Buisness
How to Invest in Bitcoin CFDs in Australia
Bitcoin is the world’s most popular cryptocurrency. Its popularity has contributed to its growth, from $65.53 in 2013 to an all-time high of $64,863.10 in April 2021. The prices continue to fluctuate depending on various factors, but Bitcoin remains one of the best assets to invest in.
So, if you are in Australia and want to invest in Bitcoin, you can start with CFDs. This might be new to you. However, this guide will walk you through the process of investing in Bitcoin CFDs in Australia.
Choose a Bitcoin Broker
The first step is to find a Bitcoin broker in Australia. This is easy because you can quickly find one online. However, you can’t pick a random broker.
There are several factors to consider to choose the best broker. For example, find out the minimum required investment amount a broker requires. Some are expensive, and you might not have a budget for them.
Consider the company’s reputation, customer service, and availability of free demo accounts.
Open an Account
Once you find your broker, open an account. Launch the broker’s platform on your phone or desktop and find the open account button. Enter the required data, including your name, phone, password, user name and home address.
You might be asked to submit your national tax identification number, birth date, and other similar data. This shouldn’t alarm you, as the information is used to keep your account safe.
You might get a message notification on your phone with a code. Use it to verify your account. Take a tour on the platform and consume the information provided to help with your investment. Find out how everything works on your broker account and seek customer service when needed.
Deposit Funds
Once you confirm the broker’s legitimacy and understand how everything works, fund your account. Find your preferred deposit method and send money to your account. You can use a debit/credit card, e-wallets, or bank transfer.
Invest in Bitcoin
This is an exciting step, especially if this is your first Bitcoin CFD trading. On your broker account, find Bitcoin CFDs. Enter the amount you want to invest. Click the open trade button to authorize the investment. This will open your position.
Is Bitcoin a Good Investment?
All investments are risky. However, cryptocurrency investment seems to bear more risk than stocks.
Drastic price fluctuations characterize Bitcoin. For example, in May 2022, a crypto market crash lowered the price of Bitcoin by 35.38%.
In August 2020, the Bitcoin price was $11,644.2. This increased to $38,032.2 a year later, a 226.6% rise. This describes the volatility of the currency. Instead of growing steadily, the price of bitcoin can move from zero to several thousand dollars and then back to zero.
Price fluctuation is not the only risk associated with investing in Bitcoin. Another risk the investment face is rejection from financial authorities and governments. Until now, most financial institutions and governments don’t accept cryptocurrency as a payment method.
Without these risks, investing in Bitcoin would feel safer. Yet, people still invest in digital currency and earn a living from it. However, investing all your savings is not safe, hoping it will create enough retirement funds.
Invest in other assets other than Bitcoin to minimize the risks of putting all eggs in one basket.
Where to Invest in Bitcoin in Australia
The best place to start is identifying whether a broker is regulated. Ideally, the platform should be regulated by the Australian Securities and Investment Commission (ASIC). It will help if the company is also regulated in the US, UK, and Europe. This doubles the security, allowing you to buy and sell Bitcoin in a safe environment.
Tradedirect365 is regulated by ASIC and several other bodies. It is reputable and a highly ranked broker for Australians. The broker offers two trading platforms, including MetaTrader 4 and CloudTrade. If you want to start trading, Tradedirect365 has your back. You will also gain access to valuable information to help trade when you create an account with the broker.
As the popularity of Bitcoin continues to grow, its price will increase. This makes it one of the best digital currencies to wager on. Anyone is eligible to invest in Bitcoin CFDs in Australia. So, don’t wait anymore before you venture into the market.
