How to buy and sell crypto in Australia

Understanding cryptocurrency basics

What is cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that exists entirely online and uses cryptography for security. Unlike the dollars in your bank account or wallet, you can't hold cryptocurrency in your hand. Instead, it's stored digitally and can be sent directly from one person to another without going through a bank.

The key difference from traditional money is that cryptocurrencies aren't controlled by governments or banks. Instead, they operate on decentralised networks called blockchain technology - think of it as a digital ledger that records every transaction across a network of computers. This makes transactions transparent and extremely difficult to fake or reverse.

How did cryptocurrency start?

Bitcoin, launched in 2009 by an anonymous creator known as Satoshi Nakamoto, was the first cryptocurrency and remains the most well-known. Since then, thousands of alternative cryptocurrencies (often called "altcoins") have been created, each designed to solve different problems or serve specific purposes in the digital economy.

What types of cryptocurrency exist?

Cryptocurrencies serve different functions within the digital asset ecosystem. Bitcoin is often considered digital gold and primarily acts as a store of value. Ethereum goes beyond simple transactions, enabling smart contracts and decentralised applications that run without intermediaries. Other cryptocurrencies like Litecoin focus on faster transaction speeds, while stablecoins aim to maintain steady prices by being pegged to traditional currencies.

What moves cryptocurrency prices?

Cryptocurrency markets are known for significant price volatility. Prices can rise or fall dramatically within short periods, influenced by factors including regulatory news, technological developments, market sentiment and adoption rates. This volatility presents both opportunities and risks. While some investors have seen substantial gains, others have experienced significant losses. It's crucial to understand that cryptocurrency investments carry higher risk compared to traditional assets, and past performance doesn't guarantee future results.

What can you do with cryptocurrency?

There are several approaches to participating in the cryptocurrency market. You can buy and hold cryptocurrencies as a long-term investment, actively trade them to capitalise on price movements, or use crypto for transactions and payments. Some investors focus on building diversified portfolios across multiple digital assets, while others concentrate on one or two established cryptocurrencies. Your approach should align with your financial goals, risk tolerance and the time you can dedicate to monitoring the market.

Why are cryptocurrencies popular?

Cryptocurrencies have gained widespread attention for several reasons. The decentralised nature appeals to those seeking financial autonomy outside traditional banking systems, while the potential for significant returns has attracted investors during periods of price appreciation. The underlying blockchain technology represents innovation in secure, transparent transactions and digital assets offer an opportunity for portfolio diversification beyond conventional investments. However, popularity doesn't guarantee success or stability – the same factors that make cryptocurrencies attractive also contribute to their volatility and risk.

How to buy cryptocurrency in Australia

Buying cryptocurrency in Australia through the IG Markets app is straightforward. Follow these 4 steps to make your first purchase:

1. Open and fund your account
2. Choose your cryptocurrency
3. Open your position
4. Monitor your investment

1. Open and fund your account

Be the first to experience the IG Markets app by signing up to the waitlist. Once you've joined the waitlist, we'll notify you when the app goes live so you can complete your account setup.

To complete the registration process you'll need to provide identification documents and verify your identity to comply with Australian regulations. Once your account is set up you can fund your account via bank transfer, PayID or card.

2. Choose your cryptocurrency

Browse the available cryptocurrencies on the platform. Research each option to understand its market position, historical performance and potential use cases before making a decision. IG Markets offers 7 popular cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).

3. Open your position

Once you’ve chosen the crypto you want to buy, select it and enter the amount that you want to spend on the coin. Review the transaction details, including any fees, before confirming your order. The crypto will immediately reflect in your account.

4. Monitor your investment

Once your purchase is complete, you can track your cryptocurrency holdings through the app. Keep an eye on market trends and news that might affect your investment. 

How to sell cryptocurrency in Australia

You may want to close your position to realise a profit or avoid further losses. When you're ready to sell crypto, the IG Markets app makes the process just as simple:

1. Access your portfolio
2. Select the cryptocurrency to sell
3. Determine your sell amount
4. Place your sell order

1. Access your portfolio

Once the app launches, you’ll be able to log into your IG Markets app and navigate to your cryptocurrency  holdings. Then review your current position and its performance.

2. Select the cryptocurrency to sell

Choose which cryptocurrency you want to sell. Consider factors like current market conditions and your investment goals before proceeding.

3. Determine your sell amount

Decide whether you want to sell your entire holding or just a portion. You might choose to take profits on part of your investment while keeping the rest for potential future gains.

4. Place your sell order

Enter the amount you wish to sell and review the transaction details. Check the current market price and any applicable fees to ensure you understand the total proceeds you'll receive.

Please note: Cryptocurrency trading is highly speculative and volatile. The cryptocurrency market is unregulated and you do not benefit from Investor protections available for regulated financial products. IG offers crypto trading through IG Digital Assets Australia Pty Ltd, which is registered with AUSTRAC and is separate from other IG Group entities including IG Australia Pty Ltd.

Investment strategies for crypto investors in Australia

Successful cryptocurrency investing requires a strategic approach. Here are three popular strategies to consider:

Dollar cost averaging

This dollar-cost averaging strategy involves investing a fixed amount of money at regular intervals, regardless of the cryptocurrency's price. Instead of trying to time the market perfectly, you buy consistently -whether prices are high or low. This approach can reduce the impact of volatility and remove the emotional stress of deciding when to buy. For example, you might invest $100 in Bitcoin every fortnight, gradually building your position over time.

Portfolio diversification

Rather than putting all your funds into a single cryptocurrency, portfolio diversification spreads your investment across multiple digital assets. This might include a mix of established cryptocurrencies like Bitcoin and Ethereum alongside smaller altcoins with growth potential. Diversification can help manage risk, as different cryptocurrencies often respond differently to market conditions. However, ensure you research each asset thoroughly before adding it to your portfolio.

Long-term holding (HODLing)

This strategy involves buying cryptocurrency and holding it for an extended period, regardless of short-term price fluctuations. Long-term holders believe in the fundamental value and future potential of their chosen cryptocurrencies. This approach requires patience and conviction, as you'll need to withstand market volatility without panic selling during downturns. It's particularly popular among investors who view cryptocurrency as a multi-year investment rather than a short-term trade.

Common crypto trading mistakes to avoid

Understanding common mistakes could help you navigate the crypto market more effectively. Here are key mistakes to watch out for:

Investing more than you can afford to lose

Cryptocurrency markets are highly volatile, and prices can fluctuate dramatically. Only invest money you can afford to lose completely without impacting your financial stability. Avoid using borrowed money or funds needed for essential expenses.

Neglecting security practices

Failing to secure your account properly can expose you to fraud and theft. Use strong, unique passwords, enable two-factor authentication and be cautious of phishing attempts. Never share your login credentials or respond to unsolicited messages requesting your account information.

Making emotional decisions

Fear and greed often drive poor trading decisions. Panic selling during market dips or buying impulsively during rallies can lead to losses. Develop a clear trading plan with predetermined entry and exit points and stick to it regardless of market sentiment.

Ignoring fees and costs

Transaction fees, spreads and other costs can add up quickly, especially if you trade frequently. Understanding the fee structure helps you calculate your true returns and avoid unnecessary expenses that could erode your profits.

Failing to understand tax obligations

Many traders overlook their tax responsibilities when buying and selling cryptocurrency. This can lead to unexpected tax bills and potential penalties. Keep detailed records of all transactions for accurate reporting.

Resources and tools to support your crypto investing

Success in cryptocurrency trading requires access to quality information and reliable tools. The IG platform provides comprehensive resources designed to help you make informed decisions.

Educational materials

Educational materials cover everything from beginner concepts to advanced trading strategies. These resources include articles, videos and guides that explain market analysis, technical indicators and trading psychology. Whether you're just starting out or looking to refine your approach, ongoing education is essential in the rapidly evolving crypto market.

Market analysis tools

Market analysis tools help you track price movements, identify trends and spot potential opportunities. Real-time charts, price alerts and market news keep you informed about developments that might affect your investments. Many traders also benefit from economic calendars that highlight important events and announcements.

Risk management features

Risk management features allow you to set stop-losses and take-profit levels, helping you maintain discipline and protect your capital. These tools are particularly valuable during volatile market conditions when emotions can cloud judgment.

FAQs about buying and selling crypto

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Footnotes: 
¹ IG Digital Assets Australia Pty Ltd (ABN 686 210 462) is registered with AUSTRAC as a Digital Currency Exchange provider. Cryptocurrency trading is highly speculative and volatile. The cryptocurrency market is unregulated and you do not benefit from Investor protections available for regulated financial products. Cryptocurrencies are not covered by the Australian Financial Complaints Authority (AFCA) scheme. You may lose all of your investment. The purpose of this website is solely to display information regarding the products and services available on the IG Markets App. It is not intended to offer access to any of such products and services. You may obtain access to such products and services on the IG Markets App. The information on this website does not take into account your objectives, financial situation or needs. You should consider whether cryptocurrency trading is appropriate for you in light of your circumstances and seek independent financial advice before deciding to trade.