How To Buy Monero (XMR) in Australia

You can buy XMR from a crypto exchange, which is a website or mobile app traders use to buy and sell cryptocurrencies. It’s worth noting that confidence in exchanges has taken a hit in recent weeks after the spectacular fall of FTX, which snared some 30,000 Australian customers alone. It has had flow-on effects to other exchanges, too: Digital Surge has frozen withdrawals from its exchange until the dust settles.

However, if you’re an experienced and confident crypto trader and you’re keen to use an exchange, there are lots to choose from, but you’ll need one that at least trades in XMR. For example, while major exchanges such as Kraken and Binance offer XMR, Coinbase does not.

Another consideration is whether an exchange offers an integrated wallet in which to store your public and private keys – two essential components for buying and selling cryptocurrencies.

Also, check what kind of fees apply for things like withdrawals, debit card payments and so forth. And in light of the failure of FTX—and the flow-on impact to other exchanges—it is worth doing your homework as to how secure and safe the exchange is. For maximum protection, use cold wallet storage, which guarantees your crypto is safe and not stored online.

If you can pay via direct bank transfer, it’s usually either fee-free or the most cost-effective option. Many exchanges accept debit cards for deposits.

It’s generally considered a bad idea to buy cryptocurrencies using credit. Cryptocurrencies are volatile and you could easily end up debts bigger than the value of your crypto assets. Furthermore, if you are using your credit card to buy crypto, be beware of any fees that might be added to the cost of the transaction.

Once you’ve decided how you’re going to pay, navigate to the XMR page within your chosen exchange’s website or app and enter the amount you want to spend. Confirm the purchase and you should get an email confirming the transaction. You should soon see the XRM you’ve bought in your account within the exchange.

Several crypto exchanges have been the targets of high profile attacks from hackers, with users losing significant sums of crypto. While the exchanges do everything they can to keep customers’ private and public keys secure, they’re a lucrative target for criminals. Furthermore, as the FTX collapse revealed, the exchange itself may not be the paragon of sound fiscal management it purports to be.

If you’d prefer not to hold your keys in your exchange’s integrated wallet, you can either pay for a non-custodial wallet with a third-party provider, or buy a storage device like a flash drive to keep your keys in.

Wallet providers are also a target for hackers but are good for accessibility because if you somehow lost your wallet credentials, the provider may be able to help you get your keys by verifying your identity.

Offline ‘cold wallets’ are more secure against hackers because they’re not connected to the internet. Whenever you plug one into a web-connected computer, however, you’re closing the ‘air gap’ that prevents bad actors from accessing your keys. Also, if you lost your seed phrase that secures your cold wallet, you could be locked out from your keys and, effectively, your assets.

Choosing a storage method comes down to how you want to balance security against accessibility.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.  Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.