Can You Make Money Trading Cryptocurrency In Australia?
Are you looking to make money in the cryptocurrencies market in Australia? Maybe you are still doubting the possibilities of making money in the crypto market in AU. We took a look at the cryptocurrency market in Australia, and here’s what we found out.
Methods to make money online existed even before the advent of Bitcoin, which ushered in the era of currency digitisation, an era which is still in its infancy.
People who were not yet involved in making money online had doubts that such a thing was possible. But cryptocurrencies dispel all doubts, and moreover, they are now the primary tool and asset to make money online.
Australia Has The Ideal Infrastructure For Trading Cryptocurrencies
Bitcoin is not accepted everywhere. Some countries have partially accepted cryptocurrency activities, and some others have banned cryptocurrencies entirely. For example, in Algeria, Egypt or Morocco, one cannot do any crypto activity whatsoever as cryptocurrencies are completely banned in these countries. This has happened because the governments of these countries have seen cryptocurrencies as a threat to the centralised banking system, considering their decentralised nature.
But this is not the case with Australia where cryptocurrencies gained lots of support by the government of the country. Cryptocurrencies in AU are entirely legalised, and there are no barriers at all if you want to make money in the crypto market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2017 - A Key Year For The Crypto Sphere In Australia
Until 2017 there was a massive debate in Australia about how to tax cryptocurrencies. Until then, cryptocurrencies were double-taxed under Australia’s goods and services tax (GST). Then in the same year, during the crypto boom, the Australian government announced that cryptocurrencies would be treated as a property and as a subject to Capital Gains Tax (CGT). This was a pivotal moment and good news for all traders and cryptocurrency enthusiasts in Australia. Therefore, the crypto ecosystem began to grow, and people began to become more familiar with cryptocurrencies and invest more.
Crypto Environment In Australia Is Just Getting Better
The Australian government has come with a bunch of decisions to boost crypto development in the country. Just recently they allocated $800 million for the development of digital technologies including $6 million solely for Blockchain technology. As part of the National, Blockchain Roadmap Australia has formed two more working groups to speed up the Blockchain adoption process in the country. These groups will be focused more to implement Blockchain technology in supply chain and credential management.
In making these decisions, the Australian government has stated that the aim is to remove all barriers to implementing Blockchain and to create the best possible environment for the development of cryptocurrencies in Australia.
Moreover, BTC Markets, which is an exchange based in the city of Melbourne in Australia, has claimed that the interest of people in Australia to work in the field of Blockchain technology has increased. The CEO, Caroline Bower, has said that the exchange has hired recently four software engineers and a project manager.
The Australian Guy Who Retired At 26 Thanks To The Profits He Made Investing In Cryptocurrencies
Rowan Hill was a coal miner in Australia until he made enormous profits thanks to his investment he had made before the crypto boom. Hill is a snowboarding lover, and he often posts pictures while travelling the world. Speaking for media, he warned crypto investors to not sell on the wrong time.
“A lot of people can’t stand the price swings” in cryptocurrencies, Hill said, “The average person just sells, and they lose out,” he added.
Hill tries to motivate people to invest in cryptocurrencies and take that first step to achieve their dreams. Besides, Hill is just one of the individuals amongst many others in the world who have made millions in the cryptocurrency market.
Therefore, we must note that there is a lot of money sitting in the crypto market in Australia. Especially now, since they still are in their early stage of development.
What Are The 5 Most Profitable Strategies To Start Trading Cryptos In Australia?
There are various crypto investment forms you could make in the crypto market in AU. The investment method you pick depends on your trading experience. Here are some of the strategies you could apply if you decide to start your crypto investment adventures.
1. Long Term Investment
This method is the easiest one to invest in the cryptocurrency market in Australia. It is differently referred to as Buy and Hold strategy as you will invest a specified amount of money into your preferred coin, wait for the value of the coin to increase and then sell your asset. Many investors made huge profits during the cryptocurrency boom in 2017. Bitcoin had reached its all-time high of $20,000 and those that had invested years before when the price was way lower, took the chance and sold their coins, filling their pockets with money.
2. Short Term Trading
This is differently known as “Day trading”, and it is more applied by professional traders. As far as long term investment pretty much anyone can do it, but when it comes to short term trading, it is a little different as it requires more knowledge and experience. If you want to trade cryptocurrencies daily, make sure you learn the core of trading. Reading the charts and being able to make technical analysis are two components a day trader must-have. We teach that on our courses here at Trading Education.
3. CFD Trading
Not all the countries allow it, but in Australia, you can also do CFD trading. CFD trading means speculating on the price changes of an underlying asset. CFD stands for “Contract For Difference”. If you would want to do CFD trading, it means that you would have to make a contract with a broker, rather than trading on your own.
Please Note: CFDs are complex instruments and come with a high risk due to leverage
4. Staking Cryptocurrencies
Staking means keeping cryptocurrencies in a wallet for a specific time and then earning profits from the interest. To get a better idea, just compare it to earning from the interest while keeping your money in the bank account. It is worth noting that staking is an excellent option for generating long term passive income.
5. Mining
Mining cryptocurrencies is probably the least preferred method you could use as it requires sophisticated equipment, and it spends a lot of electricity. Bitcoin mining is legal in Australia. However, you must have your own computer system. Another method to mine cryptocurrencies is called cloud mining, which reduces the costs as mining is done through a cloud, and there is less effort needed to maintain the equipment.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
A Final Word About Making Money In The Cryptocurrency Market In Australia
Yes, you can make money in the crypto market in Australia. With all the decisions made by the Australian government in favour of crypto and Blockchain development as aforementioned, and with cryptocurrencies booming, there is no reason as to why you cannot make money in the crypto market in Australia, with whatever strategy you decide using.
The government and the financial institutions in Australia are not rigorous at all towards cryptocurrencies. On the contrary, they are preparing the ground to develop cryptocurrencies and Blockchain technology further.
Learn Trading Cryptocurrencies In Australia With Trading Education
Here at Trading Education, we have prepared trading courses through which you will find it very easy to understand the fundamentals of trading. Our courses are a product and a combination of experts in the field of crypto trading.
Cryptocurrencies are continuing to evolve rapidly in Australia and worldwide. So, learning the right way to invest in them now, as if part-time or full time, depending on your desire, is the perfect skill that can bring you big profits in the future.
Key Points
- Australia is among countries where crypto and blockchain development are hugely supported
- In 2017 the Australian government announced that cryptocurrencies would be treated as a property and as a subject to Capital Gains Tax (CGT), thus not being double taxed anymore
- Australia Government wants to remove all barriers that might hinder crypto and Blockchain development
- Rowan Hill was a coal miner in Australia and retired at 26, as he made huge profits investing before crypto boom arrived.
- Long term investment, day trading, CFD trading, staking, and mining cryptocurrencies are 5 effective methods to make money in the crypto market in Australia.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.