How To Buy And Invest In Cryptocurrency In Australia

Before we dive in, it’s essential to address some of the concerns surrounding cryptocurrency use in Australia, its role as an investment vehicle and its regulatory status.

While Australians are large adopters of crypto, it’s also one of the fastest ways to lose money—via a scam, network hack, or precipitous dips in value.

In August last year, the Australian Federal Police (AFP) identified more than 2,000 compromised online crypto wallets belonging to Australians. In response, the AFP launched a campaign to target criminals using ‘phishing’ scams, where victims are tricked into approving a malicious blockchain transaction, thereby granting criminals access to their online crypto wallets. This is just one of the numerous ways criminals use cryptocurrency’s unregulated and anonymous nature to fleece victims.

In recent years, the federal government has attempted to walk a narrow line between encouraging innovation in digital assets and protecting Australians against scams and criminal syndicates.

In October 2023, Treasury released a consultation paper outlining a proposal to require crypto exchanges operating in Australia—be they local or international—to hold an Australian financial services licence (AFSL) and comply with corporate standards. However, the legislation, which was due to be enacted late last year, has yet to be introduced to Parliament.

Barrister Aaron Lane told the ABC’s “The Business” earlier this year that progress on crypto regulation in Australia was “stagnant.” “We’ve had numerous consultations after consultations, we’ve had drafts of consultations, and so I think what the industry wants now is some action, and that action looks like legislation,” he said.

Without an enforceable legal code of practice, the corporate regulator has been pursuing bad actors on a case-by-case basis via the courts. Until laws are introduced to regulate the sector, consumers must be especially diligent about the security protocols and credentials of exchanges and brokers while staying informed of the latest criminal practices targeting the sector.

In particular, the AFP recommends that Australian crypto investors heed the following:

• Cryptocurrency users should verify approval transactions before signing them and not sign without fully trusting the person or the company on the other end;
• Be sceptical of urgent requests for money or personal information, even if they appear to come from trusted crypto sources;
• Use search engines and social media to research the person or company’s background and ensure their identity matches their online presence;
• Trust your instincts. If it seems too good to be true, it probably is;
• Report any suspicious profiles or interactions to the platform or authorities responsible for online fraud.

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There are two methods of investing directly in cryptocurrency: exchanges and online brokers. While you may receive emails purportedly from crypto investment houses offering ‘unique opportunities’ and guaranteeing returns, steer clear of them, as they’re likely scams.

Choose an Exchange

A cryptocurrency exchange is a centralised platform on which various types of crypto—such as ether, Solana, Cardano, bitcoin and many others—can be traded (CoinMarketCap estimates there are over 10,000 active cryptocurrencies).

Some of the better-known global exchanges include US giants Binance, Coinbase, and Kraken. These exchanges have the highest number of tradeable coins, advanced crypto trading and comprehensive customer service. While local players, such as Independent Reserve, Cointree and Swyftx, offer a smaller range of coins than their overseas counterparts, they often have the advantage of straightforward user interfaces and real-time customer support.

You can buy new coins, sell existing ones or trade one coin for another. Exchange interfaces may look and feel similar to standard share-trading apps, such as nabtrade or CommBank, and indeed, they work in a similar way, with real-time updates on crypto prices, educational resources and sometimes even a community forum to engage with others.

To buy your first cryptocurrency on an exchange, you must create an account, which will require answering questions about your identity as part of the exchange’s Know Your Customer (KYC) requirements. These KYC rules ensure new users are not subject to sanctions or wanted for criminal acts and enable investigations in case of future suspicious activity.

It’s also common for exchanges to require you to set up two-factor authentication (2FA) before granting full access to the exchange. Independent Reserve, for example, requires users to verify their identity before they can withdraw their funds:

When Forbes Advisor Australia set up an account with Independent Reserve, we were also asked for our country of residence, what kind of account we were after (personal or company, for example), how we were funding the account (wages, savings, investments) and the goal of our trading (Curiosity? Investment?). Once we created the account, we could add funds via bank transfer, PayPal, debit or credit cards (but watch the processing fees, more on that below), and PayID.

When researching crypto exchanges, take note of the following:

• How many coins are on offer? If you’re an inexperienced trader, this won’t matter as much as you’ll likely stick to big players like bitcoin—unless, of course, you want to access some of the niche coins.
• Does the exchange have an insurance fund to cover its customers if it’s hacked? This is incredibly important. As the 2022 downfall of former leading light FTX shows, no exchange is too big to fail. Thousands of Australian investors lost money—some even their life savings—when FTX filed for bankruptcy. You will want to ensure you can get your money back if the worst happens and the exchange is compromised by bankruptcy or nefarious hackers.
• Has the exchange’s site ever been hacked? If not, what security measures are used to prevent such attacks? Unfortunately, hacking is not uncommon. In the past year, several regional exchanges were hacked, including Japanese exchange DMM Bitcoin, which lost $US305 million, and Indian exchange WazirX, which lost $US235 million. Most recently, hackers stole $2.4 billion from Dubai-based exchange Bybit, which some claim is the biggest crypto heist ever.
• What is the interface like, and how easy is it to use? Is it clunky or clean?
• What are the fees, and how are they charged? Some exchanges levy flat fees on trades, while others impose a percentage take.
• Can you buy the crypto in fiat currency, such as Australian dollars? Some international exchanges will only let you buy crypto with other crypto, which makes it prohibitive for first-timers.
• What is customer support like? Is there a number to call, or are you directed to an online chatbot? Quality customer service can make all the difference when you have a thorny query or point of confusion to clear up.
• Is the exchange registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC)? In Australia, all exchanges must register with AUSTRAC, which monitors money laundering and other illegal activities. It’s worth checking that your chosen exchange is compliant.
• Does the exchange have an AFSL? While this is not yet a legal requirement, a handful of exchanges have pre-empted the federal government’s laws and obtained a licence. This may offer you greater peace of mind as AFSL companies must abide by a prescribed set of financial laws.
• Are there any educational resources on the site, and how comprehensive and helpful are they?

For more information on how to find the perfect exchange for your needs, read our pick of the best crypto exchanges for Australians.

Or Choose a Broker

The spectacular collapse of FTX undoubtedly tainted the reputation of global exchanges, making many traders, especially new investors, wary of using them.

You can always opt for a broker if you prefer to give exchanges a miss. Cryptocurrency brokers are designed to take the pain and confusion out of purchasing crypto by dealing directly with exchanges on your behalf. Some brokers, such as Caleb & Brown and Bitcoin Dealers Melbourne, offer around-the-clock support for the crypto investor. They execute trades and offer tailor-made advice depending on your investment goals and portfolio. They usually charge a flat fee for their services and boast first-class security protocols.

Other crypto traders turn directly to share trading platforms, such as eToro, in which crypto is one of many tradeable asset classes. If you’re new to crypto, you can replicate the trades of experienced crypto investors on eToro’s CopyTrade feature or practise with $100,000 in virtual money.

When dealing with a broker, check whether you can access your money anytime. Some brokers restrict you from moving your cryptocurrency holdings off the platform at short notice—check the terms and conditions before signing up. You may also have little say over how your crypto is stored, so ensure you’re happy with the broker’s storage and security setup.

Deposit Cash To Invest

To buy crypto, you’ll need to ensure you have funds in your account. You might deposit money into your crypto account by linking your bank account, authorising a bank transfer or even making a payment with a debit or credit card.

While some exchanges or brokers allow you to deposit money from a credit card, this method is expensive. Putting aside the financial implications of going into debt to fund a risky crypto purchase, credit card companies process cryptocurrency purchases as cash advances, which means they’re subject to higher interest rates than regular purchases.

Furthermore, many credit card providers also levy a percentage fee, usually around 3%, of the transaction amount when you make a crypto cash advance. This is on top of any fees that your crypto exchange or brokerage may charge for paying by credit card; Independent Reserve charges an additional 1% for credit card payments, but some exchanges charge double this amount.

Place Your Cryptocurrency Order

Once your account is funded and your identity is verified, you can place your first cryptocurrency order. There are scores of cryptocurrencies to choose from, ranging from well-known names like bitcoin and Ethereum to more obscure cryptos and meme-coins. If you’re buying your crypto direct—rather than relying on a broker—be sure to research the coin before buying.

To purchase, enter the token’s ticker symbol, which is displayed in brackets after its name—bitcoin’s ticker, for instance, is BTC. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like bitcoin or Ethereum that otherwise would be prohibitively costly. (As of early 2025, one BTC is worth $US97,000 or $155,000 AUD).

The symbols for the 10 biggest cryptocurrencies based on market capitalisation* are as follows:

• Bitcoin (BTC)
• Ethereum (ETH)
• Tether (USDT)
• XRP (XRP)
• Solana (SOL)
• BNB (BNB)
• USD Coin (USDC)
• Dogecoin (DOGE)
• Cardano (ADA)
• Tron (TRX)

*Based on market capitalisation as of February 2025.

Select Your Storage Method

A safe and reliable storage method for your crypto is as important as choosing the right exchange or broker. As there is no intermediary, such as a bank, safeguarding your crypto, you must set up your own watertight storage system.

Cryptocurrency exchanges are the most common storage method, but they are not the most secure because they are vulnerable to theft or hacking.

When you buy cryptocurrency, it’s typically stored in a crypto wallet attached to the exchange. If you don’t like the provider your exchange partners with, or you’re loath to leave the money on the exchange’s wallet, you could do what many serious crypto investors do and remove your crypto from the exchange for a small fee.

You then have two storage choices:

• Hot wallets. These wallets are stored online and run on internet-connected devices, such as tablets, computers or phones. Hot wallets are convenient, but they come with a higher risk of theft since they’re still connected to the internet.
• Cold wallets. Cold crypto wallets aren’t connected to the internet but are external devices, like a USB drive or a hard drive. This makes them the most secure option for holding cryptocurrency.

You have to be careful with cold wallets, though—if you lose the keycode associated with them or the device breaks or fails, you may never be able to get your cryptocurrency back.

While this may also happen with hot wallets, some are run by custodians who can help you access your account if you get locked out.

Periodically, horror stories emerge of BTC bulls losing their crypto keys and being unable to access their small fortunes. Consider, for example, the story of an IT executive who lost a staggering £600 million ($1.1 billion AUD) in a Welsh rubbish tip after his then-girlfriend accidentally threw out the hard drive containing his codes more than a decade ago.

He is considering buying the tip outright to devote his time to hunting for the lost crypto.

With crypto’s growth over the past decade, various financial instruments and products have emerged to tap alternative investment methods in digital assets.

These products represent more indirect methods of crypto investment and allow investors to diversify portfolios or invest in blockchain projects without directly owning tokens.

Invest in Crypto-Themed ETFs

Many Australians opt to invest in cryptocurrency through spot bitcoin ETFs, which track the price of bitcoin and trade on traditional stock exchanges.

This financial instrument allows investors to gain exposure to bitcoin’s price movements without the complexities of directly owning or managing the cryptocurrency. In fact, Australia was one of the leaders of this kind of ETF, launching a spot bitcoin ETF, EBTC, on the Cboe Australia index (CXA) in May 2022.

In early 2024, the US SEC approved 11 spot bitcoin ETFs, which amassed more than $US4 billion in inflows in total in a single day. In their first month of trading, Fidelity’s FBTC attracted nearly $US3.5 billion in assets under management (AUM), while BlackRock’s IBIT attracted over $US4 billion.

In Australia, investors can access a variety of bitcoin ETFs either internationally on the Nasdaq or New York Stock Exchange or locally on the ASX or Cboe Australia.

The Global X 21Shares bitcoin ETF (EBTC) and Ethereum ETF (EETH) on Cboe Australia, which track the prices of bitcoin and Ethereum, respectively, are both popular choices. Alternatively, for investors looking to gain exposure to the broader crypto industry, the BetaShares Crypto Innovators ETF (CRYP) focuses on companies involved in crypto-related projects and is available on the ASX.

You can also invest in futures-based bitcoin ETFs, which involve futures contracts rather than holding the cryptocurrency directly. These contracts speculate on the future price of bitcoin rather than its current ‘spot’ price. Each type of crypto ETF has pros and cons, but futures contracts are widely seen as more sophisticated and potentially risky than their spot ETF counterparts.

You can read more in our guide to the best bitcoin ETFs for Australians.

If you’d rather invest in regulated companies with tangible products while still gaining exposure to the cryptocurrency market, you can buy shares in companies that use or own cryptocurrencies and the blockchain that powers them.

Corporate whales such as cloud software company MicroStrategy, payments processor Block and electric car manufacturer Tesla have all bought millions of dollars worth of cryptocurrency in recent years.

Interestingly, MicroStrategy has adopted BTC as its primary reserve asset, and as of early 2025, it reportedly holds 461,000 BTC in reserve.

You could also buy shares in bitcoin mining companies like Riot Platforms and MARA or global exchanges such as Coinbase.

While buying shares in crypto companies provides potential exposure to the crypto market’s fortunes, you are also beholden to the company’s business performance, regulatory environment, and investor sentiment. Make sure the crypto company is trusted, well-run, and has a history of strong returns. On the positive side, these crypto stocks offer a way to benefit from the growth of the bitcoin and cryptocurrency markets without the complexities and risks associated with directly holding digital currencies. They also allow investors to tap into the expertise of companies embedded in the crypto world.

As with any investment, consider your investment goals and financial situation before investing in cryptocurrency or companies with a heavy stake.

Despite concerns over crypto criminals and delays in government regulation, the uptake of digital currencies in Australia remains resilient.

Thankfully, we’re also becoming more crypto-literate. The 2024 Swyftx survey found that 86% of respondents identify as having either a “strong” or “some comprehension” of digital assets. This compares to 81% in 2023. Furthermore, just 14% of Australian crypto users reported having only “a little understanding” of the sector.

With the reelection of pro-crypto US President Donald Trump, it may feel like crypto’s time in the sun has arrived, and the only direction for digital assets is up. But things can change quickly.

Cryptocurrency is renowned for its volatility—a single tweet from a celebrity can make the price of meme-coins plummet or soar—and it’s still considered a speculative investment, especially in unregulated crypto sectors like Australia’s.

If you decide to invest, do your research, bulletproof your storage method and only invest what you can afford to lose.

This article is not an endorsement of any particular cryptocurrency, broker or exchange, nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency and seek advice from an authorised financial advisor.