Dreaming of making it big by trading cryptocurrency, but aren’t sure where to start? There are many, MANY different cryptocurrency options available on the market, with more entering the market all the time. For example, at the time of writing, several digital currency exchanges have over 240 different cryptocurrencies available to buy, sell or trade in Australia.
According to the Australian Securities and Investment Commission (ASIC) crypto is a high-risk investment. This is in part due to its volatility, with values often fluctuating by huge amounts within short periods. And because ASIC does not regulate all platforms where you buy and sell crypto, there’s a risk that your investments may not be protected if a crypto asset fails.
Here’s RateCity’s summary of just a small sample of the major cryptocurrencies you can buy in Australia:
Bitcoin
This is the cryptocurrency you’ve most likely heard of already, setting the standard for others to follow.
Running on a decentralised Bitcoin network (also known as the blockchain), Bitcoin can be bought, sold and traded, as well as used for transactions like other currencies. Bitcoin can also be mined using your computer’s processing power, though the rise of Bitcoin miners using high-end rigs has made mining less practical for many everyday users.
Bitcoin’s supply is capped at 21 million, and this scarcity could affect its value.
Ether
Ether is the coin of the Ethereum network, which is not just a blockchain for cryptocurrency, but a decentralised open-source platform for contracts and other programs.
Much like Bitcoin, Ether can be bought, sold, traded and mined. Users can also pay processing fees (called “gas”) to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain.
Litecoin
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 the blockchain is involved.
Litecoin is intended to offer a solution, with faster peer-to-peer payment processing so you can actually use your cryptocoins, not just use them as an investing asset.
Similarly to Bitcoin, the number of Litecoins that can be mined is capped, in this case at 84 million.
Ripple
Technically, Ripple is the name of the network behind the cryptocurrency named XRP, though the two names are often used interchangeably.
Similar to Litecoin, Ripple aims to process cryptocurrency transactions faster and more cheaply than the likes of Bitcoin. XRP coins are also released into circulation regularly by a smart contract, rather than needing to be mined.
Ripple can also act as a payment protocol, making it easier to exchange one currency for another, such as when sending payments overseas.
Stablecoins
Rather than being one specific cryptocurrency, this refers to a type of crypto-coin with a less volatile value than many other examples. This may because the coins are backed by another asset (such as the dollar) or managed using algorithms.
Because Stablecoins tend to be less volatile than other cryptocurrencies, they may prove simpler to use for transactions, though they may not offer the same kind of investment opportunities as other cryptocurrencies.
Stablecoins may be more affordable for some investors, though they might not experience the same kind of sudden price spikes as some other crypto assets.
Of course this is just a small list of all the cryptocurrencies available to buy in Australia. For more information on cryptocurrency and how to get started in investing, head to our cryptocurrency hub.
