It can be a challenge to buy Bitcoin and other cryptocurrencies in New Zealand. Almost all major services for buying cryptocurrency do not accept New Zealand Dollars. This step-by-step guide covers the easiest way (in my opinion) to buy cryptocurrency in New Zealand, with NZD.
Warning: Bitcoin and other cryptocurrencies are highly volatile and speculative investments. Only invest money you can afford to lose.
There are 3 major steps, and should only take 10-15 minutes:
- Get a Bitcoin wallet
- Sign up with an exchange
- Purchase Bitcoin, and have them sent to your wallet
1. Get a Bitcoin wallet
You’ll need a wallet to receive, store, and send your Bitcoin. Fortunately there’s a bunch of wallets that you can download and install for free on your computer, smartphone or tablet. Here I’ll show the installation of the popular Coinomi wallet on a tablet.
a. Download Coinomi to your preferred device.
b. Open Coinomi and click Create a New Wallet
c. Write down the recovery phrase and keep it in a secure place. Your recovery phrase is the key to your wallet, and can be used to recover your wallet in case you lose your device. Because this phrase gives full access to your wallet and any coins on it, never share this phrase with anyone or post it online.
d. Select which coins to add to your wallet. I’ve started with Bitcoin, Ethereum and Litecoin.
e. Go into the Bitcoin wallet and select Receive. Click on the Legacy tab to get your Bitcoin address (this is the format of address that works with the steps below). Take note of your address as you’ll need it later.
Alternative Bitcoin wallets
- Exodus – Another popular wallet similar to Coinomi, available on a variety of platforms.
- Ledger Wallet – Ledger is the most popular maker of “hardware wallets” (as opposed to the above “software wallets”), which are physical devices providing extra security to your cryptocurrency by storing them offline – making it much harder for hackers to access. Hardware wallets are recommended if you hold a substantial amount of cryptocurrency.
2. Sign up with an exchange
An Exchange is where you’ll deposit New Zealand dollars and exchange it for Bitcoin (or other Cryptocurrencies). First you will need to register for an account and go through an ID verification check. I recommend registering for an account at Easy Crypto, which is most user-friendly exchange in my opinion.
a. Go to Easy Crypto. Click Create account.
b. Sign in with your preferred method
c. Fill in the required details (name, phone etc.).
d. If you have a valid New Zealand driver’s license or passport, verify your ID using Origin ID. If not, follow the manual verification steps. Easy Crypto (and all other exchanges) requires ID verification to comply with Anti-Money Laundering and Counter Financing of Terrorism regulations.
e. Once verification is complete you can start purchasing Bitcoin.
3. Purchase Bitcoin
Now we’re ready to buy Bitcoin, and have it sent to your wallet. Again I’ll cover the process at Easy Crypto.
a. Enter the amount of Bitcoin you want to buy. The minimum purchase is $50 NZD. You can also buy other cryptocurrencies like Ethereum and Litecoin. Click BUY NOW.
b. At the bottom of the next page, enter the Bitcoin wallet address you got when you created your wallet (in step 1e).
c. Select your preferred payment method (POLi or Bank transfer). Pay your NZD to Easy Crypto using the selected method.
d. Once your payment has been received (instant with POLi, dependant on bank processing for Bank transfers), the order will be processed, and the Bitcoin will be sent to your wallet (this usually takes no longer than a couple of minutes).
- Kiwi-Coin – This is a more traditional exchange, in which there’s an order book with users bidding to buy and sell Bitcoin. You must place an order in the order book and match with a seller. You can almost always get your Bitcoin at cheaper rates here compared to Easy Crypto, however additional fees apply for depositing NZD, completing orders, and withdrawing Bitcoin to your wallet. It may be suitable if you’re purchasing larger amounts of Bitcoin. They also offer easy identity verification by using a verified RealMe account.
- Vimba – Offers a similar service to EasyCrypto, but they also offer a regular savings plan which allows you to automatically buy Bitcoin or Ethereum weekly.
I chose to cover Easy Crypto because I found it to be the easiest way to purchase Bitcoin:
- All fees (deposit fees, trading fees, withdrawal fees) are included in the advertised purchase rate
- No need to place an order in the order book and wait for your order to be filled
- Pay via POLi and have your Bitcoin sent to your wallet within a couple of minutes
Keeping your Bitcoin safe
You are really on your own when it comes to looking after your Bitcoin. Here are some generic tips for keeping your coins safe:
- Always keep your coins in a wallet that you have the recovery phrase or private keys to. Never leave them in the custody of an exchange – plenty of them have been hacked, and will continue to be the target of hacks.
- Use reputable services, exchanges, and wallets.
- Use 2-factor authentication for your accounts where possible.
- Never share your recovery phrase.
- Consider using a hardware wallet (like a Ledger Wallet) for storing large amounts of coins
Disclaimer and final notes
The content of this article is based on my personal opinion and should not be considered financial advice. The information should never be used without first assessing your own personal and financial situation, and conducting your own research. You may wish to consult with an authorised financial adviser before making any investment decisions.
Remember, Bitcoin and other cryptocurrencies are highly volatile and speculative investments. Only invest money you can afford to lose. Money King will not be liable for any losses incurred as a result of following this article.