Interested in Bitcoin trading Australia, but don’t know where to start? Our guide below will help you understand the options available to you to bring you up to speed ~ 2 min read
We’ve made it easy for you to start investing in Bitcoin, listing all of the major Australian Securities And Investment Commission (ASIC) regulated brokers, so you can get started with a broker you can trust with your money.
Buying Bitcoin vs Bitcoin trading
As Bitcoin prices have risen and risen over the past few years, many everyday investors are looking for a way to take advantage of market volatility without having to own any Cryptocurrency itself.
When you buy actual Bitcoin there is the hassle of having to open and manage a digital wallet, as well as the fact that you can only profit if the price of Bitcoin rises in the future.
When you trade Bitcoin however, you can profit from both rising and falling Bitcoin prices without having to actually own any Bitcoin. By speculating on price movements you can profit from shorter term price volatility rather than holding onto Bitcoin for the longer term.
Best Bitcoin Trading Australia Brokers in 2018!
Bitcoin Trading Platform
The above brokers are essentially the best Bitcoin trading platform for Australian residents. they have ground based offices and are ASIC regulated. ASIC is the main financial regulator in Australia and is very important so you can protect your money when trading. The Bitcoin trading platform performance and ease of use is key to making your trading successful. All of these Bitcoin Trading platforms all have state-of-the-art interfaces which you can monitor your trades in real-time on your desktop or mobile device via their intuitive apps.
How to trade Bitcoin?
Bitcoin trading is performed via a CFD. Don;t worry, this isn’t complicated. CFD means Contract For Difference, which is the product you use to trade Bitcoin on a broker. It’s a very simple way to make profit from the price movement without having to physically own the underlying crypto currency. You’re basically trading the price difference when where you opened the contract with the broker. You can trade on the price going up and down using a CFD and close the contract/ trade anytime. That’s correct, you can trade on the price going down, not only up, wich happens a lot on all the cryptos.
Another key point is that, because Bitcoin has become so expensive, when you buy the Cryptocurrency using a digital wallet, it can tie up a great deal of your capital. When you trade Bitcoin as a CFD however, you’re trading on leverage and can gain a similar exposure to the market for a might smaller upfront investment.
Is Bitcoin trading right for you?
Both buying Bitcoin and Bitcoin trading have advantages and disadvantages just like any other form of investment. Deciding which option is best for you will depend on your investment goals and strategy.
- You can go long (buy) and short (sell) to profit from rising and falling prices
- You won’t need to set up a virtual wallet
- Your account is less likely to be hacked
- You are trading on leverage, giving you larger exposure to the market with less upfront capital
- You’ll buy Bitcoin at full market value
- You will pay tax on profits
- You will buy Bitcoin on an exchange, so you’ll need a digital wallet
- Some exchanges charge high fees for using your digital wallet
- Opening a digital wallet can be complicated and can have security issues
Is Bitcoin trading a good idea?
Deciding whether or not to trade Bitcoin online depends on what your investment goals are and your familiarity with the markets you want to trade. Some of the reasons that Australian investors trade Bitcoin include:
- High volatility – because Bitcoins are much newer markets they can be more volatile with bigger price swings. This presents opportunities for traders to profit from price volatility.
- Flexibility in how you trade – with traditional investment options you’d looks to invest and hold your investment as prices rise. By trading Cryptocurrencies through a CFD broker you can go long or short and profit whether the price rises or falls.
- Trade at a time that suits you – Bitcoin trading markets are open 24/7 so you’ll never miss a trading opportunity.
- Trading on leverage – by trading CFDs on leverage you can gain a larger exposure to the market than you might otherwise be able to by either buying Crypto direct or through more traditional forms of investment.
Why trade Bitcoin instead of buying?
- There are numerous benefits to trading on Bitcoin price movements rather than investing directly in the Cryptocurrency.
- With Bitcoins harder and harder to buy, they have become increasingly expensive and out of reach of many average investors.
- When you trade, instead of buying Bitcoin, you speculate on which way you think the price will move and are able to profit from fluctuations in price volatility.
- Because you trade on leverage, the initial sum you start trading with can be relatively small and is much cheaper than buying Bitcoin directly.
- You also won’t have to open a complicated digital wallet and will benefit from the experience and analysis provided by quality CFD brokers.
- Markets are also available 24/7 and the best brokers offer cutting-edge mobile apps to help you trade on the go so you never miss an opportunity. When you trade CFDs online with a trusted broker you’ll also have the peace of mind of trading with a firm that is Australian Securities And Investment Commission (ASIC) regulated, guaranteeing you the highest possible standards.
- For help choosing a quality Cryptocurrency broker, check out the comparison table above and find a broker that suits you.
- We’ve tested and reviewed all of Australia’s best brokers so that you don’t have to and have lined up exciting offers for you to take advantage of. Check out our list of approved, verified Cryptocurrency brokers now to get started.
The advantages of Bitcoin trading Australia
- Cryptocurrencies like Bitcoin are currently some of the world’s most exciting markets to trade and as the digital currency boom continues, prices are set to rise even further over the next few years.
- Starting in early 2013 the rising price of Bitcoin has triggered a global surge in demand for Cryptocurrency and has driven record highs and impressive returns for investors.
- So what exactly are the advantages of trading Cryptocurrencies and why do they make such an attractive investment proposition?
- Bitcoin is a digital or “Crypto” currency which was first launched in 2009 by an anonymous internet user, or group, known only as “Satoshi Nakamoto”.
- Bitcoin is based on Blockchain technology and is a completely independent peer-to-peer payment system, free from government regulation and control.
- In its early stages just after it’s launch, each Bitcoin was worth little more than 10c while today that total is nearer $8,000 per coin.
- The world’s most popular Cryptocurrency, Bitcoin has ridden a wave of popular sentiment to cement its place as one of the world’s most exciting assets.
- At its core, Bitcoin uses Blockchain technology to store, verify and transfer value.
- The Blockchain is essentially a digital ledger, operated by a secure independent network or community or users, that is open to anyone on the web and which serves to record all digital Bitcoin transactions.
- The Blockchain isn’t stored in a single location but is accessible across millions of computers around the world, making it secure, incorruptible and trustworthy. Every single Bitcoin transaction since the very first has been stored and recorded in the Blockchain for complete transparency.
- Record cannot be altered retrospectively and each transaction must be authenticated by the majority of the Bitcoin community (sometimes called “miners”).
What influences Crypto price movements?
- Because Cryptocurrencies like Bitcoin, Ethereum, Ripple & Litecoin are not controlled by central authorities in the same way that traditional currencies are, their price is impacted by different factors.
- A currency like the United States Dollar (USD) will be affected by things like interest rate decisions, trade policy, domestic policy changes, the performance of Wall Street and financial data from major institutions.
- Cryptocurrencies however are much newer assets and as such less is known about how they react to market volatility, whether there are key correlations to look out for and where breakout and support levels should be set.
- As a general rule of thumb one of the biggest challenges facing Cryptos is the threat of greater regulation.
- As Cryptocurrencies have become more mainstream, and as their value has soared, many mainstream financial institutions have become nervous of their impact on global markets.
- Nobody knows yet whether governments may in the future move to regulate or ban some Cryptos so they do tend to be sensitive to news about potential regulation, attacks in the media on the legitimacy of Cryptos in general and reporting of any major hacking efforts on digital wallet operators.
- Another major driver of price swings in Cryptos is the potential for “forking”. Forking is when a Cryptocurrency splits in two, creating two new, unique currencies, a good example of this is Bitcoin and Bitcoin Cash.
- This generally happens when the Crypto’s community fails to agree on the path forward for the digital currency. As this causes a loss of confidence and drives up confusion, a hard fork in any Crypto is generally negative for price movement.
- When you trade Cryptos it is important that you take time to research the merits of each and really understand how and why their prices move the way they do.
- By analysing past performances and how Cryptos react to events you may be able to establish trends which can help inform your Bitcoin trading decisions.
- Start your Bitcoin tradingjourney today!
Recommended Bitcoin Trading Australia – City Index
Broker Cryptocurrencies available Regulation Deposit Methods Markets Open / Close Compare Crypto Broker Rating Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Ripple ASIC Visa, Mastercard, Maestro, Electron, EFT & BPAY 24/7 inc. weekends