With bitcoin and cryptocurrencies hitting all-time highs this year, it's easy to understand why more people want to invest in them. Crypto can indeed be a great investment and a perfect addition to a traditional portfolio, but it's a very special class of asset that is only understood by a select few. Buying crypto is a bit more complex than buying fiat currencies and there are some things you'll need to know before you can get your hands on your first piece of cryptocurrency. Let's take a look at how you can buy crypto in Australia.
Find a Great Wallet
The first thing you should do before you start trading cryptocurrencies is to get a wallet. We say "should" because you're not obligated to get a wallet to trade, but it would be a bad idea to start without one.
Some exchanges will allow you to store your cryptocurrency on them without a wallet, but that means that they'll have full control over your coins. Some exchanges have been hacked, funds have been stolen, and some exchanges have completely vanished off the map. So, do yourself a favor and get yourself a good wallet.
The best type of wallet is a cold wallet, or a hardware wallet. These wallets look like USB keys and allow you to store your coins offline, which makes them the safest. Your other option would be to get a software wallet. These are a bit more convenient and many of them are free, but they're not as safe as hardware wallets, so be careful storing huge sums on these.
Find a Good Exchange
The next step is to choose a trustworthy exchange. When looking for an exchange, look at when it was established, if they are regulated and by whom, and what they do to protect their users’ assets. You should also check how many cryptocurrencies they offer and whether you can exchange fiat for crypto, as some exchanges will only allow you to exchange cryptos for other cryptos.
It's also a good idea to see if they have a proprietary stablecoin and how it's supported. Stablecoins allow you to have easy access to cryptocurrency markets without volatility. Stablecoins are usually pegged to a stable underlying asset, often the US dollar, and allow users to easily trade coins between exchanges while reducing the risks of crypto assets. Joining an exchange with a stablecoin that is widely accepted will reduce the number of transfers between fiat and crypto you'll have to make and remove some of the roadblocks of cryptocurrency trading.
Open an Account and Start Trading
Once you’ve found a good exchange, it's time to open an account. Be prepared to provide proof of identification along with your email and mobile phone number. These will need to be verified before you can start trading. You should also activate 2-factor authentication to put an additional barrier of security on your account.
Once you’re verified, you can add your bank account information and choose your funding method. POLi and PayID/Osko are some of the most common options. From then on, all you have to do is add funds and follow the exchange’s instructions to buy or sell the cryptocurrencies of your choice.
This is all you’ll need to do if you want to start buying cryptocurrencies in Australia. We strongly suggest that you do your research on any coin or exchange before you start trading, and start with a solid strategy.
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