How to buy, trade cryptocurrency beginners guide

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There are countless coins and even more ways to buy and sell them. So how do you start? We had an expert weigh in.

Cryptocurrency has taken Australia by storm.

Over 20% of adults across the country are thought to own some form of crypto, and market ups and downs regularly make big news.

But with so many options for coins to invest in and wallets to trade, it’s hard to know where to start.

Comparison website Finder crunched the numbers to find the best of the best exchanges, with the aim of making high-tech currency accessible to everyday Australians.

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An exchange is a platform where you can buy and sell cryptocurrencies. They can be used to buy crypto with regular currency or to convert crypto back into a dollar value – they basically reflect the market price of the cryptocurrency.

But, just like coins, there are hundreds of exchanges; some fantastic and legit, and some… not so much.

Best exchange for beginners

Cryptography expert James Edwards is one of many to reap the rewards of the new technology.

He bought half a Bitcoin in 2014 for around $350, that same amount of Crypto is now worth around $30,000.

The self-proclaimed “nerd” now works on cryptocurrency research for Finder, which has designed a rewards system to help simplify information for those who simply want to learn more about currencies.

According to the review site, Crypto.com has been rated the best exchange for beginners.

“The awards were based on a series of criteria rather than someone or certain people simply choosing. For example, Crypto.com scored high because they have a good smartphone app, it’s easy to use, good customer support, and you can set up recurring payments,” he told news.com .to.

“Another thing we wanted to do was to only rank companies registered with AUSTRAC.”

Binance won three awards, including Exchange for features and Exchange for Altcoins, as well as the price of Australian Cryptocurrency Exchange (Global).

Crypto.com won the category ‘Newbie Exchangeif, while kraken won “Trade for Trade”.

Meanwhile, the price of “Exchange for value” went to digital wavewith CoinJar and Crypto.com a close second.

How to invest in cryptocurrency

Edwards recommends those who want to dip their toes into Crypto to try the dollar cost averaging method as an investment strategy.

This method theoretically helps prevent massive highs and lows of sometimes volatile coins.

“To do this, you need to set aside a certain amount of money and invest it at the same time each week. For example, you pick a Friday morning where you invest $50 in coins,” he said.

“It helps to take the emotion out of your investments, because it’s just something you do every week. But it only really works by removing all market-related timing, you’re not chasing the lows.

In which cryptocurrency to invest?

With thousands, if not millions, of cryptocurrencies on the market, getting started can be daunting.

The most popular coins are Bitcoin, Ethereum, Tether and Binance which are all a solid starting point for your investments.

Mr. Edwards identified Ethereum as a popular top choice with many investors, after Bitcoin

“Ethereum is good because it can be described as a layer of the internet, not just a currency. Ethereum is a popular first choice with many investors, after Bitcoin,” he said.

“The next or latest version of the Internet is called Web 3. It’s going to be based on things like Eth. Crypto is allowed to hold computer code and creates that hyper-secure layer that was previously very difficult on the internet.

“The security layer allows people to have confidence in finance and financial services.”

He added that he should be wary of things that are too good to be true.

“For beginners, the best thing to do is to read and learn from reliable sources. What is really important is who is providing the information and if they are influencers or have something to gain from you buying their product,” he said.

Finder’s head of consumer research, Graham Cooke, said Australia’s enthusiasm for cryptocurrency has spurred its growth.

“Cryptocurrency awareness in Australia is among the highest in the world. 85% of Australians say they know what cryptocurrency is, far more than countries like the US (59%) and UK (55%),” he said.

This is a Shiba Inu “coin” that goes up in value.

The surge comes amid a broad crypto rally, with Bitcoin’s value reaching just under US$44,000 (AU$61,000) and Ether’s price now at US$3,100 (AU$4,300). ).

SHIB tokens rose from $0.0000342 to $0.000022 in the past day, while Dogecoin surged to $0.1661 from $0.145. Both SHIB and Dogecoin were based on popular internet memes.

The move caused nearly $10 million in liquidation losses for futures traders tracked by SHIB, according to Coin Desk.

After becoming one of the dominant meme currencies of 2021, Shiba Inu’s value had largely been on a downward trend since late October.

On October 28 last year, Shiba hit an all-time high of $0.00008845.

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