Do you dream of making it big in cryptocurrency trading, but not sure where to start? There are many, MANY different cryptocurrency options available on the market, and more and more are entering the market. For example, at the time of writing, various digital currency exchanges have over 240 different cryptocurrencies available to buy, sell, or trade in Australia.
According to the Australian Securities and Investments Commission (ASIC), cryptocurrencies are a high-risk investment. This is partly due to their volatility, with values often fluctuating by large amounts over short periods. And because ASIC does not regulate every platform you buy and sell crypto on, there is a risk that your investments may not be protected if a crypto asset fails.
Here is RateCity’s roundup of just a small sample of the top cryptocurrencies you can buy in Australia:
This is the cryptocurrency you have probably already heard of, setting the standard for others to follow.
Running on a decentralized Bitcoin network (also known as a blockchain), Bitcoin can be bought, sold, and traded, as well as used for transactions like other currencies. Bitcoin can also be mined using the processing power of your computer, although the rise of Bitcoin miners using high-end rigs has made mining less practical for many everyday users.
The supply of Bitcoin is capped at 21 million, and this shortage could affect its value.
Ether is the currency of the Ethereum network, which is not just a blockchain for cryptocurrencies, but an open source decentralized platform for contracts and other programs.
Like Bitcoin, Ether can be bought, sold, traded, and mined. Users can also pay processing fees (called “gas”) to offset the computing power required to process and validate transactions on the Ethereum blockchain.
All cryptocurrencies can be used to pay for transactions like other forms of money, but these transactions can take a long time to process when it comes to the blockchain.
Litecoin is meant to offer a solution, with faster peer-to-peer payment processing so you can use your cryptocurrencies, not just as an investment asset.
Similar to Bitcoin, the number of Litecoins that can be mined is limited, in this case to 84 million.
Technically, Ripple is the name of the network behind the cryptocurrency called XRP, although the two names are often used interchangeably.
Like Litecoin, Ripple aims to process cryptocurrency transactions faster and cheaper than Bitcoin. XRP coins are also regularly put into circulation using a smart contract, rather than having to be mined.
Ripple can also act as a payment protocol, making it easy to exchange one currency for another, such as when sending payments abroad.
Rather than being a specific cryptocurrency, it refers to a type of cryptocurrency with a less volatile value than many other examples. This may be because the coins are backed by another asset (such as the dollar) or managed by algorithms.
Because stablecoins tend to be less volatile than other cryptocurrencies, they can be easier to use for transactions, although they may not offer the same type of investment opportunities as other cryptocurrencies.
Stablecoins may be more affordable for some investors, although they may not experience the same type of price spikes as other crypto assets.
Of course, this is just a small list of all the cryptocurrencies available to buy in Australia. To learn more about cryptocurrencies and how to start investing, go to our crypto center.