Cryptocurrency being a storm in the digital assets market has made its way into the Australian trading and financial system. Every other person wants to know about digital currency. Whether they are interested in digital currency or not interested in investing in one, the crypto news always amazes them!
With its sudden spike in the market or the drop in rates, cryptocurrency is a new level of the investment game. Investors worldwide get a huge amount when the game is in their hands and sometimes they even go through a loss. Besides the speculated investment, people of Australia still want to know how to invest in cryptocurrency in Australia and what are the possibilities of loss and profit. If you’re looking for ways to invest in digital currency then you’ve come to the right place! Here we will let you know about some of the best ways to help you make a wise decision. So let’s get started!
Do A Research
When you start investing in anything, the first thing you do is research the product. Here our product is the hot topic of the year, the cryptocurrency. In this research, you will explore every aspect of it in detail. You will not leave any stone unturned. There are over 18,000 cryptocurrencies in the world and if we narrow down our horizon, there are about 16 famous cryptocurrencies in Australia that can be traded against the Australian dollar. So, here we have given you a limited number so that you can do your research on these 16 cryptocurrencies. Dogecoin, Bitcoin, and Ethereum are a few of the most popular digital currencies in Australia. Before making an investment, you need to know which cryptocurrency offers a suitable cost, security option, support, etc., and which platform would be best for trading.
Choose A Platform
A platform is a place that allows you to buy or sell a digital currency in exchange for your local currency and even with any other digital currency. Each trading platform has a different mechanism of work and each platform has its own perks and set of rules. By choosing a platform, you subscribe to its terms and conditions just like a bank. Every bank has set some rules, such as a percentage of profit or loss, surrounding fees, support, accessibility, etc. The crypto trading platform works like a digital bank that operates in the same manner. It helps you buy and sell your cryptocurrency and even provides an account where your cryptocurrency is saved. It is usually called a ‘wallet’, where all your digital currencies are kept for further trading. Some popular platforms are:
These platforms deal with various cryptocurrencies and the fees per trade vary from platform to platform. Here you have to compare each platform and analyze which one suits best your budget.
Analyze The Platform
Once you have made your mind to investing in crypto, you have to decide what you are looking for in the platform. Your cryptocurrency exchange must possess an easy accessibility feature. For example, some digital exchanges are restricted in some states and some cryptocurrencies are restricted to be traded by the authorities, so it is necessary for you to know about the limitations of the access. Besides accessibility, you must also know the authenticity of the platform. AUSTRAC is a state-owned department that registers digital exchange platforms and provides them with the license to work legally. Only deal with those exchanges that are registered with AUSTRAC. Because unregistered businesses can get penalized with huge criminal charges and can cause you a complete loss. Lastly, check if the platform is secure or not. Central institutions can not provide your digital money the security it provides when your money is in the bank. For this purpose, digital exchanges have a financial insurance policy. Dig deep and explore the details and analyze your platform!
Creating An Account
Once you have decided on the digital exchange, you have to make an account on the platform. For the account, you’ll have to add your credentials very keenly. Any false detail might reject your registration. The digital exchange platform may require your legal name, your date and location of birth, your current address, a copy of your utility bill, a government ID or a passport copy, your picture, your bank details, etc. They may even want to know your source of income too. Making an account on a cryptocurrency platform is not as hard as it seems. You just need a few things and you are good to go. People often wonder if it is safe to provide their personal details to a digital exchange or not. Simply we can say that yes it is safe if your platform is registered and is credible.
Make A Deposit
Now that you have verified your credentials the platform has set up your account on your digital exchange platform you have to deposit some fiat currency to proceed with the investment process. The least amount of deposit varies between $10 to $100 depending on the terms and conditions of the platform. Some platforms accept payment through a debit or credit card while some accept a local transfer from the bank or some accept the e-wallet. Whatever their mode of payment is, every option should be easily available for you by your exchange platform.
Selecting A Cryptocurrency
At this point, you are ready to invest in cryptocurrency but which digital currency is better for you? To decide on a cryptocurrency you have to explore certain things about your currency. First, look out for what people have to say about it. When a large number of people trade in a specific cryptocurrency then there are chances that the cryptocurrency has better trade rates and is more credible because a large number of people have been investing in it for a long time and they have witnessed better days. Besides its goodwill in the market, the technology working behind it is also essential. When digital currency provides smart solutions like the ease of blockchain for developers, easy access to bigger scale applications, etc. For example, Ethereum has a smart technology as compared to others and is quite popular in Australia.
Buy Your Cryptocurrency
It’s time to buy your cryptocurrency. In order to invest in your digital currency, you need to go to the platform and sign in. Once you enter your account, search for your required currency in the search bar and add your amount. The stake price usually starts from $10 spending on the coin. Now hit the purchase button and there you have it. You have purchased your digital currency and it is in your account/wallet.
There you have it! Investing in a digital currency is not as hard as you think. There are certain elements that need more attention before the actual buying such as the choice of the platform and the choice of the currency. This blog is structured only to guide you as it is just our opinion so we suggest that you do your own research. We hope that this blog will help you buy your first digital currency without any hassle. Thanks for readingץ