Australia is a significant trading region for cryptocurrencies, with over 21% of Australians already holding crypto. The trend began to quicken its pace after September 2017, when most exchanges actively began to offer their services within Australia or with Australian dollars.
But what led to this sudden surge in interest for crypto trading in platforms like the Swyftx Australian crypto exchange? Here are a few reasons:
The Australian Government Is Relatively Crypto-Friendly
Australia has always been a progressive country about technology and innovation. For example, Australia is one of the first countries to have a nationwide digital identity program. Australia is also one of the most active users of Apple Pay. It is no wonder that their stance on cryptocurrencies is relatively buoyant, with the government actively supporting the growth of blockchain technology and crypto trading.
The Australian Securities Exchange (ASX) Is Looking Into Blockchain Technology
In early 2018, ASX announced that it would be replacing its current clearing and settlement system with blockchain technology. This shift to the blockchain is a massive vote of confidence for the technology, and, likely, other countries will soon follow suit. As more and more institutions adopt blockchain technology, the popularity of cryptos will only continue to grow.
Cryptocurrencies Are Ideal for Trading
Cryptocurrencies are unique in that they are not tied to any specific country or economy. This makes them ideal for trading because they are not affected by the same factors as traditional currencies. For example, when the stock market crashes, cryptocurrencies are still likely to rise in value. This makes them a safe investment for traders who want to avoid volatility.
The Australian Dollar Is Relatively Strong
When comparing the strength of one fiat currency with another, it is common to use purchasing power parity (PPP) as a measure. As it turns out, the Australian dollar has been getting stronger over the past few years, which is another reason why trading with cryptocurrencies has become a more attractive option.
Australians Are Relatively Wealthy
Australia has some of the highest incomes globally. In other words, Australians can quite easily afford to invest in cryptos. For example, an entry-level crypto investor in Australia might be earning AUD 40,000 per year, while the same investor in India might only be making USD 2000.
Crypto Exchanges Are Making It Easy to Invest
Cryptocurrency exchanges are pretty easy to use, meaning that most Australians will have no trouble using them. Many of these exchanges are even mobile-friendly, with Australian customers trading cryptos on the go. Thus, regardless of whether you are a newbie or an experienced trader, there is a cryptocurrency exchange platform available for you in Australia.
Moreover, Australia does not have a centralized crypto trading hub. For many cryptocurrency traders, the biggest problem is finding a place to trade cryptos. This can be difficult in some countries due to legal concerns or other factors. However, Australia has no such issues, and there are numerous exchanges for Australian customers to use.
The Future of Cryptocurrencies in Australia
Although the Australian government has been relatively slow to adopt blockchain, they have also supported it. This means that investing in cryptos will likely become even more popular Down Under over the coming years. Just remember that you need to pay tax on your crypto investments, so be sure to keep track of your profits! These are just some reasons why Australia has become a hotspot for crypto trading. As blockchain technology and cryptocurrencies continue to evolve, likely, this trend will only continue to grow.
Precautions to Take When Trading Cryptocurrency on an Exchange
When you first start trading cryptocurrency, it is essential to protect yourself from fraud or theft. So, try to take the following precautions:
- Use a Reputable Exchange – Make sure that you only use exchanges that are known for being reliable and trustworthy, like the Swyftx Australian crypto exchange. A reputable exchange platform will help reduce the risk of your funds being stolen or lost.
- Use Two-Factor Authentication – Two-factor authentication in a crypto exchange is a security feature that requires you to input a second code (usually sent to your phone) to log in to your account. This helps protect your funds from unauthorized access.
- Keep Your Passwords and Login Information Safe – Make sure that you keep your passwords and login information safe and secure. If a crypto hacker were to gain access to your account, they could steal your funds.
- Backup Your Wallet – Make sure to backup your wallet regularly if your computer is damaged or lost. This will help ensure that you do not lose your funds if something happens to your device.
- Do Your Research – Before investing in Bitcoin or altcoins, make sure to do your research and understand the risks involved.