How to buy crypto in Australia: Beginner’s investing guide

Cryptocurrency can seem complex at first, especially if you’re new to investing. With new coins, platforms and terminology to get your head around, it’s not always obvious where to begin. This guide breaks things down step by step, starting with the basics and building from there, so you can better understand how crypto works and what to consider before getting involved. 

Key takeaways 

• Knowing how to buy crypto starts with education. Understand what you’re buying and what drives the price, as well as how you’ll manage volatility going forward. 

• The best way to buy crypto in Australia depends on your preferences. Options include ownership via a cryptocurrencyexchange, exposure through ETFs or keeping crypto in your share portfolio on one platform. 

• Crypto brings with it meaningful risks – volatility, regulation changes, scams – so sizing and diversification are all-important. 

• If you want simplicity, CMC Invest lets you manage crypto in the same place as your shares and ETFs. 

What is cryptocurrency? 

 Cryptocurrency is a broad term that generally refers to a range of digital assets that exist electronically rather than in physical form. These assets can differ significantly in how they are designed, what they are used for and how they function. 

Many cryptocurrencies use cryptographic techniques to help secure transactions and record ownership, and a large number operate on blockchain technology. A blockchain can be thought of as a shared digital record that tracks transactions across a network of computers, rather than being stored in one central system. 

Unlike traditional currencies issued by central banks, cryptocurrencies are often structured to operate in a decentralised way. In these systems, transactions are typically validated by the network according to predefined rules, rather than by a single central authority. 

Why invest in crypto? 

There’s no single reason why people invest in crypto, but a few motivations include: 

• Diversification: Some investors use crypto as a small allocation within a broader portfolio that includes shares, ETFs, cash, etc. A diversified portfolio is all about reducing your reliance on one particular asset class. 

• Long-term growth potential: Some investors believe crypto will become even more mainstream over time, although this isn’t guaranteed. 

• Innovation exposure: Crypto and blockchain have influenced payments, decentralised finance, digital identity and tokenisation – areas some investors want exposure to. 

Popular crypto coins to think about 

If you’re a beginner, you’ll usually see the same major coins come up repeatedly because they’re among the most widely traded and closely watched. Below are some popular options available on CMC Invest’s crypto offering: 

• Bitcoin (BTC): Lauded as the ‘original’ cryptocurrency and, by market value, the most established. 

• Ethereum (ETH): A major blockchain used for smart contracts and applications. 

• Solana (SOL): Known for its speed and lower transaction costs in some cases. 

• Chainlink (LINK): A decentralised oracle network designed to connect blockchains with real-world data, enabling smart contracts to interact with external information. 

• Litecoin (LTC): One of the older, more established cryptocurrencies. 

If you want even more education on the biggest crypto coins on the market, read our helpful guides on how to buy Bitcoin in Australia, as well as a few Bitcoin myths debunked. 

Buying crypto in Australia: A step-by-step guide 

If you’re considering buying crypto, there are a number of common steps people typically go through. These can vary depending on the platform or approach you choose, but the outline below provides a general overview of how the process often works. 

Step 1: Research and educate yourself 

Before you buy anything, learn the basics: 

• What drives the price (i.e. adoption, regulation, market sentiment, macro factors). 

• How to read crypto charts  

• How you’ll handle volatility and what you’ll do if the price drops steeply. 

Step 2: Choose a platform or exchange 

 To buy crypto, investors can choose from a range of approaches, including: 

• A crypto exchange where you buy and hold the crypto yourself. 

• Crypto ETFs that index and track crypto prices. 

• A stockbroking platform with crypto access, so you manage it alongside your other investments. 

If simplicity matters above all else, think about how many apps you want to manage. For some people, the best way to buy crypto in Australia is the method that keeps everything in one place, especially if you’re already investing in shares and ETFs. 

Step 3: Set up your account and verify your identity 

Most platforms will need to verify your identity before allowing you into the markets. So, prepare the following when signing up: 

• Government-issued ID. 

• Proof of address. 

• Basic personal details. 

Step 4: Fund your account and buy crypto 

Once your account is ready, you can deposit funds and make your first trade. But before you do, ask yourself a few questions: 

• How much am I comfortable investing? 

• Should I make a lump-sum purchase or spread it out to reduce timing risk? 

• What are the fees, spreads and minimum order sizes? 

Step 5: Manage and monitor your investments 

This step depends on how you buy. If you use an exchange, you’ll need to think about wallets and custody (hot wallets vs cold storage). If you invest through a platform that manages the crypto exposure within an investing account, you might not need a separate wallet.

Regardless of the approach you choose, it’s important to stay informed. Crypto prices can move quickly, so having a plan for monitoring your positions and keeping up with major developments can help you stay on top of your investments. 

Risks of investing in crypto

 Investing in crypto involves a range of risks that investors should be aware of, including: 

• Volatility: Cryptocurrency prices can experience significant fluctuations over short periods of time. 

• Regulatory uncertainty: Laws and regulations affecting cryptocurrencies may change, which can impact how crypto assets are traded, held or taxed. 

• Market structure risks: Liquidity can vary widely between cryptocurrencies, with smaller or less-traded coins often experiencing sharper price movements. 

• Technology risks: Technical issues such as software bugs, security breaches, network disruptions or project failures can affect the value or functionality of a crypto asset. 

How to invest in crypto with CMC Invest 

If you’re wondering how to buy crypto without managing separate wallets,CMC Markets Invest can simplify the process for you. 

• Everything in one platform: Manage your crypto along with shares and ETFs, rather than juggling multiple apps. 

• No separate wallet needed: You can get crypto exposure within your account, so you don’t need to set up external wallets just to get started. 

• Simple onboarding and support: Use our platform guides to learn the workflow and place trades with more confidence. 

CMC Invest offers access to a large selection of coins and tokens through its integrated investing platform, providing an accessible way to start investing. Below is a step-by-step guide for new and existing CMC Invest customers on how to invest in crypto. 

1. Open a CMC Invest account 

Get started by opening a CMC Invest account. You’ll get access to a wide range of investment products, including Bitcoin, Ethereum, and Solana, as well as traditional asset types. 

2. Opt-in for cryptocurrency investing 

Once your account is set up, you’ll have access to over 40,000 stocks and ETFs as standard. If Bitcoin or other crypto interests you, you’ll need to opt in to access unregulated blockchain assets like Litecoin. 

3. Research cryptocurrencies  

Before investing, you’ll want to give yourself a solid base of understanding of the crypto fundamentals and general market trends. CMC Invest has a range of educational resources and powerful charting tools to help investors make the best decisions for their portfolios. 

4. Start investing in crypto  

Once you’ve opted in, you can start buying crypto directly from the CMC Invest Platform via the mobile app or desktop version. 

Start here to see our crypto offering, and if you want to see how the platform works before diving in, we’ve put together a useful walkthrough video to get you on your way.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed and is warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.   

Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Markets Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Markets’ Platform to pay for goods or services.    

The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.