What is cryptocurrency investing?

So, what exactly is cryptocurrency investing? There are two key terms in this question: "cryptocurrency" and "investing."

Cryptocurrency refers to a digital or virtual currency that relies on Blockchain technology. This makes each cryptocurrency unique, secure and open than fiat currencies. One major feature of cryptocurrencies is that they are not controlled or regulated by a central authority, meaning they are decentralised. This means that many people are involved in the control and decision-making processes backing cryptocurrencies.

investing, as a concept, is quite straightforward. It is the process of using money to buy products (aka assets) with the expectation that you will get more money back than you put into it (aka returns).

Assets can include shares, gold, property, or in our current case, cryptocurrency.

So cryptocurrency investing is the process of using money to buy cryptocurrency with the expectation that you will get more money back than you put into it.

One major reason people invest is to build wealth over time (aka long term wealth). Cryptocurrencies are not a get-rich-quick scheme, and patience is something that can help you reap benefits from this young and emerging market.

Gold and the stock markets are excellent examples of how investing works, and observing that time and patience are essential factors in investing is also very important with cryptocurrency investing.

What are the benefits of cryptocurrency investing?

Cryptocurrency investing has some benefits that make it stand out from other investment types. Here are some of the benefits of cryptocurrency investing

Security of investment

With Blockchain technology, transactions are secure as each transaction is monitored from wallet to wallet via the blockchain. Each crypto wallet has a series of security measures such that if you forget your password or code, your account might be lost to you or anyone forever. That's just how secure your investments are in crypto.

Ease of international transactions

Cryptocurrency has proven it is an easy way to finance cross-border transactions. Cryptocurrencies are set up on the blockchain in a way where there is little need for financial institutions, which would slow down international transactions.

You can easily buy cryptocurrencies online, hold on to them for a while, and sell them off when you have made a profit without going to any bank or transaction house—too easy!

Chillur even makes this process easier for you in Australia.

Cryptocurrency investing is the process of using money to buy cryptocurrency with the expectation that you will get more money back than you put into it.

Market expansion potential

A major benefit of investing in cryptocurrency is the rate of growth over time and its potential for more growth. Over the span of 10 years, cryptocurrencies like bitcoin and other altcoins have experienced tremendous growth. This has made these coins more valuable in the eyes of major investors.

However, cryptocurrencies as a whole are still in their infancy in comparison to other major markets. With time, the crypto market will experience more growth.

24/7 shopping time

Unlike the stock market, cryptocurrency investing can be done at any time, any day of the week. What this means for you is that you can investing in cryptocurrency at any time without any inconvenience.

How has Bitcoin performed?

Bitcoin is one of the most popular cryptocurrencies, and for good reason: It was the world's first cryptocurrency, and it has lasted longer than most.

It has proven itself over the years and has become a good store of value for many investors. This value is further increased by its limited supply compared to fiat.

Although Bitcoin’s price over the years has been volatile, it is still the major cryptocurrency in the market. 2022 saw a steady price drop but investors are sure it will pick up again with time.

Bitcoin’s value is tied to the perceived value by investors and the market and the supply and demand factor in terms of generated returns and stored value as more institutions adopt it.

If you were to invest $100 around October 2010, your Bitcoin investment would be 1,000 Bitcoins (10 cents for a Bitcoin). By January 1st, 2022, your investment would be $47,743,000 even with its volatility throughout the years.

Currently, Bitcoin is at $31,451.50. The investment begins at $100.00 and ends at $30,714,355.47, a 30,714,255% return.

How to invest in cryptocurrency? Two strategies

There are two strategies you may follow with cryptocurrency investing. The common elements with the two strategies are patience and consistency.

As we mentioned earlier, cryptocurrency investing is not a get-rich-quick scheme. So make sure that you keep a long term outlook and are consistent with your investing habits.

When talking about how to invest in cryptocurrency, you have two strategies - One is the buy and hold strategy and the second is the earn interest strategy.

How to invest in cryptocurrency: Buy and hold

Buying and holding cryptocurrencies is an investing strategy to build long term wealth. In this strategy, you spend money to buy cryptocurrency and simply hold for long periods. While there is not consensus on what's meant by "long period," the general rule of thumb is a minimum of 3 years.

If you had bought $100 worth of bitcoin, which would have been 1,000 Bitcoin, you would now have about 30 million dollars.

How to invest in cryptocurrency: Earn interest with cryptocurrency

Unlike buying and holding cryptocurrency, earning interest with cryptocurrency allows you to see returns from the very next day.

Since the returns on investment occur within the 24 hours and because of the stability and consistency of these returns, the amount of money you earn is relatively lower when compared to the buy and hold strategy.

Which strategy you use depends on purely personal choice - There is no right or wrong option. And the best part is that you don't have to pick one, you can put some money on the buy and hold strategy and some money on the earn interest strategy.

What is dollar cost averaging with cryptocurrency?

Simply put, dollar cost averaging with cryptocurrency is the simplest and easiest way for anyone to start investing in cryptocurrency.

If buying and holding is a strategy for cryptocurrency investing, dollar cost averaging with cryptocurrency is how you put that strategy into action.

Dollar cost averaging with cryptocurrency involves spending small amounts of money to buy cryptocurrency consistently on a recurring schedule. For example, spend $5 every week to buy cryptocurrency. Yep, that's it.

Over time, spending just $5 every week can help your investment grow by over 200%. Dollar cost averaging with cryptocurrensy is the easiest way for a beginner to create an investment habit. With the right platform, dollar cost averaging can also be automated, helping you build wealth without constantly stressing your attention.

How to invest in cryptocurrency in Australia - Buy & hold

You can buy cryptocurrency through any digital currency exchange. All digital currency exchanges in Australia are regulated by AUSTRAC.

Chillur is an Australian digital currency exchange, registered and regulated by AUSTRAC, that specialises in cryptocurrency investing.

We simplify the process of cryptocurrency investing through Bundles.

You can invest in cryptocurrency in Australia using the buy and hold strategy using Chillur in three easy steps.

Step 1: Create an account

Create your Chillur account using an email address and password. You will then need to verify your identity using either your passport or drivers licence.

Step 2: Buy a cryptocurrency bundle

Buy a bundle of cryptocurrencies - either Chillur 10 or NFT 15.

Just use your banking app or web banking to transfer funds to your Chillur account.

Once the funds settle (1-2 business days), the system will automatically buy the bundles you picked.

Congratulations - You are now investing in cryptocurrency!

Step 3: Track your investment performance

Simply login into your Chillur account and track the performance of your portfolio either through a laptop or your mobile phone.

Remember, investing is a journey to build long term wealth. Aim to make investing a habit by putting in small amounts of money consistently every week.

How to invest in cryptocurrency in Australia - Earn interest

Chillur offers a product called Chillur Earn where you can start seeing the benefits from your investment the very next day.

With Chillur Earn, you use your money to buy a cryptocurrency called USD Coin (aka USDC). Once you buy USDC, you can earn interest in your holdings every day with the interest compounding daily.

You can invest in cryptocurrency in Australia using the buy and hold strategy using Chillur in three easy steps.

Step 1: Create an account

Create your Chillur account using an email address and password. You will then need to verify your identity using either your passport or drivers licence.

Step 2: Buy USDC as part of Chillur Earn

Chillur Earn enables you to earn daily interest on your USDC holdings.

The bigger your USDC balance, the more you earn every day in compound interest.

Step 3: Track your investment performance

Simply login into your Chillur account and track the performance of your portfolio either through a laptop or your mobile phone.

One thing you would have realised is that cryptocurrency investing is super easy. And that is the truth. Most people get tripped up because they just don’t start, not because it’s difficult.

In fact, the most common reason that most people give for not investing is that they don't know where to start. The second most common reason is that they just haven't gotten around to doing it.

Hopefully, this article has helped you overcome the first question. And now that you know the answer to how to invest in cryptocurrency in Australia, you are ready to take the first step.

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