Cryptocurrencies are an exciting investment opportunity. They’re one of the best performing assets of 2020.
For example, Grayscale Investments Bitcoin Trust has seen striking growth. It has gained 51 per cent year-to-date (YTD). Compare this with the S&P 500 0.48 per cent YTD performance.
Investing in cryptocurrency, also known as digital assets, is simple. Cryptocurrency exchanges are like traditional financial platforms, making the investment process easy.
Where to buy cryptocurrency in Australia
BTC Markets is Australia’s largest cryptocurrency exchange. Over 270,000 Australians have traded $9.8bn on the platform. It’s simple to use and suited for any investment strategy.
It has straightforward tools and processes. Secure NPP PayID payments allow for free, instant deposits and withdrawals. Recurring transactions automatically purchase cryptocurrency over time – suitable for longer term investors. BTC Markets also utilises industry best practices in security protection.
Who can invest in cryptocurrency
Cryptocurrency is open to a range of investor types. This includes individuals, institutions or company traders along with self-managed super funds (SMSF). To open an account on a cryptocurrency exchange, you must be 18 years or older and pass a straightforward identity verification.
With the best liquidity in Australia, BTC Markets can accommodate trades of any size. Larger traders can use our Over the Counter (OTC) desk. This allows clients to buy or sell large orders off the public exchange.
For those starting out, recurring transactions make investing over time easy. More sophisticated traders will enjoy using our industry standard API.
Which cryptocurrency to invest in
Everyone’s investment strategy is different. This article is not considered advice. We recommend detailed research prior to any investment.
The two best known cryptocurrencies are Bitcoin and Ethereum.
Bitcoin is the world’s first cryptocurrency. It was created as a store of value, hence the name cryptocurrency. It’s the largest digital asset by market capitalisation, currently worth $285bn. Similar cryptocurrencies include Litecoin and Bitcoin Cash.
Ethereum is considered the building block of the blockchain economy. The platform is used to build other applications and ideas. These include Chainlink and Enjin Coin. It is the second largest digital asset by market capitalisation, currently valued at $51.6bn.
BTC Markets lists 14 major cryptocurrencies including assets ranked within the top 10 market capitalisation.
Is cryptocurrency regulated?
2020 has seen a lot of development in cryptocurrency regulation. The European Securities and Markets Authority (ESMA) plans cryptocurrency regulation as part of its 2020-2022 focus. The US Congress recently introduced over 30 cryptocurrency and blockchain bills.
Cryptocurrencies are legal and are treated as property in Australia. This means they’re subject to capital gains tax. SMSFs are eligible to invest in cryptocurrency as permitted by their fund’s investment strategy. Digital asset exchanges are registered with AUSTRAC and fully compliant with all AML/KYC requirements.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.