Digital assets are infamous for their volatility. This usually makes some investors reluctant to dip their toes in the cryptocurrency waters. Nevertheless, it’s possible to purchase digital assets securely.
What You Need To Have Before Purchasing Crypto
Before opening an account on a cryptocurrency trading platform, you’ll need to verify your identity by providing some documents. Different crypto exchanges have different requirements for setting up an account. However, to make the signup process faster on whichever platform, you need the following:
- Identification: you may need to upload your passport or Australian driver’s license
- Access to a secure and private internet connection (refrain from using public WiFi as it poses a security threat)
- A phone you can use for 2FA (Two-factor authentication)
- A bank account you can make withdrawals from to deposit to your selected crypto trading platform
- A safe crypto storage method—most exchange platforms have a secure vault system or built-in wallets one can utiliseThe recommended way to buy bitcoin in Australia Safetly is: Swyftx
How Can One Buy Crypto Assets In Australia?
Once you have all the necessary documents ready and have opened an account with your preferred exchange, you can start purchasing digital assets such as altcoins, Ethereum, or Bitcoin.
When selecting an exchange platform in Australia, it’s essential to keep off unregulated or unlicensed sites as they don’t provide any trader protection whatsoever. Unlicensed platforms don’t have a framework to protect investors from scams or frauds and don’t offer compensation coverage if they go under.
Therefore, to ensure your investment is secure, it’s best to go over a site’s regulations before opening an account. If you’re an Australian-based investor, you ought to keep an eye out for the ASIC (Australian Securities and Investments Commission). ASIC has several responsibilities, among them is protecting investors.
Apart from ASIC, other global regulatory bodies give a platform considerable credibility — even if they don’t operate in the same region. For instance, a platform like eToro is regulated by ASIC, MiFID, FCA, FinCEN, FINRA, and CySEC. These regulatory bodies assure investors that the platform is held responsible for everything on the site.
To make your first purchase, do the following:
- Sign in to your trading account using a private WiFi connection
- Select the option to purchase digital assets, and ensure you’ve chosen the right crypto asset. For instance, you can select between assets like Cardano, Ether, Binance Coin, or Bitcoin. Different trading platforms have different digital assets available; therefore, ensure the platform you choose has the crypto you’d like to invest in
- Select the amount you’d like to buy and ensure you have adequate AUD or any other fiat currency deposited in your account to cover the transaction
- Preview the transaction and ensure you’re okay with the current price of the crypto and are aware of the market’s overall trend
- If the information is correct, click on the buy icon to confirm the purchase. You can then store your new digital assets on the platform’s in-built wallet or transfer them to cold or hot storage
How To Ensure Safety When Buying Digital Assets
1. Spread The Investments
Since digital assets are known for their volatility, most traders invest in various assets to spread the risk. Most exchange platforms allow users to invest in multiple cryptocurrencies; they offer a wide selection of small and significant investments.
Take Profit and Stop Loss parameters automatically allow users to protect their investments from suiting their investment approach. Platforms such as eToro also provide a Cryptocurrency Portfolio investment strategy, which offers some exposure to the market.
2. Store Digital Assets In A Wallet
A digital wallet is software or hardware that interacts with blockchains that store your crypto assets. Whenever you trade cryptocurrency, it comes out of your wallet, and when you’re not trading, the assets stay safely in your wallet.
Most wallets give users an overview of their investments and provide reporting tools so that users can keep track of the market.
3. Learn About The Digital Currency Market
Like all other investments, it’s essential to understand the cryptocurrency market before trading. This means you should do thorough research and learn as much as possible.
There are platforms with a virtual portfolio where one can try all their investing strategies risk-free before starting trading. This gives you a taste of how the cryptocurrency market works beforehand. Exchange platforms also allow new traders to watch and copy the best performing traders.
4. Buy Crypto From A Credible Platform
It’s essential to purchase digital assets from reliable exchange platforms. The exchange you use to trade should offer you access to suitable digital asset selections at minimal fees and provide the best security measures to secure your crypto assets.
5. Keep Track Of How The Market Is Moving
Keeping up with the market can be difficult. Most platforms give users free access to the latest digital currency market research and news. They also provide social investing features that lets users connect with other crypto investors so that you can share information, chat and keep track of what’s happening. Some platforms allow users to create a personalised watchlist to keep abreast with real-time updates.
Bottom Line
When investing in crypto, selecting a secure exchange platform is vital. Ensure ASIC regulates a platform before signing up. This way, you’ll be protected if the exchange goes bankrupt.
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