Australia’s cryptocurrency market is gaining momentum. Digital currencies are legal in the Land Down Under, with 1 in 6 Aussies having Bitcoin or altcoins as part of their investment. Add to this a developing regulatory framework, and you get a favorable climate for using crypto as a means of exchange.
However, crypto’s bizarre highs and lows can be too much of a risk. This is the reason why 43% of Aussies are hesitant about investing. If you’re one of those who are interested in the so-called ‘money of the future,’ it’s best that you make an informed decision. As with any other investment, cryptocurrency can be risky, which is why it’s best to know everything there is to know before you dive into the world of Aussie crypto.
Aussie Crypto In 2021
Cryptocurrency exists as digital coins or tokens that pay for goods and services purchased over the internet. Blockchain technology keeps payments secure as it uses several computers to process and record digital transactions. This makes cryptocurrencies anonymous and appealing to investors.
Apart from payment, cryptocurrencies are also traded in exchanges. Digital coins carry values that may go up or down at any moment. Their volatile and skeptical nature makes it a risky venture, but one that could deliver considerable profits.
If you’re planning to invest in digital currencies, you’ll need to know more than the basics. Here are some things you need to know about buying, selling, and using crypto coins in Australia.
• Trading Platform
A crypto exchange Australia or any online platform is where you can buy various cryptocurrencies. Trading sites usuallyrequire registration fees, so it’s best to understand their terms before setting up an account.
In addition, it’s best to check for additional charges and if you have the option to buy coins in Aussie dollars to save you from conversion fees. This way, you can plan your purchases and help you manage your digital investments properly.
• Set Up Your Account
Once you find a suitable platform, you’ll be required to submit an ID along with some personal details. This is because Aussie crypto exchanges are required to comply with anti-money laundering laws and counter-terrorism financing regulations. After you set up your account, keep it secure with a username and hack-proof password.
• Buy Digital Coins
After you successfully signup, you’ll be able to purchase cryptocurrencies using your dollars. For starters, you can input the minimum investment amount, double-check transaction details, then confirm. After, you can obtain Bitcoin on Swyftx orchoose other coins, such as Ethereum, dogecoin, and bitcoin cash. These altcoins are popular among Aussie crypto traders, so you’ll have plenty to trade with.
• Get A Crypto Wallet
Much like cash, digital coins also need secure storage. For easy access, you can choose to store your stash in an online account or ‘hot wallet.’ The only problem with an online wallet is that hackers may steal its contents, and you may not be able to recover them.
You can also consider a cold wallet to keep your cryptos secure. Hardware wallets aren’t connected to the internet, so it’s safe from hackers and platform downtimes. They can come in the form of USB hardware and requires pin codes, passwords, and biometrics.
• Trading Tips
The highs and lows of crypto can excite you to buy or sell your coins accordingly, but you’ll need to master the trading game before you go all out. It’s best to start small and speculate about the market.
You can also consider splitting your investments between different currencies to anticipate losses. In addition to Bitcoin, various types of altcoins are also good alternatives. You need to check which ones are supported by your chosen platform.
• Recent Developments
Other than honing your trading skills, crypto investors should also know the latest developments. Important updates include government regulations and consumer feedback that reflects Australia’s desire to expand cryptocurrency and establish appropriate rules to ensure efficient exchange.
• Don’t Forget Capital Gains Tax
Just like any other investment, profits earned from successful crypto trading are subject to capital gains tax. The Australian Tax Office reminds digital coin holders to include any losses or gains in their 2021 tax returns.
Investors are advised to keep records of their trading activities,especially the date and the prevailing value of the asset at the time of transaction. They also need to note the purpose of the trade and essential details about the other party.
Despite the anonymity of cryptocurrencies, the tax agency states that it can track cryptos and trace back transactions to specific individuals based on bank information and online crypto exchanges. While there are no penalties for misdeclaration or omission, the agency is determined to exact obligations from taxpayers involved in crypto trading activities.
• Future Prospects
Aside from increasing government oversight, cryptocurrency is also becoming an accepted medium of exchange in the country. Several companies now accept digital coins as payment for goods and services, while others allow their employees to convert part of their pay to digital money.
Cryptocurrency is recognized as a legal exchange in Australia. Its gradual acceptance as a payment method will undoubtedly be a recurring theme among private corporations and commercial establishments.
Buying, selling, and trading cryptocurrency in Australia holds many potential due to its legal status and its increasing integration into its economy. Aussies who want to invest in digital coins can do so through reputable platforms and secure wallets. Developing policies will surely enhance its adoption by the public and financial sectors.