This is how I trade Cryptocurrency in Australia 2018
As pretty much all of you would have heard now, we are in a financial revolution. Cryptocurrency somewhat takes the power away from the banks and gives the power of purchasing power back to the people…. or that is what we are lead to believe.
Most people associate Cryptocurrency with the word Bitcoin. Bitcoin is the first Cryptocurrency and has established it’s name as the leader of all types of coins and tokens. Similar to Tupperware with plastic containers, not all plastic containers are of the brand Tupperware yet we still call them Tupperware, or perhaps that is just me.
A majority of people are in Cryptocurrency to make money, while this isn’t the worst idea, it is still risky as any investment is. Please remember that any money you put into Cryptocurrency you have to be willing to lose, these types of “investments” are basically a long term gamble. There really is a binary outcome, will it work or will it not work? If it does and it can be implemented in real life then you will win. On the other hand, if it doesn’t work, you will lose that money you put into it.
You also don’t have to buy one whole Bitcoin or Ethereum, you can buy what is called one satoshi which is one hundred millionth of a Bitcoin 0.00000001 BTC. For the purpose of this article I will be focusing on Ethereum.
Follow me on Twitter for shitposting about Cryptocurrency.
You will need the following to get started.
- Passport/Drivers Licence
- My Ether Wallet Address (see below)
- Bittrex or Binance Account
- Credit/Debit Card
To set up My Ether Wallet go the the following site HERE, please always check for the security padlock icon on the address bar to guarantee this is the correct site. My Ether Wallet (MEW) will never email you asking for your passphrase or anything like this. To create a new wallet complete the following.
Go the the MEW website.
Make sure you are on the “New Wallet” tab, Type in a Password that you will remember, write this down. Click on Create New Wallet.
Download and save the Keystore File. I recommend storing this on a USB or something that isn’t always connected to the internet for your own security. NEVER LOSE this file, if you lose this file you may not be able to recover it and your coins will be lost, store it on a usb and on another device for a backup. Once you have saved the file click on “I understand. Continue”.
Then you get your private key. This part is very important…. NEVER SHARE YOUR PRIVATE KEY. If someone has your private key they can steal all your coins. Never, ever give away your key. I also recommend printing the “Paper Wallet” and save this to a .pdf and save on previous mentioned USB.
The private key you see here is just a new account I created for these purposes.
Click on “See Your Address” to see your Ethereum Address. Now you have to unlock your wallet with the key you just made. This can be done with the Private Key or with the Keystore File and your Password you created.
If you scroll down you can see your new Ethereum address. Save this number down as this is where you will need to send your Ethereum if you want to participate in ICO’s or if you just want to hold forever (HODL).
Once you have signed up for Bittrex and Binance you need to create ETH wallet addresses for these accounts.
In Bittrex click on “Wallets” and find Ethereum, click on the plus icon and then you will have to click create new address. It will create a hex address similar to this one. Only deposit ETH to this address. Similar process for Binance too. Find the wallets and create a new wallet.
Now you are ready to Buy Ethereum. Please note, do not send Bitcoin to your address as it will be lost.
Where To Buy?
Currently in Australia it is pretty hard to buy Cryptocurrency as the Big 4 banks are regulating where we spend our money. Which makes me think that Cryptocurrency is the way to go. Why should a bank dictate where I put MY money? If I go buy beer, food, games etc. they have no problem but buying Cryptocurrency they start to question the purchases. I understand Banks have the obligation to make sure that the money is not being used to fund terrorism or anything that will harm others, but how is a few hundred dollars going to a registered business hurting anyone but my bank cash flow?
There are several websites to buy off of in Australia, unfortunately most only take a credit card and charge a hefty 4% fee. Luckily Cryptocurrency moves quickly so I made these fees back and then some in no time. I prefer to buy in Ethereum as I see it has a longer term plan compared to Bitcoin.
CoinSpot – The most popular site in Australia, I do not use as I feel their fees are the highest and are limited in what coins you can buy. The coins are held on the site and they charge another hefty fee if you want to get them off the site and into your own wallet.
CoinJar – You can only buy Bitcoin here but they have lower fees around 1%
CoinBase (refferal Link) -I use this site as I feel the transaction is super easy, they were the fastest to approve my account and offer lower fees than CoinSpot.
For example, the current cost of Ethereum on CoinSpot (I don’t use CS is $1321.41 AUD and on CoinBase it is $1210.55) a pretty significant difference in price. Remember you don’t have to buy one whole Bitcoin or Ethereum at a time.
Once your account is approved you can go to the “Buy/Sell” tab of the Dashboard. Select Ethereum and purchase how much you want. It will show you how much you are buying, what the fees are etc. Very transparent. Once you have the Ethereum purchased (pretty much instantly) click on the “Accounts” tab.
You will see the amount of ETH you purchased appear here. Click on Send and copy and paste either your My Ether Wallet Address, Bittrex ETH Address or your Binance ETH Address. For this example, let’s say we sent it to our Bittrex account. It will take some time to clear.
Moving to an Exchange
It will take some time but it is usually completed in less than 10 minutes for your ETH to transfer from the CoinBase or wherever you bought it to your Bittrex Account. Now you are ready to buy.
Once you are logged into Bittrex click the “Wallets” button. I like to click on the “Hide zero balances” just to tidy it up.
You will see that your Ethereum is in your Bittrex Trading Account now. Now lets buy something with our Ethereum. If it’s not there just yet wait some time as the network can take a little bit to transfer.
Please do your own research on what you want to invest in.
I typically find the coins I like using Coin Marketcap as they have a lot of information on there. I currently own Sia Coin and would like to buy some more. So lets see how we do that.
On the Bittrex home page scroll down to the Ethereum Market and I type in “Sia” but you type in what you would like to purchase. Click on the ETH-SC symbol and this will take you to the trading page.
From here you can see all the recent trading information. The last price, volume sold (in Ethereum), Bids, Asks and the 24 Hour Highs and Lows. I want to make a purchase at what I see to be the recent bottom. Remember, this is not investment advice, if anything this is more gambling than investing as you can lose it all.
Type in your Bid Price (in ETH) mine for this is 0.00003200 ETH to one SC. Then I click on the Max units (which uses all my Ethereum) which equates to 0.1488 ETH and if this trade goes through I will be the proud owner of 4639.51 Sia Coins. Once you are happy with this, click on the “Buy Siacoin” button. This will put your purchase price in the market and now you wait to see if it goes through.
If you are looking to purchase Bitcoin, Ethereum, Bitcoin Cash or Litecoin, then be sure to sign up with Coinbase. If you sign up and buy $100 USD worth of cryptocurrency then both you and I will receive an extra $10 worth of Bitcoin. This is a great incentive for both of us and I hope you take advantage of it. Sign up HERE.
From this, learn how the markets work, play around with them and remember that you can lose all your money, so never put more in than you can afford to lose. Wish you all the best with your trading and hopefully we can all get rich.
If you would like to see how my Cryptocurrency Portfolio is going, see my Portfolio page here. Be sure to click on the Crypto Tab down the bottom.