Bitcoin is a decentralised digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto, and started in 2009 when its source code was released as open-source software.
While there are many ways to purchase Bitcoin, the most common way is to buy it on a Bitcoin exchange. These websites act as middlemen between buyers and sellers, and usually charge a small fee for their service.
The most popular exchanges in Australia are Coinspot and Independent Reserve.
To buy Bitcoin on an exchange, you will first need to create an account and verify your identity. Once your account is verified, you can deposit Australian dollars (AUD) into your account via bank transfer or credit/debit card. Once your AUD balance is available, you can then start buying Bitcoin.
The process for selling Bitcoin is similar – you will need to create an account on an exchange and deposit your Bitcoin into your account. Once your Bitcoin balance is available, you can then start selling it for AUD.
Bitcoin exchanges are not without risk, however. They are susceptible to hacks and scams, and there have been several high-profile cases of exchanges collapsing and taking their customers’ money with them.
For this reason, it is important to only use reputable exchanges such as Coinspot and Independent Reserve, and to always keep your own records of any transactions you make.
If you’re looking to buy Bitcoin in Australia, the easiest way to do so is through a reputable Bitcoin exchange. While there are risks associated with this method, following some simple safety measures can help protect you from fraud or theft.