How to invest in cryptocurrency? A complete beginner’s guide in Australia

It’s not just recently that cryptocurrencies have been gaining ground in the global financial landscape — and Australia is no exception. With around 3.9 million Australians — or 20% of the adult population — already holding some form of digital currency, the market is proving to be increasingly promising. This figure comes from a 2024 survey by the cryptocurrency exchange Swyftx.

However, despite the optimistic outlook and strong results, this type of investment also comes with risks, volatility and regulatory challenges that demand careful consideration. This guide presents key aspects to help you understand how to invest in cryptocurrency with safety, clarity, and strategy — from choosing the right exchange to practical tips for keeping your assets secure.

So, what are cryptocurrencies?

Cryptocurrencies are decentralised digital assets that use blockchain technology to record and validate transactions securely, transparently, and without the need for intermediaries such as banks or governments. This technological structure makes cryptocurrencies resistant to censorship and highly reliable, as transactions are logged in a public and immutable database.

Among the best-known cryptocurrencies are:

• Bitcoin (BTC) – Launched in 2009, it was the world’s first cryptocurrency. Created as a decentralised alternative to the traditional financial system, it is considered a store of value and is often compared to digital gold. To this day, it remains the digital asset with the highest market capitalisation.
• Ethereum (ETH) – Launched in 2015, Ethereum goes beyond being just a digital currency. Its blockchain operates as a platform for developing decentralised applications (dApps) and smart contracts, making it the foundation of what is known as the decentralised economy. Ethereum also powers projects like Chainlink, Enjin Coin, among others.

In addition to these, the market features thousands of other cryptocurrencies — commonly referred to as altcoins — which serve different purposes and vary in levels of security, liquidity, and risk. Some focus on privacy, others on gaming, decentralised finance (DeFi), NFTs, and more.

Are cryptocurrencies legal in Australia?

Yes, cryptocurrencies are legal in Australia and have formal recognition within the country’s legal and tax systems. Since 2014, the Australian Taxation Office (ATO) has classified cryptocurrencies as property, not as fiat currency. This means they are subject to Capital Gains Tax (CGT) — just like other investment assets such as shares or real estate.

In addition, any business operating as a digital asset exchange in Australia must be registered with Australian Transaction Reports and Analysis Centre (AUSTRAC) and strictly comply with the following standards:

• Anti-Money Laundering (AML)
• Know Your Customer (KYC)

These procedures are designed to ensure market integrity and protect investors from fraud and illegal activity.
Another important point is that Self-Managed Super Funds (SMSFs) — a very popular type of retirement fund in Australia — are permitted to invest in cryptocurrencies, provided this option is clearly included in the fund’s investment strategy and is properly documented.

You can find more details on these regulations here:

• TD 2014/26 – Legal database
• TD 2014/25 – Legal database

Who can invest?

Anyone aged 18 or over can invest in cryptocurrencies, as long as they go through an identity verification process. This includes individuals, financial institutions, corporate traders, and also Self-Managed Super Funds (SMSFs).
With the growing popularity of digital assets, many exchanges now offer customised features for different investor profiles — from beginners to experienced traders.

Where to buy cryptocurrencies?

The first step is to choose a cryptocurrency exchange — a platform that allows you to buy, sell, and store digital currencies. Some of the most popular options in Australia include:

1. Swyftx

One of the largest and most popular cryptocurrency exchanges in the country. Known for its user-friendly interface, responsive local support, and a wide selection of assets.

2. Digital Surge

Designed especially for beginners, Digital Surge offers a simple and easy-to-use platform. It also allows users to pay bills with Bitcoin within Australia.

3. CoinSpot

One of the oldest and most trusted exchanges in the country. CoinSpot holds an ISO certification in information security and is widely used by Australian investors.

4. Binance Australia

Originally launched in China, Binance is a leading international exchange that has established local operations in Australia, offering support in AUD and complying with AUSTRAC regulations.

5. Independent Reserve

Caters to both individual and institutional investors. It’s one of the most established and security-focused exchanges in Australia, offering premium support and services.

How to choose a crypto exchange?

If you’re interested in starting to invest, one of the first steps is to choose the right exchange to ensure a safe and reliable intermediary. With so many options available in the market, choosing the right exchange can make all the difference in your experience as an investor. Before opening your account, consider the following criteria:

1. Ease of use

If you’re starting out in the cryptocurrency world, the ideal is to opt for a platform that is intuitive, with a simple design, user-friendly navigation, and basic buying and selling features. Some exchanges even offer educational guides and tutorials for beginners, which can be a great advantage.

2. Security

Security is one of the most important aspects when choosing an exchange. Prioritise platforms that offer two-factor authentication (2FA), cold wallet storage for assets, encrypted connection (HTTPS), facial biometric verification for login or transactions, and that comply with Australian laws and are registered with AUSTRAC.

Additionally, it’s worth researching the company’s background, checking its reputation in forums and social media, and verifying whether there have been previous cases of breaches or security violations.

3. Customer support

Prefer exchanges with technical support located in Australia, accessible staff, and responsive service. Good support can be decisive, especially in situations involving questions, account blocks, or extra verification.
Local platforms also tend to offer more ease in fulfilling tax obligations and in transactions using Australian dollars (AUD).

4. Fees and charges

Before signing up, carefully compare the fees charged by each exchange. Evaluate the trading fees, withdrawal or deposit costs, and any hidden fees such as high spreads or currency conversion charges. These differences between buying and selling prices can directly impact your results.

A profit made can be significantly reduced if you don’t pay attention to the platform’s conditions.

5. Variety of coins

If your goal is to diversify your portfolio, look for exchanges that offer a wide selection of cryptocurrencies. Some platforms list hundreds of altcoins with different purposes, which expands your investment options.

Step-by-step: How to buy cryptocurrency in Australia

Investing in cryptocurrency can seem intimidating at first, but the process is simpler than it appears. Below is a five-step guide:

1. Choose the exchange

First of all, research and compare different trading platforms based on the criteria mentioned earlier — ease of use, security and compliance, customer support, fees, and coin variety.

Check if the exchange accepts deposits in Australian dollars (AUD) and if it operates according to local legal and regulatory standards.

2. Sign up and verify your identity

Once you’ve chosen your exchange, create your account by providing basic details such as your name, email, and password. This process usually only takes a few minutes. Then: activate two-factor authentication (2FA) to secure your account; and complete the identity verification process (KYC), which usually involves submitting a copy of an official document (passport, driver’s licence, or Australian ID).

3. Add a payment method

To deposit funds, you’ll need to link a bank account or select one of the payment methods accepted by the exchange. The most common in Australia include: bank transfer, payment technologies (learn more at Australian Payments Plus – Home) and credit or debit cards, which are used less frequently and may incur fees, but are still viable options.

4. Deposit funds

Once your account is verified, you can deposit Australian dollars into your exchange wallet. Most platforms do not charge fees for deposits, and the funds are usually credited quickly.

5. Buy the cryptocurrency

Now, simply go to the platform’s purchase section, select your desired coin, enter the amount you want to invest, and confirm the transaction.

If this is your first purchase, it’s wise to start with a modest amount. This allows you to become familiar with how the market works, including price fluctuations, fees, and platform tools.

Additionally, read and study the topic before choosing your cryptocurrency and exchange — the more informed you are, the better prepared you’ll be to navigate this world.

Please note: This article does not constitute financial advice. It is intended only to provide general tips. Always do your own research or speak to a professional before investing.

Are cryptocurrencies safe?

While the market is generally safe when used properly, it is also vulnerable to scams such as phishing, guaranteed return promises, fake websites, and fraudulent profiles. To protect yourself and ensure your security, keep the following recommendations in mind:

• Check transactions carefully before approving them.
• Never share personal information with strangers.
• Research suspicious companies or profiles.
• Trust your instincts. If it sounds too good to be true, it probably is.
• Report scam attempts to the relevant authorities.

Another useful tip: for larger amounts, consider using a cold wallet — a physical device that stores your private keys offline, disconnected from the internet.

Is it worth investing?

Investing in cryptocurrencies can be rewarding, but it’s essential to be aware of the risks. The market is volatile and can experience abrupt price swings within hours. If you are prepared for fluctuations and have a clear investment plan, crypto can indeed play a strategic role in your portfolio.

Conclusion

Investing in cryptocurrencies is accessible, but it requires preparation, information, and safety precautions. With the right exchange, a secure wallet, and attention to regulations, you can explore the growth potential of this innovative market without compromising your financial security.

So, do your research, start small, and stay informed. With a strategic approach, cryptocurrency investment can become a meaningful part of your financial future.