The Australian crypto market has been growing day by day, with almost 18% of the total population owning cryptocurrencies. Through crypto trading, traders can make as much as $10,000-$30,000 every year.
Several crypto exchanges are emerging in the country, making it easier for crypto traders and enthusiasts to expand their trading and investment game in the digital currency world. In this article, we discuss the current cryptocurrency landscape and how you can start trading cryptocurrency in Australia.
Australia’s current crypto landscape
The Commonwealth Bank of Australia has enabled the buying, selling, and holding of cryptocurrencies. The bank has partnered with Gemini, the largest regulated crypto exchange globally and is now offering its own crypto exchange and custodian service to customers.
According to a report, Australia is now one of the most bullish countries in the crypto space compared to the others around the world. Bitcoin is the most popular cryptocurrency in Australia, owned by 65% of the crypto-owners in the country and its trading volume is over 55 million USD. It is followed by Ethereum, with 42% of the crypto traders/investors owning it.
The average portfolio size of Australians in the crypto market is around 2,850 AUD, with the average age group holding the largest portfolios being over 64 years old. People invest at least 2000 AUD in the crypto market as their initial investment, expanding it slowly and gradually.
Why should you consider trading cryptocurrencies in Australia?
The main reason behind entering the digital currency market is portfolio diversification. It’s quite different from the traditional assets, and it also gives you the opportunity and exposure to a constantly soaring market.
However, there is also a percentage of the population who has been trying out cryptos due to the fear of missing out and some as a hedge against the growing inflation rates. Around 63% of Australians believe that cryptocurrencies, especially Bitcoin, are a significant asset to benefit from through speculative strategies.
1 in every 4 people in the country has either already invested in the crypto market or are planning to do so in the near future, proving the overall market interest of Australians in the digital currency space. If we talk about the futuristic way forward of digital assets in Australia, men and women are equally interested in investing in cryptocurrencies even though the current statistics show that more men (29%) are entering the crypto space than women (7%).
The steps to start trading crypto in Australia
1. Compare the online crypto trading platforms
Australia has over 50 reliable crypto exchanges that you can compare and choose from. The comparison should be between each platform’s crypto prices, trading fees, and any additional services involved. While some trading platforms allow you to own cryptocurrencies directly which can require large capital upfront, others let your trade-in crypto through CFDs (contract for differences).
If you are new to the cryptocurrency space, you can start by trading in crypto CFDs since that requires less capital as you won’t have to own the underlying asset. You will only be paying a small percentage of the asset and take advantage of its fluctuating price changes.
2. Choose a platform and sign up
Once you have compared the trading platforms, it is time for you to choose the one that suits you best. You can create a demo account on these crypto platforms to get a real look and feel of how the trading application actually works.
The next step is to sign up on the platform of your choice. You will be required to enter your personal and banking details to verify your identity before you can start trading.
3. Start crypto trading through CFDs
Once your account is verified, you can start trading cryptocurrencies through CFDs. Through CFDs, you trade cryptocurrencies against regular currencies like USD, GBP, EUR, and more. So, if you trade Bitcoin CFDs, they would be denoted as BTC/ USD, BTC/ EUR, and BTC/ GBP where BTC represents cryptocurrency and USD, EUR, and GBP represent the regular currencies that Bitcoin is traded against.
Cryptocurrency CFDs mainly involve predicting whether digital currency prices will increase or decrease compared to regular currencies. When you buy CFDs and the markets move in your favour, you can end up with profits. The biggest advantage of trading crypto CFDs is that you can make profit regardless of whether the market moves up or falls down.
4. Monitor the changing crypto prices
After your purchase, you can start monitoring the crypto prices of the asset and keep a close eye on the crypto news that could affect the market movement. Sell the cryptocurrency when you feel it is the right time to lock in some profits, or keep it with you as a long-term investment to benefit from the soaring prices.
Decide on the size of your position and select a long or short position depending on the market conditions and your trading strategy. You should remember that you can add limits or close your trades early to protect your trades and minimise losses.
Start trading cryptocurrency in Australia with Blueberry Markets
The skyrocketing value of cryptocurrencies has proven it as a profitable investment for both traders and investors in Australia. Blueberry Markets provide you with a reliable, secure and easily accessible platform that allows you to trade cryptocurrencies via CFDs. Since you are trading cryptocurrencies directly instead of owning them, you don’t need to open a digital wallet, and you can get started right away. We offer tight spreads, a seamless trading experience, and high leverage.
Sign up for a live trading account or try a risk-free demo account.