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1. Creating bitcoin.com.au account
To buy Bitcoin using Commonwealth Bank of Australia, the first step is to sign up for a free crypto exchange account on bitcoin.com.au.
Account creation and verification
Download the bitcoin.com.au app and sign up.
You will need to provide personal information to open an account on bitcoin.com.au, including:
Your full name
Email address
Phone number
A valid government-issued ID
This information is necessary for identity verification in accordance with AUSTRAC regulations and is required for customers of any Australian bank, including Commonwealth Bank. Accepted forms of ID for verification include an Australian Passport or driver’s license.
2. Depositing funds from Commonwealth Bank
Compatible deposit options
You can use your credit/debit card, PayPal, PayID or bank transfer to fund your bitcoin.com.au account. PayID is the recommended deposit method, as it offers a seamless and user-friendly experience. When transferring funds from Commonwealth Bank via PayID, there are no deposit fees.
3. How to buy Bitcoin with Commonwealth bank
Selecting Bitcoin among digital assets
You can select Bitcoin from the list of available cryptocurrencies on the bitcoin.com.au app. It’s important to note that Bitcoin is distinct from other cryptocurrencies offered on the platform, such as Ethereum or XRP. Each cryptocurrency has its own specific characteristics and objectives, so understanding their differences is crucial for informed decision-making.
Transaction details and execution
To make a Bitcoin purchase on Bitcoin.com.au, follow these steps:
- Tap on the “buy/sell” tab on the bottom navigation bar
- Enter the amount you’d like to purchase.
- Click the “buy” button.
Double-check all transaction details and then confirm your order.
Understanding Commonwealth Bank’s crypto policies
Understanding the bank’s policies is a key aspect of buying Bitcoin through Commonwealth Bank on cryptocurrency transactions. Commonwealth Bank has made a few changes recently to help protect consumers from scams.
Current stance on cryptocurrency transactions
Commbank may limit the amount you can pay to certain cryptocurrency exchanges, to no more than $10,000 in total from all of your accounts each calendar month.
If you are a new customer, the limits will be effective from 29 July 2023.
For existing customers, the limits will come into effect 30 days from the date that Commonwealth bank notifies you of the change, unless a later date is set out in your notice.
They will not however restrict withdrawals from cryptocurrency exchanges to your CommBank account.
You can read more about this on the Commbank website.
Navigating tax implications
Reporting and taxes
In Australia, cryptocurrency transactions, including those involving crypto assets, are considered property and are therefore subject to capital gains tax (CGT). Taxpayers are obliged to report their realised gains or losses on these transactions on their annual tax returns. It is essential to keep records of each crypto asset and transaction to accurately determine any capital gains or losses.
For more information on taxation of cryptocurrencies in Australia, refer to the Australian Taxation Office (ATO) website.
Tips for safe and smart crypto investment
Conducting comprehensive research is vital to ensure a secure and intelligent crypto investment experience, stay updated on market trends, and remain vigilant and cautious of potential scams, phishing attempts, and fraudulent schemes in the crypto space.
Research and due diligence
Conducting due diligence is very important before investing in any cryptocurrency. This involves:
Evaluating the potential risks and rewards of investing in a particular cryptocurrency or crypto project
Reviewing and challenging claims made by the project
Assessing the revenue model and strategic plans
Ensuring transparency and understanding of the project’s factors
By following these steps, you can make informed investment decisions and purchase crypto assets in the cryptocurrency market.
Additionally, it is important to check the credibility and identities of the team behind the project.
Monitoring market trends
Keeping on top of market trends and news can aid in making investment decisions. Platforms like CoinMarketCap and CoinGecko offer valuable insights and tools that can be utilised to make informed decisions in the crypto market.
Tracking market trends can help you stay ahead of the curve and make better investment choices.
Recognising and avoiding scams
Remaining alert and cautious of potential scams is crucial in the crypto space. Common scams associated with cryptocurrency investment include:
Bitcoin investment schemes
Rug pull scams
Romance scams
Phishing scams
Man-in-the-middle attacks
Social media scams
Bitcoin.com.au takes measures to protect users from potential scams by restricting transactions made to high-risk cryptocurrency exchanges and not taking responsibility for verifying recipient addresses for withdrawals.
Frequently asked questions
How do I create an account on bitcoin.com.au?
To create an account on bitcoin.com.au, provide your full name, email address, phone number, and a valid government-issued ID for verification.
What deposit methods are compatible with Commonwealth Bank for purchasing Bitcoin?
Commonwealth Bank customers can purchase Bitcoin using credit/debit card, PayPal, PayID or bank transfer.
How do I initiate a Bitcoin purchase on a platform like bitcoin.com.au?
To initiate a Bitcoin purchase on a platform like bitcoin.com.au, create and account, select the digital asset you wish to purchase, enter the amount you want, and confirm the purchase.
What are the tax implications of buying and selling cryptocurrencies in Australia?
Cryptocurrency transactions in Australia are treated as assets and are subject to capital gains tax. It is necessary to report these transactions and be aware of the potential taxes when buying and selling cryptocurrencies.
What bank does not block crypto deposits?
As of writing this article, we have noticed that there have been no issues with deposits to our exchange from BNK Bank.
How can I stay updated on market trends and news for informed cryptocurrency investment decisions?
Stay up to date with the latest market news and trends by using platforms like CoinMarketCap and CoinGecko. This can help you make more informed cryptocurrency investment decisions.
