How To Trade Cryptocurrency in Australia

Cryptocurrencies can be a volatile and highly speculative market with the value being determined by supply and demand, as well as market sentiment.

According to independent cryptocurrency data source, CoinGecko, the global cryptocurrency market cap was $847 billion as of December 2022. The 24-hour trading volumes still often exceed $30 billion. Despite a bearish market during the later half of 2022, many people continue trading and investing in cryptocurrencies and crypto Contracts For Difference (CFDs).

Trading CFDs can be complicated as this involves understanding the special terms and conditions that come with the product. However, that doesn’t need to be the case once you deal with the right team.

With Vantage, you can buy and sell cryptocurrency CFDs by predicting and capitalising on their potential price movements. This can all be done without actually owning the coin, and it’s easier than you think for you to be able to try crypto CFD trading in Australia.

Trade Crypto in Australia: An Overview

Cryptocurrency trading in Australia presents unique opportunities in the day to day volatility of the market as well as necessitates more due diligence on the part of prudent traders and investors relative to trading other asset classes. The collapse of FTX is an example within the crypto space that highlights these risks. 

When you decide to trade cryptocurrency in Australia, you have many opportunities available. Direct AUD to cryptocurrency exchanges is the simplest option. However, there is another exciting option in crypto CFDs, a derivative instrument available for traditional and crypto assets.

How to Buy Cryptocurrencies in Australia

The most common way to get involved in cryptocurrencies is to simply buy the cryptos you want. You can then trade them for a better price or hold them as long-term investments.

Buying any of the major cryptocurrencies is not a difficult process. You just need to sign up and create an account on an exchange that offers the crypto you’re looking for.

If you want to invest in major coins like Bitcoin (BTC) and Ethereum (ETH), most reputable exchanges offer them for direct purchase using your Australian dollars.

However, there are many cryptocurrencies that are less accessible. Some require using more complex exchanges and placing orders using cryptos only. Usually, this means that you would need to first buy Bitcoin and place it in a wallet. You would then use your Bitcoin to purchase the other cryptocurrency. More recently, “tether coins” are a more accessible option. 

These are cryptocurrencies that are (theoretically) tethered to national currencies like AUD or USD. So, you could buy a USD Tether at a rate of $1.00 USD plus fees and other costs, then use your tether coins to purchase cryptos.

Using Major Crypto Exchanges in Australia

Major international crypto exchanges are operational and fully accessible to Australian residents. If you’re interested in the crypto world, this is a basic way to acquire cryptocurrencies.

When you open a trading account with a major crypto exchange, you also receive a public wallet. That means you can use your account on the exchange as a crypto “bank account” as well. The security situation varies by exchange, and even the largest ones can be the targets of an attack. So, security should be a part of your considerations.

What these exchanges certainly offer you is simplicity and ease of access. You can normally sell any cryptos you buy from an exchange, on the same exchange. However, this isn’t always the case, and you must carefully consider the available trading pairs on any exchange you use.

Cryptocurrency CFDs

Mainstream traditional financial instruments have slowly spilled over into the cryptocurrency markets in recent years.

One such instrument that Australians can invest in is cryptocurrency CFDs. These are contracts between buyers and sellers of an asset. The contract between the broker and the investor is based on a speculation by the buyer on the price movements of exchange rates, in this case, AUD or USD vs a cryptocurrency

The buyer doesn’t own the underlying cryptocurrency. There are two things to remember: CFDs give you the ability to trade on a margin, with leverage increasing not just the potential profits, but also the potential losses.

CFDs enable you to capitalise on your predicted crypto price movements. 

Being able to trade crypto in Australia and tap on the movements in the markets is now easier than ever.

Vantage offers a range of more than 40 different crypto CFDs, including Bitcoin, Ethereum, Dogecoin, Ripple, and many more.

Start trading Crypto CFDs with Vantage. To learn more about how you can open an account and start trading today, click here.