Ethereum is a digital asset and smart contract platform with incredible potential. With Ethereum, you can buy, sell, or trade anything of value in a completely decentralized way. If you’re based in Australia and thinking about buying Ethereum, there are a few things you should know first. You have to know the following information before buying Ethereum in Australia.
1. Determine Your Risk Level
There is no way around it: buying Ethereum is a risk. While all investments involve some level of risk, cryptocurrencies are especially vulnerable to price fluctuations. Consider the power of a few hundred characters: when Tesla CEO Elon Musk tweeted last year that his company would no longer accept Bitcoin as payment, the coin’s value dropped 15%.
Moreover, although Ether has historically produced impressive returns, it has also experienced significant crashes, sometimes in record time. Notably, it fell more than 50% from a high of more than $5000 per coin in May 2021 to less than $2500 the following month. That’s a lot of unpredictability.
2. Select a Crypto Exchange
Purchasing Ether is more complicated than purchasing shares or mutual funds through your brokerage account. Cryptocurrencies are not traded on major exchanges such as those in London or New York, and many brokerages do not offer cryptocurrency investing.
To Buying cryptocurrency requires opening an account with a cryptocurrency exchange. In practice, it’s similar to the brokerage platforms you’re probably more familiar with: Buyers and sellers can use cryptocurrency exchanges to trade fiat currencies like pounds and dollars for cryptocurrencies like Ethereum, Bitcoin, and Dogecoin.
3. Add Money to Your Account
Prior to purchasing Ethereum on a cryptocurrency exchange, you need to fund your account. The most common method of depositing funds is using your current account at the bank. In most cases, you can also use a debit card or deposit funds from a payment provider.
Some providers may allow you to use your credit card to purchase cryptocurrency, but be wary of any fees that may be added to the transaction cost.
4. Invest in Ethereum
Market hours limit investors’ ability to purchase shares, mutual funds, or exchange-traded funds. For example, the Australian Securities Exchange (ASX) has standard trading hours from 10 a.m. to 4 p.m. on weekdays.
Cryptocurrencies like Ethereum work very differently: because they are decentralised currencies, you can buy and sell them anytime. To buy Ethereum, enter its ticker symbol – ETH – into your exchange’s “buy” field and enter the amount you want to buy.
If you don’t want to buy an entire Ethereum token or need more money in your account, you can buy a fraction of one. For example, if the price of Ethereum is $2000 and you invest $100, you will buy 5% of an Ether coin.
5. Keep Your Ethereum Safe
You must store your Ethereum cryptocurrency after you’ve completed your Ethereum purchase. While some platforms will store it for you, some people prefer to store their investments themselves to reduce the possibility of losing their crypto to a hack.
This is understandable, but it’s also worth noting that most major exchanges insure their clients’ holdings and frequently store most of their assets offline to prevent massive theft. Furthermore, historically, hacked exchanges have reimbursed losses.
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