This beginner’s guide explains everything there is to know about how to invest in cryptocurrency in Australia in a safe, low-cost, and simple way.

Not only does this include a discussion on the best online brokers to consider, but the specific steps involved when completing your cryptocurrency investment with an ASIC-regulated platform.

How to Invest in Cryptocurrency Australia – Quick Guide

Before reading our in-depth guide on how to invest in cryptocurrency in Australia – check out the quickfire walkthrough outlined below.

In doing so, you’ll learn the steps involved when investing in cryptocurrency with low-cost broker eToro – which is regulated by ASIC.

  • ✅Step 1 – Open an Account: First, visit the eToro website and create a free account. Enter your personal details as requested by eToro.
  • 💳Step 2 – Deposit: Next, you will need to make a deposit of at least $50 into your account. Supported payment options include credit/debit cards, local bank transfers, and e-wallets.
  • 🔎Step 3 – Search for Cryptocurrency: eToro supports over 60 leading cryptocurrencies. Click on the ‘Discover’ button to view the full list of available markets.
  • 🛒Step 4 – Buy Cryptocurrency: Click on the ‘Trade’ button next to the cryptocurrency that you want to invest in and enter your stake – from $10. Finally, to confirm your cryptocurrency investment – click ‘Open Trade’.

Cryptoassets are a highly volatile unregulated investment product. 

If you’re a complete novice and need some additional guidance on how to invest in cryptocurrency in Australia – you’ll find a detailed walkthrough further down on this page.

Where to Invest in Cryptocurrency in Australia

The first and perhaps most important part of learning how to invest in cryptocurrency in Australia is the online platform that you choose to complete the process. Whether you’re looking to buy Bitcoin or just diversify your crypto portfolio, finding the best exchange is the first step to participating in the crypto market.

  • The good news is that there are dozens of crypto exchanges and brokers that accept Australian clients, so you’ve got plenty of options to choose from.
  • On the other hand, when it comes to core metrics surrounding fees, security, supported markets, and customer support – the level of service that you receive can vary considerably.

With this in mind, in the sections below we discuss where to invest in cryptocurrency in Australia in a safe and low-cost manner.

1. eToro – Overall Best Place to Invest in Cryptocurrency in Australia (ASIC Regulated) 

etoro logoWhen researching where to buy cryptocurrency in Australia – the most regulated leading online broker is eToro.

eToro.com is popular with Australian investors for several reasons. Perhaps most importantly, eToro is authorized and licensed by ASIC – which is the body responsible for regulating the Australian financial markets.

Additional regulation at eToro comes from the UK’s FCA, CySEC in Europe, and the SEC in the US. This means that you invest in cryptocurrency in Australia in safety. To open an eToro account, you simply need to provide some basic personal information and upload a copy of your government-issued ID. After that, you can make a deposit from just $50 – or about $66 AUD.

Supported payment methods at eToro include debit and credit cards, local bank transfers, and a number of e-wallets. The latter is inclusive of PayPal, Skrill, WebMoney, and Neteller. Deposit fees on all payment methods amount to just 0.5% – which is very competitive. Once your account is funded, you will then have access to over 60 cryptocurrencies.

etoro review

Some of the most recognizable cryptocurrency tokens at eToro include Bitcoin, Ethereum, Cardano, Dogecoin, Litecoin, and Ripple. Additionally, the platform supports a wide range of leading DeFi coins – such as Terra Luna, 1Inch, Theta, Shiba Inu, Algorand, and Enjin. All in all, eToro’s diverse list of supported markets makes it easy to diversify.

And, diversification is even possible if you are on a budget, as the minimum trade size at eToro is just $10. Another way that you can invest in cryptocurrency at eToro is via a Smart Portfolio. Through a single investment, you will gain exposure to over a dozen digital assets of all shapes and sizes. Crucially, Smart Portfolios are managed by the eToro team – so your investment is passive.

An additional tool that you might be interested in if you seek passive investment features is the eToro copy trading service. This allows you to choose an experienced investor that you like the look of and then copy their future trades. There is also an eToro crypto app available on both iOS and Android devices. Finally, eToro also offers one of the best crypto wallets in Australia.

Number of Cryptos 50+
Trading Commission 1% plus market spread
Debit Card Fee 0.5%
Minimum Deposit $50

Pros

  • Regulated by ASIC
  • Super low trading fees
  • No deposit fees
  • Supports dozens of coins
  • Deposit funds with a debit/credit card, e-wallet, or bank transfer
  • Copy trading tools

Cons

  • Advanced traders might find the platform a bit basic

Cryptoassets are a highly volatile unregulated investment product. 

2. Capital.com – Trade Cryptocurrency CFDs at 0% Commission    

Capital.com review The next cryptocurrency trading platform to consider is Capital.com. This top-rated platform – which is regulated by ASIC, FCA, CySEC, and NBRB, specializes in financial derivatives. In addition to stocks, ETFs, forex, metals, and indices – this also includes cryptocurrencies.

In fact, at Capital.com, you will have access to over 470+ cryptocurrency markets. However, it is important to note that Capital.com does not allow you to directly invest in digital assets. On the contrary, you will be trading cryptocurrencies via contracts-for-differences – or CFDs.

In a nutshell, CFDs at Capital.com allow you to trade the future value of a cryptocurrency like Bitcoin without owning or storing any tokens. If you predict the future direction of your chosen CFD market correctly – you will make a profit. Crucially, Capital.com allows you to profit from both rising and falling markets – as you can enter a trade with a buy or sell order.

Capital.com review

Fees are super-competitive too, as Capital.com does not charge any trading commissions. Spreads are very tight too – especially when trading major markets like BTC/USD. As an Australian resident, you will also have access to leverage facilities. As per ASIC regulations, retail clients are capped to leverage of 1:2. Professional clients have access to higher limits.

What we also like about Capital.com is that it offers a range of tools that beginners will find useful. In addition to guides and blogs, Capital.com even offers a native mobile app that comes packed with mini-courses. On the other hand, seasoned traders will appreciate the platform’s support for MetaTrader 4.

To get started with cryptocurrency CFDs at Capital.com, you will first need to register an account and deposit at least $20 with a debit/credit card or e-wallet. If a bank wire is your preferred payment method, you need to deposit a minimum of $250. No fees are charged on AUD deposits or withdrawals. And finally, you might consider downloading the Capital.com iOS or Android app – which connects to your main account.

Number of Cryptos 470+ markets
Trading Commission 0% commission plus market spread
Debit Card Fee FREE
Minimum Deposit $20 (debit/credit cards, e-wallets) $250 (bank wire)

Pros

  • Licensed CFD platform
  • 0% commission and tight spreads
  • Minimum debit card deposit is just $20
  • Leverage of 1:2 offered on crypto CFDs
  • More than 470 crypto markets
  • No deposit or withdrawal fees

Cons

  • CFDs are complex instruments – consider the enhanced risk of loss

Cryptoassets are a highly volatile unregulated investment product. 

3. Binance – Low-Cost Cryptocurrency Trading Platform

binance logoThe next place to consider in your search for a top-rated cryptocurrency exchange is Binance. This platform is popular with traders in Australia for its huge asset library and industry-leading fees. Regarding the former, Australians have access to no less than 600+ individual cryptocurrencies across more than 1,000+ markets.

This means that you can buy, sell, and trade a wide variety of digital currencies via a diversified investment strategy. And, you can achieve your cryptocurrency investment goals at super-low fees, with Binance charging a maximum commission of 0.10% per slide. This means that for every $100 that you trade, you will pay a commission of just $0.10.

Moreover, if you were to buy Binance Coin (BNB) and hold the tokens in your exchange wallet, your commission fees will be reduced by a further 25%. When it comes to deposit fees, nothing is charged when you fund your account in crypto. Fee-free deposits are also possible when you transfer funds via PayID.

binance review

Debit and credit card payments will, however, come at additional fees. The specific charge is built into your exchange rate at the time of your purchase, so be sure to check this before confirming the investment. Nevertheless, once you have invested in your chosen cryptocurrency at Binance, you have a number of options when it comes to storage.

For example, you can keep the tokens in your main Binance web wallet. Or, you can download the free Binance wallet for iOS and Android. If you seek a decentralized storage option where you control your private keys – Binance is also behind Trust Wallet – which also comes via a mobile app.

However, perhaps the best option is to transfer your digital assets into a Binance crypto savings account. This enables you to earn interest on your idle tokens – which is especially useful for long-term crypto investments. Attractive APYs are on offer, but specific rates do vary between crypto assets and lock-up terms.

Number of Cryptos 1,000+ markets
Trading Commission Up to 0.10%
Debit Card Fee Depends on third-party processor
Minimum Deposit Varies by payment method

Pros

  • Hundreds of coins across 1,000+ markets
  • Low commissions of just 0.10% per slide
  • Supports fiat money deposits and withdrawals
  • Great tools for advanced traders
  • One of the largest crypto exchanges for liquidity

Cons

  • Not regulated by any licensing body
  • Has previously been hacked

Cryptoassets are a highly volatile unregulated investment product.

4. Coinbase – Top Beginner-Friendly Exchange for Cryptocurrency Investments 

coinbase logoIf you’re a complete beginner and don’t mind paying high fees in return for a simplified and secure cryptocurrency investment process – you might want to consider Coinbase. The platform is often used by first-time investors that wish to gain exposure to cryptocurrency – but have no experience in this space.

In addition to offering a simple investment process, Coinbase is rock-solid when it comes to safety. For instance, not only is Coinbase listed on the NASDAQ exchange but the platform is licensed by the SEC. And, 98% of all digital currencies owned by Coinbase clients are kept offline in cold storage.

We also like the fact that Coinbase account holders are required to set up two-factor authentication. This is enforced each and every time you log into your account or you elect to make a withdrawal. However, the main issue with Coinbase is that when you invest in cryptocurrency in Australia, you will face highly uncompetitive fees.

coinbase platform screenshot

This starts at the very offset when you make a deposit, as debit and credit card payments are charged at almost 4%. Moreover, standard trading commissions cost 1.49% and even more if you invest less than $200. Withdrawal fees are also costly, albeit, this will vary depending on the respective payment method.

In terms of core features, Coinbase offers real-time pricing and portfolio tracking services. You can also download the Coinbase wallet to your mobile device via an iOS and Android app. There are no crypto savings accounts offered by Coinbase, but you can generate a yield on your investments through staking.

Number of Cryptos 50+
Trading Commission 1.49% per slide
Debit Card Fee 3.99%
Minimum Deposit $50

Pros

  • Regluated in the US and listed on the NASDAQ
  • Supports 50+ coins
  • Accepts debit/credit cards and bank transfers
  • Great security features
  • Perfect for beginners

Cons

  • High payment and commission fees
  • Limited trading tools and features

Cryptoassets are a highly volatile unregulated investment product.

5. AvaTrade – Trade Leveraged Cryptocurrency CFDs Commission-Free

The final trading platform to consider is AvaTrade – which specializes exclusively in CFDs. As we mentioned earlier in our Capital.com review – cryptocurrency CFDs not only permit short-selling – but leverage of up to 1:2. This means that a $100 deposit – which is the minimum at AvaTrade, can be boosted to a stake of $200.

We also like AvaTrade for its low-fee policy. For instance, all AUD deposits and withdrawals are fee-free, and no commissions are charged when you enter buy and sell orders. Leverage will, however, attract a daily overnight funding fee – which is standard with CFDs.

In terms of markets, AvaTrade offers just 13 digital currency CFDs – all of which are paired against the US dollar. If you would prefer to trade cryptocurrency against the Australian dollar, you will be more suited for eToro or Capital.com. Nevertheless, supported coins include the likes of Bitcoin, Ethereum, Litecoin, and Uniswap.

If you wish to trade the future value of the broader cryptocurrency market, AvaTrade offers an index that tracks the performance of 10 leading coins. This is weighted based on market capitalization and volume – so Bitcoin and Ethereum dominate the index with an allocation of just over 50%.

On top of cryptocurrencies, AvaTrade also offers an abundance of stocks, ETFs, bonds, indices, metals, energies, and forex – all in the shape of CFDs. Just like cryptocurrency, these CFD markets can also be traded commission-free alongside competitive spreads. AvaTrade allows you to trade via its native web and mobile platform, or by connecting your account to MT4/5.

Number of Cryptos 13, plus a crypto index market
Trading Commission 0% commission plus market spread
Debit Card Fee FREE
Minimum Deposit $100

Pros

  • Regulated by several bodies – including ASIC
  • Minimum deposit just $100 – and no transaction fees
  • Leverage and short-selling supported
  • Accounts take just minutes to open
  • Top-rated mobile app

Cons

  • Limited number of crypto markets
  • Best-suited for seasoned trading pros

Cryptocurrency Investment Explained

Once you have opened an account with your chosen broker or exchange, the next part of the learning process is to understand the fundamentals of how cryptocurrency investments actually work.

If you’re completely new to this space, the good news is that cryptocurrency investments are not too dissimilar to traditional stocks and shares – at least in terms of profit generation.

This is because the overarching objective is to buy a cryptocurrency like Bitcoin and then sell the tokens for a higher price. If you are able to do this, you will make a profit.

For example:

  • Let’s say that you invest $1,000 into Bitcoin when the crypto asset is worth $38,000 per token
  • You sit on your Bitcoin investment for 12 months
  • Bitcoin is now trading at over $65,000 per token
  • This means that in comparison to your original cost price of $38,000 per token, Bitcoin has increased in value by 71%
  • You cash out your investment – so on an original stake of $1,000 – you receive $1,710 back

As you see from the above, the profit that you make on a cryptocurrency investment is determined by two key factors – the amount you originally stake and the percentage increase of the respective token.

However, as we cover in more detail shortly, there are no guarantees that you will make a profit when you invest in cryptocurrency in Australia.

On the contrary, if the value of your chosen cryptocurrency goes down and you decide to sell – you will cash out at a loss.

Is Cryptocurrency a Good Investment?

The first-ever cryptocurrency -Bitcoin, was launched in 2009. Since then, Bitcoin has grown in value by a monumental amount.

And, since the inception of Bitcoin – thousands of other digital currencies have since been launched – all of which are referred to as altcoins.

Now, whether or not cryptocurrency is a viable investment portfolio for you, depends on a number of core factors.

  • Crucially, by investing in this marketplace, you must be prepared for enhanced volatility.
  • Moreover, Bitcoin and other cryptocurrencies typically move in tandem with each other – which covers both bullish and bearish cycles.
  • As such, you must feel comfortable seeing the value of your portfolio going up and down before you invest in cryptocurrency in Australia.

In the following section, we explain some of the main reasons why you might decide to add some digital currencies to your investment portfolio today.

Cryptoassets are a highly volatile unregulated investment product. 

Benefits of Investing Cryptocurrency in Australia

There are many benefits of investing in cryptocurrency – both in terms of long-term valuation and the implementation of the underlying technology itself.

Let’s start with the former – where we’ll look at some examples of the best-performing cryptocurrencies in recent years.

Best-Performing Cryptocurrencies Have Exploded in Value

Perhaps the main reason why people in Australia decide to invest in cryptocurrency is because of historical returns. That is to say, a good number of digital assets have increased in value by thousands or even millions of percent since launching to the public.

For example:

  • When Bitcoin was first launched in 2009, it was pretty much worthless
  • In 2010, for example, somebody paid 10,000 Bitcoin tokens in exchange for a pizza order that was worth $40
  • Since then, Bitcoin has gone on to reach highs of over $68,000 per token
  • And therefore, the 10,000 Bitcoin tokens used to purchase a $40 pizza – at a pricing point of $68,000, would have been worth over $680 million
  • Therefore, using these calculations, a Bitcoin investment of just $100 in 2010 at its peak in 2021 would have been worth more than $1 billion

These unprecedented returns are not unique to just Bitcoin. On the contrary, a large number of other cryptocurrencies have also witnessed similar monumental growth since launched. Oftentimes, success has been achieved in a much shorter period of time.

For example:

  • BNB – which is backed by the previously reviewed Binance exchange, was launched as recently as 2017
  • According to CoinMarketCap, when BNB was first launched it was trading at just $0.11 per token
  • Since then, BNB has hit an all-time high of almost $700
  • This translates into growth of over 636,000%
  • As such, by investing just $100 when BNB was launched in 2017 – at its peak, you would have been able to cash out at over $636,000

The above examples are just two of many. You only need to look at the historical price performance of Solana, Ethereum, Decentraland, and heaps of other cryptocurrencies to see just how quickly this marketplace can explode.

And, as highlighted in the examples above, if you choose the right cryptocurrency – you don’t need to invest a lot of money to make sizable returns.

You do, however, need to remember that just because broader cryptocurrency prices have increased parabolically previously, this doesn’t mean that this will happen again in the future.

Create a Diversified Cryptocurrency Portfolio With a Small Amount of Money

In the traditional stock trading arena, seasoned investors will typically buy shares in companies from a wide variety of sectors and industries. This might include, for instance, stocks involved with tech, retail, oil and gas, mining, aviation, banking, and more.

This approach to diversification can be replicated with ease when you invest in cryptocurrency in Australia. After all, there are now more than 18,000 digital currencies that you can buy and sell online – with new tokens being created every day.

invest in BNB australia

While the vast majority of these crypto projects can be avoided – largely because they do not offer anything unique or proprietary, this still leaves you with a good selection of tokens to consider buying.

And, when you use a budget-friendly broker like eToro to invest in cryptocurrency in Australia – you only need to risk $10 per trade. This means that with a modest investment of just $200 – you could effectively buy 20 different cryptocurrencies.

Cryptocurrency is the Internet of the 1990s

If you could turn the clock back to the 1990s and invest in up-and-coming internet stocks like Amazon, you likely would. After all, pre-2000 – the internet was still viewed as somewhat of a fad.

This sentiment is often expressed with cryptocurrencies even in 2022 – with many market commentators reluctant to enter this market.

  • Crucially, if you believe in the future of cryptocurrencies – as well as technologies like the blockchain, smart contracts, and the Metaverse, now could be a great time to invest.
  • In doing so, you still have the chance to invest in cryptocurrencies while the broader market is growing and thus – undervalued.
  • Once again, the most important thing with cryptocurrency investing, is that you diversify well and avoid risking more than you can afford to lose.

Another thing to note is that you can also invest in brand new cryptocurrencies during or not long after they launch. This will often allow you to buy the respective cryptocurrency when it carries a small market capitalization.

And as such, the upside potential on up-and-coming cryptocurrencies will often be much greater when compared to established projects like Bitcoin and Ethereum.

Legitimacy From Major Corporations 

A good sign that an emerging technology like digital currency is here to stay in the long run is when major corporations begin entering the market in their droves. In fact, this gives the broader cryptocurrency industry legitimacy.

Some examples of this include:

  • In 2017, the world’s first regulated Bitcoin futures market was launched on two leading exchanges – the CME and CBOE.
  • In late 2020, Tesla – which is now a trillion-dollar company, invested $1.5 billion from its cash reserves into Bitcoin
  • Bitcoin and many other cryptocurrencies can now be bought and sold at traditional brokerage firms – from both retail and institutional clients
  • A number of crypto-oriented firms – such as Coinbase and Block – are publicly-traded companies on major exchanges such as the NASDAQ
  • Cryptocurrency can be used payment method at some of the largest brands globally – including Microsoft, Home Depot, Overstock, and Starbucks

Ultimately, as cryptocurrency continues to be adopted by large corporations, this can only be a good thing for the market value of this industry.

Multi-Trillion Dollar Trading Space 

Another reason why you might consider investing in cryptocurrency in Australia is that digital assets now operate in a trillion-dollar trading industry.

This is crucial, as many first-time investors are often reluctant to buy cryptocurrencies because they are concerned about the fundamentals of cashing out. That is to say, it’s all good and well investing in a digital token and seeing its value grow – but if you are unable to cash out back to Australian dollars, this is obviously problematic.

reasons to invest in cryptocurrency in australia

However, you should have no such concerns when you invest in cryptocurrency in Australia – especially if you are buying large-cap tokens like Bitcoin, Ethereum, or Ripple.

After all, these digital currencies carry a multi-billion valuation. In fact, Bitcoin itself has since surpassed a market capitalization of $1 trillion. Moreover, cryptocurrencies trade 24 hours per day – 7 days per week. Therefore, at any given time, you can sell your cryptocurrency tokens back to cash and withdraw the proceeds to your bank account.

Cryptoassets are a highly volatile unregulated investment product. 

Risks of Investing Cryptocurrency in Australia

Now that you know the core benefits of buying digital assets – before you invest in cryptocurrency in Australia – you will need to consider the risks.

The most pressing risks that you should take into account are discussed below:

Volatility 

We mentioned earlier cryptocurrencies are volatile investment products. For instance, For instance, BNB is up over 65% in the prior 12 months of trading.

However, in the first three months of 2022, BNB has lost 22% in value. In another example, Cardano is up nearly 1,000% over the prior five years. In the past six months, however, Cardano has lost over 50% in value.

And as such, when you invest in cryptocurrency in Australia, you must be prepared to see your portfolio go up and down in a parabolic manner.

With that said, those that stay strong during bearish cycles and hold onto their cryptocurrency investments in the long-term are typically rewarded.

Risk of Loss 

It goes without saying that you can lose some or even all of your money when you invest in cryptocurrency in Australia. Extreme examples to consider are the cases of OneCoin and BitConnect.

Both of these projects witnessed a rapid increase in value in 2017 – surpassing a market capitalization of a billion dollars. However, both of these cryptocurrencies turned out to be a scam – meaning that the respective tokens have since gone to zero.

Moreover, some newly launched cryptocurrencies turn out to be a rug pull – which is crypto-jargon for a scam.

As such, it is important that you do your own research before you choose to invest in cryptocurrency in Australia. In fact, to mitigate the risk of loss, it might be best to stick with established tokens that have a proven track record.

The Best Cryptocurrency to Invest in

So far in this guide on how to invest in cryptocurrency in Australia, we’ve covered the best brokers and exchanges in the market and what benefits and risks to consider before getting started.

In this section, we are going to explore what crypto to invest in. To ensure you’ve got plenty of options, we discuss 10 of the best digital currencies to consider buying in 2022.

1: Bitcoin – Overall Best Crypto to Invest in for Beginners  

All in all, if you’re a beginner, Bitcoin is the best cryptocurrency to invest in 2022 for long-term gains. This is because it is the largest cryptocurrency in terms of market capitalization. It also has the greatest mass awareness and in comparison to other cryptocurrencies in this market – possesses the least amount of volatility.

bitcoin price today

Although Bitcoin is one of the most expensive cryptocurrencies to invest in – at a token price in the thousands of dollars, you can risk just $10 when using eToro to complete your purchase. This is because – like all other digital currencies, they can be split into tiny units.

Cryptoassets are a highly volatile unregulated investment product.

2: Ethereum – Leading Cryptocurrency for Smart Contracts and DApps  

Ethereum is also worth considering for your portfolio if you are looking to invest in cryptocurrency in Australia for the first time. In terms of market capitalization, Ethereum is the second-largest cryptocurrency just behind Bitcoin. Ethereum was launched in 2015 and it allows developers to create smart contracts and deploy decentralized applications (DApps).

ethereum price today

Crucially, thousands of other cryptocurrencies are built on top of the Ethereum blockchain – all of which are known as ERC-20 tokens. This trend is showing no signs of slowing down, with some of the most successful projects of recent years – such as Decentraland and Uniswap, opting for Ethereum.

Cryptoassets are a highly volatile unregulated investment product.

3: Decentraland – Top Cryptocurrency to Invest in the MetaVerse  

As noted above, Decentraland is a cryptocurrency project built on top of the Ethereum blockchain. The main concept of this project is that it offers a virtual gaming world – whereby players can communicate in the MetaVerse. And, within the Decentraland ecosystem, players also have the option of buying land.

decentraland price prediction

In doing so, landowners can build virtual real estate – such as apartments, villas, casinos, malls, and more. These projects can then be sold to investors in the open marketplace. Some of the most valuable plots of land in Decentraland have since sold for millions of dollars. You can invest in this project by purchasing MANA tokens – which are native to Decentraland.

Cryptoassets are a highly volatile unregulated investment product.

4: Uniswap – Cryptocurrency Project Offering Decentralized Exchange Services    

Uniswap sits at the heart of decentralized exchange services. In simple terms, the Uniswap platform allows users to trade digital currencies without needing to use a centralized operator. Instead, trades are executed directly on a peer-to-peer basis. Uniswap is able to offer a decentralized trading ecosystem through its automated market maker system.

uniswap price prediction

Uniswap also offers the ability to earn interest on idle crypto holdings by proving the exchange with liquidity. Just like Decentraland, Uniswap is yet another cryptocurrency that has chosen to be built on top of the Ethereum blockchain. You can invest in this cryptocurrency by purchasing Uniswap tokens – which are available at most leading exchanges.

Cryptoassets are a highly volatile unregulated investment product. 

5: Yearn.finance – Top-Rated Cryptocurrency Lending Ecosystem   

Yearn.finance is an online platform that allows investors to generate a yield on their ideal cryptocurrency tokens. This is possible through the Yearn.finance crypto lending facility, which enables people to borrow funds in return for depositing collateral. Interest is paid from the borrower to investors that cover the loan.

yearn.finance token price

All of this is achieved in a completely decentralized nature – meaning that loans and investments do not require third parties. You can invest in this project by purchasing Yearn.finance tokens, In a similar nature to Bitcoin, Yearn.finance trades for thousands of dollars per token. Once again, by investing via the eToro website, you only need to risk $10.

Cryptoassets are a highly volatile unregulated investment product.

6: BNB – One of the Best-Performing Cryptocurrencies of all Time    

We briefly mentioned earlier that since BNB was launched in 2017, the digital token has witnessed gains of over 630,000%. With that said, many market commentators argue that there is still plenty of upside potential left on the table. Crucially, BNB is backed by Binance – which is the world’s largest exchange.

bnb price prediction

It carries several use cases, such as being the primary currency of the Binance Smart Chain – which means that transaction fees are collected in BNB. Moreover, when traders of the Binance exchange buy and hold BNB tokens, commissions are reduced by 25%. Since dipping in 2022, BNB can still be purchased at a discounted entry price.

Cryptoassets are a highly volatile unregulated investment product.

7: Lucky Block – Innovative Cryptocurrency Project That is Decentralizing Lottery Games

Another industry that is in dire need of being revolutionized is that of the global lottery arena. In its current form, games are typically offered on a state and/or national basis – which restricts jackpot prizes and results in a number-drawing process that is both opaque and centralized.

lucky price token

Lucky Block, on the other hand, is creating an innovative ecosystem that will completely decentralize the global lottery space. This means that gaming outcomes will be governed by immutable smart contrasts rather than state-franchised bodies. Since its launch, Lucky Block has increased in value by over 6,000%.

Cryptoassets are a highly volatile unregulated investment product. 

8 ApeCoin – Newly Launched Cryptocurrency Linked to the Ape NFT Series     

If you have a much higher appetite for risk, you might consider looking at ApeCoin – which was launched as recently as March 2022. This digital currency is backed by the same team that created the Bored Ape Yacht Club NFT series, which consists of 10,000 unique tokens. Not only are some of these tokens owned by A-list celebrities, but a number of Ape NFTs have sold for over $1 million.

how to buy apecoin

And, if ApeCoin is as successful as its NFT collection, the upside on this digital asset could be huge. Although as of writing the project is only a week old, you can already buy ApeCoin at most tier-one crypto exchanges. Take note, there is no knowing how long the ApeCoin frenzy will last, so this could be the best cryptocurrency to invest in 2022 for short-term gains.

Cryptoassets are a highly volatile unregulated investment product.

9: Cosmos – Leading Cryptocurrency for Blockchain Interoperability  

We also like Cosmos as one of the best crypto to invest in for 2022. This project specializes in something known as blockchain interoperability – which allows decentralized networks to communicate and share data. For example, in its current form, BNB transactions cannot appear on the Cardano blockchain.

Cosmos price today

They can, however, when utilizing the Cosmos framework. When you consider how many competing blockchains are now active in this space, demand for Cosmos is only likely to continue to grow. Crucially, when blockchains use Cosmos for this purpose, fees must be paid in the project’s native token – ATOM.

Cryptoassets are a highly volatile unregulated investment product.

10: Solana – Popular Blockchain Offering Fast and Cheap Transactions 

The final cryptocurrency to consider adding to your investment portfolio is Solana. This blockchain project can facilitate more than 65,000 transactions each and every second – which makes it one of the most scalable in this industry. Moreover, regardless of how many tokens are being transferred – transactions typically cost a tiny fraction of a cent.

solana price prediction 2022

Crucially, Solana is also able to facilitate the deployment of smart contracts and DApps. And therefore, many market commentators argue that Solana could one day compete with Ethereum as the de-facto smart contract platform. If Solana is able to achieve this goal, the upside potential on this cryptocurrency could be huge.

Cryptoassets are a highly volatile unregulated investment product. 

Best Penny Cryptocurrency to Invest in

Another niche market of the blockchain sector that you might consider looking at is penny cryptocurrencies. These are digital tokens that trade for less than $1 each.

Below, you will find a list of the best penny cryptocurrency to invest in for 2022:

  • The Graph: This penny cryptocurrency allows blockchains to ‘index’ excess data. In turn, the Graph has a superb use case – especially when you consider how many transactions leading blockchains are required to facilitate.
  • Cronos: We also like Cronos as one of the best penny cryptocurrencies to invest in, not least because it is the native digital token of the Crypto.com ecosystem. This popular exchange offers higher yields and lower commissions when users hold Cronos tokens.
  • Chiliz: This project connects the sporting world with cryptocurrencies and blockchain technology. In a nutshell, Chiliz allows token holders to engage with their favorite sporting teams via an innovative governance system.

It is important to note that just because a penny cryptocurrency has a low token price – this doesn’t mean that it isn’t any riskier than an expensive digital asset.

For example, the Graph has since surpassed a market capitalization of $2 billion – even though its token trades above $1 since late 2021.

Cryptoassets are a highly volatile unregulated investment product. 

Investing in Cryptocurrency vs Trading Cryptocurrency

We mentioned earlier that the most successful cryptocurrency investments are typically those held in the long term.

This is because the cryptocurrency industry goes through regular volatile cycles and thus – by refraining from cashing out, you can ride these wild pricing swings out.

  • On the other hand, some investors in Australia will look to engage in shorter-term cryptocurrency trading.
  • The idea here is to buy a cryptocurrency and cash out several days or even hours later.
  • To do this successfully, you need to have a firm grasp of technical analysis and be able to read and interpret pricing charts.

With this in mind, if you are looking to invest in cryptocurrency in Australia for the first time – it’s best to take a long-term approach to this industry.

In doing so, you don’t need to constantly research the markets – nor do you need to understand how chart analysis works.

How to Invest in Cryptocurrency Safely

Make no mistake about it – the only way to invest in cryptocurrency in Australia is to use a regulated broker. The good news is that eToro is not only licensed by ASIC – but regulators from other regions of the world. This includes the FCA, CySEC, and the SEC.

This means that you can deposit funds into the eToro website without fear of being scammed. This sentiment cannot be said for many exchanges in this space, most of which operate without a regulatory license.

Another thing to note is that eToro offers an in-built wallet that allows you to store your cryptocurrency investments safely. This means that you do not need to worry about managing your own crypto wallet and thus – risk being hacked by a bad actor.

How to Invest in Cryptocurrency in Australia – Tutorial

Earlier on this page, we provided a very quick overview of how to invest in cryptocurrency in Australia.

Now, we will walk you through the process step-by-step – so even if you’re a complete beginner, you’ll have your first-ever cryptocurrency investment confirmed in less than five minutes.

For this walkthrough, we’ll show you the required steps with ASIC-regulated crypto broker eToro.

Step 1: Open an eToro Crypto Account 

To invest in cryptocurrency at eToro – you will first need to create a free account. Simply enter your personal information and contact details – and choose a username and password.

etoro review

Confirm your email address and cell phone number to complete the registration process.

Step 2: Upload ID

You also need to upload a verification document before you can invest in cryptocurrency in Australia. This ensures that eToro remains compliant with ASIC.

Once you upload a copy of your driver’s license or passport, eToro will usually mark your account as verified in under two minutes.

Step 3: Deposit Funds

When you deposit AUD into your eToro account, you can choose from a debit/credit card or a local bank transfer. You can also make a deposit via Neteller, Skrill, and Paypal.

buy dogecoin at etoro

AUD deposit fees amount to just 0.5% across all supported payment methods. The minimum deposit is $50 for first-time clients.

Step 4: Search for Cryptocurrency

If you know which cryptocurrency to buy for your portfolio – type it into the search bar. In our example, we are looking to keep things simple by investing in Bitcoin.

buy bitcoin etoro

With that said, to view the full list of supported cryptocurrencies that can be traded on the eToro website – click on the ‘Discover’ button.

Step 5: Buy Cryptocurrency

Once you find the cryptocurrency that interests you, click on the ‘Trade’ button. Then, in the ‘Amount’ button – enter your total investment stake.

buy bitcoin etoro

Irrespective of the cryptocurrency you are buying – you can invest any amount from just $10. Once you click ‘Open Trade’, eToro will execute your cryptocurrency investment instantly.

There are some other crypto exchanges Australian investors are accepted at – we compared two AU platforms here.

Conclusion

This beginner’s guide on how to invest in cryptocurrency in Australia covered the best AU facing exchanges to consider, what benefits and risks to think about before investing, and which cryptocurrencies offer an attractive upside potential for 2022.

To invest in cryptocurrency today – you can open an account and deposit from just $50 USD at the ASIC-regulated platform eToro. In doing so, you’ll have access to 60+ leading tokens – all of which can be traded from just $10 at super-low fees.

etoro logo

Cryptoassets are a highly volatile unregulated investment product.

FAQs When Investing in Cryptocurrency in Australia 

Is it legal to invest in cryptocurrency in Australia?

How do I invest in cryptocurrency?

What is the best platform to invest in cryptocurrency in Australia?

How can a beginner invest in cryptocurrency in Australia?

What is the best cryptocurrency to invest in 2022?

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