So, you're new to Bitcoin and want to find out what the easiest way to buy Bitcoin in New Zealand is? Well, you've come to the right place! BitPrime is New Zealand's premier cryptocurrency retailer that can supply you with Bitcoin, as well as over 60 different cryptocurrencies. We also provide FREE advice on secure ways to store Bitcoin and are happy to help with any technical questions that you have.
How Bitcoin Works
First, let’s cover the basics of Bitcoin, how it works and how to use it. If you already feel confident with this aspect, feel free to skip to the next section.
How does Bitcoin work?
Bitcoin is a peer-to-peer (P2P) electronic cash system, as described by Satoshi Nakamoto, the anonymous figure(s) who published the original Bitcoin whitepaper in 2008. The beauty of Bitcoin is that it eliminates the need for a third party such as a financial institution (bank) to be involved in the process of sending value from one person to another.
Nakamoto proposed a unique method of using a chain of hash-based proof-of-work to form an immutable ledger of transactions operating on a P2P network. While this sentence makes absolutely zero sense to your average Joe, cypher-punks and cryptography experts marvelled at the idea and began downloading this so-called “blockchain” and experimenting with the best technological innovation since the internet.
The purpose of this article isn’t to explain the seemingly futuristic workings of this mind-boggling cryptographic invention. Should you wish to delve into more detail, we have a guide specifically illustrating how blockchain technology works.
Don’t get all caught up in worrying that you don’t understand how the technology works therefore you won’t be able to use Bitcoin. After all, I would safely wager my weeks wages on the bet that most people have no idea how electricity works yet that doesn’t stop them from using it in everyday life in the form of television, lightbulbs, mobile phones etc. For now, let’s focus purely on Bitcoin and how one can think of it in less complicated terms.
Bitcoin functions similarly to your usual internet banking transaction or online credit/debit card purchase. The biggest difference? There is no bank involved. Bitcoin ownership is simply transferred from the sender’s wallet address to the receiver’s wallet address using magical numbers that result from complex mathematical calculations (discussed further in the article linked in the last paragraph).
Your Bitcoin is stored on the blockchain and you access this via your Bitcoin wallet. The blockchain acts as a bank “vault”, the wallet acts as your “bank account”, and the wallet address as your “account number”.
How can you use Bitcoin?
When it comes to using Bitcoin, there are many different ways. You’ve likely heard about people who have made a lot of money by owning the digital currency for yonks and then selling it when it gained popularity and the value skyrocketed.
To potentially profit is one of the biggest drawcards for crypto with many choosing to buy and sell it as a short-mid term investment. In saying that, over 50% of our readers state they buy and hodl (hold) cryptocurrencies for the long-term.
Others choose to use crypto as a store of value, to further diversify their portfolio, or to support the development of the technology and the myriad of blockchain use-cases.
Nowadays, more and more retailers, both online and brick and mortar, are choosing to accept various cryptocurrencies as payment for their goods and services. Currently, the most widely used and accepted cryptocurrency is Bitcoin. Merchants can easily integrate Bitcoin payments through the use of apps such as BitBucks and Shopify!
How can Bitcoin be converted to cash (and vice versa)?
Now that you know that Bitcoin functions similarly to traditional fiat currencies (e.g. NZD, USD, THB, EUR etc.) and how you can use it, you might be wondering how on earth you get some to start with. And that’s where BitPrime comes in!
By having a verified account with us, you can easily buy Bitcoin using your New Zealand Dollars - as easily as any other online purchase!
And if you already have some cryptocurrency and you wish to exchange it for New Zealand Dollars we do that too. Continue reading to find out how!
How to Buy Bitcoin in New Zealand
What should you consider before buying Bitcoin in New Zealand?
If you've made it this far, then you probably have a rough idea of what Bitcoin is. There's plenty of information on our FAQ page and blog pages if you're still trying to figure Bitcoin out. Assuming that you've now done your homework and want to get the ball rolling, here is a simple "how-to" guide written for the New Zealand market.
Step-by-Step Guide on How to Buy Bitcoin in New Zealand:
1. Verify Your ID
The first step to buy Bitcoin in New Zealand is to apply for an account and verify your ID with us. We aim to process all verification requests within two hours where possible, and the sooner you submit your application, the sooner you can purchase Bitcoin!
The reason we verify the identity of everyone we transact with is to help prevent online fraud occurring and to meet our obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. All financial service providers in New Zealand have to follow this act and cryptocurrency providers are no exception.
We also need to prove that whoever is ordering from us is paying from a bank account in their name and that the funds aren't coming from an illegitimate source.
As for the actual verification process, we have a video walkthrough at the bottom of the application pages for you to refer to should you get stuck.
2. Set up your Wallet
The next thing to organise is a wallet to store your Bitcoin and other cryptocurrencies. The best wallet for your needs will depend on which currencies you want to use, what device you want to use, and if you're prepared to pay for a wallet or not.
If you want a free software wallet for Bitcoin, we recommend using a multicurrency wallet like Exodus or Jaxx. For more advice on choosing the right wallet for your needs, see this post: The Top 10 Bitcoin Wallets.
Another option is to purchase a hardware wallet. A hardware wallet is a physical USB device which stores your private keys and authorises transactions. It works in the same way as a software wallet but has an additional layer of security, and is easy to use once setup. Ledger Nano S supports a broad range of cryptocurrencies, eliminating the need for multiple wallets and maximising security.
3. Buy Bitcoin in New Zealand
- You'll need to wait until you've been notified that you've been verified before placing an order.
- To buy Bitcoin, log into the site, navigate to the Bitcoin product page, and enter the amount of Bitcoin that you want to buy. You can enter the amount in either New Zealand Dollars (NZD - fiat currency) or a specific amount denominated in Bitcoin (BTC - cryptocurrency).
- You will need to include your wallet address in the Order screen. A Bitcoin wallet address is labelled "Current Address" inside your wallet. It is either 33 or 34 characters long, begins with a 1 or a 3, and looks something like this: 1CFzx2rqCDhYekKf1LKmPeYBMKv3zp1p48.
It is important that you always copy & paste the address; never try to type it manually! Cryptocurrency transactions are irreversible, so it's essential to get the address right or you risk losing your digital assets. If you are placing an order for a substantial amount and have never purchased from us before, we will first send a small test transaction to you to confirm that your wallet is correctly set up.
- For the final step, simply click the "Order" button and follow the payment instructions on the next screen.
Example of finding your BTC wallet address in Jaxx
- After submitting your order you can pay via POLi. Alternatively, our bank details and the reference number for your order will be displayed on-screen. Please make sure you read it thoroughly and that you only use the reference details provided. With a bank transfer, please make sure you press the button confirming you have paid your order.
**Top tip: Payment by POLi is the fastest option as we receive instant confirmation of funds, and can usually process orders within the hour. With a bank deposit, we need to wait for the bank processing times (currently the next business day with our bank).
- Once we have confirmed receipt of your money in our account, your coins will be sent to your wallet!
- Done! You are now the proud hodler of BTC.
Don't be a Stranger!
We're here to help in any way that we can. If you can't find the answer to your question in our FAQ page and blog page, then please, do get in touch. We provide email and live chat support to all of our current and potential customers FREE of charge. We're based here in Christchurch, New Zealand, and we know how to look after our customers. We can answer just about anything, provided it doesn't constitute investment advice. For instance, we can't answer "Should I buy Bitcoin?" or "How much should I invest?".
However, we can answer "what are the characteristics of Bitcoin?" or "what is a blockchain?". We're open from 9 am - 10 pm, seven days, so it's easy to get hold of one of our knowledgeable team members. 😊
Have you ever been curious about how the "1%" buy Bitcoin? Check out our post on BTC Whales and OTC trading.
Need more help deciding what cryptocurrency to buy?🤔
Last updated: 17/01/2020