So, you're new to the crypto market and you 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 100 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. Oh, and if you're looking to sell bitcoin in New Zealand, we can help you with that too!
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 down to the next section which details exactly how to buy bitcoin with NZD.
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" bitcoin network 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 card or 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. Think of it like this: 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 investment 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 a payment method 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 I convert or exchange my Bitcoin 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 sell (exchange) it for New Zealand Dollars we do that too. Continue reading to find out how!
How to Buy Bitcoin in New Zealand with NZD
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 and blockchain tech out. Assuming that you've now done your homework and want to get the ball rolling, here is a simple "how-to" guide written specifically for the New Zealand market.
Step-by-Step Guide on How to Buy Bitcoin in New Zealand:
1. Verify Your ID with BitPrime
The first step to buy Bitcoin in New Zealand with NZD 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 (AML/CFT) 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 or a third-party.
As for the actual verification process itself, we have published a walkthrough guide in our Knowledge Base 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 one 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. We have a whole page dedicated to helping you understand how wallets work and how to choose one here.
If you want a free software wallet for storingBitcoin, we recommend using a multicurrency wallet like Exodus or Jaxx Liberty. 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 in that you're only connected to the internet when you plug the device in, and they are fairly easy to use once setup. Once again, we have numerous guides to help you with this and any related troubleshooting.
Ledger and Trezor devices both support a broad range of cryptocurrencies, eliminating the need for multiple wallets and maximising security. We are affiliates of both because they are the only two manufacturers we recommend.
Only ever purchase a new device and avoid secondhand ones to be certain that nobody else has the devices recovery phrase.
3. Buy Bitcoin in New Zealand
- You'll need to wait until you've been notified that you've been granted a verified account before placing an order.
- To buy Bitcoin, log into the site, navigate to either the Bitcoin product page or our All Coins page. Here, you 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 now need to provide us with your bitcoin address in the Order screen. A Bitcoin wallet address is usually labelled "Current Address" or "Receiving Address"inside your wallet app. 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! As with other cryptocurrencies, bitcoin transactions are irreversible, so it's essential to get the address right or you risk losing your digital assets. If the coin is sent to the wrong address there is nothing you or I can do to retrieve it. 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 various payment instructions provided on the next screen. The bitcoin price, the amount of BTC you are buying, and the amount it will cost you in NZD is locked in at this point in the transaction when you proceed to the checkout. Our current buy and sell exchange rates are always listed on our All Coins page and updated every five minutes.
- 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 for you to make a manual bank transfer. Please make sure you read the details thoroughly and that you only use the reference details provided. With a bank transfer, please make sure you come back to our site and press the button confirming you have paid your order.
- **Top tip** Payment by POLi is the fastest option as we receive near-instant confirmation of the funds leaving your bank account, and can usually process orders well within the hour. With a manual bank deposit, we need to wait for the bank processing times.
- Once we have confirmed receipt of your money in our account, your coins will be sent to your wallet! We do not send any crypto without first receiving full confirmation that we have the funds in our account.
- 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: 08/10/2020