In the past few years, there’s been a lot of stories about Bitcoin in New Zealand. And for good reason. In 2016, one Bitcoin would have cost you around $600. Now, after five years and, 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 to be “property” rather than legal tender, and they 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.
The initial process of buying bitcoin in New Zealand may seem intimidating and confusing, but once you are set up it is easy. There are numerous different ways you can buy bitcoin in New Zealand and use it at Bitcoin casinos.
What is Bitcoin
This technology was first outlined in a scholarly article Bitcoin: A Peer-to-Peer Electronic Cash System, written by a Japanese man called Satoshi Nakamoto in 2008.
It is a decentralized 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 that 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 of traditional global banking institutions.
So, each Bitcoin is just a digital code held on a central blockchain ledger. If you hold 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
When considering whether to invest in Bitcoin, know that you don’t have to buy a whole one! Bitcoins are divisible by up to eight decimal points, meaning you have the option to buy only a fraction of a Bitcoin.
It is also important to note that Bitcoin and other cryptocurrencies are highly volatile and can fluctuate significantly in value. Investing in Bitcoin or other cryptocurrencies carries a high level of risk, and it is important 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 you can buy Bitcoin in New Zealand. Here are some of the main ones:
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 complete your purchase with BitPrime, you’ll need to 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 to buy and sell Bitcoin and many other digital assets in New Zealand. 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.
It is one of the largest crypto exchange platforms in the world. After introducing in 2017, the company established itself internationally and is constantly shrouded with more rumors of expansion in a limited time. Among many other services, such as crypto fixed income products, derivative products, and more. Binance also offers New Zealanders an option to buying Bitcoin locally.
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, 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, thus helping other users in the future.
5. Kiwi Coin – Bitcoin in New Zealand
A local bitcoin-only exchange is Kiwi Coin. The fee when buying and selling coins is very minimal at around 0.4%-0.8%. This means that spending $100 on bitcoin leaves you paying only 40 cents in fees to the exchange for their service.
The first step is to register on the website. Next, you are required to verify your identification. Methods used to verify your identification vary from receiving a code via text/email to logging in with your REALME ID. The different levels of verification will determine how much you are able to buy/sell and withdraw per day. Verification level 1.5 is the minimum required to deposit any New Zealand Dollars. If you don’t have a realme verification yet, this may take a couple of days to sort out and set up.
Once you have completed this process you can then deposit and withdraw using your NZ bank account. Unless you use the same bank account this process takes 1 day. POLI can be used to instantly transact, but there is a $4.5 flat fee per transaction.
Using the simple setting you can buy bitcoin at the current lowest selling price. You can also choose to set a ‘buy order’ slightly higher than the current highest bid, and then wait to see if someone sells to you. This may possibly get you a slightly lower price. This can be done in the advanced tab.
- Advanced tab lets you select your price.
- Simple tab only lets you buy and sell at 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 instantly sell.
- Current lowest sell price – Setting your buy price to the lowest price will purchase the bitcoin instantly.
A worldwide exchange that is based in New Zealand – Cryptopia. This is typically for more advanced users, but could easily be figured out if you are at all familiar with exchanges. It works similarly to Kiwi Coin with the exception that 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.
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 both a method of payment 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 price, especially when economic times are fragile.
What you choose to do with your bitcoin is completely up to you. Your options are to hold onto them in your Paxful wallet, sell them for US dollars or any other currencies, you can even send them to any other bitcoin wallets.
Facts before Buying Bitcoin
To get all the benefits, Bitcoin offers in comparison to traditional financial systems, many of them 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 as a good thing, as well as something negative.
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 just sent money to the wrong address, you cannot get back these wrong transactions as it is non-reversible.
2. Bitcoin is highly secure
As private BTC addresses are not linked with anyone’s identity, the only way to spend money is to control the private key. If you happen to 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 decentralized
Anyone can create a BTC wallet and start using the cryptocurrency, there is no restriction to it. If someone lives in a country with an unreliable or inaccessible banking system, they 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.