How to Invest in Cryptocurrency in Australia: A Step-by-Step Guide

As little as AU$20 — that’s the minimum purchase at a Localcoin crypto ATM. Starting small is actually the recommended approach for beginners: learn the process with an amount you’re comfortable with, then build up gradually using dollar-cost averaging.

Bitcoin (BTC) is the most common first purchase — it’s the largest, most liquid, and most established cryptocurrency. Ethereum (ETH) is the usual second step, and Tether (USDT) suits beginners who want to hold crypto without price swings, since it’s pegged 1:1 to the US dollar.

A commonly cited guideline is 5% or less of your total investment portfolio. Crypto’s volatility means it can deliver outsized gains and losses — keeping the allocation small lets you benefit from the upside without putting your financial position at risk.

It depends on your goals and risk tolerance. Major coins are trading well below their late-2025 highs, which long-term investors treat as a lower entry point — but crypto remains a high-risk asset class, and past performance doesn’t guarantee future returns. The prudent approach: invest only what you can afford to lose, diversify, and think in years rather than weeks.

A hardware (cold) wallet kept offline is the most secure option, especially for larger amounts — it puts your private keys out of reach of online attacks. For small, everyday amounts, a reputable mobile wallet is fine. In both cases, your seed phrase is the master key: store it offline and never share it.

Yes. The ATO treats cryptocurrency as a capital gains tax (CGT) asset — selling, trading, or spending crypto can trigger a taxable event, even if you never converted it back to Australian dollars. Keep records of every transaction and consult the ATO’s crypto guidance or a tax professional.

Three things: a crypto wallet (a free mobile app is fine to start), a valid government-issued photo ID for the one-time verification, and your budget — from AU$20 up. Set up the wallet first, since you’ll scan its QR code when you buy.