As of 2024, over 122 million Ethereum tokens are in circulation, more than ten times the number of Bitcoin. Ethereum (ETH) is now widely recognised as the second most popular cryptocurrency after Bitcoin.
As a decentralised network based on blockchain technology, Ethereum is designed to offer much more than merely a means of exchange or a store of value. The popularity of this cryptocurrency stems from its potential to be scaled, which allows for faster and more efficient transactions than Bitcoin or other crypto assets.
Ethereum offers more than just its basic features. It supports the development of Smart contracts, dApps (Decentralised Applications), and DAOs (Decentralised Autonomous Organisations). These capabilities have fueled innovation across various blockchain projects.
With so much to offer, it's evident that ETH is another goldmine that is worth holding on to. Now you might be wondering to yourself, "How to buy crypto safely? Is it legal to buy ETH in Australia? Where can I safely store my ETH assets?" Read on to learn everything you need to know about how to buy ETH in Australia.
Key Considerations for Buying and Storing ETH Safely
Understanding the world of cryptocurrency requires taking into account the hazards associated with it. Specifically, when conducting transactions or storing digital assets, it is crucial to be aware of potential risks.
For starters, cryptocurrencies are subject to price volatility, which means their value can fluctuate dramatically. Security is another issue, as cyber-attacks and hacking attempts are widespread in the digital domain.
A significant example is the Ledger attack on December 23rd, 2023, which compromised several Ethereum-based applications such as SushiSwap, Zapper, Phantom, and more. According to Blockaid, a blockchain security firm, the Ledger security compromise resulted in a loss of more than $150,000 in cryptocurrency.
Considering these common crypto investments and storing risks, it's essential to follow the steps below:
Best Crypto Exchange for Purchasing ETH in Australia
Launched in 2013, CoinSpot is one of Australia's most trusted and renowned crypto exchanges. With a user base of over 2.5 million and a 3-step ETH buying process, CoinSpot is the go-to platform for buying ETH in Australia.
If you're wondering how to buy ETH with CoinSpot, you simply have to sign up to CoinSpot, verify your account, and deposit AUD into your account. Once you have funds in your account, click the 'Buy' button next to ETH at CoinSpot's markets and enter the amount you want to invest. That's it! You now own ETH in your CoinSpot account.
Along with the straightforward sign-up and investment process, CoinSpot stands out for its:
Safest Places to Store Ethereum
Once you buy ETH, it's time to safely store it. Let's discuss the three most reliable and popular ETH storage options below:
Hardware Wallets
Hardware wallets are the ultimate cold storage for cryptocurrency. You can plug them into a computer like any other USB device to complete a transaction.
Most popular and trustworthy hardware wallets, such as the Ledger Nano X, include backup options to guarantee you don't lose your coins, and they can also be secured with 2FA and a PIN password.
- These wallets feature a convenient and simple UI
- Protected from various malware as they generate the keys offline
- You get various backup choices with hardware wallets
- You can also secure them with PIN passwords
- These wallets are more costly compared to software wallets
Software Wallets
As the name suggests, software wallets are digital wallets that store your cryptocurrency within a software application. These are software programs or applications run on a desktop laptop, PC, smartphone, or other digital devices. Zengo Wallet is a popular and recommended software wallet for holding Ethereum.
Zengo Wallet is the only self-custodial wallet that guarantees unrivalled security because it does not have a seed phrase vulnerability. Because of this, Zengo Wallet is one of the most secure software wallets for storing Ethereum.
- Easy usage and availability from anywhere with an internet connection
- They typically process transactions faster than hardware wallets
- Most of these wallets allow you to store numerous coins
- Ideal for small, regular transactions
- They are either free or available for download for a small fee
- Software wallets are more prone to hacks and theft
- You always need an internet connection to use them
Crypto Exchanges
Cryptocurrency exchanges enable you to trade your crypto as well as store any that you own, acting as a cryptocurrency wallet. The key advantage of such exchanges, like CoinSpot, is the convenience. You can quickly buy, sell or swap your ETH at any time, without having to transfer it from a different wallet first. You also don't have to pay any fees to transfer the crypto to an external wallet. CoinSpot is the best crypto exchange wallet due to the stringent security measures of the platform.
- Having a one-stop platform for buying, selling, and storing ETH is convenient
- Exchanges provide greater liquidity, facilitating the sale and acquisition of cryptos
- They provide strong security measures to protect your assets from hacking or theft
- In case of hacking or bankruptcy, you can lose all of your cryptocurrencies
- Most exchanges require you to provide personal information for identity verification during sign-up
Legal and Regulatory Aspects of Buying and Storing Cryptocurrency in Australia
You may still be asking yourself, "Is buying crypto safe in Australia?" The short answer is a clear YES.
In Australia, cryptocurrencies are treated as investments rather than legal money. In fact, the Australian government has stated that cryptocurrency assets held by Australians are not subject to foreign currency taxation.
However, in light of recent dramatic occurrences in the crypto industry, like the 2022 FTX collapse, there have been calls for improved digital currency rules that safeguard investors while maintaining market integrity.
This relates to the Australian government's announcement in the Federal Budget Papers 22-23 that it would pass legislation to tax cryptocurrency as an investment asset subject to capital gains tax (CGT). Following this regulatory requirement, Australian crypto investors can track each transaction, whether trading, buying, giving, or selling cryptocurrency.
While following this regulatory requirement is compulsory for all crypto investors and holders in Australia, it also comes with a unique benefit. Notably, this makes it easier for investors to evaluate whether they made a financial gain or loss, offering them greater strategic control over their assets.
Future Outlook of Ethereum in Australia
As the world's second-largest cryptocurrency, many experts predict a momentum in Ethereum's price and demand in the coming years.
Forbes analysts anticipate that Ethereum will be worth $40,000 by 2030, which does not appear as farfetched as it may appear.
Why? Because Ethereum has managed to rise and stay at the top of the list due to several factors, including its unique concept, scalability solutions, broad market approach, and status as a pioneer in many decentralised applications. All these factors prove that all ETH holders can expect high returns in the short and long run.
Conclusion
Ultimately, no crypto wallet or exchange can guarantee 100% security of your assets. Hence, the only way to ensure you buy crypto safely and securely store it in Australia is by considering the best platforms mentioned above.
Once you know your options, you can compare the platform's pros and cons and match them with your specific needs for buying and storing ETH. This way, you can better determine which option best caters to your specific needs, allowing you to make a more informed decision.
We hope this detailed guide will help you better navigate Australia's ETH buying and storing considerations.
