Complete Guide to Buying Bitcoin in New Zealand

There have been many stories about Cryptocurrency in recent years. And for good reason. In 2016, one Bitcoin would have cost you around $600. After five years, the cryptocurrency hit an all-time high, over $88,000 each!

Bitcoin is based on a distributed ledger technology called the blockchain, which allows transactions to be recorded and verified securely.

In New Zealand, Bitcoin and other cryptocurrencies are considered “property” rather than legal tender and are subject to the same tax treatment as other forms of property.

This means that any profits or losses made on the sale or exchange of Bitcoin are subject to capital gains tax.

That’s a lot of money for just lines of code placed in the memory of computers. This is what a digital currency or Bitcoin is! What is Bitcoin?

And how do you buy Virtual currency? To help you understand the world of cryptocurrency, here is a step-by-step guide to buying, selling, and using Bitcoin.

Buying Bitcoin in New Zealand may seem intimidating and confusing, but it is easy once set up.

You can buy Bitcoin in New Zealand and use it at Bitcoin casinos in numerous ways.

What is Bitcoin

This technology was first outlined in a 2008 scholarly article, Bitcoin: A Peer-to-Peer Electronic Cash System, by a Japanese man named Satoshi Nakamoto.

It is a decentralised digital cryptocurrency driven by blockchain technology. Blockchain is a foolproof digital ledger system that records data across many computers.

Each entry, or block, has a coded timestamp, which means records can’t be changed or tampered with. On an open peer-to-peer system, anyone has access to the records.

It was developed to display how electronic transactions can be simple and secure outside traditional global banking institutions.

So, each Bitcoin is just a digital code held on a central blockchain ledger. Suppose you have the key to that code; you “own” that Bitcoin. If you trade or spend your Bitcoin, that keycode will pass to somebody else, just like traditional currency.

Those who download the Bitcoin software and use their computers to timestamp, process and validate transactions can earn Bitcoins. This process is called mining.

How to Buy BTC?

When considering whether to invest in Bitcoin, know you don’t have to buy a whole one! Bitcoins are divisible by up to eight decimal points, meaning you can buy only a fraction of a Bitcoin.

It is also important to note that Bitcoin and other cryptocurrencies are highly volatile and fluctuate significantly. Investing in Bitcoin or other cryptocurrencies carries a high level of risk, and it is essential to be aware of the potential risks before making any investments.

Some big investment firms also offer cryptocurrency index trading, where you can invest in an index across a range of cryptocurrencies, including Bitcoin.

However, if you want to invest in just Bitcoin, there are a few ways to buy Bitcoin in New Zealand. Here are some of the main ones:

1. BitPrime

It is a popular New Zealand platform registered as an NZ financial services provider. From here, you can buy or sell various cryptocurrencies, including Bitcoin.

When you purchase with BitPrime, you must provide an address where your cryptocurrency should be delivered. To use BitPrime, you’ll need to make your cryptocurrency wallet first.

2. Easy Crypto

Easy Crypto is a popular place in New Zealand where people can buy and sell Bitcoin and other digital assets. It has also adopted the non-custodial route and requires users who buy cryptocurrencies from them to have a private wallet to get the settlement of their purchase.

Moreover, the company has offered user guides on keeping their cryptocurrencies safe, with recommendations on hardware wallets and plenty of user guides on each recommended model.

3. Binance

It is one of the largest crypto exchange platforms in the world. After its introduction in 2017, the company established itself internationally and is constantly shrouded with more rumours of expansion in a limited time.

Many other services include crypto fixed-income products, derivative products, and more. Binance also offers New Zealanders an option to buy Bitcoin locally.

4. LocalBitcoins

LocalBitcoins is also a popular platform in the Bitcoin community. Since 2012, the website has allowed buyers and sellers to post listings and respond to each other’s ads.

As the name suggests, users can make deals locally, in their currency, using local payment methods. You can negotiate directly and mutually agree on the price and payment method.

It acts as a middleman and agent in the transaction, thus protecting buyers and sellers. Once a transaction is completed, users leave feedback on their experience, helping other users in the future.

5. Kiwi Coin – Digital Currency

A local Bitcoin-only exchange is Kiwi Coin. The fee for buying and selling coins is minimal at around 0.4%-0.8%. This means that spending $100 on Bitcoin leaves you paying only 40 cents in costs to the exchange for their service.

First, you sign up on the website. Then, it would be best if you verified your identity. You might get a code through text or email, or you can log in with your REAL ME ID.

The different levels of verification will determine how much you can buy/sell and withdraw per day.

To deposit New Zealand dollars, you need at least Verification Level 1.5. Setting up Real Me verification might take a few days if you don’t have it yet.

Once you have completed this process, you can deposit and withdraw using your NZ bank account.

This process takes one day unless you use the same bank account. POLI can be used to transact instantly, but there is a $4.5 flat fee per transaction.

You can buy Bitcoin at the lowest selling price using the simple setting. You can also set a ‘buy order’ slightly higher than the highest bid and wait to see if someone sells to you.

This may get you a slightly lower price. This can be done in the advanced tab.

• The advanced tab lets you select your price.
• The simple tab only lets you buy and sell at the current bid and asking prices.
• Current highest bid or buy price – If you set your price at $1 higher, you will be next in line if anyone wants to sell instantly.
• Current lowest sell price – Setting your buy price to the lowest price will purchase the bitcoin instantly.

6. Swyftx

Swyftx is Australia’s top-rated cryptocurrency exchange, providing access to more than 350 digital currencies in Australia and New Zealand.

It has a tremendous positive rating on Trustpilot, standing at 4.6 out of 5 stars. Swyftx is ISO 27001 certified for information security, ensuring the safety of your transactions.

You can buy, sell, swap, track, and analyze hundreds of cryptocurrencies, including Bitcoin, Ethereum, Solana, Tether, Ripple, and Chainlink.

Swyftx offers an easy way to buy Bitcoin or other cryptocurrencies: sign up, verify your account, deposit your funds instantly, and start buying BTC.

Swyftx has a TrustScore of 4.5 out of 5 based on 4,678 reviews on Trustpilot, with 87% of reviews being 5-star and 4% being 1-star.

Swyftx has a TrustScore of 4.6 out of 5 based on 4,678 reviews on Trustpilot, with 87% of reviews being 5-star and 4% being 1-star.

7. Paxful

This Peer-to-peer Bitcoin marketplace connects various buyers with sellers. It’s as simple as selecting your preferred payment method and how much Bitcoin you need. The platform aims to provide a simple, fair, and secure means for trading the value of their work.

Bitcoin is a payment method and a digital asset that has become highly valuable in today’s digital world. It is known as the internet’s version of gold.

Similar to gold, bitcoins’ prices fluctuate constantly. However, steady growth in bitcoin prices is predicted, especially during fragile economic times.

What you do with your Bitcoin is entirely up to you. You can keep it in your Paxful wallet, sell it for US dollars or other currencies, or send it to other Bitcoin wallets.

Read also about How to Bet Online with Bitcoin.

Taxation on Bitcoin in NZ

New Zealand treats Bitcoin and other cryptocurrencies as property for tax purposes. This means they are not subject to a capital gains tax but income tax.

Here’s a breakdown of how some common Bitcoin activities are taxed in NZ:

• Buying Bitcoin: Not taxable. Buying Bitcoin with New Zealand dollars (NZD) is considered an investment and doesn’t incur any taxes.
• Selling Bitcoin for profit: Income tax applies. Any profits from selling Bitcoin for NZD or other fiat currencies are subject to income tax at your marginal rate.
• Trading Bitcoin: Income tax on profits. Similar to selling, if you trade Bitcoin for another cryptocurrency and make a profit, you’ll pay income tax on those gains.
• Holding Bitcoin: Not taxable. Simply holding Bitcoin without any transactions doesn’t trigger any tax implications.

Facts Before Buying Bitcoin

To get all the benefits Bitcoin offers compared to traditional financial systems, many can be used by bad actors and turned into flaws. 

Bitcoin 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 anybody, which can be considered excellent and harmful.

5 Must-know facts about Bitcoin

1. Bitcoin transactions are non-reversible

This is a unique feature for merchants who are concerned about chargebacks. However, if you’ve been hacked or sent money to the wrong address, you cannot return these wrong transactions as they are non-reversible.

2. Bitcoin is highly secure

Private BTC addresses are not linked with anyone’s identity, so controlling the private key is the only way to spend money.

If you lose your 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.

3. Bitcoin is decentralised

Anyone can create a BTC wallet and start using the cryptocurrency without restrictions.

People living in a country with an unreliable or inaccessible banking system can use Bitcoin without objection, meaning any criminal can use it.

4. Bitcoin is pseudonymous

Using Bitcoin, you do not have to disclose any of your personal information. At the same time, this anonymity protects hackers and scammers.

5. Bitcoin is volatile

It 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. 

Bitcoin can also be spent on your specific interests

• Gambling – BitCasino, BetCoin
• Sports Betting – SportsBet, NitrogenSports
• Electronics – NewEgg
• Bitcoin to cash using a nearby Bitcoin ATM – Coin ATM Radar

Editor’s Verdict

In New Zealand, Bitcoin is treated as a property, and buying/selling Bitcoins is subject to income tax. Mining and staking rewards are also taxable as income.

NFTs are taxed based on their use and sale, with GST applicable in certain situations.

To buy Bitcoin in New Zealand, you must choose a reliable place. We’ve tried to mention all the possible websites that support NZ crypto purchases and trading.

Select as per your preference and trade with Bitcoin safely.

FAQs