Cryptocurrencies are surging in popularity again, and this might be a great time to invest. The good news is that the Australian government is friendly towards exchanges. Making them legal and allowing investors to purchase whichever cryptocurrencies they wish.
One blemish on this stance is that Australian investors have to pay capital gains taxes when they sell their cryptocurrencies. But the cost is usually so low that it is affordable for most. For Australians who have never invested in cryptocurrencies but want to start now, here is a guide on getting started.
You need to prepare a few things before you think of which cryptos to buy and which platforms to sign up on. Most cryptocurrency exchanges will want to verify your identity at sign-up and when you do certain actions in your account, so you need to have some ID ready. This can be your Australian driving license or passport.
You also need to prepare a bank account in Australian dollars where you can withdraw your funds and a secure wallet for storing your cryptocurrency. You can also opt to use the storage options provided by different exchanges and brokers.
Comparing and Choosing a Trading Platform
There are a lot of factors that go into choosing the best cryptocurrency exchange. These include ease of use of the platform, the type and number of cryptocurrencies available, account and platform features, fees, reputation, deposit and withdrawal options, and more. To be safe and to save yourself a lot of work, you can go with one of the major exchanges in Australia. Platforms like Binance and Coinbase have been around for a long time and have a great reputation.
You also need to consider whether the platform has a mobile app available. A mobile app lets you trade wherever you are, see the status of your cryptocurrencies, receive industry news, and so much more. One of the best ways to find which app would be best for you is to check out some expert reviews on platforms like Marketplace Fairness. These guys tested the different apps available in Australia to show you how each of the apps works, their features, customization options, and more, so you can pick one that suits you best.
Opening an Account for Cryptocurrency Exchange
Once you have chosen an exchange or downloaded an app, it is time to sign up for an account. You will need to choose a username and password and set up 2-factor authentication for exchanges that require it.
The next step is to verify your email address and identity. Some exchanges might also require you to provide proof of residence.
Once you set up your account, you can start purchasing cryptocurrencies. The steps to follow include depositing some money into your exchange account using your preferred method, navigating to the buy section and selecting the currencies you would like to buy, entering the amount in AUD, and specifying how much crypto you would like to buy, then confirming the order.
Once you are past the point of choosing the right crypto exchange and opening an account, buying cryptocurrency is pretty straightforward.