Cryptocurrency has taken everyone’s attention as investment opportunities continue to expand and provide more options to investors. If you’re one of the people whose interest was sparked by investing in cryptocurrency, then it is a rule of thumb to do a lot of research before making any rash decisions.
The most common and famous type of cryptocurrency is Bitcoin. When you buy Bitcoin here, consider many things, so read more to know what you should keep in mind.
Bitcoin is Volatile
One of the basic things you must know about investing in cryptocurrency is that it is never predictable. Prices can quickly change within a short amount of time. And the jumping in prices isn’t really for the faint of heart (that is if you’re too emotional for risky investments).
Bitcoin prices are affected by supply and demand. The more people buy it, the more expensive it is, and vice versa.
Bitcoin is Divisible
When it’s your first time buying Bitcoin and searching up its price, you might think that you might not be able to buy it because of how expensive it can get. Don’t be misled. You can buy Bitcoin instantly with a credit card for a fractional amount. it is because Bitcoin is divisible.
You can purchase Bitcoin down to one-hundredth million of a coin. But some exchanges have a minimum trade amount that starts from USD 5-USD 10.
Be Aware of Cryptocurrency Regulations in Australia
Before you invest your money in cryptocurrency, you should be aware of any laws and regulations that your investment is under. For example, in 2017, the Australian government declared that trading Bitcoin is legal and is subject to Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006.
Although the early crypto regulations concern exchanges, the laws have evolved to give importance to consumer protection. However, Bitcoin regulation in Australia has categorized Bitcoin, and other cryptocurrencies are treated as properties for tax purposes.
Secure Your Wallet
When you buy Bitcoin online, you open up your digital wallet to connect to different networks on the internet. Unfortunately, like your physical wallet, your online wallet is also exposed to harmful risks. While Bitcoin allows you to connect with various places, it also makes you vulnerable to hackers.
Make sure you have your wallet secured by passwords and two-step authentications. Remember that it is your money that you put here, so you must ensure that your wallet is safe from any threats.
Bitcoin is an Accepted Form of Payment
Many people think that Bitcoin is only a form of investment, but many establishments accept bitcoin as payment. However, digital currency can’t be used just like a physical currency.
Paying by Bitcoin can be done through QR Codes or sent through online wallet features; holders are also using cryptocurrency debit cards to spend their digital assets whenever they please.
There is much information online about buying and investing in digital currencies, especially Bitcoin. However, the playing field for cryptocurrency is always fluctuating, so if it is your first time buying cryptocurrency, then make sure to get advice from people who have been trading Bitcoin for a long time.
