note: Invest Ethereum coins at your own risk and never invest more than you can afford to lose! No reward comes without risk. The companies we will talk about are Coinbase (Worldwide) and CoinSpot (An Australian Company)
Everyone is talking about Ethereum, but not many people know where to actually get started to investing in the Cryptocurrency or How To Buy Ethereum In Australia. In this guide we are going to discuss what is Ethereum, where to buy, why the price will rise, how to invest, how long to wait. So lets get started
What is Ethereum?
Contrary to popular belief, Ethereum is more than just a Cryptocurrency, It’s also a network of computers that make a new type of App possible. These are called dApps. This means that the currency has some value to back itself up with. Its not just a decentralized currency. Just like Bitcoin back in the day, the price is starting to skyrocket. This info graphic gives a quick insight on how it works.
Where to buy Ethereum in Australia?
When it comes to any Cryptocurrency, There are 2 major players that I use. One of them is Coinbase (Worldwide) and CoinSpot (Australian Company). Signing up is pretty simple, both of them require photo ID and they need to verify your bank account. Its fine as most reputable company’s will do this.The reason for multiple websites is due to the differences in coins and portfolio diversification (Bitcoins, XMR, Litecoin etc). As said earlier, I wouldn’t keep all my coins in one location so they are spread out over multiple websites and wallets. This isn’t necessary, Its just an extra precaution I personally like to take. I would suggest for beginners, setup 2 factor authentication and leave your coins in the wallets on the website. This will make it easy to sell your coins later. For a 3rd party wallet we suggest Jaxx.
Do we know the price will rise?
When it comes to traditional currency trading, there are multiple indicators that traders will look at to determine if the currency will rise or fall. Cryptocurrency doesn’t really share these indicators yet. However it does share one, and that is speculation. Generally in trading the news will play a huge part in price changes. For example go have a look at USD around the time of the election, or BREXIT. This is a major factor in while the price is rising for Etherum. You have a ton of news being pumped out, and thousands of people investing every day. It’s only really just getting started.
How much should I invest?
This is a popular question that is asked often. The answer is always the same “If you lost “$x” amount would you miss it”. It’s not wise to go and invest every single cent into one currency (or one investment for that matter). It is best to diversify your portfolio. In saying that, the minimum I personally would invest would be $200 as a start. This at the time of writing will buy you half a coin, but like I said, It’s just a start. If you cannot afford $200 or its going to cause financial hardship losing that money, then perhaps investing it into a single coin because of speculation isn’t the right move for you.
What now, When to sell my coins?
Lets get this out of the way, When you enter a trade, Make sure you have a goal or target in mine. How much money do you want to make off your investment. This is what will separate the Men from the Boys. Selling your Ethereum coins. What tends to happen is once people see a slight profit, They want to sell, same thing happens when they see coins go down in value. They want the pleasure without the pain. It all comes down to how much you can afford to lose. You can sell them on platforms such as Coinspot.
What I suggest, pick a goal that you can scale out from, For example, If you invest $200 for example and the price rises to $300, Sell $100 worth of your Ethereum coins and invest them elsewhere. Scale out of your initial investment so your risk is less. The overall goal is diversification. You wont get rich making money online with one $200 investment!