How to Safely Invest in Bitcoin in Australia

Posted on by Chandan Sanwal

Bitcoins have the potential to provide high returns to investors and outperform investor expectations regularly. Stats show that over 9% of Australia’s population holds Bitcoins. Even formal regulations now recognize the legality of Bitcoin Australia. However, there are several points you need to assess before investing in this digital currency.

bitcoin

Trading platform

Well-established and widely recognized platforms ensure secure transactions. You may need “wallets” and other digital storage options to store your Bitcoins. However, since the market is largely unregulated, scammers and hackers could access your wallets. 

There are a lot of substandard platforms and applications that disguise themselves to be legit. It is recommended you check the authenticity and security of the platform. Other things to assess are the fees, spreads, hidden charges, availability of customer support, features, and ease of use. 

Suppose you are a beginner at Bitcoin investing, you might also want to look into factors like the coin variety offered, educational content, method of payment, and the ability to buy coins directly with AUD.

If you want to buy Bitcoins directly, signing up with a local Bitcoin OTC desk that offers this service will be the best choice. 

Crypto exchanges in Australia should be registered with AUSTRAC. Contact a registered crypto exchange to find out if direct AUD purchases are possible. Also, assess the response rate of the customer support service.

Verification Process

While investing in Bitcoin in Australia, it is mandatory to use a valid Email address. The exchange or OTC desk will use this email address to give you information and alerts about your transactions. Additionally, you will have to provide your personal information like your proof of residency and other documents for verification purposes. 

Investors may need to set up a 2FA (2-factor authentication) for an added layer of security. The next step is adding a live bank account. Do not provide false or incorrect information as it may lead to further complications.

Safe and Secure Transaction

Bitcoin transactions are pretty straightforward. Before buying a particular digital coin, educate yourself about the features of the coin. Always double-check the amount entered before confirming your purchase. Some cryptocurrency investment errors may be irreversible.

Scams and Other Risks

Reading news and articles related to cryptocurrency scams will make investors more alert of the possibility of these scams. Learn about standard scamming techniques scammers use. 

Keeping yourself updated on the latest crypto market regulations and rules can help stop you from falling into similar scams. Cryptocurrency schemes that promise high returns in a short period are usually a scam. 

Understand Regulations

It would help if you only transacted in a registered exchange or reliable OTC desk. The exchange should be registered under Australian Transaction Reports and Analysis Centre. 

Anti-money laundering and Anti finance terrorism laws are also applicable in the case of Bitcoins. Every transaction should follow anti-money laundering and protocols. Educate yourself about these laws and be updated on the amendments.

Avoid Keeping Large Crypto Balances on Exchanges

Do not practice keeping large crypto balances on exchanges. Buy or sell coins regularly or put them on blockchain in an off-exchange wallet. Dump all exchanges that do not pay out fast and or can’t be communicated with.

Avoid Registering Stop Losses with the Platform

Outsiders and scammers who have access to your stop-loss information could use such information to manipulate you. Ensure that the exchange or OTC desk has relevant security features and firewalls in place to prevent information leaks. Hackers and scammers could even access your banking information.

Final Thought

Bitcoin and other altcoins are digital currencies used primarily for investments and for purchases. The highly volatile nature of these digital coins makes them an excellent trading tool.

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