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In terms of market capitalization, Ethereum (ETH) is the second-largest cryptocurrency in the world. The asset is an ever-popular feature of millions of cryptocurrency portfolios around the world.
This guide shows you how you can easily purchase Ethereum in 5 steps from one of the best crypto exchanges in Australia.
What Is Ethereum?
Launched in 2015, Ethereum is a blockchain platform with its form of cryptocurrency called Ether (ETH). The blockchain network is a decentralized and public ledger that is used for verifying and recording transactions. Applications used on the Ethereum blockchain are referred to as “Distributed Applications” (dApps). In terms of market capitalization, Ethereum is second in market value only to Bitcoin.
The Evolution of Ethereum
Ethereum was launched in July 2015 by Joe Lubin, founder of ConsenSys, and Vitalik Buterin. Joe is a blockchain applications developer that uses the Ethereum network. Vitalik had a major involvement in the original Ethereum concept and now serves as its CEO and public face.
In December 2020, the Ethereum blockchain received a major upgrade. Ethereum 2.0, or “Serenity”, was launched to enhance the speed, efficiency, and scalability of the network so that it could process more transactions and ease bottlenecks. Instead of using the Ethereum 1.0 Proof-of-Work system, Ethereum 2.0 utilizes a Proof-of-Stake mechanism.
The EIP 1559 upgrade was released to update transaction fees on the Ethereum blockchain. The change makes the network more efficient by using a hybrid system to evenly incentivise miners in periods of high and low network congestion.
Best Australian Platforms To Buy ETH In 2022
To purchase crypto in Australia, you will need to choose a reputable and secure crypto exchange that allows you to use Australian Dollars (AUD), has low trading fees, and has a user-friendly interface. A local Aussie platform also provides significant benefits such as more responsive customer support and a suite of other crypto features that cater to the Aussie market.
The comparison table below shows the best four platforms in Australia where you can safely buy ETH. These platforms have been selected based on a comprehensive review of each of their crypto features, fees, ease of use, customer support, and other aspects.
|Exchange||Assets||Trading Fees||Our Ratings||Learn More||Promotion|
|Swyftx||312||0.6%||4.8/5||Visit Swyftx Swyftx Review||$20 Free Bitcoin for creating a new account|
|Digital Surge||300+||0.5%||4.7/5||Visit Digital Surge Digital Surge Review||None available at this time|
|CoinSpot||330+||1%||4.6/5||Visit CoinSpot CoinSpot Review||None available at this time|
|Independent Reserve||30||0.5%||4.5/5||Visit Independent Reserve Independent Reserve Review||None available at this time|
|Binance Australia||600+||0.1% (maker) and 0.1% (taker)||3.7/5||Visit Binance Australia Binance Australia Review||None available at this time|
To aid with the explanatory process, we have used Swyftx as an example to buy altcoins including ETH. Based on our research, Swyftx is the best overall crypto exchange in Australia to buy, trade, and sell Ethereum.
Any affiliate links with our partners may result in MoreCrypto earning a small commission or compensation at no extra cost to you whatsoever.
How To Buy Ethereum In Australia
An overview of the five steps to buying Ethereum in Australia is as follows:
- Open an account with Swyftx.
- Verify your identity and activate 2 Factor Authentication (2FA).
- Deposit Australian Dollar (AUD) funds into your account.
- Enter in the amount of Ethereum to buy.
- Review the transaction details and confirm.
Guide To Buying Ethereum In Australia
Step 1 – Open An Account With A Crypto Exchange
Using our link to collect $10 BTC, go to the Swyftx website and click on the “Sign Up” button. This will redirect you to the registration page where an email address, password, and phone number will be required to be provided.
Once the details are entered, accept the terms and conditions and click on “Create Account”.
Step 2 – Identity Verification
Using the new login details, login into the Swyftx account to commence the ID verification process. Since Swyftx is an Australian-based crypto exchange, it is legally required under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to obtain customer details and verify identities. This process must be completed before any AUD can be deposited into the account wallet.
The following will be required to complete ID verification:
- Email – login into the nominated email account and click on the email verification email sent by Swyftx.
- Phone number – Swyftx will send an SMS message to the nominated phone number.
- Identity – Swyftx will require copies of one Australian government-issued document such as a passport or driver’s license.
The ID verification process with Swyftx takes less than 5 minutes to complete.
After the ID verification process is complete, we strongly recommend setting up 2 Factor Authentication (2FA). 2FA provides a basic level of security for the account where two methods of verification are needed to verify the account and also when funds are withdrawn. The 2FA setup page can be found under the “About” tab on the user account dashboard.
We suggest downloading Google Authenticator on a mobile device. The process will involve the use of the authenticator to scan a QR code or input a provided code to enable authentication of the device.
Tip: If the six-digit code provided by Google Authenticator does not work, then go into the settings and sync the time correction for codes. This should rectify the issue.
Step 3 – Deposit AUD Into Your Account
Before Ethereum can be purchased, Australian Dollars will need to be deposited into the account wallet. When it comes to depositing funds, it is wise to be mindful of the fees and the time taken to complete the transfer of funds.
Swyftx offers direct bank transfer, POLi, PayID, and also credit cards which are fairly unique in the Aussie market. Most of these methods will instantly deposit AUD into the account except bank transfers (unless via OSKO which is instant) and deposits made from credit cards. Swyftx does not charge any fees to deposit (or withdraw) funds into the wallet.
Note, that Swyftx will send an automated email notifying you of the successful deposit of AUD funds into the wallet.
Step 4 – Enter In The Purchase
The buying window can be found under “Trade”. Next, click on “Buy” to view the screen below. The page will present the following:
- Amount of AUD in the wallet and available to spend.
- The current market price of ETH.
- Several order types (market, limit, stop, and recurring)
The default order type is “Market” where you can quickly purchase Ethereum in a single transaction. The other order types are for intermediate to advanced investors and a discussion of each type is detailed in our Swyftx review. Customers will have the option of either entering in the amount of Ethereum they want to purchase, or the amount of AUD they want to spend to buy ETH.
Step 5 – Review & Confirm The Purchase
After an amount of AUD is entered in, the amount of Ethereum that will be purchased will be presented and will be inclusive of the trading fee (0.6%). Click on “Instant Buy” to review the transaction details and “Confirm Buy” to complete the purchase. Note, that once the purchase is confirmed, it cannot be reversed and AUD funds are recovered.
Buying Ethereum In Australia: Frequently Asked Questions
Is Buying Ethereum Legal In Australia?
The purchasing, trading, and selling of Ethereum and other digital assets is legal in Australia. Ownership of Ethereum is recognized as property by the Australian Tax Office (ATO) as assets that will be subject to taxation if a capital gains event is triggered. Almost all AUSTRAC registered crypto exchanges in Australia will offer ETH as a buyable asset.
For more information, you can read our guide on the taxation of cryptocurrencies in Australia.
What Is The Best Platform To Buy Ethereum In Australia?
Based on our review of top Australian-based crypto exchanges, Swyftx is our recommendation for buying Ethereum. Swyftx is suited for Australian beginner and experienced traders and investors alike. The Brisbane-based platform provides a streamlined crypto buying process and supports several AUD deposit methods.
How To Store Ethereum In Australia
Australians have two options to store their Ethereum. Firstly, Ethereum can be kept in the exchanges storage system, which can be cold storage (wallet), or a combination of hot and cold storage. Secondly, cold-storage wallets may be used by individuals to hold ETH offline and usually in a physical state.
- Hot storage refers to a wallet that is connected to the internet and can be accessed at any time. Examples include online cloud wallets, mobile wallets, software wallets, and exchanges. Hot wallets are great for keeping an amount of ETH available for frequent buying, trading, and selling.
- Cold storage refers to a physical means of keeping crypto in a storage device and is only accessible by the wallet owner. Examples include hardware wallets such as CoolWallet Pro and the Ledger Nano X. Cold wallets are not connected to the internet.
Can I Buy Ethereum Using A Credit Card?
Ethereum can be purchased from an exchange using a credit card as it is a supported AUD deposit method. The fees are typically higher however the method provides a level of convenience. Reputable and trustworthy exchanges should be used to buy ETH with a credit card such as Binance or Coinbase.
Can I Buy Ethereum Using A Debit Card?
Several Australian crypto exchanges including Swyftx allow their customers to purchase Ethereum with a debit card. Customers using this method will need to be aware of any fees and the time required to execute the transaction.
How Long Does It Take To Transfer Ethereum?
An Ethereum transaction confirmation is completed on average in 16 seconds, and between 1 to 5 minutes if more confirmations are required to validate the transaction. Transactions are reliant on the imposed security features of each wallet. If the network is busy and transactions are sent without paying the premium “tip,” transactions can be delayed because miners prioritize higher fee transactions.
Can I Use My SMSF To Invest In Ethereum?
Yes, you can use your Self-Managed Super Fund (SMSF) to buy Ethereum (ETH) from a secure and reputable Aussie exchange as part of a long-term store of value. Key legal and regulatory compliance requirements include the creation of a separate wallet that is independent of any personal digital assets, reporting capital gains events for taxation purposes, and achieving the sole purpose test.
For more information on the advantages and limitations, you can read our Australian SMSF cryptocurrency guide.