Our Cryptocurrency Broker Comparison
Cryptocurrency trading in Australia has become hugely popular in recent years, so it will come of little surprise that today there is an abundance of exchanges and brokers on the market. Of course, this is great news for those new to the market, as a higher number of brokers means more choice and a better chance of finding a cryptocurrency trading platform that can meet your individual objectives and trading style.
Each crypto trading platform in Australia will differ slightly in the service they offer. Many brokers that offer a multi-asset service will allow you to speculate on the price movement between cryptocurrency pairs – operating in much the same way as forex trading in Australia does. Alternatively, some exchanges will allow you to buy and sell the underlying asset, whereas some platforms will offer both.
With so many brokers on the market, choosing one can sometimes prove a difficult decision. Fortunately, our comparison of cryptocurrency brokers in Australia gives you an overview of the top platforms at a glance and the associated reviews will tell you everything you need know about a given platform.
Crypto Trading – What’s All The Fuss About?
What is Cryptocurrency?
Cryptocurrency came to the world’s attention with the launch of Bitcoin back in 2009. Promising to revolutionise the world of finance, cryptocurrencies are a form of digital peer-to-peer payment that is completely decentralised – ie there is no requirement for a bank or government institution to verify transactions. Whilst Bitcoin remains the biggest cryptocurrency on the market, there are now thousands of different tokens in existence and each one has its own unique features and applications.
Decentralised peer-to-peer payment is made possible – and secure – thanks to the underlying blockchain technology used by most cryptocurrencies. Of course, the inner workings of blockchain are hugely complex and understood only by IT experts, but for the purposes of trading crypto in Australia, understanding the basics should suffice. Blockchain is effectively a public ledger system and is so-called because the data on the network is stored in blocks.
For new blocks to be added to the ledger, computers on the network must solve complex equations to verify each transaction – known as cryptocurrency mining. Furthermore, each block contains a history of all the transactions made on the chain and is shared across the network – meaning if a rogue minor attempts to alter one of the blocks, it will soon be detected and cancelled out by other nodes on the network.
Crypto Trading in Australia
It’s fairly easy to see why cryptocurrency has huge potential. Not only could it one rival fiat currency as a payment system, but advances made in blockchain technology means cryptocurrencies can also power networks that can produce smart contracts and digital apps. Inevitably, this has all led to cryptocurrency being lauded as one of the biggest investment opportunities of recent times.
That being said, the market is still in its infancy and notoriously volatile. At this stage, one of the best ways of making money from cryptocurrency is by trading at higher frequency – effectively in the same way as traders do with forex. This allows you to make profit whether the value of a coin goes up or down. In fact, the frequent fluctuations in the cryptocurrency market make it the perfect environment for day traders.
All you need to do to get started crypto trading Australia is find yourself a reputable exchange or brokerage. In fact, if you are already CFD trading online, then you may find you already have access to the crypto markets.
The Basics of Cryptocurrency Trading in Australia
Here we will look at the basics of crypto trading in Australia. If you are new to the cryptocurrency market, then the first thing to be aware of is that you effectively have two options when it comes to trading: you can either trade cryptocurrency pairs – much in the same way you would forex pairs – or you can buy and sell the underlying asset and store crypto in a specialist cryptocurrency wallet.
If you choose to acquire cryptocurrency and store it, then effectively you are banking on it appreciating over time. The great thing about trading crypto pairs is that you can speculate on the price of a given token moving up or down. You also have the option to trade crypto pairs on margin – giving you much more market exposure with a comparatively small outlay.
Cryptocurrency trading in Australia is hugely popular and you’ll find a wealth of information on the subject here at Wetten.com. If you’re entirely new to the financial markets, then it might be worth checking out our guide on day trading in Australia, as this will give you a more general overview of what’s involved, regardless of the asset or financial instrument you choose to trade.
5 Expert Tips to Get Started Trading Cryptocurrency
This cryptocurrency trading Australia review is intended to provide you with an overview of the market and give you the confidence to choose a broker and start making trades for yourself. Learning to trade cryptocurrency – or any other financial asset – is a long and ongoing process but what follows are 5 tips to help you get started:
Read the news
One of the things that makes the cryptocurrency market so attractive to traders is just how volatile it can be – in volatility lies opportunity after all. Perhaps more than any other financial asset, trading cryptocurrency requires that you keep an eye on the news. Most jurisdictions are still getting to grips with regulating digital currency and the slightest change in trading law can have a huge impact on the industry. Similarly, developments relating to a specific crypto, such as a forking or network upgrade can also lead to huge price movements.
Choose the right broker
There are plenty of cryptocurrency trading platforms in Australia, but it’s important to spend time choosing the right one. Some platforms offer support for a wider range of altcoins, for example, whilst other platforms actually specialise in CFD trading online and simply offer a handful of the most well-known tokens. Before committing to a platform, be sure it offers the service you want and has all the right regulatory credentials.
Learn about the different cryptocurrencies
There are over 4,000 cryptocurrencies in existence and each one offers a new take on the technology. Some coins, like Litecoin, Bitcoin and Bitcoin Cash, are intended to be used as alternative payment methods, whilst Ethereum and Cardano offer a multitude of different applications. Learning the subtle differences between each token will help you predict how they might be affected by certain market forces, as well as what their potential is for future growth.
Consider using leverage
Day trading usually involves making numerous transactions in a single day, with traders looking to capitalise on the frequent fluctuations that occur. This is also true of crypto trading in Australia. However, these transactions often yield small returns of just a few percent, so many traders choose to use leverage as a way of maximising their profit. Just remember that, whilst leverage trading can amplify profits, it can also do the same for losses.
Plan your trades
Anyone serious about cryptocurrency trading in Australia should have some kind of strategy in place. Initially, this might be as simple as working out a weekly trading budget or devoting a set amount of time to trading. As you learn the ropes, you can then start looking into advanced strategies – perhaps even copying the trades of your favourite cryptocurrency trader in Australia. In fact, there are social trading brokers set up specifically for this purpose. Without a strategy in place, not only are you exposing yourself to greater risk but you’ll also find you are unable to replicate any success you do find.
Choosing the Right Cryptocurrency Trading Platform
The decentralised, digital nature of cryptocurrency lends itself well to trading, so it will be of little surprise that there you won’t have to look for to find a crypto trading platform in Australia. Most brokers will offer the same core service – the buying and selling of cryptocurrency tokens or crypto pairs, but depending on your individual objectives you may find some platforms more suitable than others.
Choosing a crypto trading platform in Australia can sometimes seem a little confusing. That’s why here at Wetten we have put together our comprehensive comparison and reviews of all the top providers currently on the market. Our experts weigh up the key features of each platform and take an in-depth look at things like fee structure, regulatory credentials and licensing to give you the most complete and unbiased picture of each platform.
By spending a little time researching your crypto trading platform in Australia, you’ll put yourself in the best possible position for starting your crypto trading journey and avoid wasting time trying out platforms that can’t deliver what you are looking for.
Things to Know Before You Get Started
Getting started trading cryptocurrency in Australia is actually very simple. All you need to do is find a broker, open an account and start making transactions. However, if you are serious about your trading objectives, then there are a few things you should be aware of before you get started.
Where to start trading crypto in Australia
Once you’ve identified your preferred crypto trading platform in Australia, then you’ll need to open an account. This is usually fairly straightforward, but in some cases, you will be expected to provide some kind of identity. Be sure to check the requirements of your chosen platform before signing up.
Storing your cryptocurrency
Depending on how you plan on trading cryptocurrency, you might need to find yourself a crypto wallet to store your tokens. These come in a variety of formats, including web-based, desktop, mobile and even hardware versions. Choosing the best one will depend on your individual circumstances and preferences for security, but it’s a good idea to research options before you actually start acquiring cryptocurrency.
Fees for trading cryptocurrency in Australia
Every cryptocurrency trading platform in Australia will have some sort of fee structure in place. Some will have a fixed commission that you pay on every transaction – usually a small percentage. Others may advertise as ‘commission-free’ but will use a wider spread between the asking price and the selling price to make a profit – much in the same way a bricks-and-mortar currency exchange does. There may also be costs involved in opening an account and/or making deposits and withdrawals, but this will depend on the broker. Also note that moving cryptocurrency around on a blockchain will also include a nominal fee.
Trading other assets
You may want your crypto trading platform in Australia to offer access to other financial markets. If this is the case, it might be worth checking out our posts in futures trading in Australia, or options trading, for example. Whilst it’s usually advisable to focus on one asset class at a time, as you progress on your trading journey you may find you want the option of branching out.
Popular crypto trading strategies
Before starting, you should already have a basic strategy outlined. At the very least, this should include some kind of budget and schedule. However, once you know the ropes then you can start looking for some genuine trading strategies. Some of the more popular ones used at the highest level include scalping, reverse trading, momentum trading and fading – to name but a few. Whilst these might be a little advanced for novice traders, it’s worth being aware of them from the outset so by the time you are ready to use them, you are already familiar with what’s involved.
The legality of trading crypto in Australia
Cryptocurrency is still a relatively new technology and as it is completely decentralised in many cases, some traders have reservations about its legality. The good news is that Australia has been fairly progressive when it comes to cryptocurrency and there are very few restrictions when it comes to buying and selling tokens. For tax purposes, the Australian government has designated crypto as an asset, rather than a currency. If you are uncertain of your tax obligations, it’s worth checking with an independent accountant or advisor to ensure you are operating within the boundaries of the law.
Finding information on cryptocurrency trading in Australia
As we have noted above, it’s crucial to keep abreast of changes within the industry when trading crypto. Here at Wetten, you’ll find plenty of information on everything relating to cryptocurrency, as well as other financial markets. We are constantly updating our site to bring you the latest information. You might also find plenty of educational resources on your chosen trading platform – so be sure to check out what it has to offer.
The next steps
The cryptocurrency market represents one of the most exciting and dynamic investment opportunities of recent times. If you’ve decided to get involved, then you’ll find plenty of resources are readily available and you can realistically expect to open an account with a crypto trading platform in Australia, deposit your account and make your first trade within minutes.
That being said, there are a few preliminary steps you should take before diving right into the markets. Trading, by its very nature, is a risky business and it’s never a good idea to start on shaky foundations.
Your first step should be taking some time to research the cryptocurrency sector, reading up on the most well-known tokens and what it is that makes them special. You’ll also want to spend plenty of time researching the best trading platform for you, based on your individual goals and trading style. Fortunately, our cryptocurrency trading Australia reviews make this latter step much easier as you can find all the info you need on Wetten.com.
Learning how to trade crypto online is an ongoing process – so you shouldn’t be in any rush to skip over the fundamentals. Time spent in research now may well pay dividends later down the line.
Conclusion – Finding the best crypto brokers in Australia
Crypto trading is very popular in Australia, not least because the market is so accessible. Today, anyone with a computer or mobile device can access a cryptocurrency trading platform in Australia and start making transactions. Another great thing about crypto is that it’s traded around the clock – so Australians don’t have to worry about international market times if they want to use the major exchanges.
You can choose whether you prefer to buy and hold a cryptocurrency over weeks, months, even years or try your luck with day trading to take advantage of the frequent price fluctuations that every token experiences throughout the day. Of course, there is risk involved in both strategies – particularly as cryptocurrency is such a new type of asset. However, with careful planning and discipline, you can give yourself every chance of success.
And the best place to start your crypto trading journey is right here at Wetten – where our comprehensive guides will tell you everything you need to know about making those first few crypto trades.
Cryptocurrency Trading Australia FAQ
💲 Where can I start trading cryptocurrency in Australia?
Trading cryptocurrency has become massively popular in recent years. The likes of Bitcoin and Ethereum now trade at thousands of dollars per token and are predicted to get even bigger in the coming years. If you’re looking to get involved, then why not check out our cryptocurrency broker comparison. Here you’ll find details of the top platforms that can get you up and running trading crypto in minutes.
☝🏻 Is cryptocurrency legal in Australia?
Before you start trading cryptocurrency, you’ll no doubt want to be confident that everything you do is completely above board. Our crypto broker reviews make a point of checking all the regulatory credentials a platform offers, so you can trade confidently knowing everything is above board.
🤔 How do I learn about cryptocurrency?
Cryptocurrency and its associated blockchain technology can often seem overwhelmingly complicated, but it’s probably simpler than you think to get started. In reality, you only need to know the fundamentals to trade crypto, rather than the full technical ins-and-outs. Our guide to online trading cryptocurrency in Australia will tell you everything you need to know to get started – as well as a few handy tips for the best chance of success.
❓ What is Bitcoin?
There are now thousands of cryptocurrencies on the market, but without a doubt, Bitcoin remains the most well known of them all. Learning about cryptocurrency requires a basic understanding of blockchain technology. This is what makes crypto so revolutionary. Our online reviews, broker comparisons, and guides to cryptocurrency offer more details on the top tokes, as well as how you can start trading them.
🧳 How much does it cost to trade crypto in Australia?
Trading costs will vary from platform to platform, as will the types of fee you are required to pay. Some operators will charge a flat fee for transactions, whilst others will draw profit from having a wider spread. In addition, some platforms may charge for depositing and withdrawing from your account. Each of our crypto reviews and guides for beginners include a thorough breakdown of a platform’s fees – to save you from any unwelcome surprises later down the line.