Complete Guide to Buying Bitcoin in New Zealand

Buying Bitcoin in New Zealand
Buying Bitcoin in New Zealand

There have been many stories about Bitcoin in New Zealand 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 Bitcoin in New Zealand? 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

What is Bitcoin
What is Bitcoin

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

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 Bitcoin in New Zealand

How to Buy Bitcoin in New Zealand
How to Buy Bitcoin in New Zealand

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

BitPrime
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
Easy Crypto

Easy Crypto is a popular place in New Zealand to 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 guides for users on keeping their cryptocurrencies safe, with recommendations on hardware wallets and plenty of user guides on each recommended model.

3. Binance

Binance
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
LocalBitcoins

LocalBitcoins is also a popular platform in the Bitcoin community. Since 2012, the website has allowed buyers and sellers to put listings and answer 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 – Bitcoin in New Zealand

New Zealand Bitcoin Exchange
New Zealand Bitcoin Exchange

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, you need to verify 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. If you don’t have Real Me verification yet, setting it up might take a few days.

Once you have completed this process, you can deposit and withdraw using your NZ bank account. Unless you use the same bank account, this process takes one day. POLI can be utilised 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. Cryptopia

Cryptopia
Cryptopia

A worldwide exchange that is based in New Zealand – Cryptopia. This is typically for more advanced users but could quickly be figured out if you are familiar with exchanges. It works similarly to Kiwi Coin, except you can buy thousands of different altcoins on this exchange and use advanced features.

Once you have deposited NZD, it then becomes NZDT (tether). This coin is linked 1 to 1 to NZD and stored in a bank.

Bitcoin or BTC is sometimes also referred to as XBT. You can then use your Bitcoin to buy altcoins. The process also requires extensive verification.

7. Paxful

Paxful
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, the bitcoin price is constantly fluctuating. It is predicted that there will be steady growth in bitcoin prices, especially when economic times are fragile.

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

Read also: How to Bet Online with Bitcoin

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

5 Must-know facts about Bitcoin
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. It means any criminal can also use Bitcoin.

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

Bitcoin can also be spent on your specific interests
Bitcoin can also be spent on your particular interests

About the author

Michaela Scott

Michaela Scott

Michaela Scott stands as one of the leading voices in New Zealand's online gaming scene.

With a tenure spanning nearly a decade at PokiesMobile NZ, Michaela's contributions range from meticulously crafted game reviews to in-depth industry analysis.

Hailing from Christchurch, she brings a mix of local insights and global perspectives to her writings.

Her dedication to staying ahead of industry trends and her unparalleled expertise make her pieces both educational and enjoyable.