How to Buy Bitcoin in Australia: A guide for the uninitiated
Buying cryptocurrency regardless of location as a newbie comes with several challenges. This difficulty can be traced to the endless number of crypto sites offering beginner-friendly hacks which oftentimes may appear confusing and overwhelming to the average newbie. As a crypto rookie, having quality information at your fingertips is the best bet.
Hence, this article will tell you all you need to know on how to buy Bitcoin in Australia and tips to select the best crypto exchange Australia has. Keep reading to get useful tips.
What is cryptocurrency?
Cryptocurrency can be defined as a digital currency that is used as a medium of exchange. The distinguishing feature between cryptocurrencies and traditional fiat currencies is that cryptocurrencies are not controlled by any central authority, bank, or institution. There are several types of cryptocurrencies with Bitcoin (BTC) and Ethereum (ETH) being the most popular.
A Beginner’s guide to purchasing BTC in Australia
Here are some tested and trusted hacks and tips for buying BTC in Australia as a beginner:
Get a crypto wallet
At the core of your cryptocurrency journey lies the need for a wallet. The wallet may either be a software or hardware one depending on your preference or security concerns. As a beginner, your wallet is where your cryptocurrencies are safely stored.
Consider it as a vault for housing your digital assets with its access being in the form of private keys or recovery seeds. If you are opting for a software wallet, you must constantly be on the lookout for regular security updates to prevent malware.
For a hardware wallet, ensure that you keep your recovery seed or phrase in a secure location.
Choose a cryptocurrency exchange
As a newbie seeking to purchase bitcoins in Australia, a cryptocurrency exchange is where this occurs. A cryptocurrency exchange is the marketplace of crypto where digital assets are bought and sold at market prices. Finding a cryptocurrency exchange platform in Australia can be done by searching for words like cryptocurrency exchange Australia to streamline your options.
Top cryptocurrency exchange platform in Australia includes Bitcoin.com.au, Coinspot, Cointree, Swyftx, and a host of others. In selecting a platform for Bitcoin exchange, some variables be considered and a few of them include:
- Reputation: Before you entrust your hard-earned cryptocurrencies into the hands of any crypto exchange, you must verify their credibility status. Ensure you take a quick survey of their integrity by looking out for reviews and user experience reports. Failure to do this could be risky.
- Security features: Another factor that you must not compromise is the presence of strong security features like 2FA (Two-factor authentication) and cold storage for your funds. The crypto exchange must also offer regular security updates as hackers are constantly devising new methods to scam unsuspecting users.
- Regulatory compliance: You do not want to commence your cryptocurrency trading journey by having hassles with the law. Before clicking the sign-up button on that crypto trading platform, verify that the exchange is compliant with all relevant Australian laws including tax laws.
- Liquidity: If you have to wait unnecessarily long before trades are executed that means the Bitcoin exchange platform has a low liquidity. In a platform with high liquidity, trades are immediately executed without a significant change in the market price.
Making your initial purchase
Congratulations on getting this far. Now it’s time to take the huge leap of making your first buy and here’s how. The first step is to fund your account and you can do this by using the bank transfer option, your credit card or debit card.
After getting the requisite funds into your exchange account, the next procedure is to place your order for BTC. You can either attempt a market order which allows your purchase to be immediately executed in accordance with market prices or a limit order which executes the purchase based on the price limit you have set.
Before authorizing the Bitcoin purchase, it is advisable for you to verify if you specified the right amount of Bitcoin and if you inputted the correct details. After the correctness of the information has been ascertained you can then go on with the purchase.
Secure your Bitcoin
After your order has been confirmed, the next step is to secure your Bitcoin from scammers or hackers. Immediately the bitcoin has been deposited to your exchange account, the next step is to transfer it to your wallet. To do this, locate the withdrawal menu on your crypto exchange platform and transfer the Bitcoin to your wallet’s public address. Before sending, confirm that your address is the right one as cryptocurrency transactions are irreversible.
The faintest pen is better than the strongest of memories. Always endeavor to keep a log book of your crypto purchases, the date, time, current market price, and other relevant details. Keeping records is usually important for taxation purposes, evaluation of performance, assessment of your investment portfolios, and having evidence in case of any discrepancies in the reportage between the crypto exchange platform and you.
The last tip would probably be to keep your ears to the ground for any market news, trends, or reports. There are seasons when making an entry into the crypto market is not favorable, especially for a rookie which may be due to a surge or massive reduction in BTC prices.
To filter the market trends you would get you can search for current cryptocurrency market trends. Whatever the case may be, being in the know of current events saves you the headache of bad crypto investment decisions.
Starting anything as a newbie is very hard, cryptocurrency investment inclusive. However, with decent exposure to appropriate knowledge, the challenging journey is simplified. It is important to state that a lack of technical knowledge as it concerns cryptocurrency cannot be upended by social media predictions or an exchange’s user-friendly interface.
You should carry out a great deal of research, have a functional knowledge of market trends, understand crypto dynamics, and network with other crypto traders. Failure to implement any of the above hacks could make your trading journey go sour.