If you’re based in New Zealand and looking to buy Bitcoin, you are likely aware of the Cryptopia hack that resulted in investors losing millions of dollars worth of crypto-funds. As such, it’s crucial that you only use regulated online brokers when buying Bitcoin.
In this article, we explain the safest, easiest, and most cost-effective way of buying Bitcoin in New Zealand. We also give you some handy tips on how to find a Bitcoin broker yourself.
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Bitcoin in New Zealand
If you perform a Google search that targets Bitcoin in New Zealand, it’s likely that you will come across information about the infamous Cryptopia scandal. For those unaware, Cryptopia was a New Zealand based cryptocurrency exchange that facilitated the buying and selling of digital currencies.
Then, in January 2019, the platform was hacked by a group of bad actors – subsequently stealing the vast bulk of Cryptopia’s client holdings. Although the exact figure is yet to be clarified with any certainty, the total theft resulted in millions of dollars worth of client funds being stolen.
With that being said, cryptocurrencies like Bitcoin are still highly sought after by those in New Zealand. For example, although legislators have noted that Bitcoin is not legal tender, employers are permitted to pay salaries with the digital currency (on agreement from the employee). Moreover, with more and more New Zealand based traders exchanging Bitcoin in the country, the government announced plans to introduce a GST-style tax.
Plans initially proposed to tax users 15% every time a digital currency exchanges hands, albeit, this has since been scrapped. We should also note that New Zealand is home to a few of blockchain-based startups, and a number of crypto-related conferences have been held in recent years. This includes the annual BlockChain.NZ Conference held in Auckland.
What is the Best Way to Buy Bitcoin in New Zealand?
There are multiple ways to get your hands on Bitcoin in New Zealand. The first option that you might be considering is a domestic cryptocurrency exchange. Such platforms often allow you to buy Bitcoin with a credit card or via a local bank transfer. With that said, many of these exchanges are not regulated, so you have to tread with extreme caution. In fact, one only needs to refer back to the infamous case of Cryptopia to understand just how important safety is when buying Bitcoin online.
Alternatively, you might consider using a Bitcoin ATM in New Zealand, albeit, there is just a single machine currently active. This is based in Auckland, which won’t be suitable if you live elsewhere. As such, the easiest and most secure way of buying Bitcoin in New Zealand is to use a regulated online broker. The space is dominated by platforms located overseas – which in turn, are licensed by a number of tier-one bodies.
This includes key regulators such as ASIC (Australia), CySEC (Cyprus), and the FCA (UK). Crucially, this forces brokers to keep client funds in segregated bank accounts, so your investment remains safe at all times. An additional benefit of using a regulated online Bitcoin broker is that you will be able to deposit funds with ease. This includes New Zealand-issued debit and credit cards, or an e-wallet like Paypal and Skrill.
If you’ve got your heart set on buying Bitcoin with a New Zealand bank account, this is also possible. However, while debit/credit cards and e-wallets are instant – you will need to wait a few days for the funds to arrive when opting for a bank transfer. Once you do buy Bitcoin from a regulated online broker, there is no requirement to withdraw the coins out. Instead, you can keep your investment at the platform until you are ready to sell it back to NZD.
How to Buy Bitcoin in New Zealand: Step-by-Step Tutorial
So now that you know the easiest way to buy Bitcoin in New Zealand, we are now going to show you what you need to do to make a purchase today. The step-by-step guidelines below are based on our top-rated broker eToro. As noted earlier, the platform is heavily regulated – including a fully-fledged license from ASIC. With that said, if you want to use a different online broker – the steps below remain largely the same.
Step 1: Open an Account
To get the ball rolling, head of to the eToro homepage and elect to open a Bitcoin account. As the platform is regulated, you will need to provide some personal information.
This includes your:
- First and Last Name
- Home Address
- Date of Birth
- New Zealand Tax Number
- Contact Details
As regulated brokers like eToro also host more sophisticated financial products (like leverage and short-selling), you will need to answer some multi-choice questions about your prior experience of online trading. This is merely to ensure you understand the risks of buying and selling assets.
Step 2: KYC & Verification
The final stage of the registration process requires you to verify your identity. This is to ensure eToro complies with anti-money laundering regulations, and essentially – it ensures you can buy Bitcoin in a safe and secure environment. As such, you’ll need to upload a copy of your New Zealand passport or driver’s license. In most cases, eToro will validate the document instantly.
Step 3: Deposit Funds
eToro will now ask you to deposit some funds. Minimum deposits amount to $200 USD – which amounts to about $330 NZD. You don’t need to spend the entire amount of Bitcoin, as you can use the balance to trade other assets (like stocks).
Nevertheless, eToro accepts the following payment methods:
- Debit Card
- Credit Card
- Local Bank Transfer
Unless you are depositing funds with your New Zealand bank account – all other payment methods are instant. Don’t forget, once your deposit is credited the funds will show up in USD.
Step 4: Go to Bitcoin Trading Page
Now that you have funded your eToro account, head over to the cryptocurrency trading section of the site. Alternatively, enter ‘Bitcoin’ into the search box and the top of the screen. Then, to get to the Bitcoin trading page click on the blue ‘Trade’ button.
Step 5: Buy Bitcoin
In order to buy Bitcoin at an online broker like eToro, you will be required to set up an order. Although the order box might appear confusing at first glance, it’s actually pretty straightforward once you know how things work.
With that said, be sure to review the explainers outlined below to ensure you place your Bitcoin buy order correctly.
- Buy/Sell: As you are here reading this guide on how to buy Bitcoin, make sure that the box is set to a ‘buy order’. If it’s set as a ‘sell order’, this means that you are shorting Bitcoin.
- Stake: Enter the amount of Bitcoin that you wish to buy. Again, this is in USD and not NZD.
- Market/Limit Order: If you’re buying Bitcoin for the very first time, you might be best to leave this set as a market order. This means that your purchase will be executed at the next available price.
- Leverage: eToro allows you to apply 2x leverage on Bitcoin trades. Tread with caution, as leverage is a high-risk strategy.
- Stop-Loss: If you want to limit your potential losses by a certain percentage, set up a stop-loss order.
- Take-Profit: If you have a profit target in mind, set-up a take-profit order.
Finally, click on ‘Buy’ to complete your Bitcoin purchase.
What to Look for in an New Zealand Bitcoin Broker
Other Ways to Buy Bitcoin in New Zealand
If you don’t like the sound of using an online broker – or you simply want to assess other investment avenues, below we have listed two alternatives – Bitcoin ATMs and peer-to-peer exchanges.
With the cryptocurrency community growing exponentially in New Zealand, it makes sense that heaps of buying methods are available to you. However, you need to be extremely careful when buying Bitcoin online, as you don’t want your investment to go the same way as NZ-based Cryptopia did in 2019. As such, this is why we suggest using a Bitcoin broker that is heavily regulated.
For example, our top-pick eToro is licensed by ASIC, the FCA, and CySEC – so you have regulatory protection on three fronts. Moreover, not only does the platform allow you to buy Bitcoin with debit card, e-wallet, or bank wire – but you can make the purchase without paying any commission.
Is Bitcoin legal in New Zealand?
Yes, buying and selling Bitcoin is perfectly legal. Those operating exchange services must ensure that they follow domestic anti-money laundering laws, meaning ID is compulsory. Moreover, the New Zealand government has also approved salary payments being dominated in Bitcoin, albeit, the employee must agree to this beforehand.
What payment methods do New Zealand Bitcoin brokers support?
If using a regulated broker that targets its services to retail clients, then you should be able to deposit funds with an NZ debit/credit card or international bank wire. Some platforms also accept e-wallets like Paypal. Skrill, and Neteller.
Can I buy Bitcoin anonymously in New Zealand?
Potentially, but it's extremely risky. For example, you could arrange an in-person trade via a peer-to-peer website like LocalBitcoins but you stand the very real risk of being scammed.
What is the minimum amount I have to invest to buy Bitcoin in New Zealand?
This will vary from platform-to-platform. For example, eToro requires a minimum deposit of $200 USD, which amounts to about $330 New Zealand dollars.
Can I buy Bitcoin with leverage in New Zealand?
Yes, but you will need to use a regulated broker that offers Bitcoin in the form of CFDs. Moreover, your limits will be determined by the broker you sign up with. For example, eToro caps Bitcoin leverage to 2x - as per ESMA regulations.