Top 7 Best Crypto Wallets in Australia for 2024: Secure Your Digital Assets

FAQs

What factors should I consider when choosing a crypto wallet for use in Australia?

When choosing the best crypto wallet in Australia, you need to consider important factors such as if it’s compatible with the type of cryptocurrency you use, the security features and reputation of the wallet provide, how easy it is to use the wallet, the reviews of others, the fees and other costs that come along with using it, and what comes along with creating the wallet. Additionally, you should look at how easy it allows you to convert your currency between AUD and crypto, and if it’s compliant with Australian financial regulations. Essentially, all of these things are important when storing crypto safely.

Are hardware wallets necessary for Australian crypto investors?

Although hardware wallets (cold wallets) aren’t strictly necessary for those that wish to dip their hands in the Australian crypto market, they can be an excellent option for those who want to have some additional security that keeps their crypto safe. For casual investors or even those dealing with small amounts, software crypto wallets may be sufficient enough. However, as your investment grows, it may become much more important to keep your funds safe on a cold wallet and offline. This is why Australian investors should think about a hardware wallet that integrates easily with the ability to exchange locally, that supports AUD transactions.

How do Australian tax regulations affect crypto wallet usage?

To answer that, first we need to understand how is crypto taxed in Australia, and then we’ve explore the specific requirements under the Australian tax law. They require crypto investors to keep detailed records of their transactions for tax purposes. These laws mandate that crypto investors maintain detailed transaction records for tax purposes. So, when choosing a wallet, it’s important to find one that helps you track your crypto effortlessly. 

Importantly though, just because you hold crypto in a wallet doesn’t mean you have a tax event in your near future. However, if you trade, spend, or convert the crypto into a fiat currency, it certainly could! This makes it vital for Aussies to look for the best crypto wallets in Australia, the ones that make it super easy to export transaction histories in formats that work with the ATO reporting requirements.

What are the risks of using centralised exchanges as wallets in Australia?

Centralised exchanges (CEXs) come along with many risks in Australia. These include being a target for hackers who can steal large amounts of digital assets, a custodial risk, and a promoter of regulatory issues, as they may freeze accounts or assets. Additionally, they can lead to privacy concerns as they often collect and store user data. 

While major Australian exchanges are regulated, they may not offer the same level of security as dedicated wallet solutions. It’s generally recommended to use exchanges for trading and transfer funds to a personal wallet for long-term storage. 

When it comes to non custodial vs custodial it’s a no-brainer because a non-custodial wallet gives you total and complete control over your private keys and ultimately your assets. This means that only you can access your crypto, minimising the risk of third-party interference or any regulatory restrictions. With custodial wallets, your assets are in someone else’s hands, which can increase vulnerability to hacks.

How can I ensure the security of my crypto assets in a wallet?

To keep your crypto safe in your wallet, you’re definitely going to want to use strong, unique passwords and activate two-factor authentication (2FA), ideally hardware-based (U2F). Always stear-clear from public Wi-Fi and keep your software wallet as protected as you possibly can against malware by installing regular updates. 

Of course, it’s always best to look at the best Android Antivirus Apps when you’re on-the-go to protect your wallet. Additionally, you can try your hand at the 10 Best Free Antivirus Software in Australia that provide real-time protection to keep you safe from online fraud while keeping your crypto wallet safe.