To buy bitcoins using BPAY transfer from your bank account, you must use wallet that allows you to buy, sell, send and receive bitcoins. There are plenty available in Australia.
There are four steps to this process:
- Register an account with a bitcoin wallet designed for Australians.
- Complete verification and identification checks.
- Add and verify your bank account.
- Deposit into your exchange account.
- Buy Bitcoin
Register an account with a bitcoin wallet design for Australians
For Australian customers, we recommend Coinjar (coinjar.com.au).
The first step is easy – simply click “Sign Up” in the top right corner of their home page, enter your name, email address and select a password. It is best to use personal email addresses rather than work email addresses as we all change jobs.
Complete verification and identification checks
First, and for your own security and protection, you will need to provide your mobile phone number. Coinjar and other exchanges use two-factor authentication, meaning you will need to login with your email address and password, then enter a verification code which is sms’d to you.
Once you have verified your mobile number, you then need to provide identification documentation, mainly to comply with local ‘know your customer’ laws aimed at preventing fraud, theft, money laundering and other illegal activities.
Keep in mind that virtually all local and international online betting services require you to verify your identity with all online casinos before they will process any withdrawals on your winnings. So instead of going through this process when you win, you are simply going through this process upfront, which allows you to withdraw rapidly from coinjar to your bank account in the future.
Add and verify your bank account.
For withdrawals in the future, you need to add and verify your Australian bank account. This is effectively the same process used by companies such as Paypal.
To add your bank account in coinjar, click on Settings in the left column:
Then on the page that displays, roll down to the Linked Bank Accounts section and select the link “Add bank account”
In the pop up that displays, enter your bank account details. Coinjar will then make two very small deposits into your account.
You will be provided with instruction. As a general guide, you will be able to see their deposits into your bank account within 24-48 hours through your internet banking. Simply note down the amounts deposited, log into coinjar and verify your bank account in the same section by entering the amounts deposited.
This is done for your benefit and security. It allows coinjar to ensure that you have provided the correct bank account details to them for future withdrawals. You only need to complete this verification once per bank account added.
Deposit into your exchange account
In coinjar, you will see a ‘Quick Deposit” link in the top right corner.
This will display a pop-up with BPay details. Simply use your internet or phone banking service to make a BPay payment to your coin wallet and your funds should be available for using within the next 1-2 business days.
Once you have loaded up funds into your wallet, that amount will be (and stay) in Australian dollars. To purchase bitcoin or to sell bitcoin, simple click on the “Payments” button on the left:
When the payments section opens, click on the Transfer tab and choose to transfer money from your AUD account to your Everyday Bitcoin account.
Once you enter the amount and submit the request, you will be presented with pop up with the current exchange rates. Once you accept them, your Australian dollars will instantly be converted into bitcoin and ready for use.
A Word on Exchange Rates
At any time you can buy or sell bitcoins by simply transferring between your Cash Account and Everyday Bitcoin account at the exchange rates provided in coinjar, which are always good and fair. They charge a small commission for each transfer, but their rates are impressive compared to other exchanges.
If you choose to hold money in your Everyday Bitcoin account, the value of them in AUD is subject to changes in the value of bitcoin. Bitcoin values can change rapidly at times. In June 2016, the value of bitcoin jumped by around 30% in a matter of weeks, which would be a great ‘bonus’ if you happened to be holding bitcoins during that period. However, they can also lose value.
Our general advise is to keep most or all of your funds in your Australian Dollar account to minimise the effect of fluctuations full stop! If you ever want bitcoins again, purchasing them can be done from your Australian Dollar account within a matter of seconds. If you simply want to hold funds in your coinjar account for a while rather than withdrawing to your bank account, we recommend keeping them in Australian Dollars, unless you are keen on speculating on a rise in the value of bitcoin.
- Transferring funds from your bitcoin wallet to Bitcasino.
- Why it is better to complete verification before you starting playing.
- Money Management: the advantages of having a separate bitcoin wallet when gambling.