You Don't Need To Be Rich To Invest In Bitcoin

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In the next few weeks, the value of bitcoin is predicted to rocket past $US20,000 - an astronomical increase of 2500 percent this year alone.

For the uninitiated, that's $US20,000 per digital coin. Back in 2009, you could've bought a fistful of bitcoin for a single dollar. The good news is that it's not too late to jump on the blockchain gravy train - you just have to start much, much smaller.

Four Factors Driving The Price Of Bitcoin

Bitcoin just blew past the $17,000 mark. Last month, the price dropped to around A$8,000 shortly after almost hitting A$10,000, and rising over 1,850% since 2015. By the time you read this, the price is likely to have changed dramatically again.

All of this shows how volatile the currency is, which prompts the question - what's causing such huge movements? Here are four factors you need to know about.

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Many prospective bitcoin investors are scared away by the cryptocurrency's price and volatility. What you might not realise is that currently bitcoin are divisible to 8 decimal places, or 0.00000001 of a bitcoin. This means you can purchase a tiny fraction of a single bitcoin - $10, $100, $500, et cetera - for a low-cost investment.

The easiest way to obtain bitcoin is to buy them from an exchange. All you need to do is select a reputable exchange that operates in Australia and set up an account with them. You can then start buying and selling bitcoin with just a few clicks.

We've compiled a list of the best Australian exchanges here. Naturally, you're better off waiting for the next downswing before investing. If history is any indication, it will bounce back up in no time and you'll have made an instant profit.

Oh, and don't forget to store your bitcoin securely. Good luck!

Where To Buy Bitcoin And Other Cryptocurrency In Australia

In just the last month, it feels like Bitcoin has surged to mainstream prominence, popping up on social media, TV, radio and just about anywhere information is exchanged. However, though Bitcoin may be the most popular cryptocurrency, it’s not the only one – arguably, it’s not even the best one.

We’ve rounded up the ways you can buy Bitcoin, other cryptocurrency and altcoins in Australia.

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Comments

    No disclaimer about risk?
    Honestly the last thing bitcoin investors need is another round of the ‘value will always go up’ mantra.

    It’s incredibly risky, but can have huge reward. Remember that the value is secured by nothing but demand. Whilst that’s true nearly everything, a penny stock - which is what crypto investment is best compared to - has a real company you’re buying into; you can research its assets, debts, earnings and what its projections are, etc.

    With a crypto currency, you can research all you want, but the simple fact is it’s just worth whatever someone else is willing to pay, and they’re poorly stacked for crashes as the currency is very, very rarely used for actual payment transactions, but rather as an investment (like stocks), so if the bubble bursts, everyone will be jumping out at the same time. Unlike a conventional currency investment, no government is trying to shore up the value of their currency, and unlike stocks, no company to try and steer the ship through the storm.

    Invest no more than you can actually afford to set on fire, and you’ll be fine - might even make some good returns as well!

    Just remember that you can’t really trust the advice of anyone already invested in the crypto you’re looking into either, as they have a vested interest in ‘pumping the stock’ - meaning that even if they were worried, they have no reason to do anything but tell you it’s going up and the sky is the limit.

    I don’t think bitcoin will go anywhere, but I do think the bubble will burst at some point. Honestly when it does that will be the real time to invest. I think it’s here to stay like .com companies are, but investing at the moment is a bit like investing in a .com in the late 90’s, we just don’t know which year in the 90’s we’re in.

    That said, if you look at the price trend of crypto’s over the last year, and compare that trend to other types of investments over the last few deacades, it looks to have all the makings of a bubble building to burst to me. They are a new type of investment, but the kind of growth just isn’t sustainable.

    Last edited 18/12/17 11:51 am

    For me Bitcoin/crypto in general is probably closer to "don't buy" than "buy" simply because it's reached the point where parents and in-laws are talking about it and wanting to invest despite having absolutely no knowledge or understanding of what they're buying. That feels like a tipping point to me.

      It's definitely entered the stage where crypto currency is too hot to touch. It's had booms followed by drops followed by booms plenty of times but this time it feels like if it crashes again it'll scare everyone off for good.

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