The future of Ethereum looks brighter than ever, with tons of significant changes expected down the line. Currently the second-largest cryptocurrency, Ethereum is predicted to grow even further.
As of 2020, around 18.4% of Australians owned cryptocurrency, which is likely to rise. Additionally, the government of Australia has always taken a back seat and never imposed regulatory limitations on the functioning of cryptocurrencies. This means that now is the right time to buy Ethereum in Australia.
However, there have been road bumps like technology issues that this crypto token had to face due to the rising demand. Though buying Ethereum seems like a straightforward process, you need to consider it before investing in them. So, what do you do?
Here are a few precautions you should take before trading Ethereum.
Pick a Reputed Crypto Exchange
Exchange companies are the primary avenue for people to buy cryptos. Whether Bitcoin, Ethereum, Dogecoin, Cardano or Ripple, you can only buy or sell a cryptocurrency through a crypto exchange.
Users would generally pick an exchange that aligns best with their needs regarding fees, location, coins and services offered. Additionally, you must also look at the safety measures put in place to protect your money and investments.
However, while doing this, you must consider a few aspects.
Are they charging exorbitant fees? Are there any hidden charges that the exchange is not being transparent about? Do they have a well-established website or a valid address? Do they have a secure wallet?
You may want to ask yourself these questions before you buy Ethereum in Australia.
Instant Buy or Spot Market
Buying Ethereum through an ‘instant buy’ is comparatively more expensive than buying it from the spot market. It happens as most exchange companies add an extra fee over the market price.
Though it is an easy way to purchase Ethereum, you must be aware of the additional costs included by the exchange company. It becomes even more crucial to use these methods linked to your credit cards.
Additionally, not all cryptocurrency exchange companies expect you to buy the whole Ether. Pick an exchange that offers you an option to buy in portions that fit your trading requirements.
Licences and Regulations
Before saying yes to a trading platform, it is important to double-check if they have a valid license from a regulated body in Australia.
Two of the top-tier regulatory bodies in Australia are ASIC and FCA. The significant risk involved with buying and selling cryptos like Ethereum makes it vital to choose a platform that has high security and is authentic.
Crypto exchanges are the go-to option for all traders to buy, sell and store their funds. However, not all of them are proficient enough to safeguard your digital tokens.
Most crypto assets are stored online in exchange, usually referred to as a hot wallet. Though a convenient option, this is directly connected to the internet and thus not entirely safe from hackers or scammers.
Conversely, if you opt for a cold wallet or hardware wallet, you will be able to store Ether in an offline environment. Your earnings would be more secure as there is no way for hackers or scammers to get them without your private key.
Few trusted hardware wallets in Australia, like Ledger and Trezor, will offer you the added safety to protect your digital coins.
Cryptocurrencies are unexpectedly volatile and come with tons of risk. However, if you invest through an authentic exchange in Australia and fully understand the crypto ecosystem, you can reap significant gains in the longer run.