Where do I store my cryptocurrencies after purchasing them?
This is a matter of personal preference and how security conscious you are. Some people simply choose to store their coins on the exchange after purchasing them and have never had any issues.
The safest way to store your coins is in a hardware wallet such as a Nano Ledger or Trezor – although these hardware wallets do not support every single coin.
The next recommended way to store your coins would be on a desktop wallet that is downloaded from the coins’ official website – always ensure that it is the official website and not an imposter.
Do all exchanges have the same coins at the same price?
How to buy Bitcoin in Australia (exchanges compared)
Prices are always different on different exchanges, although they are generally very similar and if a coin rises or falls on one exchange, the others will generally follow.
There’s a huge difference in price between exchanges, can I buy it on the cheaper one and sell it on the more expensive one?
This is called arbitrage and is a known method of making money, but it’s not really recommend to do if you are new.
For one, there are computer programs (bots) that constantly scan prices of coins on exchanges and execute these trades automatically – much faster than a human can do it!
And two, coin transaction times can take an unknown amount of time so the price will likely have changed by the time your coins have arrived at the exchange to sell.
Do I have to show the exchange any type of identification?
For fiat exchanges, you will have to go through a verification process that includes showing the exchange some identification.
This is a requirement of the Australian Government and their Anti-Money Laundering laws.
For purely crypto exchanges, you won’t have to go through any type of verification – unless you wish you increase your limits to substantial amounts.
How do I buy Bitcoins in Australia?
If you’re still unsure to how to actually get your hands on some Bitcoin, then we recommend you start out by reading our guide on how to buy them, which you can find here.