3 steps to start investing in cryptocurrency

From Elon Musk to the ATO, everyone seems to be talking crypto at the moment – and with good reason. The big question is, how do you actually get started investing in cryptocurrency?

As the industry becomes better regulated and technology grows, the opportunity to become involved becomes more mainstream. Cryptocurrency is no longer the sole preserve of bearded techies or underground nerds. It’s another investment class that’s worth consideration.

“The biggest thing that’s on the side of crypto is with time it’s grown quite significantly,” says Ray Brown, manager of CoinSpot, the Australian cryptocurrency trading platform.

“Governments are more conscious that cryptocurrency is likely here to stay. So new regulations are being introduced to ensure people can invest safely and the technology grows in a way that improves our lives day to day.

“Investors in general also seem to be particularly optimistic as a whole when you see international exchanges like Coinbase, which recently went public and had a valuation of around US$100 billion.”

WATCH: Ray Brown outlines a cryptocurrency strategy on Your Money & Your Life:

Is crypto right for you?

Of course, as with any investment, you should think long and hard about whether it’s right for you. You can only do that with the same research and consideration you would apply to investing in property or the sharemarket, or any other asset.

“Do your homework, so you have a general understanding about what it is you’re investing in,” says Brown.

Once you’ve done your research and are ready to start investing in cryptocurrency, where do you begin?

3 steps to investing in cryptocurrency

1. Know the market

Firstly, it’s wise to look around at what’s available – as it’s an increasingly crowded market.

While Bitcoin and Ethereum are two of the best known at present, there are actually hundreds available to purchase, Brown says.

Do your research then talk to your financial adviser about the available options.

More on this: 5 common myths about cryptocurrencies busted

2. Know your investment personality

Once you’ve got a handle on the market and the currencies available, it’s wise to think about the strategy you’re going to employ with your cryptocurrency investments and how it complements your broader investment plans.

“Be sure to talk with your financial adviser or accountant to ensure it fits with your overall investment strategy and risk appetite,” advises Brown.

With CoinSpot you can buy cryptocurrency from as little as $1, so there’s a starting point for everyone. While there have been huge success stories from crypto investments, it’s worth noting that there is risk still involved, like with any investment.

Watch this too: Episode 3: Your investment personality

3. Make your move

So, you’ve decided crypto is for you, and you’re ready to invest in one of the many currencies available. The next step is getting into the market.

While there is more regulation and government scrutiny on cryptocurrencies today, it’s still a growing and evolving market, so it’s important to choose a regulated platform you can trust.

“At CoinSpot, we have to abide by the same rules and regulations that the banks do, such as anti-money laundering and ‘know your customer’ legislation,” says Brown. “These are all the things put in place to make sure that we’re making it a really safe place for Aussies to invest.”

CoinSpot, which was launched in 2013, is used by more than one million Australians – and getting started is simple.

Just upload your ID, deposit some Aussie dollars, and you can be buying whatever cryptocurrency you choose in a matter of minutes.

To learn more about cryptocurrency and the investment opportunities it enables, check out CoinSpot.com.au to get started.

This content is brought to you by Your Money and Your Life in partnership with CoinSpot.

The information above is intended to be general in nature and is not personal financial product advice. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. You should seek independent financial advice prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold). Pinstripe Media and CoinSpot are not liable for any loss incurred by use of or reliance on the information.