Investing our hard earned cash can be a tricky proposition. There’s so many ways to try and get a little more out of your money and so many more ways for you to lose it as well if you don’t know what you’re doing. If you’re looking for something to spend your wages on to get a little extra money without the added risk of financial loss then do we have a great suggestion for you.
Cryptocurrencies are where it’s at right now and if you’re a veteran of the online currency investing stage or a newbie taking their first steps in trade markets then with our handy guide you’ll be a Bitcoin Australia investing pro in no time at all!
Why Are Bitcoins So Popular in Australia?
It’s safe to say that in the last few years the Bitcoin trading market has exploded in popularity. Almost everywhere you look there’s at least one trading forum talking about it or a website adopting it as a form of payment. It’s proven to be one of the best cryptocurrencies on the market right now and here’s why;
One of the biggest benefits of trading in Bitcoins is that it’s an incredibly volatile market. Although this may seem like a downside it actually works in its favour as prices of Bitcoins can, at times, double or even triple overnight if you’re lucky. So say for example you were to spend $50 Australian on some Bitcoins on Monday, by Friday that amount might be worth $100 or even $200 if you’re lucky enough.
The fluidity in value of Bitcoins is perhaps the biggest reason why you’ll find so many online investors giving it a try.
Another great benefit of Bitcoins is that they’re an incredibly secure and safe investment. What we mean by that is that they’re difficult to be digitally manipulated by outside sources and in the market it’s impossible for them to lose even the smallest of value, unless Bitcoins themselves become worthless which never happens.
These are just two of the many examples of why people are starting to invest in Bitcoin and chancing their cash on the various online trading platforms out there.
Bitcoin – Australia’s Demographic
As you can see the east coast dominates the amount of bitcoin being held and most people are holding for investment purposes, meaning that people see it as a store of value rather than a currency just yet.
What Can You Use Bitcoins For?
One of the best things about Bitcoin’s growing popularity over the last couple of years is that they’ve been adopted by stores and website the world over from Australia, to the US to even the UK. From buying physical items in stores with your smart device or online, you can use them pretty much anywhere now.
For example, you can pay your way into Hollyburton Park in Victoria with Bitcoins, or perhaps you fancy picking up a book to read, you can try Polyester Books in Melbourne as they accept them as well. You can even buy fashion items from Vera Chan or bikes from Little Mule as they accept Bitcoin. There really is no end to the places you can spent your cryptocurrency instead of hard cash.
A popular usage of Bitcoin’s is in CFD trading to make a quick turnaround with your money. But their main use is in online transactions when they’re stored in what’s colloquially known as a ‘Crypto Currency Wallet’.
Cryptocurrency Wallets – Australia
A Crypto Currency Wallet is a piece of software that you can use to store your bitcoins in. They use a system of public and private keys to complete online transactions safely and securely in a simple process. They work by sending currency into a wallet address provided by the recipient and then locking themselves behind a specific key number. To withdraw the money the person on the receiving end must use a keycode that matches the one stored within the wallet, if the code match then the transaction is complete. It is always recommended to back up your wallet.
But, if the codes don’t match then the money is kept in the wallet until a set period of time before it’s returned to the original sender. So it’s incredibly safe to use as there’s no chance you will send your money to the wrong person and have them take your money without authorisation.
How Can I Get Bitcoins?
Purchasing Bitcoins has never been so simple, there’s a number of different ways you can get your hands on them.
Two of the main ways are to use what’s known as an ‘exchange’ or sometimes a ‘broker’, the other is to use CFD’s. Both come with their own advantages and disadvantages to using them so make sure you’re using one that will let you make the most of your initial investment.
For example, if you were to use CFD’s ideally you would be using them to take advantage of the fact that they’re perfect for a quick turnaround on your cash since they’re perfect for monopolizing in rapid changes in the market. So you can deposit some of your cash, increase its net worth and then get it out with a tidy sum as your reward, although just make sure you invest in something that’s definitely going to increase in value.
Another great feature of CFD’s is that they can come with a multiplier, so there are occasions where you could triple your money, or if you make a particularly great market decision you could increase it up to 100 fold.
However, there are some downside to using CFD’s, chief of which is that it’s not for long term investment. This is because of how rapidly the market can change in value, so you could make an investment say at the start of the week and by the end it could be a total disaster.
But, if you’re looking to invest in something more stable for long-term gain then we definitely suggest taking at look at cryptocurrencies since they’re an incredibly secure financial investment. With cryptocurrencies like Bitcoin you’re actively encouraged to invest now and withdraw further down the line, say a month or two. This is because in that space of time the value of the currency could double or even triple since the market is so fluid and changing over a period of time. Also, unless Bitcoin’s themselves completely lose value as an online currency, it’s impossible to lose money on them, making them the perfect and most secure place to invest your hard earned cash.
Once you have your hands on your Australian Bitcoin’s we suggest taking a spin on the trading market to get used to what Bitcoin trading is actually like. EToro even offer a training program that lets you use practice pretend cash so you can figure out how to trade and invest without losing any of your own cash in the process.
What’s next For the Australian Bitcoin Market?
If you want to buy Bitcoin online Australia has proven to be an extremely popular cryptocurrency market. For example, in 2010 one Bitcoin was worth less than one hundredth of an Australian cent, now in 2017 it’s worth at least $10,000.
Although there was a slight dip recently in the price of Bitcoin Australia’s market is speculated to be due another big increase in the next few years.
A great indicator that the Bitcoin in Australia is performing particularly well is that the Australian banking system itself is currently mulling over the idea of creating electronic banknotes based on the idea of Bitcoin.
This push has come thanks to Bitcoin’s security and transparency in its transactions, something most central banks, including the Bank of England in the UK, are keen to capitalize on if they can. If this takes off we could perhaps see Bitcoin’s becoming a regular method of payment in Australia.
So the future of being able to trade Bitcoin in Australia is definitely going to be a stable and very active one if those facts are any indication of how it’s currently performing.
Our Bitcoin Recommendations
The Bitcoin AUD market is one that you definitely don’t want to miss out on. It’s becoming the number one digital currency around and with so many platforms for trading and investing there’s definitely some money to be made if you know how.
That’s why with our simple guide you can become the absolute best Bitcoin investor you possibly can.
In parting here’s one final recommendation from us to any newbie Bitcoin AUD traders out there. If you’re going to start spending cash on Bitcoin’s we recommend checking out some of the countless brokers and exchange sites out there. They’re all strictly regulated and controlled so your investments are safe and most of them, like eToro offer great benefits and help to first time investors.
Benefits like a social trade forums where you can chat to other people on the site that might provide some helpful tips for when you next invest. There’s also their support team that can help you out with anything and everything on your account. There’s even a training system that lets you practice and get to grips with the website and how you can purchase Bitcoin online.
So no matter where you start with Bitcoin’s, just make sure you’re getting the best option for your cash, after all it’s your hard earned money!