Cryptocurrency has taken the world by storm, with different digital trading platforms and exchanges available all around the world. The high demand for cryptocurrency has caused market prices to skyrocket, which in turn increased the interest of many people worldwide.
In Australia, cryptocurrency has also become widely available, with different reliable exchanges that can be used for trading. Learn how to start trading cryptocurrency in Australia with this simple guide including tips and tricks of the trade.
Choose An Exchange
If you want to trade cryptocurrency in Australia, you will need to create an account on an exchange. An exchange is an online platform that acts as a marketplace for buying and selling cryptocurrency. It works the same as digital trading platforms in the USA.
There are now several reliable exchanges in the cryptocurrency market in Australia that can be used to start trading. You can create a free account on most of these exchanges because these platforms earn money through the small service fees charged for each transaction.
One advantage of using these exchanges is that they offer transactions based on Australian dollars. You won’t have to figure out all the conversions if the exchange does it automatically for you.
Popular exchanges in Australia include the Independent Reserve, Coin Spot, and Coin Jar. To be able to set up an account in one of these reliable exchanges, you will be needing a government issued photo ID, a proof of your address, and your personal details.
Set up a Crypto Account
These are the steps on how to set up an account with any of these exchanges. The account opening process is generally the same across all exchanges. The difference may be in the service fees collected, number of available coins for trading, and customer service.
- Set up your crypto account by first choosing the exchange that you want.
- Prepare your documents as proof so you can have a seamless account opening experience. You can prepare the following: driver’s license, passport, or any government issued ID, and a utility bill or bank statement that shows your name and address.
- Go to the website of the exchange and select the option to create an account.
- Fill in your personal details. If you are using an email account that has previously been prone to spam or phishing messages, it is recommended to create a new email address instead.
- Some exchanges have a referral code system, where you get a welcome gift in the form of credits or discounts when you use a referral code. If you know anyone that already has an account with the website that you visited, you could use their referral code.
- Next step would be to verify your email address through an email that the exchange will send you. After verifying, set up your phone number and a two-factor authentication for more security.
- You will then proceed to the identity verification stage where you will be needing the documents that you prepared. Most exchanges will require you to also take a selfie with your ID to make sure that it is indeed you.
- Once you have submitted your documents and photos, the exchange will take some time to verify the documents. While waiting for confirmation, you can start setting up your bank accounts.
- Once you have received a confirmation and your account has been approved, you can start buying cryptocurrencies. Simply add money through the bank account that you set-up, and you can begin choosing which coin you want to purchase. It is also worth noting that you can install software on your computer for more security, such as antivirus and anti-malware programs.
Strategy is Important
Once you have your account set up on an exchange, start devising a plan on how to buy Bitcoin in Australia, or any other cryptocurrency. The most important part of beginning trading is your strategy.
Here are some tips that will help you build a solid plan. Remember, you should never begin trading if you have not developed a plan yet. Be sure to study as much as you can about the cryptocurrency market before executing your first trade.
- Look for trends. It is recommended to trade based on the trends, and not just sudden peaks or bottoms of a coin. The long-term trend over a week, month, or year, is more telling on how a coin is doing in the market.
- Invest only what you can afford to lose. This may sound self-explanatory, but once you get a taste of an immediate profit on your first few trades, you might be tempted to invest a larger sum of money – one that you cannot afford to lose. Trade wisely and do not put in money that you need for other things.
- Start small. There is no need to go all in on one coin. If you want to learn how to actively trade in the cryptocurrency market, the best way is to first test all your strategies to find which one works the best for you. Starting small, with the possibility of losing, is better than putting all your money in for a chance of winning. Take note that small profits add up too!
- Learn to read the charts. When trading cryptocurrency, you make use of charts to learn the trends, prices, peaks, and bottoms. One of the first things you should do after opening an account on an exchange is to learn how to read the crypto charts. This is important so you know when to buy, sell, or hold.
- Study the market! Even if you have already gained a lot of experience trading, the market is ever changing. Thus, it is important for you to keep up with the market by studying its trends and movements. Learn more on how to start crypto trading here!
Now that you have learned how to start trading cryptocurrency in Australia, don’t be afraid to give it a try! All you need to do is create an account on any of the reliable exchanges in the country, and you’re good to go. Just remember all the tips listed in this article to help you begin trading cryptocurrency.