Sydney, Sept 30: Bitcoin is slowing beginning to gain momentum in Australia.
Global Prime, an online trading provider reports that research showed that there was an uptick in cryptocurrency investment among Australians, with 35 per cent of the population believing that eventually the digital currency will be transacted more widely than regular currency.
Key findings from recent research showed that one-in-six Aussies – including one-third of Gen-Z – owned cryptocurrency, while 15 per cent have downloaded a cryptocurrency trading app on their phones.
Statistically, men were twice likely to invest in bitcoin compared to the fairer sex.
The research also found that one in five non-cryptocurrency owners would like to buy cryptocurrency, but don’t know how.
“With an increase in cryptocurrency investing, there are several pitfalls that first-time investors and traders need to be on the lookout for,” Global Prime co-founder and director Jeremy Kinstlinger (picture above) said.
“In particular, it is important not to let your emotions get the better of you when it comes to making trading decisions.
“Usually when you start hearing about a cryptocurrency asset from friends, or online, it’s because it has already gained a significant amount, and you should be careful of jumping in before doing your research,” Kinstlinger forewarned.
“The biggest gains to be made are from ‘hidden gem’ cryptocurrency assets, which your research has shown is a good trade to take.
“Keep in mind, being new, this can also be riskier.
“It’s definitely more than just a fad.
“Cryptocurrency as a concept is like what the Internet was 25 years ago, and a lot of the work being put in will only be fully realised in the future.
We are still early in its development.”
Kinstlinger shared five tips for first-time traders and investors to be aware of, before taking the plunge with cryptocurrency:
Do your research
Cryptocurrencies are nuanced ecosystem and constantly evolving – hence, you need to have your eye on recent developments. A great start is to follow 20-30 active Twitter accounts that cover cryptocurrency, and check in on your feed daily. There are also active Discord communities which you can join for projects that you are interested in. Global Prime offers a Discord community chat which has a dedicated crypto channel.
Have a trading plan
When trading cryptocurrency, or any other asset, it is important to have a plan – which simply means, know how much you are potentially willing to lose on the trade. Automate a stop-loss, which will close the trading position if it drops to the level you have specified. You can use position sizing to determine what your risk levels should be.
Be prepared for a steep learning curve
It can almost become a full-time job keeping up with the developments in cryptocurrency – which in turn, leads you to a steep learning curve, but also a highly rewarding experience if you are willing to put in the work to understand how trading works and the risks involved.
Know the risks involved
If you have not learnt about the risks involved with trading, including risk management, position sizing and learning to control impulses, then you run the risk of losing money in the long run. Also, be on the lookout for scammers and hackers – there are many scammers operating and ways that hackers can steal your money if you are not vigilant.
Crypto-trade is still in the early days
Cryptocurrencies are still a relatively new asset, and you should expect volatility. In a lot of cases, the entire cryptocurrency market will move in tandem, and so, if the prices are going down, then collectively, all your cryptocurrency assets value can go down.
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