How Does Bitcoin Work in Australia?

How does Bitcoin work in Australia? Bitcoin is a digital currency that is powered by its users and verified by a shared public ledger called the blockchain. Bitcoin is not controlled by any government or central authority.

So while it can be used all over the world, regulations about its use and taxation rules in Australia can differ slightly from elsewhere in the world.

Bitcoin is subject to the same tax and legal regulations as any other asset in Australia, so you need to keep track of your transactions, especially at the fun time of year called 'tax time'.

In Australia, you can buy and sell Bitcoin using various platforms and exchanges that allow you to trade with Australian dollars or other cryptocurrencies. You can also use Bitcoin to purchase goods and services from merchants that accept it, such as electronics, travel, digital goods, gift cards, food delivery, and more.

CoinJar even offers a CoinJar Card where you can spend your Bitcoin.

Where can I use Bitcoin in Australia?

While it’s still rare to find retailers that accept Bitcoin as payment, with CoinJar Card you can use the Bitcoin in your CoinJar account (or any of the other 50+ cryptos we offer) to make purchases anywhere that Mastercard is accepted.

What is the safest way to buy Bitcoin?

The safest way to buy Bitcoin is through a trusted exchange with a proven track record.

CoinJar is Australia’s longest-running cryptocurrency exchange and has been operating since 2013 with no unplanned downtime, security breaches or loss of customer funds.

We are registered with AUSTRAC and the FCA UK (for AML purposes) and work with some of the world’s largest payment providers, including Mastercard, Visa, Apple Pay and Google Pay.

Can I buy Bitcoin with a credit or debit card?

Yes – with CoinJar Instant Buy you can buy BTC using any Australian-issued credit card, like Visa or Mastercard. We also offer support for Apple Pay and Google Pay.

Can I buy less than 1 Bitcoin?

Yes, you can buy less than 1 Bitcoin. Bitcoin is denominated to 8 decimal places, with the smallest denomination being known as a ‘Satoshi’ or Sat. On CoinJar you can start buying Bitcoin with as little as $20.

How is the price of Bitcoin determined?

The price of Bitcoin in AUD (fiat currency) is determined by the international Bitcoin market – basically, the price to be found on cryptocurrency exchanges in Australia and all around the world.

These prices tend to be the same (or very close) because any differences are smoothed out by arbitrage traders that buy at one exchange and sell at another.

What is the best way to buy Bitcoin?

The best way to buy Bitcoin in Australia is through an exchange like CoinJar. We offer accurate prices, low fees and an easy-to-use, ultra-secure app. We have multiple different payment methods to buy cryptocurrencies including normal bank transfer.

What are Bitcoin Forks?

Bitcoin forks occur when a group of miners decide to split from the main chain by adopting a particular change to the network and causing a new blockchain to come into existence.

There are a number of Bitcoin forks that split off the main chain and became independent currencies. These include Bitcoin Cash (BCH), Bitcoin Satoshi’s Vision (BSV), Bitcoin Diamond (BTCD) and Bitcoin Gold (BTCG). Always make sure when you’re buying Bitcoin, you’re buying coins on the original chain.

Why is Bitcoin the most popular cryptocurrency?

Bitcoin is popular both because it was the first crypto in existence (so it’s had more time to develop market share) and also because it’s considered the purest cryptocurrency. No fundamental changes to its code have ever been made and no central body controls it.

Why is Bitcoin considered ‘digital gold’?

Some people argue that Bitcoin shares traits with gold – it’s a tradeable asset defined by its scarcity, finite supply and the difficulty of creating it.

However, while gold is quite difficult to trade and own due to its weight and the need to physically transport it, Bitcoin can be traded and transported anywhere in the world at the click of a button.

How has Bitcoin performed over the past decade?

Bitcoin is the best-performing asset over the last decade, growing by more than 300,000%.

While the price of Bitcoin is famously volatile and capable of going up and down rapidly, the long-term uptrend has been remarkably stable.

How long does it take to set up an account and start trading?

It takes around 5 minutes to create a new CoinJar account and verify your ID. Once you’re verified you can deposit cash, buy and sell crypto and activate your CoinJar Card.

Why trade BTC with CoinJar?

CoinJar is the longest-running crypto exchange in Australia and has been designed from the ground up with security and ease-of-use in mind.

From the quick and intuitive sign-up process, to our lightning-fast bank deposits and withdrawals, low fees starting at 0% (on CoinJar Exchange), and a user-friendly iOS and Android app, CoinJar is the ideal crypto exchange whether you’re buying crypto for the first time or an experienced investor.

Do you pay tax on Bitcoin in Australia?

Yep, you certainly do pay tax on crypto in Australia. The Australian Tax Office (ATO) sees crypto as a form of property that needs to be taxed just like other assets. How much you pay depends on whether you are a crypto investor or a crypto trader. Check out our guide for more information.