The COVID-19 has had a huge impact on Australia’s economy, while boosting the use of cryptocurrencies in Australia. With the virus spreading rapidly in the country, a number of businesses were shut down and many people lost their jobs at the same time as 100’s of new Australian cryptocurrencies were launched.
The virus mostly affected small and medium-sized businesses, but large organizations felt the impact as well. Against the backdrop of the uncertainty raised by the virus, crypto assets have garnered significant attention in Australia.
Top 20 sites for buying, selling and trading crypto in Australia
This is the toplist with the best sites to buy, sell or trade crypto currencies if you are Australian or living in Australia. To learn more why a certain site is ranked the way it is, you can read our review by clicking the review button. We generally recommend using an EU licensed broker if you want to trade crypto CFDs with leverage and always using a reputable crypto platform or exchange that has been around for some while, with good track record, great reputation and positive feedback from its customers when it comes to buying or selling crypto currencies. The better option for you as customer, the better ranking we give them.
The number of Australians investing in cryprocurrency is increasing by the day. Australia’s cryptocurrency habits explained by the 2021 Independent Reserve Cryptocurrency Index (IRCI) show that more than a quarter of citizens own some form of cryprocurrency. About 26.6% of the respondents to the survey said that they would invest in cryptos if the industry regulation was improved.
Australian banks have not been left behind as they have started purchasing cryptos for the first time. Banks in Australia are creating their licencing framework blockchain-based systems including digital currencies to allow B2B crypto transactions between customers.
The Australian government is also looking to create a licencing framework for crypto exchanges and opening a retail central bank digital currency in efforts to overhaul its payments industry.
In this post, we will discuss everything you need to know about investing in Cryptos in Australia.
Why Are Cryptocurrencies So Volatile
There are many reasons for potential volatility in the prices and here are some.
1. Emerging market
The primary reason for crypto volatility is its newness. All new concepts take time to be accepted and the same holds true for cryptos. The digital asset is gaining rapid popularity and also fuelling quick disenchantment among investors. The market is minuscule meaning a small force – a group of investors holding large amount of the digital asset – can influence the trade.
2. Media focus influences adoption rate
News that scare crypto invetors include statements by the government that cryptocurrencies are likely to be regulated as well as public announcements by prominent companies and individuals.
For instance, tweets by Elon Musk, Tesla Inc. CEO, sometimes prompt the massive sell-off of cryptocurrencies.
3. Uncertainty of future value of cryptos
The crypto market thrives on speculation. The digital asset’s volatility is largely driven by varying perceptions of the coin as a store of value and method of value transfer.
What’s more, people who invest in digital assets bet that prices would go up or down to make profits. The speculative bets result in a sudden outgo or influx of money, leading to high volatility.
4. Security Breaches Cause Volatility
Crypto-assets can also become volatile when the crypto community exposes security weaknesses to initiative massive open-source response. It was a security breach that caused Yapian Youbit exchange to go bankrupt, while other exchanges have made headlines for being hacked or had stashes of cryptos stolen.
How Cryptocurrencies Works
Crypto transactions are like messages which occur via electronic messages. These messages are signed using cryptography and sent to the entire network with instructions about the transaction.
Transaction information is public and includes information such as the quantity of coins to be traded, electronic addresses of parties involved and time stamp. The history of each transaction leads back to where the crypto was first produced or mined.
Cryptocurrencies were invented as a digital form of currency. Some businesses accept crypto-assets as payments for goods and services while some ATMs allow you to withdraw it in form of physical cash. However, coins are not a form of legal tender in Australia and are not a common form of payment.
Buying And Storing Crypto
You can buy and sell coins on a trading platform using traditional money. But picking the best exchange to trade is no easy feat.to help you out, we have discussed some of the best crypto exchanges to perform trades.
To come to these choices, we compared a number of cryptocurrency exchanges on a variety of factors, including user-experience, fees, exchange rates, liquidity, ease o access, suitability for fiat currency purchases, selection of cryptocurrencies and advanced trading features.
Trading since 2013, CoinSpot is Australia’s largest and most established exchange. With this platform, you can buy, sell and swap over 320 coins at a low fee starting from 0.1%.
The platform has a friendly support team that that offers premium services – users can directly engage with customer care agents 24/7. At CoinSpot, investors can trade with peace of mind as the exchange has the highest level of internationally recognised security certification in Australia.
2. Digital Surge
This emerging Australian crypto exchange offers what larger platforms don’t – an enjoyable use experience, with personalised customer support, low and transparent fees.
Digital Surge offers instant deposit and withdrawal straight from your bank account. Plus you can even pay your bills using crypto assets.
Binance is popular among Australian crypto investors for a reason. It offers a wide selection of cryptos, low trading fees and an array of features. You will pay a flat trading fee of 0.1% when trading crypto to crypto.
This broker offers competitive prices across a wide selection of crypto assets. It is user-friendly, and is AUSTRAC-registered and regulated. Another reason to trade of this platform is that it allows payment with bank transfer and automatically converts AUD deposits to USD.
Determining your exchange needs will help you find the best crypto broker for you. Be sure to try multiple platforms to benefit from specific perks as well as get a feel of the trading platform.
Top Cryptocurrencies in Australia
There are hundreds of crypto assets, most with very little value and unclear potential. Below we discuss the most popular cryptocurrency assets currently being bought and sold in Australia.
Since its inception in 2009, Bitcoin has been a trendsetter, ushering in a wave of cryptos. It has also become the de facto standard for crypto assets inspiring an ever-growing group of followers and spin-offs.
2. Ethereum (ETH)
Ethereum, commonly known as Ether, is a crypto used on the Ethereum network. It has a growing track record of holding and increasing in value over time just like Bitcoin. It is the second largest crypto after Bitcoin by market cap. Since its creation, the crypto asset has sharply risen to nearly AUD3,000 for one token.
3. Litecoin (LTC)
Launched in 2011, Litecoin was among the first cryptos to follow in the footsteps of Bitcoin. It is based on an open-source global payment and as adapted from Bitcoin’s open-source code.
Litecoin has a faster block generation rate consequently faster transaction confirmation time. Additionally, there are more litecoins in circulation than there are Bitcoins.
4. Cardano (ADA)
ADA uses a peer-reviewed blockchain protocol known as Ouroboros. The technology is described as being a more secure and scalable way to maintain decentralization. Cardano aims to be the top financial operating system by developing DeFi products and providing solutions for voter fraud and interoperability.
As of November 2012, the crypto asset had the sixth-largest market capitalization at AUD 57 billion and one ADA traded for about AUD 1.79.
5. Polkadot (DOT)
Polkadot is an open source, blockchain-based platforms that allows different blockchains to exchange transactions and information with one another. It provides unprecedented economic and transactional scalabilty thanks to its set of validators that spread transactions across different parallel blockchains.