After Bitcoin hit an all time high of over $88k AUD earlier this year, cryptocurrency (crypto) was again on everyone’s lips.
Beginning with tweets by Elon Musk, a high-profile ASX-listed acquisition, and into workplace conversations across the country, the disruptive nature of crypto is a hot topic.
Let’s take a look at how you convert your curiosity into action, beginning with the steps to dive right in.
Janine Grainger, CEO of Easy Crypto explains: “Crypto can be as hard or as easy as you make it, but to get started, you really only have to understand the basics and everything else can be learnt through experience.”
Let’s begin with the steps to buy your first crypto.
- Sign up to a registered Digital Currency Exchange (such as Easy Crypto) and pass ID checks
- Choose your crypto of choice (it’s good to start with Bitcoin if unsure)
- Pay in AUD for your Bitcoin
- Depending on your exchange, the Bitcoin will be stored for you, or sent to the crypto wallet of your choice
The above four-step process is very similar to buying any item online and on average takes less than five minutes to complete.
If you start small (with as little as $100 AUD), the risk is reduced and it’s a great way to get a feel for the market.
So now you have that experience with crypto, what should you do next? This is where it pays to start your research.
There are many strategies that people adopt when investing in crypto, let’s look at two investment considerations, starting with diversification.
In the investment world, it is good to diversify your exposure across different areas. In Australia, this could mean shares, housing and precious metals.
As part of a forward-thinking strategy, you could assess your risk appetite and dedicate a percentage of your investment capital into crypto.
This strategy allows you to gain exposure to crypto assets, adding another pillar to your diversification tactic, while simultaneously reaping benefits of any crypto market value growth.
Large corporations, such as Microstrategy have also used Bitcoin as a hedge against the inflation of the USD.
The second consideration is to use a Dollar Cost Averaging (DCA) technique.
This is the process of buying crypto at a predetermined time and amount at regular intervals. For example, buying $100 worth of Bitcoin weekly.
The reason DCA is so effective is it eliminates the emotional side of making trades.
It is a medium- to long-term strategy built on the premise that as crypto market capitalisation grows, so too will the value of your holdings.
If you want an easy and safe way to get started, check out Easy Crypto; The go-to exchange for beginners.