How to buy Ethereum in Australia


Ethereum is the second largest cryptocurrency by market capitalization, and it goes without saying that it is very popular in the crypto world. If you want to own Ethereum, we’ll walk you through the process.







What is Ethereum?




Ethereum is a blockchain platform designed to host decentralized applications (called DApps) and cryptocurrencies. It is generally considered to have some of the best blockchain technology in terms of innovation, security, and openness that developers can rely on, which is part of why it has become so popular.




What can you do with Ethereum?




Its native cryptocurrency is called Ether (ETH), which can be used as a payment method for various goods and services where cryptocurrencies are accepted, and it can also be exchanged for other cryptocurrencies or fiat. Additionally, the Ethereum network can also host other cryptocurrencies using its ERC-20 token compatibility standard, and to date this has been the most popular use case for Ethereum.




How to buy Ethereum?




You can buy Ethereum in four easy steps:




1. Compare and choose a cryptocurrency exchange or trading platform




To buy and sell cryptocurrencies, you will need to register with a cryptocurrency trading platform. When deciding which platform to use, there are a few things to consider including: fees, how easy it is to use, whether it’s based in Australia or overseas, and the coins you can trade on the platform. You will also need a wallet to store your cryptocurrency. A growing number of platforms now allow you to create a portfolio, as well as buy and sell on the exchange. For more on wallets, see below.




2. Register and verify your identity and email address




This step tends to be fairly simple, although depending on the platform you’re using, the process may differ slightly. You’ll likely need some identification before you can create your account, so it’s a good idea to have your driver’s license, passport, or proof of residency handy.




When setting up your account, you will choose your username, password, fill in all personal information and set up 2-factor authentication (which provides an extra layer of security) and verify your email address .




3. Link your bank account, select a payment method and make a deposit




Once you’ve added your bank account and selected your preferred payment method (Poli and PayID/Osko are two common methods), you can deposit AUD into your account, which is usually free. However, some platforms charge additional fees for currency conversions, for example between fiat currency and cryptocurrency.








4. Go to buy section and select Ethereum




Now that you have funds, you can buy Ethereum. Go to the buy/exchange cryptos section and select Ethereum, enter the amount of Australian dollars you want to invest or the amount of coins you want to buy, check that everything is correct and confirm your purchase.




What wallet can you use to hold Ethereum?




When you buy cryptocurrency, you will also need a place to store it. There are usually two storage options: a cold wallet or a hot wallet. A cold wallet stores your crypto in an offline hardware device for which you will need a private key, similar to a password, to access it. The benefit of storing your crypto offline is the added security.




Hot wallets refer to cryptocurrency that is stored online and connected to the internet. Although this option is more convenient, it does not protect your crypto from data breaches and hackers.




There are a few wallets you can use to store Ethereum in Australia. For cold wallets, you may consider:




  • Nano X Register
  • Nano S Register
  • Trezor Model T




And, for hot wallets, there is:












What can you buy with Ethereum?




Although the use of Ether as currency is not widespread, there are a few places that will accept it as a form of payment. These places include: Overstock, Gipsybee and Shopify which are popular online stores. In the US, other major retailers, like Whole Food, Bed Bath & Beyond, and Home Depot will accept Ether through the Flexa app. However, retailers in Australia have yet to embrace cryptocurrency.




Ethereum is also the most common payment method in the NFT market. So if you plan to buy or even sell an NFT, you will usually need Ethereum.








Should you buy Ethereum?




Whether cryptocurrency, including Ethereum, is the right investment for you depends on your personal circumstances. Before investing in anything, you should consider your goals, current situation and risk tolerance. Cryptocurrencies are notoriously volatile and while there is potential for big gains, there is also potential for big losses. It’s also best to have a good understanding of what you’re investing in, how it works, and if it has any real features.








Cover image source: Wit Olszewski/Shutterstock.com












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