Cryptocurrency investments in Australia are still developing, with restrictions that digital assets are not considered money. In effect, the new form of currency still resides in decentralised blockchains but can be liquidated for legal tender.
How Much Do You Need to Buy Bitcoin with AUD?
The current rate of one Bitcoin is AU$ 63,115, enough to entice people to get on board and start investing. Imagine owning just 10 Bitcoins and having almost close to a million-dollar in your investment portfolio. But to buy Bitcoin with AUD requires a hefty amount of starting capital.
The rule of thumb in cryptocurrency investment is to test the waters before diving deeper and getting more severe with your portfolio. Understand that the market is very volatile, and you can either hit the jackpot or lose your capital in the long term.
Conversely, cryptocurrency is a promising investment, particularly to those willing to wager their money on the new investment trend. For the most part, it is a fun adventure, and your portfolio yields are very liquid.
How Much Should You Invest in Bitcoin?
One of the pervading questions in everyone’s mind is, “Is cryptocurrency a good investment?” In a traditional stock market investment setting, you can’t get away with market fluctuations. However, it is something readily accepted because investors are given stocks that they can buy and sell.
Although cryptocurrency works similarly, investors do not have shares but rather own “currencies” in the blockchain. A single count of Bitcoin is equivalent to a certain amount. For example, 0.0001 BTC currently equates to AU$6.30.
Although Bitcoin still ranks as the top cryptocurrency around the world, its value constantly fluctuates. The rise and fall of Bitcoin prices depend on various factors, including supply and demand, economic factors, blockchain collaborations, and the market volatility itself.
How much to invest in Bitcoin depends on your overall goals. Spending around 5% of your investment capital in cryptocurrency investment is very safe. However, if you are aware of all potential risks, spending 50% more can ensure good investment rewards.
Starting Strong with Your Bitcoin Investments
When you buy Bitcoin with AUD, one of the critical factors to consider is the platform you are trading. Cryptocurrency is still evolving, and blockchain technology is at its infancy stages.
Starting strong with your cryptocurrency journey will require you to have a good mindset. Investing in Bitcoin is not like the traditional stock market because yields do not rely on dividends or interests.
Cryptocurrency is entirely dependent on market performance. It means upward spikes would give you more money, and the constant price fluctuation will affect your investment returns.
Your initial capital is also one significant factor that will affect performance. People starting their Bitcoin journey often start small and continue adding to their investment when returns become favourable.
Getting Yourself at the Heels of Your Investment Journey
Remember that cryptocurrency is a very volatile market, but yields are advantageous. As an upcoming trader, timing is critical because the blockchain and crypto-trading spaces offer varying investment returns.
When starting your Bitcoin investment, look for a trading partner with a solid reputation built on the foundations of superior technology, security, and reliable customer support. How much investment capital you need in a good cryptocurrency investment depends on your financial capacity and the type of long-term returns you have in mind.
Alison Lurie is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.