How Popular is Cryptocurrency in Australia
Cryptocurrency has been around for over a decade now and, though the viability of this alternative currency of sorts was originally, and still is, questioned by many, the inevitability of its growing trust is starting to show itself.
Bitcoin, Ethereum, and others are joining the mainstream field of investments available on the market, and they appear to be here to stay for good. The staying power of this newfound form of currency comes mostly from its decentralized nature of operations, and the appeal of that to its user base.
The rise in popularity of cryptocurrency over the course of just the last five years has been exponential, and at the tail-end of 2020 it could be poised to see yet another bull run on the market as speculations continue to grow surrounding world governments and more traditional currencies.
Many nations have strict regulations surrounding crypto and the various exchanges it’s traded on, making it difficult for investors to get exposure to this asset.
Thankfully for Australians, cryptocurrency is generally legalized throughout the country, making now a prime time to dip into the market if you so choose. If you want more information before making a decision, check out places like Coinformant’s top exchanges and other resources to get some expertise on the crypto market.
Cryptocurrency in Australia
Crypto has been popularized across the globe, with the United States obviously being the location of most volume on any given coin available. This has much to do with population of the nation of course, and Australia is not too far behind, especially considering the smaller population.
Some of the investors who may consider trading cryptocurrency in Australia can attempt to use this kind of asset to make some easy money, while others may just use it for fun, and some even for long-term holdings.
It’ll depend a lot on what the person is thinking about, and what their goals in general are when getting into type of investing. For many people though, it can help to make some extra money for the things that they need, provide long-term growth, or just be a learning experience.
As of the end of 2019, Australia had clocked in at eight overall internationally in terms of Bitcoin trading volume, sitting at roughly $186 million in USD.
Also, at the end of 2019, the IRCI (Inaugural Independent Representative Cryptocurrency Index) indicated that roughly 16.8% of Australians owned some form of cryptocurrency. Most of this ownership came from millennial and Gen Z generations, clocking in at about 35% and 27% respectively.
Compare this to the United States where it’s been projected that some 36 million Americans or so own some form of cryptocurrency, which makes Australia’s numbers even more impressive.
While America’s ownership nearly doubled from about 7.95% in 2018 to 14.4% in late 2019, this number still falls short of Australia and shows that a greater percentage of the population is actively invested in crypto.
You may also be surprised to learn of Bitcoin and other crypto’s prominence in nations such as Russia and China, who sit at second and fifth on the international Bitcoin volume list, with Europe as a whole and Nigeria being the other stats to just beat out Australia at sixth and seventh overall.
Cryptocurrency has risen in popularity throughout the entire world, and Australia seems to be near the front of the pack with a number of other countries. Buying crypto in Australia is a generally seamless process without any strict legislation to get in your way, and now could be a great time to get started.
Buying Crypto in Australia
If you’re reading this and happen to find yourself not yet invested in the crypto market, now could potentially be a good time to consider joining. Look around online at different recommendations to gather the information you need to feel comfortable jumping in.
As you should already know, cryptocurrency is bought and sold via exchanges just like a brokerage account. Worth noting is the fact that different countries allow certain exchanges, and not others. Exchanges are also limited on what coins they can trade in certain countries, for a litany of reasons.
Coinbase, for example, trades three coins in Australia, Swyftx trades 100 or more, as does Coinspot, and Binance trades 150 or more. The number of currencies doesn’t dictate the value of the exchange. You’ll just need to pick the one that combines your coins of choice with the best all-around user experience.
Once purchased on an exchange, your crypto can then be transported or stored in a few different types of wallets to get it off of the exchange.
Hot wallets, cold wallets, software wallets, paper wallets – it can get complicated, and you don’t necessarily have to make use of one either. This is why it’s important to take the time to conduct your own research, and find out what storage method best suits your needs.
Cryptocurrency as an Overall Investment
At this point you likely understand how money works, and what gives it value as well. The value money, specifically fiat currency, has comes from the trust people have in it. The expectancy that $20 will be valued at $20 by anyone you try to purchase something from is where that bill or number in your account derives its value.
The same can be said of crypto, and any other asset as well. The difference is that, contrary to inflation, the relative value fluctuations of cryptocurrencies tend to move inversely to that of the traditional dollar.
Much like gold, these coins are viewed as an alternative investment of sorts that investors can not only use to hedge against inflation and loss of value in their native currency, but to create and sustain growth for the future too. (Hint, crypto seems to be better at this than gold, and it’s scarcer.)
Whether you decide to invest in cryptocurrency or not will depend on your unique financial situation and opinions about it, but it’s undeniable that its popularity as a quality alternative investment is picking up momentum in Australia.