How to start investing in bitcoin in Australia: A beginner's guide
Written by Ben Howard, founder of paybtc and its AML/CTF compliance officer.Updated
Buying bitcoin is the easy part. The hard part is working out why bitcoin matters before you put a dollar in.
This guide covers what you need to know: why bitcoin's fixed supply matters, how to store it properly, and how to buy it in Australia straight to a wallet you control.
Why bitcoin? It comes down to 21 million
Bitcoin launched in 2009. It's an open network that anyone can use to store and send value, anywhere in the world.
But the thing that matters most is the supply cap. There will only ever be 21 million bitcoin. That's it. The number is written into the rules, and the rules apply to everyone, central banks and governments included. They're enforced by code and verified by thousands of computers around the world.
Every dollar you hold loses value over time. Governments print more of them. Bitcoin runs the other way: the supply is fixed, and roughly every four years the rate of new bitcoin gets cut in half.
That scarcity is why people treat bitcoin as a long-term store of value. They looked at the properties of the money they already use and realised it's being debased every year.
Institutions and listed companies now hold it on their balance sheets. It matters for a simpler reason: anyone, anywhere, can hold money whose supply stays fixed.
How to buy bitcoin in Australia
Two steps. Get a wallet, then buy bitcoin. Here's how to do both properly.
Set up a wallet (your keys, your bitcoin)
Before you buy any bitcoin, you need somewhere to put it. That means setting up a bitcoin wallet.
A wallet holds your private keys. Whoever has the keys, owns the bitcoin. When you hold your own keys, your bitcoin moves when you say so.
When you set up your wallet, you'll get a recovery phrase, usually 12 or 24 words. Write it down on paper and store it somewhere safe. This is your backup. If your phone breaks or your computer dies, that phrase is how you get your bitcoin back.
Keep your recovery phrase to yourself. Anyone who asks for it, whoever they say they are, is asking for your bitcoin. If someone gets those words, they get the bitcoin, for good.
What to look for in a wallet
Open source: the code should be public so anyone can verify it does what it claims.
Bitcoin only: wallets that try to support hundreds of coins tend to be bloated and less secure.
Self-custody: you hold the keys.
Good backup process: clear instructions for writing down and verifying your recovery phrase.
Software wallet
Muun Wallet is free, open source, and dead simple. Great starting point if you're new to all this.
Hardware wallet
BitBox02 is a physical device that keeps your keys offline. If you're holding a meaningful amount of bitcoin, this is what you want.
Advanced & multisig
SeedSigner is for people who want full control and multisig setups. More involved to set up, but maximum security.
Want hands-on help? You can book a session with a self-custody advisor here.
Buy bitcoin through a self-custody exchange
Now you need to buy the bitcoin. This is where most people go wrong.
Most exchanges in Australia are custodial. That means when you buy bitcoin on their platform, they hold it for you. Your coins sit in their wallet, controlled by their keys. You're trusting them to stay secure, stay solvent and keep your account open.
That trust has broken before. Exchanges get hacked. Companies fail. Accounts get frozen. If they hold the keys when something goes wrong, your bitcoin goes with them.
A self-custody exchange works differently. You buy bitcoin and it gets sent directly to your own wallet. You're in control from the moment you buy.
paybtc is an Australian-owned bitcoin exchange that has been operating since March 2019. It's self-custody by default. You provide your wallet address, send AUD via bank transfer, and your bitcoin arrives in your wallet.
Ready to go? Here's a step-by-step on how to buy bitcoin using paybtc.