Dive into the world of Cryptocurrency trading

Find an expert in Cryptocurrency in Australia to help you get the best from your crypto investments!

If you follow any kind of current affairs, you've probably heard about Bitcoin and other cryptocurrencies that are sweeping the world of investing. This revolutionary currency and other currencies like it, along with their blockchain technology, have made it easier to make a payment or transfer money safely, making investors less reliant on banks or physical currencies like the Australian dollar.

So what is cryptocurrency? What is a block? Where do I save money and check my account? Is cryptocurrency the best investment? For those who are completely new to this topic, Bitcoin, Ethereum and every other cryptocurrency are basically digital or virtual forms of money. They aren't a physical coin, but a digital token help in an online platform that is safeguarded by cryptography, which can basically block any attempts to copy or steal. Another key feature of these assets is that they aren't issued by a government or bank, so they are free from any interference.

If you're interested in investing in one of these currencies, but everything we've talked about so far has already confused you, then before making any exchange or trade with crypto, you might want to save time and get some information and support from a personal tutor. Superprof is a digital platform that links students with teachers in many areas, including Bitcoin and other digital currencies.

Popular types of Cryptocurrency

While Bitcoin is probably the most well-known currency used for online trading, it certainly isn't the only cryptocurrency. New digital currencies are constantly popping up, but before you invest any money, it's important to understand the benefits of each.

• Bitcoin: The most popular option, this is basically "cash for the internet", meaning you can use it for almost any digital payment and exchange. As an investment, it's highly speculative, meaning values can change very quickly, and you're not guaranteed to make a profit. The current exchange rate is 1 Bitcoin to AUD 46,000 (as of Jun 2021).

• Ethereum: This digital platform has its cryptocurrency equivalent to Bitcoin, known as ETH, but your account can also be used to download a range of applications. These are known as dapps (decentralized apps) and require ETH to use, but the benefit is that they are owned solely by creators, meaning there are no fees from middlemen, like the Apple Store. The current exchange rate is 1 Ether to AUD 3,000 (as of Jun 2021).

• Litecoin: While this cryptocurrency is not considered as valuable as Bitcoin, it does have some advantages for the user over its big brother. It has a faster block generation rate, meaning your payment for items will be confirmed more quickly. Trading fees are also generally lower. The current exchange rate is 1 Litecoin to AUD 185 (as of Jun 2021).

A "wallet" and why you'll need one

So you've saved some funds and now you're ready to invest and buy some crypto? Well, there are actually more steps than you might think. A user in Australia can buy some cryptocurrencies directly with AUD, like Bitcoin, although some require payment through exchanges with other digital currencies.

The first thing you need to do is get a "wallet", which is an online app where you can store and track your currency. These can be run on your computer or your phone, and there are offline options as well.

Then you need to get onto a trading exchange. This is the place where you can exchange fiat currency, like AUD, for cryptocurrency. Coinbase is one of the more popular trading exchanges because it offers the user access to a range of currencies for exchanges, and user funds are insured in case of hackers. The disadvantage is that trading fees are often higher than other exchanges. Once a user creates an account, they can make a deposit of funds, and start to exchange or buy other currencies. The items you buy then need to be transferred or saved to your digital wallet.

Once you have a coin or token saved in your wallet, you can start to buy items, trade with another user for a different kind of coin or token or save your asset and see if you make some profit on your investment.

How a private tutor can help

Of course, this is a pretty simple explanation, and it will take time to understand exactly how this type of investment works and what a financial asset is can be. As we mentioned before, a personal financial advisor or tutor from Superprof will help in this area. You could spend hours reading online items where people comment, reply and unfollow, making everything more confusing. Or, with the support of an Australian expert, you can save time and ask them anything you want to know. They will understand complex issues like how to report these assets on your tax report in Jun and any legal issues with cryptocurrency in Australia.

Our tutors are investors themselves, so they understand how to get the best out of the saved money in your deposit account by turning it into a digital asset. They can share the knowledge that they've built up through study and time spent working in the financial arena. If you share your own ideas, they will comment, reply and support you as you develop your understanding of how each little aspect of cryptocurrency works, from trading exchanges to your wallet and more. The more you follow their advice, the more you will be able to trade and make each payment with confidence.

To find the best Superprof personal financial tutor, you can check each online profile, where teachers share items of information like their crypto experience, specialities, for example, bitcoin and tax, and more. There may also be a comment or two from past students, so you can follow their advice. Once you've made your choice, you can send them a message and they will reply quickly to organise your first meeting.