Bitcoin Trading Australia article ~ 5 min read, updated May-19
Interested in Bitcoin Trading Australia, but dont know where to start?Our quick guidewill help you understand all the options available to you.
A free Bitcoin trading Australia account is very secure & free to set-up (~5 mins) with no obligations
Trading Bitcoin allows you to take advantage of the price movements in either direction
Bitcoin trading Australia accounts are protected against negative balances
Trading Bitcoin, rather than simply buying through an exchange, enables you to not only buy Bitcoin, but sell. You dont own any of the cryptocurrency, youre just trading on the price going up or down. Being able to trade on the price movements in either direction opens up a world of possibilities. Just this year, Bitcoin has dropped overall nearly 36%, however everyday the price rises and falls more than any other traded market.
Below weve listed all of the major Australian Securities And Investment Commission (ASIC) regulated brokers, so you can get started with a platform you can trust.
The Bitcoin trading Australia platforms we list are not only the most secure for transacting on, but also highly regulated and trusted in the industry, giving you the peace of mind that your money is secure.
Ok, so whats the difference between actually owning Bitcoin vs trading Bitcoin. Well, quite a bit, and trading Bitcoin is not only a lot simpler than buying it outright, its also more lucrative. As Bitcoin prices have risen and fallen a lot over in the past year, many everyday traders have taken advantage of the market volatility without having to actually own any Bitcoin.
When you buy actual Bitcoin, there is the hassle of having to open and manage a digital wallet (which is separate), as well as the fact that you can only profit if the price of Bitcoin rises in the future. So what if it goes down, well if it does, then you will lose money and it goes up and down, a lot.
When you trade Bitcoin however, you can profit from both the rising and falling Bitcoin prices without having to actually own any Bitcoin. By speculating on the price movements, you can profit from shorter term price volatility, rather than holding onto Bitcoin for the longer term.
The above brokers are essentially the best Bitcoin trading platform for Australian residents. they have ground based offices and are ASIC regulated. ASIC is the main financial regulator in Australia and is very important so you can protect your money when trading. The Bitcoin trading platform performance and ease of use is key to making your trading successful. All of these Bitcoin Trading platforms all have state-of-the-art interfaces which you can monitor your trades in real-time on your desktop or mobile device via their intuitive apps.
Both buying Bitcoin and Bitcoin trading have advantages and disadvantages just like any other form of financial speculation. Deciding which option is best for you will depend on your financial goals and strategy.
The largest and most excitingCryptocurrency Bitcoin, is taking the trading world by storm, with high volatility, prices rise and drop daily creating many opportunities to capitalise on this movement.
The high demand forCryptocurrencystarted in 2013 with the rising price of Bitcoin triggering a global frenzy, which in turn drove the price up and created solid returns for traders & investors.
Explore some of the pros & cons of both buying Bitcoin and Bitcoin trading below:
You can go long (buy) and short (sell) to profit from rising and falling prices
Your account is protected against negative balances
You are trading on leverage, giving you larger exposure to the market with less upfront capital
You will need a digital wallet (which is separate, essentially meaning your signing up to two different platforms)
Some exchanges charge high fees for using your digital wallet
Opening a digital wallet can be complicated and can have security issues
Bitcoin trading Australia is performed via aCFD. Dont worry, this isnt complicated.CFDmeans Contract For Difference, which is the product you use to trade Bitcoin on one of the preferred platforms above. Its a way to make profit from the price movement but without having to own the cryptocurrency. Youre basically trading the price difference from where you opened the contract with the broker. You can trade on the price going up and down using aCFDand close the contract/ trade anytime. Thats correct, you can trade on the price going down, not only up, which happens frequently on all the cryptocurrencies.
Going long or buying, means trading in the hope that the price goes up. You will then profit from any increase from the price you executed the trade at.
Going short or selling, means trading in the opposite direction. If the price goes down, you will profit from any decrease from the price you executed the trade at.
Another key point is that, because Bitcoin has become so expensive, when you buy the Cryptocurrency using a digital wallet, it can tie up a great deal of your capital. When you trade Bitcoin as aCFDhowever, youre trading on leverage and can gain a similar exposure to the market for a might smaller upfront contribution.
Deciding whether or not to trade Bitcoin online depends on what your financial goals are. Some of the reasons that Australian investors trade Bitcoin include:
High volatility because Bitcoins are much newer markets they can be more volatile with bigger price swings. This presents opportunities for traders to profit from price volatility.
Flexibility in how you trade with traditional investments options youd look to invest and hold your shares as prices rise. By trading Cryptocurrencies through aCFDbroker you can go long or short and profit whether the price rises or falls.
Trade at a time that suits you Bitcoin trading Australia markets are open 24/7 so youll never miss a trading opportunity.
Trading on leverage by tradingCFDson leverage you can gain a larger exposure to the market than you might otherwise be able to by buying Crypto direct.
There are numerous benefits to trading on Bitcoin price movements rather than investing directly in theCryptocurrency.
With Bitcoins harder and harder to buy, they have become increasingly expensive and out of reach of many average traders.
When you trade Bitcoin, you speculate on which way you think the price will move and are able to profit from fluctuations in price volatility.
Because you trade on leverage, the initial sum you start trading with can be relatively small. This is much cheaper than buying Bitcoin directly.
You also wont have to open a complicated digital wallet and will benefit from the experience and analysis provided by qualityCFDbrokers.
Markets are also available 24/7 and the best brokers offer cutting-edge mobile apps to help you trade on the go so you never miss an opportunity. When you tradeCFDsonline with a trusted broker youll also have the peace of mind of trading with a firm that is Australian Securities And Investment Commission (ASIC) regulated, guaranteeing you the highest possible standards.
For help choosing a qualityCryptocurrencybroker, check out the comparison table above and find a broker that suits you.
All trading involves fees and are mostly made up of transaction fees and overnight financing. These trading fees cover the use of the platform and are known as the spread. These vary from market to market and trading platform provider. Overnight financing is a fee to keep the trade open when the markets are closed. These fees are similar to an exchange, where they charge you each time you transact in your digital wallet.
Every Bitcoin trading strategy should include some form of risk management, such as a Stop Loss order. All the Bitcoin trading Australia platforms we have listed include this functionality. This lets you set a price at which youre happy to close the trade to minimise any losses if the market moves against you. You should also look to place a Take Profit order to make sure you maximise your profits of any trade. These two features are essential to making sure youre successful at trading and protecting your equity. To many times we have seen new trader lose their capital quickly because they havent implemented these two features.
Another part of a Bitcoin trading strategy should involve analysing the market to identify trends. All the trading platforms we list have very powerful charting coupled with news feed. Candlestick charts represent a very powerful technical analysis tool that can help you trend the market direction.
Bitcoin is a digital or Crypto currency which was first launched in 2009 by Satoshi Nakamoto.
Based on Blockchain technology and is a completely independent peer-to-peer payment system, free from government regulation and control.
In its early stages, each Bitcoin was worth little more than 10c. Today that total is nearer $8,000 per coin.
The worlds most popularCryptocurrency, Bitcoin has ridden a wave of popular sentiment to cement its place as one of the worlds most exciting assets.
At its core, Bitcoin uses Blockchain technology to store, verify and transfer value.
The Blockchain is essentially a digital ledger, operated by a secure independent network or community or users. It is open to anyone on the web and which serves to record all digital Bitcoin transactions.
The Blockchain isnt stored in a single location but is accessible across millions of computers around the world. This makes it extremely secure, incorruptible and trustworthy. Every single Bitcoin transaction since the very first has been stored and recorded in the Blockchain for complete transparency.
Blockchain records cannot be altered retrospectively. Each transaction must be authenticated by the majority of the Bitcoin community (sometimes called miners).
are not controlled by central authorities in the same way that traditional currencies are, their price is impacted by different factors.
A currency like the United States Dollar (USD) will be affected by many things. These can include interest rate decisions, trade & domestic policy changes & Wall Street performance.
Cryptocurrencies, however are much newer assets and as such less is known about how they react to market volatility. Whether there are key correlations to look out for and where breakout and support levels should be set.
As a general rule of thumb one of the biggest challenges facing Cryptos is the threat of greater regulation.
As Cryptocurrencies have become more mainstream, their value has soared, mainstream financial institutions have become nervous of their impact on global markets.
Nobody knows yet whether governments may in the future move to regulate or ban some Cryptos. As a result, they do tend to be sensitive to news about potential regulation.
Another major driver of price swings in Cryptos is the potential for forking. Forking is when aCryptocurrencysplits in two, creating two new, unique currencies, a good example of this is Bitcoin and Bitcoin Cash.
A forking generally happens when the Cryptos community fails to agree on the path forward for the digital currency. A hard fork in any Crypto is generally negative for price movement.
When you trade Cryptos, it is important that you take time to research the merits of each one. This way you can understand how and why their prices move the way they do.
By analysing past performances and how Cryptos react to events you may be able to establish trends. This will help inform your Bitcoin trading decisions.
Start your Bitcoin trading Australia journey today!
If youre actually looking for Forex Trading, please visit our sister site Forex Trading Brokers
Your Capital is at risk. CFD Trading is a leveraged product which means that you can lose more than you initially invest. It may not be appropriate or suitable for all investors. Ensure that you understand the risks involved in Cryptocurrency trading and seek independent financial advice if required.