In 2021, the Bitcoin price hit an all-time high of $96,550 AUD per coin on Australian cryptocurrency exchanges. Bitcoin is now trading at a 50% discount after going into a correction and sideways consolidation in early 2022 – potentially making Bitcoin a good investment at this price point, with a long-term horizon in mind.
Many financial analysts around the world, as well as Australian crypto traders, are expecting the bullish uptrend of Bitcoin to continue in 2022 and towards the 2024 Bitcoin halving, and eventually hit mid-six-figure price targets, increasing the total market capitalization of crypto together with all altcoins.
Bitcoin billionaires ‘the Winklevoss twins’ in an interview with CNBC, referred to Bitcoin as ‘digital Gold’, which according to them would replace physical Gold as a better store of value and inflation hedge, and exceed its market cap, which presently stands at fifteen trillion Australian dollars. If their prediction comes true, one Bitcoin would be priced at about one million Australian dollars.
To invest in the best performing asset class of the last decade, always do your own research (DYOR) and make use of the best crypto exchanges Australia based traders are accepted at. In this guide we’ll list our recommendations and review each.
Best Cryptocurrency Exchanges in Australia – Top List
eToro – Bitcoin Trading Platform Regulated by ASIC
eToro is regulated by ASIC, the Australian Securities and Investments Commission and has an Australian financial services license. eToro has an office in Sydney, New South Wales. The platform is open to Australian customers, traders in New Zealand, and many other countries across the world. eToro is also regulated by the FCA and CySEC. It enables the buying and selling of more than 120 crypto coins presently.
Among eToro’s useful trading features are social trading and copy trading features. With the social trading tool, registered users receive their own social media styled profiles, where they can share insights and post about their views on the markets. They can also learn about other people’s perceptions of crypto assets.
Its copy-trading platform has a pool of verified professional investors with proven profitable trade records. Users can benefit from this tool by copying the trades of those traders. eToro does not charge any management fees and it will automatically choose whatever trades in your portfolio you wish to copy from others.
Another feature of eToro is its free crypto wallet also known as the eToro Money Wallet. To secure your funds against DDos attacks and unauthorized access, it comes with the set industry security standards. Traders can opt for a crypto debit card for using crypto funds during retail purchases.
Traders looking for passive income can use the staking rewards offered by eToro, like many other platforms, upon holding certain coins. You can earn rewards while staking Ethereum (ETH), Cardano (ADA), or Tron (TRX) on eToro.
eToro has the widest range of deposit options compared to any other cryptocurrency exchange Australia clients have the access to. These include bank transfer, debit and credit card, Paypal, Neteller, Skrill etc. It also has a mobile crypto app.
eToro requires KYC (know your customer) verification which may be considered as a downside for some. You need to upload a picture of your government-issued ID (passport/ driving license) for the process. Some traders prefer this as it makes the platform more secure and is not likely to face regulatory crackdowns, unlike exchanges that do not require KYC.
• Australian regulated exchange
• Copy trading
• Social trading
• Maximum deposit options
• Free crypto wallet with an unlosable private key
• May not be preferable for Scalpers and day traders
• Requires ID verification
• No leverage for crypto, only other asset classes
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Bybit – Alternative Crypto Trading Platform Australia
ByBit offers both spot trading and margin trading for crypto (which is called futures trading), which is not available in eToro.
So, rather than owning the underlying asset, you can easily long or short the price direction of Bitcoin and other cryptos, purchasing contracts (CFDs or contract for differences).
One unique feature of Bybit is a 0.025% maker rebate when you set limit orders on futures trades. Along with indulging in free crypto trading on the platform, every time you open and close your position, you can actually make money as you get the maker rebate, ensuring small yet significant cumulative profits.
Bybit’s maker rebate is 0.02%, more than Kucoin and Bitfinex. Binance has no maker rebate on margin trading. Only a few high volume spot traders with a trading volume of Bitcoin in hundreds per month can earn a maker rebate. But Bybit’s maker rebate does not depend on trading volume.
You can open a 1x hedge short on futures if you wish to sell. Even if the price rises, 1x short cannot be liquidated. It is basically selling your crypto into cash without the fees. You will not just get the maker rebate but also get funded every eight hours, usually favouring shorts. The funding is 0.01%, so, buying a trade pays the selling a 0.01% interest in eight hours.
Always use a stop loss with 1x leverage on opening a short, or a long- 1x longs can be liquidated. Although leverage helps you to increase profits, if you use it without a stop loss, you could lose the entire fund in your account. For better average entry, use layering bids when you scale your positions.
Like eToro and Binance, ByBit has no social trading or does not offer a separate wallet supporting a physical debit card. It nonetheless has a mobile app and offers some staking options.
Bybit allows users to be anonymous as it does not require them to provide government-issued ID for withdrawing up to 2 BTC per day.
• Maker rebate on futures
• Full Tradingview charts
• Lesser deposit options
• No social trading
Your capital is at risk.
If we consider trading volume, then Binance is the most popular crypto exchange Australia-based users can use. Although the user base is higher in Coinbase, the volume of trade is on the higher side on Binance.
This is probably because it offers the widest range of altcoins, allowing spot or margin trading for all. With more than 500 coins and DeFi tokens, it has the maximum number of coins listed as compared to other exchanges in this review.
Its technical indicators are similar to Bybit, with a classic mode that is more suitable for casual investors and beginners. Its advanced mode is designed for professional investors.
It supports DeFi staking, locked staking of crypto, mining, and yield farming. You can go through the Binance Earn part of the website or downloadable desktop client or mobile app to learn more about this functionality.
Binance offers a secure wallet just like eToro. Binance’s wallet has 10 million global users and is called a “Trust wallet”.
• Spot and Margin trading
• Supports most cryptos
• Advanced TA Indicators
• No social trading
Your capital is at risk.
Is Bitcoin a Good Investment?
At the time of writing the price of Bitcoin has found support at around the 100 week MA (moving average) which has historically been a good time to buy Bitcoin and hold it as a long-term investment.
To buy Bitcoin Australia traders will currently have to invest around $47,000 AUD ($34,000 USD) in 2022, which is half price versus Bitcoin’s 2021 all-time high.
Best Bitcoin Exchange in Australia – the Verdict
Most traders prefer several crypto exchanges to open accounts and keep their funds in different places rather than keeping them all in one.
In this way, investors are also able to benefit from the different features of various trading platforms. For instance, traders might choose a copy portfolio on eToro to invest some part of their portfolio on autopilot and choose to trade another part of their portfolio by choosing platforms like ByBit and Binance, which are more suitable for intra-day trading.
NB – Coinbase in Australia allows buying crypto but does not allow withdrawals to AU bank accounts. For that, you simply have to send it to another crypto exchange to convert it into AUD. So Coinbase works as a Bitcoin exchange Australia traders can buy BTC on, and transfer it elsewhere before selling.
eToro remains the best crypto exchange Australia based investors are accepted at as it has a financial services license from the Australian Securities and Investments Commission (ASIC).
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk. Additionally, 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.