Top 10 Tips To Trade Cryptocurrencies in Australia
Are you looking for tips to trade cryptocurrencies in Australia? Whether you want to start trading cryptocurrencies in Australia or you already are a professional trader, here at Trading Education we have prepared for you 10 tips to trade cryptocurrencies in Australia.
- Start by learning to trade cryptocurrencies properly
- Make a plan
- Cryptocurrencies are correlated - Keep watching Bitcoin
- You might consider diversifying
- Try to be as less emotional as possible
- Choose a crypto exchange authorised to operate in Australia
- Stay updated with the latest news and events in the cryptocurrency world
- Be aware that you must pay taxes when investing in cryptocurrencies in AU
- Don’t let losses discourage you
- Pause sometimes
Australia is one of the countries that have a positive approach regarding cryptocurrencies, as it has not shown any indication to hinder crypto growth. Besides, Australia is one of the countries whose government has supported cryptocurrency and blockchain development.
Australia Strongly Encourages Crypto Development and Blockchain Technology
Blockchain technology is being adopted worldwide not only in the financial sector but in other areas also. Actually, the Australian government has steadily been supporting Blockchain technology. Lately, they announced a National Blockchain Roadmap. This Roadmap describes and explains how vital Blockchain technology is and the benefits that Australia will have from adopting it in various areas. The execution of the new National Blockchain Roadmap throughout the next five years will empower Australians to grow truly important and fundamental Blockchain capacities, moreover attracting new foreign investments and partnerships.
Furthermore, the demand for employees with IT skills in crypto and Blockchain technology has increased drastically as the Australian government allocated $800 million for digital technologies as part of the coronavirus economy recovery plan.
Well, it must be said that with all these decisions and events, it is apparent that Australia has clear and genuine plans regarding cryptocurrencies and Blockchain. So those who have already invested in cryptocurrencies in Australia are in step with the times.
If you are looking to learn how to invest in cryptocurrencies in Australia here at Trading Education, we have prepared the best trading courses that make learning to trade crypto assets easier and more convenient. Take one of the courses and start learning how to trade cryptocurrencies in Australia. It is never too late to start learning, but as they say, the early bird gets the worm.
What Are The Top 10 Tips To Trade Cryptocurrencies In Australia?
People have made tremendous wealth trading Bitcoin and other cryptocurrencies. Now, we must admit that each investment has its own risk, but without at least trying, we cannot get anywhere. It must also be noted that some people have luck. But, luck in not the main factor that determines your success when it comes to trading cryptocurrencies. Skills are what count the most.
Highly skilled traders rarely make mistakes, which means they rarely lose money as they know the best tricks and tips to make money trading cryptocurrencies successfully.
We want you to be successful and make as few mistakes as possible, so below we have listed for you the top ten tips to trade cryptocurrencies in Australia.
10 Tips To Trade Cryptocurrencies in Australia
1. Start by learning to trade cryptocurrencies properly
“Tell me, and I forget. Teach me, and I remember. Involve me, and I learn”, is the quote with which Benjamin Franklin described the importance of teaching methods. In trading, it would be nice for beginners to get a mentor to tell them shortcuts and shorten the path to success. In the digital age, there are many opportunities to learn trading cryptocurrencies.
There are many courses that you can access online. However, it is essential to choose a course that will really prepare you for the challenges you may encounter on your trading path. Here at Trading Education, we prepare our students for success in trading, by offering them the tools and explaining the best ways and techniques of trading through our well-prepared trading courses.
2. Make a plan
“A fool with a plan is better off than a genius without a plan” is one of the most famous quotes of the American business magnate and entrepreneur Thomas Boone Pickens. In trading cryptocurrencies, you must have a plan. Cryptocurrency markets are open 24 hours a day, but it does not mean that you should sit in front of the screen all day trying to catch good trades. It is necessary to maintain your mental health. We have to be honest; there is nothing glorious sitting in front of the screen all day long. It gets boring and lonely. That’s why you have to set your trading hours and make a plan. You cannot sit there and watch the charts wishing for the price of a specific cryptocurrency to increase. Make your plan, create your entry and exit points, and don’t become too influenced by the chart movements.
3. Cryptocurrencies are correlated - Keep watching Bitcoin
In the stock market, for example, correlation means when the value of the two assets goes in a similar direction. In the cryptocurrency market, this can happen for all assets. Bitcoin, known as “The King of cryptocurrencies” is the first cryptocurrency to be released in 2009, thus marking the beginning of the crypto epoch. As a cryptocurrency trader, you should always pay attention to the price of Bitcoin because other coins are correlated to Bitcoin. Frequently when the price of Bitcoin increases or decreases, so does the price of other coins.
Bitcoin and Ethereum are strongly correlated. In November 2019 Skew presented a chart where it was shown that the correlation between Bitcoin and Ethereum was about 90% for nearly two years. Moreover, Bitcoin remains the most preferred cryptocurrency to invest by Australians.
4. You might consider diversifying
“Venture not all in one ship”, says a Latin proverb meaning “Don’t trust all your goods to one ship”. Although the leading cryptocurrencies are correlated there are many other ones that have low correlation. There is always a risk when investing. The reason as to why you might want to diversify by investing in various coins is to manage your investment risk better.
The price of low correlated coins tends to move in the opposite direction with one another. So, if one coin falls in price, the other one will rise. You, as an investor, should wait for the price to increase in the first instance and will obviously make a profit in the second one. If you prefer investing in such coins, Bata, CanYaCoin, and Power Ledger are cryptocurrencies that are based in Australia.
5. Try to be as less emotional as possible
Emotions are the common enemy of traders and especially of beginners. Obviously, everyone wants to make profits, but emotions have caused significant losses for traders throughout their trading journey. Some individuals are more sensitive and can be more affected by anger or fear. If you get angry, you can rush on making your decision which could lead to a sell or buy in the wrong time. There is another phenomenon in the crypto trading sphere known as FOMO - fear of missing out. Usually, FOMO appears in big markets when a trader is excited and buys, then sells due to fear or anxiety in the wrong moment later. If you act like this consistently, you can become impatient, and the cycle will keep repeating. To avoid FOMO, you must be patient. Experienced traders stick to their plan as we aforementioned, and they do not fall victim to any emotion during their trading adventures.
6. Choose a crypto exchange authorized to operate in Australia
Many cryptocurrency exchanges are operating out there, but not all of them are authorized to work in Australia. In order to function, crypto exchanges in Australia must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). eToro is the best brokerage authorized to operate in Australia. On eToro you can invest in more than 90 cryptocurrencies and CFDs. eToro was found in 2007 and is a leader in the social trading network, with more than 13 million users worldwide. eToro created eToroX exchange in 2018, dedicated solely for cryptocurrency traders and enthusiasts. eToro takes pride in its high-security levels, low fees, and the liquidity they offer. Hence, eToro is the best option for you to invest in cryptocurrencies in Australia.
7. Stay updated with the latest news and events in the cryptocurrency world
It is completely understandable that as a trader, you must stare at the crypto charts and pay attention to the candlestick movements, but that is not enough to reach the highest levels of success. It would help if you always stay updated by reading cryptocurrency content and watching crypto-related videos and live-streams on YouTube. There are sites entirely dedicated to the cryptocurrency market in Australia such as cryptonews.com.au, but you can get lots of information also by reading cointelegraph.com, coindesk.com, ccn.com, Forbes, Investopedia, etc. Here at Trading Education also we try to give the most sincere and detailed advice on investing in cryptocurrencies. Our cryptocurrency articles section is packed with articles and analysis by experienced writers and experienced traders who give their best to help you on your path to success trading crypto.
8. Be aware that you must pay taxes when investing in cryptocurrencies in AU
Various countries regulate cryptocurrencies differently. In Australia, cryptocurrencies are taxed. Till 2017, Bitcoin transactions were double-taxed in Australia but, in the same year, the Australian government removed this barrier when it decided to treat cryptocurrencies as property and a subject to Capital Gains Tax (CGT). With the same decision, cryptocurrencies were completely legalized, and so after this decision, everyone can invest without any concern in crypto assets in Australia. Except for Capital Gains Tax, other cryptocurrency actions such as mining or staking fall under Regular Income Tax.
9. Don’t let losses discourage you
At the end of the day, we are humans, and we make mistakes. We must accept that we are not always going to win. A wrong decision can lead to a loss. But that’s how you learn as a trader. You have to learn from your mistakes and not let them discourage you and stimulate anger or hopelessness. Simply put, enjoy your trading journey and take losses as lessons and part of your success.
10. Pause sometimes
Sometimes we become overloaded from working hard for a certain period. Especially when we speak about trading, which is tiring, it requires a lot of screen time, attention and information gathering. So, consider going away sometimes from your laptop, charts, phone, Twitter, etc. It might feel like you are sucked in the trading world, and once you take a little break, it will look like you are experiencing a new world outside.
Why trade cryptocurrencies with eToro Australia?
eToro is the best brokerage in Australia. eToro is a holder of an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC) and regulated under the Corporations Act (Commonwealth). In eToro you can trade cryptocurrencies, commodities, currencies, indices, and ETFs.
Recently eToro started to provide staking rewards for cryptocurrencies Cardano and TRON. This new staking service on eToro will allow you to earn rewards if you own the supported cryptocurrency. Moreover, eToro is one of the brokerages with the lowest fees in the market. It is widely used and recognized for its high security and user protection.
eToro – The Best Crypto Exchange Platform in Australia
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
- Australia is actively supporting crypto development and Blockchain technology.
- The Australian government allocated $800 million for digital technologies as part of the coronavirus economy recovery plan.
- When trading cryptocurrencies, it is crucial to have a plan and stick to it.
- Bitcoin is strongly correlated with Ethereum.
- Diversifying - investing in coins with low correlation is a method to manage better your risk investment.
- Do not be affected by emotions while trading as you can make the wrong decisions.
- Stay updated with the latest crypto news and be aware that cryptocurrencies are taxed in Australia.
- Learn from your mistakes.
Learn To Trade Cryptocurrencies In AU
We must emphasize again that the right skills and techniques are what provide you with the greatest profits trading cryptocurrencies in Australia. Anyone can start their trading path, but those who have the right information and tools will always be one step ahead.
Our courses at Trading Education will teach you the latest crypto trading techniques and will help shape your trading skills. Trading Education does not simply provide trading courses, but it is a whole trading academy with a large community of students who eagerly want to learn to trade. Become part of this community and start your trading adventures!
Well, these were the ten tips to trade cryptocurrencies in Australia that we picked for you. We certainly hope that you find them useful. If so, give us a like and share this article given that someone else might find them beneficial also.