For a long time, members of the general public saw cryptocurrencies as something of an enigma. They understood that people were making a fortune buying and selling various cryptocurrencies but had little to no idea how they worked. And that has slowed cryptocurrency adoption rates in most of the developed world.
But there is one place where that hasn't been the case: Australia. The population there has taken to cryptocurrency faster than almost anywhere else in the world. At last count, about one in six Australians owned some form of cryptocurrency. That puts them ahead of every other developed nation, including the US.
And it would be reasonable to expect that trend to continue there. But some hurdles remain. One of the biggest is that people are still unsure about how to purchase cryptocurrencies. A full 22% percent of Australians reported that as the reason they've yet to do so. And to help, here's an overview of the safest ways to buy cryptocurrency in Australia today.
Well-Established Cryptocurrency ExchangesBy far, the safest way to purchase cryptocurrency in Australia is to do so through a cryptocurrency exchange. And doing so comes with several advantages. The most important one is that cryptocurrency exchanges, like banks, offer you a place to store your holdings once you've opened an account. That means they can function as a one-stop shop for newcomers who aren't certain how to deal with the various cryptocurrency wallets available today.
But if you're planning to leave your holdings in the custody of an exchange, it's important to choose one with a reputation for being secure. Leading Australian cryptocurrency exchange CoinSpot prides themselves on offering the most secure trading platform in the world, making them a great place to get started. They'll keep your account as secure as possible while you learn the ropes of the cryptocurrency market and explore your options.
Cryptocurrency ATMsAnother safe option to buy cryptocurrencies in Australia is to find the nearest cryptocurrency ATM. At the time of this writing, there were a total of 40 such ATMs spread across the country. The only catch is that it's necessary to choose a cryptocurrency wallet and set it up before visiting the nearest location. But after that, the experience isn't all that different from performing a money transfer using a traditional ATM.
But cryptocurrency ATMs do have some downsides. The biggest one is their cost. In exchange for the convenience of making on-the-spot cryptocurrency purchases, you could pay anywhere from 7% to 20% in transaction fees. That's an order of magnitude more than you'd pay while using an exchange. And, given the price fluctuations common to most cryptocurrencies, that often makes using one prohibitively costly.
Peer to Peer Trading PlatformsWhen it comes to privacy, there are few better options for purchasing cryptocurrencies than peer-to-peer platforms. Unlike conventional cryptocurrency exchanges, peer-to-peer options are automated and not under the direct control of an individual or organization. And as long as you choose one with a solid track record, they're also quite safe.
In Australia, two of the most popular options are LocalBitcoins and Paxful. But like using a cryptocurrency ATM, the transaction fees on such platforms may be high depending on when you use them. And, it can also take somewhat longer to complete transactions because of fluctuating demand and traffic levels. But all of that comes in exchange for more privacy and no intermediaries between you and other cryptocurrency buyers and sellers.
Direct Purchase From a Cryptocurrency HolderBecause one in six Australians already own some form of cryptocurrency, another safe option is to purchase some directly from one of them. All that's necessary to do this is to set up a cryptocurrency wallet, provide its address to the other party, and come to an exchange agreement. It's a type of transaction called a wallet-to-wallet transfer, and it's about as safe as it gets.
But for a newcomer, it's best to only do this with someone that you know and trust. There are plenty of ways that an unscrupulous person might try and defraud you otherwise. Plus, a trusted friend or relative is also more likely to give you a fair exchange rate at the time of your transaction, whereas a stranger might be more interested in turning a profit.
The Bottom LineBy now, it should be obvious that there are plenty of easy, safe options for buying cryptocurrency in Australia. All that a newcomer would need to do is choose the one that best fits their needs and take the plunge. That should make it a simple matter for even more Australians to purchase their first cryptocurrencies in 2021. And given the amount of pent-up demand already evidenced in the many surveys on the subject, there's every reason to believe that Australia will soon emerge as the hands-down leader in cryptocurrency adoption for years to come.