Australia is a wealthy country that has a market economy. It means that there are many opportunities to invest in the Australian market.
One of the things you may be considering investing in is a cryptocurrency, like Ethereum. However, you might not know much about buying and investing in it.
If you want to start buying Ethereum in Australia, scroll down to learn more.
What is Ethereum?
Ethereum is the second-largest cryptocurrency in the world. When you buy Ethereum, it involves converting Australian Dollars into “ether”, also known as ETH.
You can use Ethereum to pay for transactions that accept cryptocurrencies and cover art, finance, or computer science fees. However, most Ethereum owners also invest in Ethereum due to increased interest in cryptocurrency.
How You Can Buy Ethereum
There are only three steps to follow in buying Ethereum.
- Choose a Cryptocurrency Exchange. There are many platforms available where you can buy Ethereum. However, where you want to buy it will affect your payment and storage options.
It is essential to research the exchange you choose. There are several marketplaces and exchanges to consider, so make sure you select the most convenient one.
- Decide Your Payment Method. You can decide to pay with fiat currency, like Australian Dollars or with another kind of cryptocurrency.
- Store Your Ethereum. Although Ethereum is a digital good, you should have a way to keep it safe. You can do this through digital wallets that store private keys only you can access.
One of the considerations when choosing an exchange is the platform’s features regarding storage. For example, some exchanges let you use your wallet to move currency between platforms, while others are more limited in features.
Is it Worth it to Invest in Ethereum?
To use the Ethereum blockchain, you need ETH to cover a transaction fee. Using the ETH blockchain allows you to send ETH as payment or use an application that runs on Ethereum.
There are many things that you can do on the Ethereum blockchain. For example, even though the technology is still young, you can use Ethereum to run “dapps” or decentralized applications.
Some examples of apps are:
- Direct peer lending that is interest-earning
- Music streaming where the royalties go directly to the artist
- Marketplaces for non-fungible tokens
- Art auctions without auctioneers
- Online gaming
- Code collaboration with no central server
- Payments with no payment processing company
The various uses for Ethereum are still very complex. It’s normal to be confused at first. Remember that when you invest in Ethereum, you’re putting your money into believing that people will continue to adopt Ethereum-based technologies.
It will help if you keep yourself abreast with news about Ethereum. In addition, updating yourself will allow you to gauge whether investing in Ethereum is the right move for you financially.
Ethereum is Extremely Volatile
You should know what you’re going into when investing in Ethereum. Ethereum is highly volatile, and it is vital to keep this in mind.
Over the years, Ethereum has experienced enormous price swings from USD 5-to 15, going over USD 1,800 early on in 2018, yet dropping back to USD 100 by the end of December 2018.
Is There Anything to Be Concerned About Regarding Ethereum?
Like any investment, you should also do your research when buying Ethereum in Australia. Recently, reports say that Ethereum’s developers are making some updates to improve its performance.
The changes that will be introduced will veer away from resource-intensive work proof way of verification. The end goal for this change is for Ethereum to be faster and less expensive to use.
You might be thinking of investing in Ethereum, so make sure you do your research. Before you jump into any investments, ensure that you are aware of the risks to avoid being blindsided by various factors.