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How to Buy Bitcoin in New Zealand (in Four Must-Know Steps)

This guide explores trusted, low-cost and safe ways to buy Bitcoin in New Zealand. By publishing this guide, we are not recommending you buy Bitcoin.
​Updated 10 August 2024

Warning: If you have been asked to send Bitcoin to a person you've never met who lives overseas, we urge you to reconsider. MoneyHub is receiving dozens of calls and emails every month from people all over New Zealand who are being targeted as part of a widespread scam. The victims are usually in their 50s, 60s and 70s. If you are reading this guide wondering how to send Bitcoin to a person overseas, we suggest you delete the emails requesting payment, stop all contact and report the incident to Netsafe New Zealand.
Summary
  • Bitcoin is the popular cryptocurrency that often finds its way into the news for its high price volatility.
  • Even the most conservative investors are looking on with growing curiosity while sceptics stand clear. 
  • In this guide, we'll help New Zealanders navigate the complex and controversial territory of cryptocurrencies to help you buy Bitcoin in the safest, simplest and most affordable way possible.
  • There are lots of scams relating to Bitcoin - please don't make any purchase without understanding what you are buying. Our Bitcoin scam guide has more details, as does this Stuff article.
  • This guide does not consider whether you should or not buy bitcoin; we assume that decision was already made, hence why you're reading this guide.

Our guide covers:
Warning:
  1. By publishing this guide, we are not recommending or suggesting in any way or form that Bitcoin is a suitable investment.
  2. We published and routinely update this guide to help people decide what's best for them - MoneyHub is conservative and our publisher, Christopher Walsh, has zero Bitcoin investments. Bitcoin has proven to be highly volatile in 2021 and 2022 and we strongly suggest reading this guidance from the FMA before making any investment. Like the FMA, MoneyHub is also cautious.
  3. We present this information in good faith and remain objective at all times. ​By including this guide under our Investing and Saving section, we are not advocating that cryptocurrency is an investment. We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

MoneyHub Founder, Christopher Walsh, shares his views:

"Bitcoin is a hot topic, but I am very cautious and have never invested personally. (Bitcoin) seems to be a store of value, almost a vanity investment. Years ago it was 1 cent, 10 cents, $300 and then it was up to $75,000. Is it legitimate? No one can answer that because it is not regulated."

"Whatever you decide to do, the FMA and I want to make it clear that you should never invest more than you can afford to lose. And based on its history, the daily price will be highly volatile".

"We've published a guide to two popular Bitcoin platforms - Easy Crypto vs Swyftx. I suggest it's a good starting point to minimize the costs should you want to buy into Bitcoin or any other cryptocurrency".
Christopher Walsh
MoneyHub Founder

Buying Bitcoin with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

Buying Bitcoin in NZ - Popular Options

The table below includes the most popular platforms used by New Zealanders but is not a complete list. Please be very careful in your due diligence before making any Bitcoin trade, given the number of bad players in the market.
Provider
NZD accepted?
Base
Established Date
Further Information
Easy Crypto
Yes
New Zealand
2017
Easy Crypto Review
Swyftx
Yes
Australia
2018
Swyftx Review
Kiwi-Coin
Yes
New Zealand
2014
Kiwi-Coin Review
Binance
Yes
Cayman Islands
2017
Binance Review

Step One - Understand the Must-Know Considerations

Much like other financial assets, you can acquire Bitcoin in a variety of ways - from exchanges, from over-the-counter brokers, or in private trades. When you buy Bitcoin from an exchange or broker, they should allow funding using bank transfer, debit/credit card or e-wallets like PayPal or POLI. Once you have completed the purchase, they will deliver the coins to a BTC wallet which either you provide, or they provide. Our guide to Bitcoin wallets has more details.

Top Tip - Protect Your Holdings Immediately
  • Once you have purchased your Bitcoins from an exchange, it's always a good idea to transfer some or all of them to a wallet you control.
  • Exchanges are incredibly vulnerable to hacks and attacks. The infamous New Zealand-based exchange Cryptopia is likely still fresh in everyone's mind. In this scandal, attackers took more than US$17 million in Ethereum and ERC-20 tokens in early 2019.
  • Unfortunately, there are dozens of stories like this, and that's why Bitcoin owners need to take steps to protect their holdings.

For the average investor, the main characteristics to look for in a platform for buying BTC are as follows:

1. Understand the Funding methods
Check if the company has convenient funding methods that are familiar to you. Some companies engaged in cryptocurrency trading may struggle with opening bank accounts or partnering with licensed payment processing companies, which means out of necessity they cooperate with payment institutions with a higher risk appetite.

2. Know the Fees Upfront
Familiarise yourself with all of the applicable fees. Some companies impose transaction or conversion fees to cover what's charged to them by payment processors. For example, free is perfect, one per cent is fair, two per cent is high, and anything more is unreasonable.

Besides charging for making fiat deposits, some companies charge for withdrawing cryptocurrencies to external wallets. Withdrawal fees vary depending on the coin. Fees could be as high as 0.0005 BTC.

All exchanges and brokers make their money from transaction fees when users buy or sell cryptocurrencies, and again, they can vary widely. Some platforms charge 0.5% and some charge 0.1% or less, depending on your trading volume. Some exchanges adopt a maker-taker model, where they charge less when limit-orders are used instead of market-orders.

3. Know the Platform's Reputation
Look for an established company with an active user base. The more users a company serves hints at greater liquidity on the platform, making it easier to buy and sell Bitcoin. There are many options in the market today which have been operating reliably for years.

4. Compliance is Important
Decentralised finance advocates might disagree with this point; however, an important characteristic of a legitimate venue for buying Bitcoin is if the company requires ID verification before providing services. Companies engaged in trading cryptocurrencies face endless scrutiny from banks and payment providers due to the relative anonymity involved and perceived risks of facilitating money laundering and terrorist financing. Therefore, robust KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures should be in place.

5. Understand the Liquidity for when You Want to Sell
It's important to know you have the ability to sell your Bitcoin quickly and easily, should you want to liquidate them. Also, check how your sale will be settled, how long it will take, and if any transfer fees should be expected.

6. Be Aware of the Range of products
If you're interested in buying other cryptocurrencies, you may want to review what else is offered. Most large exchanges and brokers offer numerous cryptocurrencies and digital assets. The features of the platform might also be of interest, depending on your Bitcoin investment strategy. If you want to make a couple of purchases, you probably want a simple application which doesn't require learning how to use some advanced trading software. However, if you're looking to trade Bitcoin and other cryptocurrencies more actively, then a sophisticated trading platform will be more compelling.

Step Two: Understand Five Must-Know Facts Before Buying Bitcoin

For all the benefits Bitcoin offers in comparison to legacy financial systems, many of them can be exploited by bad actors and turned into flaws. Bitcoin is a trustless system that functions based on hardcoded rules, complex cryptography and a globally distributed network of miners who contribute processing power to the network. These features allow the Bitcoin network to function independently of any authority, which can be perceived as a good thing, as well as something negative.

Our must-know facts help you understand Bitcoin better:

Bitcoin transactions are non-reversible

This is a great feature for merchants who are concerned about chargebacks. However, if you’ve been scammed, hacked or just sent money to the wrong address, those transactions cannot be reversed.

Bitcoin is pseudonymous

When you pay for goods and services online via credit or debit card, you usually hand over a cluster of personal information transmitted over the internet and likely stored on servers somewhere that has a chance of being misappropriated in the future. Bitcoin allows you to pay without disclosing your personal information. At the same time, this anonymity protects hackers and scammers.

Bitcoin is incredibly secure

As private BTC addresses are not associated with anyone’s identity, the only way to spend funds is to control the private key. However, if you lose the private key and the seed (backup solution), you will also become a victim of Bitcoin’s impressive security and your funds will be lost forever.

Bitcoin is decentralised

There are no restrictions on who can create a BTC wallet and start using the cryptocurrency. If someone lives in a country with an unreliable or inaccessible banking system, they can use Bitcoin without objection. However, this also means no measures prevent known criminals, sanctioned countries and terrorist organisations from using Bitcoin.

The past performance of Bitcoin is no guarantee of future behaviour

Bitcoin has seen some impressive gains over the years but the price of BTC is incredibly volatile and if you’re looking for short term gains, you might be very disappointed as it could take months or even years for BTC to recover from a correction. Investing in Bitcoin is speculative and profits rely on someone paying more for it than you later on.

Step Three: Use a Trusted Platform

We explain how everyday New Zealanders buy Bitcoin

There are several options for buying Bitcoin in New Zealand - our list below includes the most trusted and popular methods.
Disclaimer - the inclusion of any Bitcoin exchange or broker below is not an endorsement or a promotion. Our list is for information purposes only.

Easy Crypto

Easy Crypto is a popular destination to buy and sell Bitcoin and a series of other digital assets in New Zealand. Easy Crypto has also adopted the non-custodial route and requires users who buy cryptocurrencies from them to have a private wallet to receive the settlement of their purchase. Moreover, the company has gone to great lengths to guide users on keeping their cryptocurrencies safe, with recommendations on hardware wallets, and plenty of user guides on each recommended model.

​Important: Easy Crypto offers crypto wallets; a simple, safe and easy to use mobile app designed to deliver a secure and intuitive experience for managing multiple digital assets and crypto wallets, regardless of whether you're a crypto novice or an experienced user. You can see more details here.

Details:
  • Payment methods: POLI instant pay, debit or credit cards, or local NZ bank transfer
  • Fees: All fees are included in the spread, which is why the bid and offer prices might look higher than other platforms. The fees are around  0.5-0.9% depending on the market and your discount tier. 
  • Minimum order size: NZ$50
  • Settlement: Private wallet
  • Coins available: 109, including Bitcoin
  • Learn more: ​Easy Crypto

Binance

According to average daily turnover, Binance is one of the largest crypto exchange platforms in the world. After launching in 2017, the company established itself globally and is constantly shrouded with more rumours of expansion in a short space of time. Among many other services, such as crypto fixed income products, derivative products, margin trading and more, Binance also offers New Zealanders a gateway to buying Bitcoin locally.
 
Details:
  • Payment methods: Debit/credit card via third-party payment provider Simplex
  • Fees: Card processing fees are 3.5% with a minimum fee of US$10. When withdrawing Bitcoin, for example to your private wallet, there is a withdrawal fee of 0.0005 BTC.
  • Minimum order size: The minimum order size is the equivalent of US$30, which is approximately NZ$46
  • Settlement: On an account
  • Coins available: With a bank card, you can buy 18 different cryptocurrencies, including Bitcoin. On the exchange, there are hundreds of coins available to trade once you have an account funded with crypto
  • Learn more: ​Binance and/or read our Binance Review

Swyftx

Swyftx launched its dedicated New Zealand platform in August 2021 with a focus on low fees, minimal spreads and a wide choice of coins. The exchange offers 280+ different coins, including Bitcoin. Almost all coins are able to be sourced through the Swyftx order page.

Details:
  • Fiat payment methods: To buy Bitcoin with New Zealand dollars on Swyftx, only debit card payments are permitted.
  • Withdrawal fees: Minimum withdrawal of NZ$30 with a NZ$10 withdrawal fee.
  • Trading fees: 0.6% platform fee on the value of the transaction. Swyftx states that it offers high volume discounts.
  • Verification requirements: The steps from signup to trade are simple - first, users create an account (by entering their name and details). Then, Swyftx verifies your ID (via photo ID, phone number and email address) and, once done, asks for a deposit (made via a debit card). Once the deposit has cleared, users can start trading.
  • Limits: Daily deposit limit up to NZ$50,000, no trading limits.
  • Markets available: Various
  • More details: Visit Swyftx and/or read our Swyftx review.

LocalBitcoins

LocalBitcoins is a well-known platform in the Bitcoin community. Since 2012, the website has allowed buyers and sellers to place listings and answer each other’s ads. As the name suggests, users can make deals locally, in their own currency, using local payment methods. Users negotiate directly, mutually agree on the price and payment method. LocalBitcoins acts as a middleman and escrow agent in the transaction, thus protecting buyers and sellers. Once a transaction is completed successfully, users leave feedback on their experience, thus helping other users in the future. The person who creates the listing on the website is responsible for covering the fees, which are 1% of the transaction’s value. There are several users based in New Zealand, accepting payments from BNZ, ASB, and Westpac accounts in New Zealand dollars.

Details:
  • Payment methods: It depends on your agreement with the seller
  • Fees: A fee of 1% is charged to the party which listed the ad on the platform, other fees might be priced into the offer from the seller
  • Minimum order size: The seller sets the minimum order size
  • Settlement: Private wallet
  • Coins available: Bitcoin only
  • Learn More: LocalBitcoins

Buying Bitcoin with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

Step Four: ​​How to Keep your Bitcoin Safe by Protecting Your Private Key

Typically, when you invest money in the financial markets, you do so via a licensed and authorised broker to deal or issue those instruments and act as a custodian for your collateral and your assets. These traditional financial service providers need to meet fitness and proprietary requirements before a license is issued, requisition external auditors annually, submit reports to authorities and meet strict operational and fiduciary responsibilities. For the most part, these checks and balances don’t exist in the cryptocurrency industry, and most companies are left to follow their instincts. Therefore, investors are left to their own devices to keep their digital assets safe from accidents or incidents.

The best way to keep your Bitcoin safe is to use one of the popular hardware wallets that the Bitcoin community has already tried and tested. When it comes to Bitcoin, the asset you want to protect is the private key, not the coins themselves. The private key is used for signing transactions and allows anyone who possesses it to transfer Bitcoins from the corresponding address.

Without going into great detail concerning the underlying cryptography used to make this all possible, a hardware wallet allows you to create Bitcoin transactions without connecting to the internet, therefore significantly protecting the private key. In the hardware wallet, you’re able to create a signature, which according to the Bitcoin developer glossary could only have reasonably been created by someone who has the private key.

The signature is essentially a by-product of the public-key and private-key but cannot be used to ascertain what the private key is. Therefore, the signature can be generated offline and used to authorise transactions online.

Frequently Asked Questions about Bitcoin and Keeping Your Bitcoin Safe

There is a lot of misinformation about Bitcoin - our shortlist of common questions help you understand some of the finer details.

What is the difference between Bitcoin, Bitcoin Cash, Bitcoin Gold, etc.?

Since Bitcoin’s introduction in 2009, a few hard forks have emerged. A hard fork is essentially a spinoff. The various forks of Bitcoin are Bitcoin Cash (BCH) and Bitcoin Gold (BCG). Bitcoin Satoshi Vision (BSV) is a fork of Bitcoin Cash. A fork takes place when a community believes there are certain flaws to be addressed, improvements can be made, or new features are required.

Bitcoin Cash was created to improve the scaling capabilities of Bitcoin, and it was relatively successful. Transactions on the Bitcoin network are processed in intervals of approximately ten minutes, and each block has a 1mb limit accommodating about 3,500 transactions. The result is the compatibility of processing around seven transactions per second. Bitcoin Cash has a block limit of 8mb, meaning the network can process eight times more transactions in the same time as BTC.

Is it safe to use online Bitcoin wallets?

Like many things in life, it’s safe, until it isn’t. Online Bitcoin wallets offer a lot of conveniences, but they come at a cost. When you keep your crypto in an online wallet, there is always a risk that the provider could be compromised. Cybercriminals are always looking for new ways to exploit cryptocurrency users and businesses. The best advice is to take charge and use a private wallet you control.

Is it safe to keep Bitcoins on an exchange?

Many exchanges allow you to keep your purchased cryptocurrencies in an account on their platform. The idea is to make it convenient for active users to buy and sell cryptocurrencies. Most exchanges encourage users to keep their coins in private wallets. Its well-known exchanges are the targets of aggressive and sophisticated attacks due to the large amounts of cryptocurrencies under their control. If you’re planning on holding Bitcoin for the long term, you should make the necessary arrangements to keep your coins safe.

Can I buy Bitcoin outside of an exchange, i.e. are there Bitcoin funds or ETFs?

Although several Bitcoin-tracking ETFs exist, these are listed overseas, primarily on US and Canadian markets. This guide from The Motley Fool has more details.

Arguably more accessible than overseas Bitcoin ETFs (which tend to be unavailable on Sharesies and Hatch etc.) is the Vault International Bitcoin Fund. The fund provides a convenient way to easily get exposure to Bitcoin (without needing wallets etc.), within a regulated fund taxed as a PIE. Our guide to Vault's fund, available on InvestNow, has more details. The fund is designed to track the performance/price of Bitcoin.

Can I invest in Crypto via KiwiSaver?

Yes, a select few schemes offer the opportunity to do so. One scheme, Koura KiwiSaver, allows members to invest in their Carbon Neutral Crypto Currency Fund. This is a fund that invests exclusively in Bitcoin. It has a long-term buy-and-hold strategy for investing. Please be aware that cryptocurrencies are highly volatile, and while KiwiSaver is a long-term investment, allocating money to crypto is not without risks. You can learn more about the fund here.

Buying Bitcoin with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Bitcoin platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto alongside Swyftx, an Australian-based platform.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and in the case of Easy Crypto, there is a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.
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