How to Buy and Store Cryptocurrency in New Zealand

Opening an Account and Identity Verification

To begin investing in cryptocurrency, you'll first need to:

1. Open an account with a reputable exchange or broker.

2. Verify your identity by providing:

   • A photo ID (driver’s license or passport).
   • Proof of address (e.g., utility bill).
   • Some platforms may require a selfie or video for anti-fraud purposes.

This process ensures compliance with anti-money laundering (AML) regulations.

Purchasing Cryptocurrency

Once verified, follow these steps:

• Select your desired cryptocurrency and purchase amount.
• Choose a payment method (credit/debit card, POLi, or bank transfer). Note: Not all platforms accept NZD deposits.
• If you already own crypto, transfer it to your exchange wallet.

• Upon purchase, crypto is stored either:

  • In the exchange’s built-in wallet (temporarily).
  • In your personal wallet (provide wallet address).

Crypto Exchanges vs. Brokers

Crypto Exchanges

• Peer-to-peer trading platforms (like Trade Me for crypto).
• Support crypto-to-crypto or fiat-to-crypto trades.

• Few accept NZD; users often transfer funds via:

  • International money transfer services.
  • Local crypto purchases transferred to global exchanges.

Crypto Brokers

• Act as intermediaries between buyers/sellers.
• Set fixed prices for transactions.
• Some NZ brokers operate as "retailers," holding crypto reserves.

Secure Cryptocurrency Storage

Cryptocurrencies require digital wallets, which store private keys to access blockchain assets. Avoid long-term storage on exchanges due to hacking risks.

Online Wallets (Hot Wallets)

• Convenient apps for computers/phones.
• Supports multiple cryptocurrencies.
• Higher risk (connected to the internet).

Offline Wallets (Cold Wallets)

1. Hardware Wallets (e.g., Ledger, Trezor):

   • USB devices (~$150 NZD).
   • Secure; only connect when transacting.

2. Paper Wallets:

   • Printed private/public keys (less common due to storage risks).

👉 Explore top-rated hardware wallets

Public vs. Private Keys

• Private Key: Grants access to your crypto. Never share it. Losing it means losing your assets.
• Public Key: Allows others to send crypto to your wallet (safe to share).

Is Cryptocurrency a Good Investment?

Cryptocurrency is high-risk with unique considerations:

• Volatility: Prices fluctuate dramatically.
• Storage Complexity: Requires secure wallet solutions.
• Diversification: Low correlation with traditional assets like stocks.
• Research: Thousands of coins exist—choose wisely.

Cryptocurrency Staking

Earn passive income by staking crypto:

• Lock funds to validate blockchain transactions.
• Receive APY rewards (1%–70%, depending on the coin).

👉 Learn how to stake crypto

Crypto Regulation in New Zealand

• Not classified as financial products under NZ law.

• Exchanges/retailers must:

  • Register with the Financial Service Providers Register (FSPR).
  • Join a dispute resolution scheme.

FAQ

1. Can I buy crypto with NZD?

Yes, but only select platforms support NZD deposits. Others require currency conversion or crypto transfers.

2. Are hardware wallets worth it?

Absolutely—they offer the highest security for long-term storage.

3. What if I lose my private key?

You permanently lose access to your crypto. Backup keys securely.

4. Is staking safe?

Generally yes, but rewards vary by coin and platform. Research staking terms carefully.

5. How do I report crypto taxes in NZ?

The IRD treats crypto as taxable property. Consult a tax professional for guidance.