SEC in 2023 for its unique distribution method.

Whereas coins like Bitcoin (Proof-of-work) and Ethereum (Proof-of-stake) are mined or validated, XRP’s entire supply of 100B was “pre-mined” and released upon the blockchain’s launch. The outcome of the SEC tussle, as well as future regulations, will play a huge role in XRP’s long-term success in the industry.

Adoption

XRP has seen institutional interest as a cheap alternative to banks for international transactions. Financial giants like Invesco, BlackRock and WisdomTree have all added XRP to their portfolios. XRP is positioning itself as a global disruptor for cheap, global payments. To achieve this, the project must continue to provide its services to big businesses as well as to everyday investors. 

Competitors

XRP is a global payments currency – making it just one of the hundreds in the cryptosphere. Bitcoin, for example, was originally created to fulfill this very same niche (although it serves a different purpose in today’s industry). XRP is currently the top dog when it comes to adoption and market cap in this space. Still, the project must deal with traditional finance competitors like PayPal, Stripe and Wise, on top of Web3 solutions like Stellar Lumens.

How is XRP taxed?

According to the ATO, XRP is viewed as property and therefore comes under Australia’s capital gains tax (CGT).

Tax obligations for XRP come about whenever an investor disposes of the asset. This includes selling or swapping XRP, using it to buy goods and services or gifting it to a family member. Under such circumstances, investors must pay CGT on whatever their profits are. CGT requirements are halved for assets held for 12+ months before their disposal.If disposing of XRP incurs a loss, this figure can then be used to subtract from other capital gains. For example, say someone profited $100 from buying and selling Bitcoin, but they lost the same amount on trading XRP, their CGT obligations would be zero. However, deliberately incurring capital losses may result in the ATO denying the claim.

Ben Knight
Author

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.