5 Things to Remember While Trading Bitcoin in Australia
Bitcoin trading is on the rise in Australia, with growing numbers of Australian traders seeking to take advantage of Bitcoin’s increasing global value. According to statistics, Bitcoin’s trading volume in Australia is second only to Japan and the United States.
You can easily and securely buy and sell Bitcoin or any other cryptocurrency of your choice on exchanges such as Swyftx (https://swyftx.com/au/buy/bitcoin/).
However, It goes without saying that there are a number of things you need to know before you begin trading Bitcoin. Here are six tips for buying and selling your Bitcoin securely:
#1: There are no actual coins to trade
Unlike other commodities, which have physical forms (like gold, for example), cryptocurrencies are digital. You can’t go to a store and buy Bitcoin or find someone in your area who accepts them – you have to make an exchange with another trader.
The value fluctuates wildly. However, from an investment perspective, this is a positive, as people who know what they’re doing have a lot of scope to make a neat profit from buying and selling Bitcoin.
However, it is also dangerous as a long-term investment because it may lose a lot of its value overnight, as was the case earlier this year.
#2: Beware of hidden charges
As cryptocurrencies aren’t regulated in Australia, you should be aware that transaction costs are often applied when trading. For example, if you want to buy Bitcoin using PayPal or a credit card at Coinbase, it will cost about an extra 2.5% on top of the rate because these services are selling their coins for more than the market price.
#3: There is no centralised authority
One of the main reasons that bitcoin has become so popular is because it gives power back to individuals – they can trade without fear of their information being given to a third party (like with Paypal). Payments can be sent straight from person to person.
#4: Keep your wallet safe
You have an account that is basically a password-protected container with the private key as your PIN. The public key is used to send money and can be seen by anyone. The difference between the two is that one lets you spend Bitcoin while the other holds them.
#5: It’s not for everyone
It is a completely new asset class, and it – like all investments – has its risks. If you’re interested in investing, make sure to do your research and consider speaking with an adviser before making any decisions.
#6: You should consider all other investments as well
Never put all your eggs in one basket, as the saying goes. If you think about investing in cryptocurrencies, make sure to also diversify your portfolio with other assets such as shares and property.
Also, be aware that cryptocurrencies are a very volatile market – according to an article by Bitconnect, bitcoin prices vary from minute to minute and may change drastically whenever people buy or sell them. You can find real-time prices of all cryptocurrencies on websites like Swyftx (https://swyftx.com/au/buy/bitcoin/)
As mentioned above, these five points can help guide you if you’re interested in trading Bitcoin, but there will still be risks involved. Like any investment, it’s important to do your research first before deciding whether this is right for you, so ask yourself honestly what your appetite for risk might be and how much money you want to invest.