More than 17% of Australians own crypto. Yeah, you read it right. Adoption of Crypto currency in Australia has been massive for the past two years.
Cryptocurrencies have sustained themselves for over a decade and are still undervalued according to their price and total supply. Many countries like Australia and the US are quite bullish on the future of cryptocurrencies.
Australia has been ranked third for crypto ownership. According to Finder, the Global average of crypto adoption is around 11.4%, whereas Australia has 17.8%.
One of the vital reasons for the boom in Australia’s crypto market is the government’s faith and openness to blockchain and crypto industry growth.
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What is Cryptocurrency?
Cryptocurrency is a digital representation of decentralized currency created as a means of payment or value. Cryptos works on distributed ledger technology in which one can see or keep a copy of the digital ledger to verify the transaction.
Some cryptocurrencies like Bitcoin are mined to enter the circulation supply in which a new BTC is generated, and a small payout is sent to the participant as a reward. Also, in the case of new cryptocurrencies, the founder or controller can sell the Initial Coin Offering (ICO) or give some free coins to facilitate coin hype and awareness. There are listed exchanges for facilitating all transactions for buying crypto in Australia.
Bitcoin and Ethereum are the most owned cryptocurrencies among Australians.
Top 10 Cryptocurrencies in Australia:
Bitcoin, also known as modern-day gold, is a decentralized digital currency used for peer-to-peer transactions. Bitcoin was created by an unknown identity or individuals named Satoshi Nakamoto in 2009. Bitcoin is the most popular cryptocurrency in Australia. Around 65% of crypto holders in Australia hold bitcoin. As governments across the globe are printing trillions of dollars that are causing all-time high inflation, Bitcoin is a limited resource that can be used as a powerful weapon to defeat inflation.
Ethereum is also a widely loved cryptocurrency in Australia, as 42% of crypto users have Ethereum in their portfolio. According to Wikipedia, Ethereum is a decentralized, open-source blockchain with smart contract functionality. It is also the second-biggest cryptocurrency in the world by market cap. Vitalik Buterin invented Ethereum in 2013 to provide decentralized finance(De-fi), decentralized autonomous organization(DAOs). In 2022, Ethereum has been going through a massive update having a transition of proof of stake called Ethereum 2.0 that will boost the transaction speed using the help of sharding.
Cardano is also an open-source and decentralized public blockchain platform used for internal peer-to-peer transactions among the cryptocurrency. Around 26 percent of crypto holders actively trade or hold Cardano. Charles Hoskinson created Cardano in 2015. Charles Hoskinson was also Ethereum’s co-founder. Cardano works on proof of stake blockchain technology and is an energy-efficient and eco-friendly solution.
Doge was started as a joke in 2013 but quickly got happily accepted by meme coin. Nearly twenty-three percent of crypto wallets in Australia own Dogecoin. The Doge community has become quite big, and it is probably the only meme coin that has survived over 8 years. According to the market, Dogecoin has even entered the top 10 cryptocurrencies globally.
Binance Coin (BNB)
We all know that Binance is currently the world’s largest exchange in terms of the trading volumes of cryptocurrencies. Binance was founded in China by Changpeng Zhao in 2017. Binance’s headquarters were shifted out from China because of China’s strict crypto rules and regulations. Around 15% of crypto holders in Australia hold Binance Coin(BNB).
Editor’s choice: Adoption of Cryptocurrencies Australia
Tether, also known as USDT, is a secure and stable coin pegged to the value of the USD. It is mainly designed to create stability between fiat currencies and the rest of cryptos. Tether is controlled by Bitfinex, one of the biggest Bitcoin exchanges in the world in terms of volume.
Solana is an open-source project that aims to become the world’s first high-performance and permissionless blockchain. It’s famous for its fast transaction speed. Solana works on the concept of Proof of History. Solana soars its price in 2021 mainly because of people’s interest in NFT. Even the transaction fees of Solana are very low, which makes it an attractive pick for active traders and holders.
XRP is a cryptocurrency mainly used by Ripple Payment Network for cost-efficient transactions across borders. It is built to focus on enterprise use and is recognized among the world’s biggest banks and institutions like American Express and Bank of America. They are using XRP for multiple applications.
Polkadot(DOT) is a cross-blockchain transfer protocol that provides high-level security and scalability in innovative ways. It uses the concept of proof of stake. It was launched for sale on 27th October 2017. Some big investors are quite bullish on Polkadot’s future and its rapidly growing ecosystem.
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Avalanche(AVAX) is one of the fastest-growing smart contract platforms in the blockchain world. It works on the proof of stake protocol for validating the transactions. Avalanche has immense potential with the defi universe. The price of the Avax coin has soared more than 4000%, hitting an all-time high in November 2021.
How to Invest in Crypto in Australia:
Select an online exchange
If you want to buy cryptocurrencies, you need to buy them online and store them in an online crypto wallet. You can create an account on any major crypto exchange and then transfer AUD to buy any cryptocurrency you want to buy. Top crypto exchanges in Australia are eToro, Bybit and Binance.
Also, while selecting an exchange, keep the following things in mind:
- Maintenance fees
- Any hidden charges
- Customer support
- Company’s reliability
- Mode of Payment
Do proper research, go through customer reviews, and then select the best one according to your requirements.
As you have selected the crypto exchange now, you need to sign up on the exchange and create your account. Fill in all the details and add 2 step authentication to add a layer of security to safeguard your wallet. You need to fill in details of your identity proof, like your passport, to verify your account.
Link your bank account and deposit AUD in your wallet
After adding your bank account, you can select your preferred payment gateway between Poli and PayID/Osko and deposit money to your wallet.
Under the Buy section, select cryptos you want to trade-in
As your account is ready with funds to actively buy or sell the cryptos that you want to trade or hold. You have to choose the cryptocurrency you want to trade under the buy section.
Crypto Regulations and Taxes in Australia:
As crypto markets evolve day by day and tons of investments and money have been thrown into the system, regulators have been slow in implementing laws, regulations, and guidelines. As crypto markets are highly volatile, applying strict rules instantly can lead to panic among investors. So financial experts understand and have a better view of the situation and try best to create moderately strict rules to avoid any misuse of the usage of the cryptos.
The government is also planning to tax the crypto gains in stock markets. There are major questions in people’s minds about the impact of crypto currency on the economy of Australia. As crypto is growing, people and governments will understand the crypto functionality over time, so answers to these problems could also be found.
As Crypto prices in AUD are rising and Bitcoin is becoming mainstream, the adoption rate of cryptos will increase more and more. Shout in Australia comes with blogs like this regularly to keep you all updated with new trends happening across Australia. Happy Investing!