If you want to buy Bitcoins with AUD, or any other fiat currency, you would have to open an account on a virtual exchange platform. As we warned a few times throughout this crypto guide, you should be very careful when you choose the virtual platform you want to trade on. If your goal is to buy Bitcoins with AUD, then it’s best to find a local exchange, like Blockbid and avoid conversion fees.
Since the beginning of April 2018, Australian law regarding the cryptocurrency realm has added an additional layer of protection for citizens by requiring every virtual cryptocurrency exchange to be registered with the authorities and to be compliant with AML/CTF guidelines.
The most common payment method used to buy Bitcoins with AUD on the exchange is with a credit card or a debit card. The payment process includes the following:
- Create an account and log into it
- Choose credit card/debit card for a payment method
- Verify the card’s information
- Buy Bitcoins
There is no need for additional clarification, since we use our credit cards/debit cards every day for online transactions, and today’s virtual platforms have made purchasing Bitcoins easy and smooth.
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Since the beginning of February 2018, the major banks in America, like Bank of America, Citigroup, JP Morgan, Capital One and Discover, banned their clients from purchasing cryptocurrencies with their credit cards. In the U.K., this trend started with the Lloyds banking group, and it affected the clients of MBNA, Halifax and Bank of Scotland.
There are different viewpoints when it comes to this ban. Some experts are saying that this is part of the bank’s retaliation against the Bitcoin and every other cryptocurrency, while others are saying that the banks are still afraid of the bubble and what will happen to the economy if people keep on buying Bitcoins on credit.
One of the issues regarding the credit card ban in the U.S. and the UK is bank control. The whole idea behind the Blockchain technology and the Bitcoin trading itself was decentralisation and total control over one’s own assets (in this case, virtual assets). Therefore, the actual question is: should banks be allowed to control transactions when they have already approved the account of the individual.
Bitcoin trading has seen a lot of turbulence lately since new regulations and laws have started impacting the market price. However, if you are ready to become a trader, stick to what you know at first, use a verified, local exchange and always buy Bitcoins with AUD to avoid additional costs.