The rise of blockchain technology and cryptocurrencies has changed how the financial market operates. People embrace the decentralized nature of cryptocurrencies compared to regulations in fiat currencies. Also, in recent years, there’s been a boom in the crypto market, with the price of coins rising. Hence, people have now opted to invest and trade in crypto as the market looks more volatile and promising than the stock market.
Furthermore, other crypto coins have been developed, apart from bitcoin, called alternative coins, or altcoins. These coins are meant to help people who missed the early years of Bitcoin to take advantage of initial coin offerings (ICO). Some altcoins have had over 1000% price increases, making them popular among traders and investors.
In Australia, for example, more people are looking for ways to buy altcoins so they can either trade them or hold them for long-term profits. If this piques your interest, this article will discuss how to buy altcoins in Australia:
1. Choose an Exchange
There are many cryptocurrency exchanges, and some are more suited for the Australian market than others. When choosing an exchange, consider the following factors:
- The altcoin you want to buy: Not all exchanges offer the same coins. Some exchanges will only allow you to trade a few of the mainstream altcoins, while other crypto exchanges offer hundreds of them. For your reference, you can find more info here about altcoins available in major crypto exchanges in Australia.
- Your level of experience: This is your comfort zone with the trading platform. Exchanges designed for newbies require little technical knowledge, while those targeting experienced traders require a deeper understanding of technical indicators and how to interpret them.
- Exchange fees: Cryptocurrency exchanges charge different fees depending on their payment structure. For instance, some will charge a small transaction fee every time you buy or sell, while others will ask for a fixed monthly subscription fee. The exchange fees can be paid in both fiat currency and cryptocurrency.
Above all, the exchange platform you choose should be secure enough to ensure that you don’t lose your altcoins or money.
2. Create and Secure your account
Now that you’ve selected an exchange platform, the next thing you should do is to set up an account. You’ll be required to provide personal details and other information to help prove your identity and validate your bank account. Don’t worry about sharing these private pieces of information since a reliable platform will have a robust security system to protect your funds from hackers. Still, it’s best to keep your login credentials safe and never share them with anyone else.
Once you’ve created your account, ensure that you secure it by enabling two-factor authentication (2FA). This is a multilevel security protocol that makes it more difficult for hackers to access your account even if they know your password. Thus, a 2FA protocol will protect your assets from being stolen by hackers or scammers.
3. Choose the Altcoin to buy
As with any other investment product, it’s important to do your research before putting money into it. You need to know what altcoin is promising and which isn’t before investing. Some examples of altcoins include Ethereum, Ripple, Litecoin, and Monero.
Look at the coin’s market capitalization (total value of the coins in circulation). If a coin has a large market cap, it’s likely more stable than one that has a smaller market cap. This means that people are more willing to invest their money in this coin.
It’s also important to look at its trading volume (the number of coins changing hands per day). A high trading volume indicates many buyers and sellers for a particular coin at the current price range. This makes it easier for you to exit your position or buy more if you want to.
You should be careful with altcoins used for pump and dump. These coins will show a promising upward trend in their prices, prompting you to buy. Later, the prices will crash, making the coin undesirable and difficult to sell.
4. Purchase your Altcoin
Once you’re sure about what coin to buy, you can go ahead and make the purchase. Here are three different ways to buy altcoins:
- Make a purchase using AUD: When buying altcoins in Australia, one of the fastest ways to acquire them is by using real money. Look for sites that allow you to buy altcoins with Australian dollars through their exchange service. You can load your account with AUD funds and purchase the altcoin.
Some of the usual coins available include Ethereum, Bitcoin Cash, and Litecoin, but there are many others. So, ensure the exchange you choose supports the altcoin of your choice.
- Make a purchase using bitcoins: If you already have a bitcoin wallet, acquiring an altcoin is easy; transfer your bitcoins into another exchange where you can trade them for the coin of your choice. Since several exchanges support multiple currencies, you can easily change your bitcoins to other altcoins you want to buy.
- Make a purchase using Ethereum: Ethereum is the most popular altcoin in Australia, and many crypto investors have them in their portfolios. This means that Ethereum can be directly exchanged with other altcoins in the exchange or purchased from an external exchange. Moreover, other altcoins are built on the Ethereum network, which makes it an easy way to buy other altcoins.
5. Store your Altcoins in a Hard Wallet
Once you’ve got your coins on a cryptocurrency exchange, you’ll need to store them somewhere. Most traders keep their cryptocurrency coins in a ‘hot wallet.’ This means they’re stored online and can be accessed easily.
Hot wallets are convenient because you can access them from any device, trade your coins, and withdraw them instantly. However, they’re also more vulnerable to hacking than cold wallets (offline storage).
Cryptocurrencies are experiencing a boom in Australia, which is why many people are investing more money into them. Since the price of Bitcoin is too expensive for many people, it can be difficult to buy them. Thankfully, other altcoins, such as Doge and Litecoin, are affordable yet have a promising future. Therefore, you can follow the guide above to buy them and have them in your wallet, diversifying your portfolio.