Cryptocurrency trading Australia article ~ 3 min read, updated Feb-20
Cryptocurrency trading has become increasingly popular in recent years, with traders looking for better returns than are currently available in more traditional investment products.
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Cryptocurrency trading of major altcoins like Bitcoin in particular, has driven a huge amount of investment with the price of a single coin rising to as much as 25,000 AUD back in Dec-17 and then falling to it’s current levels of around 5,000 AUD. This is a drop of over 80% in little over 12 months and with a daily price fluctuation of circa 5% up and down, the crypto market continues to provide plenty of exciting opportunities for traders.
Best Cryptocurrency trading platforms Australia in 2019!
|Website||Broker Rating||Cryptocurrencies Available||Trading Method||Fees||Location/ Licence||Visit|
|Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Dash||CFD and FX (capital at risk)||Free to join, competitive spreads|
Australia / ASIC
|Bitcoin, Bitcoin Cash, Ethereum, Litecoin & Ripple||CFD & FX (capital at risk)||Free to join, fixed spreads|
Cryptocurrency trading Australia, where to get started?
Trading cryptocurrencies enables you to not only buy, but also sell without actually having to own the crypto. This is not something you can do on a cryptocurrency exchange. As the price of cryptocurrencies rises and falls you can place a buy or sell trade, taking advantage of the huge daily volatility. It’s not as complicated as it sounds. If you think the price will go up, you buy, or conversely, if you think the price will go down, you sell. You’re not actually owning any of the cryptocurrency, you’re simply trading on the market price difference and the direction this might take.
We’ve reviewed all of the major Cryptocurrency trading brokers and looked at how their platforms perform, which Cryptos they offer, the spreads available at each broker, whether or not they have education/learn to trade resources and more. However, please read this quick guide to find out how trading Cryptocurrencies can be more advantageous than buying.
Advantages of Cryptocurrency trading Australia vs buying
Cryptocurrencies, such as 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.
There are many advantages to be had to trading an altcoin over actually buying the asset. When you simply buy, you will lose money if and when the value decreases creating negative equity. When you trade an altcoin you can take advantage of the large price swings, by not only buying (going long), but selling it (going short). When you buy and sell you’re not actually owning any of the actual asset, you’re just speculating against the underlying price of it to whether it’s going to go up or down.
A new frontier in financial speculation
It is no secret that up towards the end of 2017, there were record low levels of volatility in local markets like Shares, Indices, FX and Commodities.
Cryptocurrencies have been the one shining light for investors looking for the opportunity to take advantage of market volatility by trading assets which promise returns over the shorter term.
Take Bitcoin for instance; the Cryptocurrency has experienced swings of up to 25% and its price has risen by over 20,000% since it first launched.
It is exactly these price swings that have attracted traders with a keen eye for assets that offer significant returns. Rather than buying actual coins, savvy traders speculate on price movements in the underlying market to go both long and short of a range of Cryptos like Bitcoin, Ethereum and Ripple.
How to trade Cryptocurrency
Trading cryptocurrencies is performed via a CFD which stands for Contract For Difference. It’s a very simple way to make profit from the price movement without having to physically own the underlying crypto currency. You can trade on the price going up and down using a CFD and close the contract/ trade anytime.
With any one of the major Cryptocurrency brokers, you’ll be able to apply for a CFD trading account and get started as soon as your account has been approved.
When you trade CFDs on popular Cryptocurrencies you’ll be trading on leverage, this means that for a relatively small initial contribution, you can have a significant exposure to the market thereby boosting your potential returns.
It is important that you remember that leverage works both ways and you can also magnify losses in the same way.
Another key benefit of trading with a trusted CFD broker is that you’ll be able to make use of smart risk management tools like Stop Losses and Limit Orders to help secure your profits and minimise losses in times of excess volatility.