How to invest in cryptocurrencies in Australia – Blockzeit

how-to-invest-in-cryptocurrencies-in-australia-–-blockzeit

Cryptocurrencies have become an important asset class in the financial market, with a combined market cap of over $800 billion. The industry has become crucial in Australia, where some blockchain projects like Synthetix Network were started. At the peak of the crypto investing craze, it was estimated that one in four Australian adults owned some coins. In this article, we will look at how to invest in cryptocurrency in Australia.

Australia’s crypto regulations

Like other countries, Australia has not established strict crypto regulations in a bid to attract talent in the blockchain industry. However, following the crypto crash of 2022 and the implosion of FTX, Voyager Digital, and Terra, the government has committed to coming up with regulations in 2023.

These regulations will seek to come up with a framework for licensing crypto exchanges and other service providers. The government will also assess whether crypto tokens and digital assets that should be regulated by financial services laws. Regulators want to identify tokens that should be regulated as securities.

Most importantly, regulations will also target stablecoins, which aim to provide stability by being pegged to a stable financial asset like fiat currencies. Stablecoin regulations have gained urgency because of the pivotal role they play in the crypto industry. Also, they became important following the collapse of Terra USD in 2022.

Do your research

The first step if you want to buy crypto in Australia is to do your research on different cryptocurrencies. While Bitcoin is the best-known cryptocurrency, there are more than 20,000 crypto coins and tokens. Each of these assets has its own pros and cons. Therefore, you should do your research on the crypto you want to invest in. 

This research could be technical, fundamental, or both. Technical analysis is a research approach where a person looks at charts and makes a prediction. They are helped by chart patterns like triangles and bullish and bearish flags. Fundamental analysis, on the other hand, looks at news and valuation metrics.

Find a good exchange

The next step to buy crypto in Australia is to find a good exchange. An exchange is a broker that provides a platform for people to buy and sell cryptocurrencies like bitcoin and ether. You should select a good exchange that is reputable and has a long and established track record in the industry.

Other qualities to consider when selecting an exchange to invest in crypto in Australia are the coins available, the exchange’s regulation status, and transaction costs. Also, look at the method of payment and whether the exchange processes payments in the Australian dollar.

Invest and store your coins

After doing your research and finding the best exchange, you should then allocate funds to the coins. Ensure that you are only investing a small portion of your funds in cryptocurrencies. In other words, you should invest in funds that you are comfortable losing. This is an important approach to risk management. 

Finally, you should consider moving your cryptocurrencies into self-custody using a cold storage wallet. A cold storage wallet is a hardware tool that saves your coins offline. By storing your coins offline, you protect them from being hacked. Some of the most popular hardware crypto wallets are Ledger and Trezor. In most cases, these wallets go for less than $200.

Summary

Cryptocurrencies have become an important asset class in the financial market, with a combined market cap of over $800 billion. The industry has become crucial in Australia, where some blockchain projects like Synthetix Network were started. At the peak of the crypto investing craze, it was estimated that one in four Australian adults owned some coins. In this article, we will look at how to invest in cryptocurrency in Australia.

Australia’s crypto regulations

Like other countries, Australia has not established strict crypto regulations in a bid to attract talent in the blockchain industry. However, following the crypto crash of 2022 and the implosion of FTX, Voyager Digital, and Terra, the government has committed to coming up with regulations in 2023.

These regulations will seek to come up with a framework for licensing crypto exchanges and other service providers. The government will also assess whether crypto tokens and digital assets that should be regulated by financial services laws. Regulators want to identify tokens that should be regulated as securities.

Most importantly, regulations will also target stablecoins, which aim to provide stability by being pegged to a stable financial asset like fiat currencies. Stablecoin regulations have gained urgency because of the pivotal role they play in the crypto industry. Also, they became important following the collapse of Terra USD in 2022.

Do your research

The first step if you want to buy crypto in Australia is to do your research on different cryptocurrencies. While Bitcoin is the best-known cryptocurrency, there are more than 20,000 crypto coins and tokens. Each of these assets has its own pros and cons. Therefore, you should do your research on the crypto you want to invest in. 

This research could be technical, fundamental, or both. Technical analysis is a research approach where a person looks at charts and makes a prediction. They are helped by chart patterns like triangles and bullish and bearish flags. Fundamental analysis, on the other hand, looks at news and valuation metrics.

Find a good exchange

The next step to buy crypto in Australia is to find a good exchange. An exchange is a broker that provides a platform for people to buy and sell cryptocurrencies like bitcoin and ether. You should select a good exchange that is reputable and has a long and established track record in the industry.

Other qualities to consider when selecting an exchange to invest in crypto in Australia are the coins available, the exchange’s regulation status, and transaction costs. Also, look at the method of payment and whether the exchange processes payments in the Australian dollar.

Invest and store your coins

After doing your research and finding the best exchange, you should then allocate funds to the coins. Ensure that you are only investing a small portion of your funds in cryptocurrencies. In other words, you should invest in funds that you are comfortable losing. This is an important approach to risk management. 

Finally, you should consider moving your cryptocurrencies into self-custody using a cold storage wallet. A cold storage wallet is a hardware tool that saves your coins offline. By storing your coins offline, you protect them from being hacked. Some of the most popular hardware crypto wallets are Ledger and Trezor. In most cases, these wallets go for less than $200.

Summary

Cryptocurrencies have become popular financial assets in Australia, especially among young people. However, they are some of the riskiest assets in the industry. Therefore, you should do your own research on the pros and cons of each coin that you invest in. Also, you should do a thorough investigation of the crypto exchange that you want to use. 

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About the Author: Kate