When it comes to investment options for younger Australians, it’s safe to say that most of us have felt more pressure to invest in cryptocurrency than to do drugs.
We’ve all heard the stories of friends of friends that put their money into Bitcoin, and other blockchain-based cryptocurrencies or altcoins, and saw their investments balloon into the six- or seven-figure return range. However, there are also plenty of stories of people eagerly investing in a hot new cryptocurrency, only to see the value stagnate or tank, or for the whole thing to disappear into thin digital air, leaving a lot of angry investors out of pocket.
So, is cryptocurrency an investment worth considering nowadays? The truth is a lot simpler than you’d think – if you are passionate about the technology, or if you do your research and believe there is opportunity for capital gain – it may be worth considering. A golden rule to consider is: only invest in things you understand. So, if it’s not clear how a particular cryptocurrency works, it may be worth avoiding that cryptocurrency as an investment option.
If you’re still not sure, consider looking at what experts are suggesting about the crypto environment at the moment, including longtime investors and naysayers.
As the technology is still relatively new, so are the regulations around it. Unfortunately, scams are a common occurrence, so it may be worth thoroughly vetting the cryptocurrency and the exchange you use to facilitate your investment. Kaspersky recommends the following tips to ensure you’re not being scammed:
- Avoiding anyone or anything that offers “guaranteed returns” or “free money”
- Avoiding pump and dump crypto schemes
- Avoiding crypto with a poor or non-existent whitepaper
- Avoiding crypto with excessive marketing – typically done to draw in as many customers in a short time frame to raise money quickly.
- Only download apps from official platforms
To get started with cryptocurrency, you’ll need to find an exchange and create an account, which often involves providing identification. We've come up with three steps to buy cryptocurrency in Australia, but you can always look into the whole crypto-craze yourself.
While individual units of cryptocurrency (e.g. one Bitcoin) can have high prices, you don’t need to buy whole units at a time. Instead, it’s possible to invest in fractions of cryptocurrency units, the size and price of which can vary by currency, as well as the trading platform you use. Keep in mind that as well as paying for the cryptocurrency itself, the exchange you use may also charge you fees.