Bitcoin has been rapidly gaining value over the past few months. While I don’t believe you should go all in and invest your life savings in Bitcoin, I do think it’s worthwhile to hold a small position. I (like everyone else) has no idea what the price of Bitcoin is going to do. It could go to $100k or back to $1k. So remember to only invest what you can afford to lose.
If you’re new to cryptocurrency, the good news is that you can start investing with as little as $10 and build your portfolio over time.
Buying Bitcoin is pretty easy in Australia. Here are my top options for investing:
CoinSpot is a popular Australian Crypto Exchange. It’s based here in Australia, which means you’re dealing with an Australian company and not some dodgy guy with an offshore company. They’ve developed a good reputation over the past few years and I’ve used CoinSpot for the past two years without any issues.
On CoinSpot you can buy Bitcoin as well as a number of other cryptocurrencies. I’d recommend sticking with Bitcoin if you’re new to Cryptocurrency.
Depositing on CoinSpot is super easy too. They have a number of different options including PoLi and PayID. Personally I use PayID. This is an instant payment method developed by the big banks in Australia. Basically it lets you send money to anyone (or any company) instantly using your bank account.
You can start investing on CoinSpot with as little as $10.
What I like about CoinSpot
- Based in Australia
- Start investing with just $10
- Lots of coins to invest in beyond Bitcoin
- Super fast support with live chat
Coinbase is the worlds most popular crypto exchange for retail buyers. It has a really well designed and easy to use interface which makes buying Crypto as easy as shopping online.
For Australians, the only deposit option on Coinbase is with a credit card. Buying crypto with a credit card always incurs higher fees than other payment methods, but you can’t beat the speed and simplicity.
Coinbase is worth joining, even if you’re not looking to invest right now. As they have a feature called “Earn” which lets you earn crypto for learning about how cryptocurrency works. So not only do you get to learn about one the most exciting topics in finance, but you get some crypto for free too.
One feature I use is the Recurring investments. This lets you setup buys at regular intervals. My personal crypto portfolio has been profitable because I didn’t just buy when everyone was talking about Bitcoin. I bought small amounts at regular intervals. It’s a simple dollar cost averaging strategy and it works!
What I like about Coinbase
- Big company with excellent reputation
- Mobile apps for easy buys
- Credit Card purchases
- Good range of alt coins to invest in
- Recurring investments great for dollar cost averaging.
If you’re not sure how to invest in Crypto and want someone to manage it for you, then I’d recommend CoinBundle. CoinBundle groups together a number of cryptos into the one investment. It’s basically like a managed fund but for cryptocurrency.
The best thing about CoinBundle is they don’t charge any fees. So investing on CoinBundle could potentially save you hundreds of dollars in fees over the long term. CoinBundle is backed by a leading investment firm YCombinator.
You can start investing on CoinBundle with as little as $10.
What I like about Coinbundle
- Themed investments that are fully managed
- Automatic rebalancing
- Easy buys using a credit card
- Withdraw straight to your bank account
The process for Buying Bitcoin
Whether you use Coinspot, Coinbase or Coinbundle, the process is pretty much the same. One thing you’ll need to do on all of these sites is verify your identity. This process can be a little annoying. But it’s all done online and usually takes about 15 minutes. Depending on the site you might need to upload a photo of an identity document (like a drivers licence) and a photo yourself. This is all to stop money laundering and fraud and makes sure that these crypto exchanges are used by good people like us and not criminals. So it’s all good in the long run.
Once you’ve bought Bitcoin on Coinbase or CoinSpot, you can either leave it in the cloud wallet or move it to your own device. For small amounts it’s fine to leave it in the cloud. But for larger amounts I recommend downloading the “Coinbase Wallet” to your mobile device. This is a seperate app to the Coinbase one (make sure you search for Coinbase Wallet not just Coinbase). This will let you store crypto on your own device and you control the keys.