As cryptocurrency continues to go from strength-to-strength and surges in popularity, many people are suffering major FOMO (fear of missing out!) and are jumping on the crypto bandwagon. More and more Australians sitting around wishing that they invested earlier are finally making the jump to actually doing something about it, but those of you who are somewhat out of the loop may be wondering how exactly you can go about buying some Bitcoin, or any other cryptocurrency for that matter.
The best methods to buy Bitcoin for Australians are actually not that complex. Anybody with a bank account and an internet connection can invest in cryptocurrency.
#1: Online Exchanges
The buying and selling of Bitcoin and most other cryptocurrency is done through online exchanges and markets. Acting in a similar way to the stock market, cryptocurrency is sold peer-to-peer between two individuals: one person who is selling their cryptocurrency to another person who wants to buy it.
There are many popular exchange sites and they are easy to get set up on and begin using. When registering, you will need to upload some form of ID to verify your identity, transfer some Australian dollars to your account, and you are good to go – you will be able to immediately invest in Bitcoin or any other cryptocurrency which takes your fancy.
In fact, this is virtually the only trusted, safe, and tested method to exchange Bitcoin and other cryptocurrencies, and is the only one we will recommend.
#2: What Happens When I Buy Bitcoin?
You own it. That’s all! Your Bitcoin is stored in your exchange account in a digital wallet, which can only be accessed by you. Your wallet will have its own public address – similar to a bank account number – and cryptographic key – like a PIN number – and this information is used to make purchases and trade Bitcoin – and any other cryptocurrency.
It is important to note that if you lose your cryptocurrency key (the public address) then your wallet is gone forever. You cannot recover a lost Bitcoin wallet, so it is very important that you take good care of this information and have multiple copies of it.
#3: Use a Reputable Exchange
Whilst we recommend only using cryptocurrency exchanges to buy and sell your Bitcoin and other cryptocurrencies, it is important to exercise some due diligence and only use trusted exchanges. Whilst most are reputable, the key players are better than the more obscure names, and the lower-level exchanges always have an increased risk of being attacked and hacked.
This is bad news because you cannot insure your cryptocurrency, so if it is lost through hacking or attacks, then it is gone forever. For extra security, invest in offline wallets which are stored on your computer and not kept in cryptocurrency exchanges.
Thanks to the price hike Bitcoin enjoyed at the end of 2017, it has seen a surge in popularity. More and more people want in, and anybody can do it. If you do decide to buy Bitcoin, though, ensure you have done your research and remain vigilant.