Recommended way to buy bitcoin in Australia is: Swyft
Bitcoin has been surrounded by buzz, courtesy of the high prices it has achieved in recent years. Experts have forecasted that the cryptocurrency will continue rising and achieve a new all-time high. The hype is now motivating numerous investors to get themselves some of the cryptocurrency. As crypto grows to become a suitable substitute for conventional banking, more people are also looking to buy it.
What Is Bitcoin?
Bitcoin, popularly known as BTC, is a digital currency, or the world’s first cryptocurrency, made and protected through cryptography. It is a type of electronic money, which can be swapped on a decentralised network and kept on an electronic ledger known as the blockchain.
The world’s first cryptocurrency was invented in 2008, at the peak of an international economic crisis, which would transform the world forever. The first pointers popped up in August 2008, when an unknown person registered Bitcoin’s current domain. Eight weeks later, Satoshi Nakamoto, whose real identity is still a secret, published the cryptocurrency’s white paper.
The publication was a nine-page document, which elaborated how the system works. The document explains why the world requires a decentralised system and electronic cash, the troubles the developers have faced, and how a timestamp server can resolve the double-spending challenge.
In early 2009, Nakamoto mined the first Bitcoin block globally known as the Genesis block. Three days later, Nakamoto sent 10 BTC to Hal Finney, and this was Bitcoin’s first transaction.
Incoming transactions are approved by miners who utilise their computational power to solve a sophisticated algorithmic challenge by performing a hash function and time stamping new information. The approved dealings are stored on the blockchain as data blocks, which are secured from external interferences.
In October 2009, the New Liberty Standard set up an exchange rate for Bitcoin against the United States dollar. The exchange rate was determined by the cost of power needed to mine Bitcoin. Around this time, the dollar was the equivalent of 2,300 Bitcoin.
In 2011, the first cryptocurrency exchanges were established, and Bitcoin trading was fully operational, which led to the rise in its price. Nonetheless, 2017 is noted as the most rewarding year for the digital coin. The crypto had the greatest Bull Run ever, which resulted in its all-time high of $20,000 by the end of that year.
Though the coin’s price rapidly depreciated, its historic success facilitated the cryptocurrency’s entrance into conventional consciousness. The Bull Run was also significant since it proved that the digital currency was here to stay. Since then, digital currency has persisted as a popular investment and continues to gain extensive acceptance in Australia and the world.
Why The Cryptocurrency Established?
The conventional and still common method of conducting transactions and purchasing goods and services depends on the ”fiat” currencies and centralised financial institutions to help use the money, send it to someone else, or receive it. The transactions comprise a fee and demand longer wait durations. The situation is worse for international payments. In a world where the fourth industrial revolution (4IR) is taking place, it is absurd to wait for about a week to send money across the world.
Keep in mind that you are paying a lot of money to third parties for the transaction. Inter-boarder transactions need a change of currency and for your bank to get in contact with the receiver overseas.
How Is The Digital Currency Transaction Different?
The transaction of Bitcoin happens on a decentralised network, which renders the broker redundant.
Besides, you do not have to disclose your real identity to perform a transaction. Every Bitcoin user receives an alias in the form of an encrypted address. To receive the cryptocurrency, you have to issue this pseudonym to the person sending them.
Plus, Bitcoin users save a lot of cash on service fees as the transactions suffer just a minute transaction fee, which keeps the miners motivated. Normally, authenticating trades on the BTC blockchain demands less than ten minutes.
Bitcoin Advantages and Disadvantages
Bitcoin, as a currency, has also been criticised for its volatile nature as a value store. The indicator for this is hinged on the recurrent price ebb and flow, which makes it difficult for vendors to append Bitcoin prices on their goods and services, and for clients to tell the actual value of the BTC they have.
On the flip side, numerous business people appreciate the unstable nature of cryptocurrency since they create room for possible profit in the future. Hence the reason why Bitcoin is among the top investments.
There have been numerous cases where banks have experienced severe security breaches, which made them shut down. Thus leading to a transaction getting called off or canceled, and in some cases, the funds were entirely lost. Hence, BTC presents a higher level of security. Suppose a person wanted to hack the cryptocurrency’s blockchain and steal them. In that case, the hacker has to overpower the decentralised network and alter all timestamped information, virtually impossible.
Where to Buy Bitcoin
Purchasing digital currency sounds scary, but knowing where to get them is the first step. There are numerous platforms from which you can select, but they are generally categorised into the following classes:
Customary, a broker is an individual or a firm, which serves as a middleman for people who wish to exchange money for a service or a product. With Bitcoin, a broker offers services for those who wish to purchase or vend cryptocurrencies at already determined prices. You can utilise “fiat” currencies like the Australian dollar.
Crypto brokers provide user-friendly platforms, which are noted as the fastest means of purchasing bitcoin. Due to this, they present the most appealing environment for beginners who are getting started with bitcoin.
Peer-To-Peer (P2P) Exchanges
P2P is another platform you can use to buy and sell bitcoin. Individuals post notices on these platforms on whether they are selling or buying and their price. Parties involved contact each other via the platform and conduct their trade with no go-between.
How to Buy Bitcoin in Australia
- Select a digital currency buying and selling platform
Swyftx is recommend for low fees and a high level of customer service.
Australia is blessed with numerous bitcoin exchanges. You can decide to purchase from a mediator or a peer-to-peer exchange. If you choose to purchase the bitcoin, you should be informed of the cost of services presented by the platform.
- Create an account
Create an account with digital currency exchange.
- Deposit funds
Once the account has been authenticated, you can deposit money to buy the digital currencies. Select the best approach, which works for you.
- Buy bitcoin
You can now swap your cash for bitcoin. On the platform, go to the purchase section, choose the bitcoin, and enter the amount you wish to spend.
- Confirm the details and authorize the acquisition
Before authorising the acquisition, confirm your details are correct. After purchasing the crypto, it is normally transferred into your account. You are advised to utilise a bitcoin wallet instead of exchanging your bitcoin for security reasons and fast transactions.