How To Buy Bitcoin Australia – Buy Bitcoin In Under 5 Minutes

Fact Checked by Gary McFarlane

If you want to buy Bitcoin (BTC) but don’t know how and where; this article will provide you with step-by-step instructions. You will discover where and how to get Bitcoin, as well as a detailed analysis of this crypto asset.

Buy Bitcoin at eToro – #1 Broker

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How to Buy Bitcoin Australia – Quick 4-step Guide

Follow these steps to purchase your first Bitcoin on the eToro trading platform:

  • Step 1. Open an account with eToro: Visit the eToro website and click ‘Join Now’ to get started.
  • Step 2. Upload ID: Upload and verify your identity. You can use a copy of your passport or any other proof of identity document such as billing, driver’s license, etc.
  • Step 3. Fund Your Account: Fund your trading account by making a deposit using a credit or debit card, bank transfer, or e-wallet.
  • Step 4. Buy Bitcoin: Search for BTC and click ‘Trade’ to place your order.
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CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 75% of retail investor accounts lose money when trading CFDs from this provider.

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CFDs are complex instruments that have a high risk of losing money quickly due to leverage. 72.6% of retail investor accounts lose money trading CFDs with this provider.

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for $100 you get
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CFDs are complex instruments and carry a high risk of possible rapid loss of capital due to their leverage. 71% of retail investor accounts lose capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take high risk in losing your capital.

Where to Buy Bitcoin in Australia

Let’s talk about where to buy Bitcoin. We have cut down our selection of sites to just TOP3 cryptocurrency exchanges, which you can see placed below.

1. eToro – Overall Best Way to Buy Bitcoin Australia

eToro is the best trading platform for beginners. The main feature of the broker is the CopyTrader copying system, and in this regard, the platform has extensive opportunities. You can invest in Bitcoin without any knowledge of the crypto market. 

eToro is primarily interesting for investors focused on passive profits by copying trades of successful managers and profitable mid-term traders who get the opportunity to increase their income for copy traders. You can copy trades and make stable profits even on such a volatile asset as cryptocurrency.

If you want to invest in Bitcoin or other crypto assets with no worries, eToro is your choice:

  • You pay a 0,75 % fee to invest in Bitcoin
  • eToro protects your assets and funds safely
  • You only need $25 to get started with investing in Bitcoin.

eToro — Bitcoin Fees

eToro only charges fees in the form of spreads, as detailed in the table under the eToro Fees section in Crypto spreads. For instance, Open BUY (Long) position on BTC:

  1. Ask rate 40,000 USD, Initial investment 2,000 USD.
  2. Position Open 2,000 USD / BTC; Ask Rate 40,000 USD = 0.05 units; 
  3. Overnight fees: No 
  4. Total Cost = BTC spread fees (0.75%) 0.0075 * 40,000 USD * 0.05 units = 15 USD

Pros

  • Buying and selling crypto within seconds.
  • Unrecoverable security key and private wallet to store your funds safely.
  • Transfer your cryptocurrency to any location on the blockchain.
  • Supports more than 120 altcoins, stablecoins, tokens, etc.
  • Crystal clear deposit and withdrawal policy.

Cons

  • Support response time could be better.

 

67% of all retail investor accounts lose money when trading CFDs with this provider.

2. Coinbase — Largest AU Broker to Buy Bitcoin

Buy MANA at Coinbase

Coinbase is a large international marketplace, and it’s one of the few marketplaces available to traders from the U.S. It has great liquidity, but it also has its limitations, such as mandatory identity verification.

The platform has large trading volumes and a simple website interface that is easy to understand, thanks to the precise arrangement of symbols and pointers. The high protection of client funds is another feature that helps Coinbase hold its place at the top of the Coinmarketcap rankings. However, despite all its advantages, the broker has its peculiarities. For example, Coinbase offers a huge number of instruments, making the exchange less suitable for newbies.

Coinbase — Buy Bitcoin Australia Flat Fees

Overall Transaction Amount Transaction Fee
$10 or less $0.99
More than $10, less than or equal to $25 $1.49
More than $25, less than or equal to $50 $1.99
More than $50, less than or equal to $200 $2.99

Coinbase Pro Fees 

Coinbase Pro fees depend on the trading volume: the more you trade, the less your fees will be.

Pricing Tier Taker Fee Maker Fee
Less than $10K 0.50% 0.50%
$10K to $50K 0.35% 0.35%
$50K to $100K 0.25% 0.15%
$100K to $1M 0.20% 0.10%
$1M to $10M 0.18% 0.08%
$10M to $50M 0.15% 0.05%
$50M to $100M 0.10% 0.00%

 

Pros

  • Great market research & analysis tools to grow your capital.
  • Top tier money & privacy protection
  • Tons of positive feedback
  • Large daily trading volume
  • Established and reliable broker
  • Reasonable fees

Cons

  • Complicated verification process
  • Not suitable for complete beginners

67% of all retail investor accounts lose money when trading CFDs with this provider.

3. Capital.com — Best Broker for CFD Bitcoin Traders

Capital.com review

Capital.com is the best broker for CFD trading, which is suitable for more experienced traders and investors. Although the emphasis here is on stocks, 30 popular cryptocurrencies are available for trading, including Bitcoin and Ethereum. You can trade assets using leverage from 1 to 20. In addition to cryptocurrencies, Capital.com offers about 20 different indices, including the FTSE 100, EuroStoxx, DAX, NASDAQ, and S&P 500. 

Capital.com Fees — Reliable Bitcoin Broker in Australia

Capital.com gains through spreads. Once you open a new position, you ‘pay’ the spread. It’s the difference between the Buy and Sell prices.

The price of the spread varies across instruments. If you want to check the spread for your chosen instrument, the live spread information is available for each financial instrument on the mobile and web platforms. For example, the BTC to USD spread is 100 on August 1st, 2021.

Type of activity Fee
Deposit

Withdrawal

Real-time Quotes

Opening/Closing trades

Educational material

Dynamic charts and indicators

0% Fee
Crypto trading The spread varies for each trading pair and instrument.
Overnight charge The overnight fee is based on the leverage provided, not on the entire value of the BTC you buy.

 

Pros

  • Convenient and functional application
  • Lots of positive reviews on Trustpilot
  • Top-notch customer service
  • Real-time data on cryptocurrencies, indices, stocks, futures, etc.
  • High-class educational resources

Cons

  • Only CFD trading is available for trading Bitcoin
  • Suitable only for experienced traders and investors

67% of all retail investor accounts lose money when trading CFDs with this provider.

4. AvaTrade – Best MT4 & MT5 Broker to Buy Bitcoin Australia 

AvaTrade website June 22

AvaTrade is a major international broker that offers its clients trading using Metatrader4 and Metatrader5 terminals, AvaTradeGO application, and AvaOptions platform. Installation of MT4 terminal for different operating systems as well as web-version of Metatrader is available. Social trading lovers can copy the trades of experienced traders through the services of ZuluTrade and DupliTrade (MT4 compatible platform). Thus, you don’t need any financial experience to trade Bitcoin on AvaTrade.

You can also trade commodities, stocks, bonds, ETFs, and more. AvaTrade is a great platform for beginners and medium-experienced traders. 

AvaTrade Fees — Reliable Bitcoin Broker in Australia

AvaTrade does not impose account fees, and deposits and withdrawals are likewise free. AvaTrade charges a $50 per quarter inactivity fee on the flip side after three consecutive months of inactivity. In addition, after 12 months of non-use, an annual administrative penalty of $100 will be charged. AvaTrade charges trading fees in the form of spreads. For example, Bitcoin spread is 0.25% Over-market.

Pros

  • MT4 and MT5 trading terminals are available.
  • Reasonable spreads to trade crypto & stocks.
  • An abundance of educational materials.
  • A global trader with six accreditations.
  • Wide range of trading instruments.

Cons

  • Long funds withdrawal on weekends.
  • Pushy customer support.

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. Binance – Top-rated Exchange To Buy Bitcoin Australia

Binance Homepage

Binance is the top exchange on the crypto market, according to Coinmarketcup.com.Millions of traders trust this exchange due to its low commissions: only 0.1% for new users. This is the maximum possible commission. If you invest in Binance token, commissions go even lower.

The site is informative and intuitive; It’s translated into 14 languages. The exchange does not focus only on a particular region but develops and operates around the world. You can invest in crypto, fiat money, and more. The exchanger is adapted to convenient work with different devices (Web, Android, iOS, Mobile Web, Windows, macOS). 

Binance Fees – Largest Bitcoin Broker 

The general Binance spot trading fee is 0.1%, while Instant Buy/Sell fee is 0.5%. However, you can reduce fees if you hold BNB in your account. 

30d Trade Volume (USD) Maker  /  Taker Fees Maker / Taker Fees

if you hold BNB

< 50,000 USD 0.1000% / 0.1000% 0.0750% / 0.0750%
≥ 50,000 USD 0.0900% / 0.0900% 0.0675% / 0.0675%
≥ 100,000 USD 0.0800% / 0.0900% 0.0600% / 0.0675%
≥ 500,000 USD 0.0700% / 0.0800% 0.0525% / 0.0600%
≥ 1,000,000 USD 0.0500% / 0.0700% 0.0375% / 0.0525%
≥ 5,000,000 USD 0.0400% / 0.0600% 0.0300% / 0.0450%

Pros

  • Top 1 trading volume exchange on Coinmarketcap.com.
  • 9.9 out of 10 exchange score.
  • You have access to advanced instruments such as futures and options.
  • Boosted leverage for margin trading.
  • Good technical support to help with any problem you may have.
  • Low fees.

Cons

  • The platform has legal problems with some regulators.
  • Managers motivate you to buy BNB (coin which belongs to Binance).

67% of all retail investor accounts lose money when trading CFDs with this provider.

Why Buy Bitcoin in Australia?

If you want to diversify your overall portfolio or create a separate portfolio with increased annual returns, Bitcoin can help you. Here are five main reasons why Bitcoin might be an excellent asset to grow your capital.

Influential Investors To Join Bitcoin

A significant U.S. futures exchange ICE launches Bakkt, a global cryptocurrency platform for large investors. Bitcoin, backed by Bakkt and other platforms, could become the channel for international payments. Borse Stuttgart has also announced plans to launch a cryptocurrency trading platform for Germany’s second-largest securities exchange. It will specialize in ICOs, trading, and secure storage of digital currencies. Such major players can cause a ‘bump’ within the market.

Official Regulators Treat Bitcoin Seriously

One of the biggest risks to Bitcoin for years has come from regulators. In March, the G20 discussed global rules for digital currencies. It concluded that cryptocurrencies do not threaten the financial system but can help the overheated stock and treasury bond markets.

Several countries have shown positive attitudes toward cryptocurrencies. Belarus, Bermuda, Gibraltar, Malta, and Switzerland aspire to become leading blockchain hubs, while Germany and the EU, in general, are about to legalize Bitcoin as a means of payment officially.

Bitcoin & ETF 

A solid number of applications for new Bitcoin-ETFs are waiting to be approved by the Securities and Exchange Commission (SEC). Many believe it’s only a matter of time. There are already regulated Bitcoin futures on the CBOE and CME approved by the CFTC, so it’s hard to imagine that the SEC would never approve a Bitcoin-ETF.

Exchange-traded funds (ETFs) could serve as a starting point for a new phase of the bitcoin price surge. This could start a new rally not only for Bitcoin but also for other cryptocurrencies. For example, you can secure your investment portfolio by buying Bitcoin, Ethereum or DOGE. 

Bitcoin For Portfolio Diversification

According to a Yale University study, every diversified investment portfolio should have between 1% to 6% Bitcoin, depending on an investor’s beliefs. According to the study’s authors, Bitcoin and cryptocurrencies are unaffected by the stock market and macroeconomic factors and do not correlate with fiat currencies or commodity assets. Cryptocurrency rates depend only on factors in the crypto market itself. You can combine different crypto assets with bonds, stocks, ETFs, etc., for better results.

Rising Demand In Emerging Markets

According to LocalBitcoins, Bitcoin trading volume in emerging markets has already begun to move toward 2017 highs despite the current bear market. Over the past few months, trading volume in Kenya, Mexico, Nigeria, and the Philippines has increased significantly. In Argentina, Venezuela, and Zimbabwe, where national currencies depreciate rapidly, trading volume peaked once again. Although most emerging market buyers are small retail investors, their activity perfectly illustrates the trend toward global acceptance of Bitcoin.

Buy Bitcoin in Australia – eToro Guide

Buying Bitcoin in 2021 is easy and only takes four basic steps. If you want to invest in Bitcoin, follow our four-step instructions.

Recommended Broker
eToro
Buy now

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 75% of retail investor accounts lose money when trading CFDs from this provider.

Recommended Broker
Capital.com
Buy now

CFDs are complex instruments that have a high risk of losing money quickly due to leverage. 72.6% of retail investor accounts lose money trading CFDs with this provider.

Recommended Broker
AvaTrade
Buy now

CFDs are complex instruments and carry a high risk of possible rapid loss of capital due to their leverage. 71% of retail investor accounts lose capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take high risk in losing your capital.

Rating
5.0
4.5
4.3
Mobile App Rating
1/10
10/10
9/10
Mobile App
Wallet
Number of Coins
1271115
Trading Fees
SpreadsCommissionN/A
Deposit Fees
N/A$0N/A
Withdrawal Fees
5 USD$0N/A
Regulated
N/AYesCBI and MiFID in Europe
Min. Deposit
50$$20$100
Leveraged Trading
N/AYes1:2 for cryptocurrencies
Bitcoin
$56955.01$57006.27$57148.64
Ethereum
$4383.53$4306.10$4316.86
XRP
$0.99$0.97$0.99
Tether
$1.00N/AN/A
Litecoin
$200.45N/A$197.89
Bitcoin Cash
$579.81N/A$576.11
Chainlink
$24.73N/A$25.10
Cardano
$1.61$1.57N/A
IOTA
$1.44N/A$1.41
Binance Coin
$626.85$721.08N/A
Stellar
$0.33$0.32$0.33
Bitcoin SV
$148.55N/AN/A
USD Coin
$1.01N/AN/A
EOS
$4.04N/A$3.98
Monero
$239.06N/AN/A
Credit Card
Paypal
Sepa Transfer
Skrill
Sofort
Giropay
Neteller

Step 1: Sign Up

To get started with investing in Bitcoin, you need a minimum deposit of just $25. But, first, let’s take a look at the account opening process.

Open an Online Trading Account

Fill the form to continue. You have to verify your identity if you want to invest big. However, you can skip this step and verify your account later.

Buy Ethereum with 0% Commission Now >

Step 2: Verify Your Account & Upload Your ID

eToro verify
You need your I.D. and proof of address to verify your account: any official document works as proof: recent utility bill, bank statement, driving license, receipt, etc. You can skip uploading and scan documents later.

Step 3: Deposit Funds

Deposit Funds

Funding a trading account is an effortless process. You may deposit dollars into your account using a variety of methods. Select the form of payment that is most convenient for you and complete the steps outlined below:

  1. Enter your eToro account.
  2. Click on the ‘Deposit to account.’ button.
  3. Enter the amount and currency. (min $25)
  4. Select your preferred method of deposit.

Step 4: Search for Bitcoin & Buy 

eToro buy Bitcoin

Now you can use the search box to buy Bitcoin. Type Bitcoin or BTC into the search box and click on the ‘TRADE’ button.

Once the order form opens, it’s high time to enter your stake. Make sure it’s higher than $25 U.S. dollars, as the minimum amount to invest in BTC is $25.

You can see both the ‘Set Order’ or ‘Open trade’ buttons, depending on the market’s condition. If you enter the market during standard market hours, you’ll see the ‘Open Trade’ button. If the market is closed, you’ll see the ‘Set Order’ button. 

Bitcoin Price Analysis: Should I Buy Bitcoin?

2021 has been a very stressful year for investors, seeing the benchmark cryptocurrency drop more than 50% since the beginning of the year. That’s why it’s crucial to consider risks related to Bitcoin.

Risks of Buying Bitcoin in Australia

Early May was characterized by Bitcoin values of $40,000 or more, but there was a downward trend. A drop marked the end of May, and today the price is only around $38,000. From May 1 to May 27, the fall was 34% in percentage terms.

Bitcoin fall

Most likely, played several factors, including the refusal of the famous brand Tesla to sell its products for this currency, which happened against a background of quite harsh criticism from Musk. The changing policy of the Chinese authorities, which, it’s believed, to clear the field of competitors in anticipation of the creation of their cryptocurrency, have tightened the requirements for mining. Though the sentiment is still strong, Bloomberg spearheads the financial opinion, saying the value will rise as high as $100,000. But what should investors who entered the market before the quotations’ collapse do? 

To minimize the risk of Bitcoin falling, you should plan your investment strategy several years in advance. Investors who plan several years use three standard tools:

  1. Conducting an asset price history analysis.
  2. Logarithmic price scale.
  3. Charting monthly price fluctuations.

This information will give an objective picture and allow you to assess the trend on a global scale. There were times when Bitcoin was worth even less than a dollar, and there were times when the price jumped to hundreds of dollars, then to thousands and tens of thousands of dollars. Using a logarithmic scale, we can equalize these periods and see that the historical trend does not change. The price maximums following the corrective cycle will undoubtedly be updated. In the positive and negative scenarios, it’s necessary to work out the exit targets because the trend will end one day, no matter what it’s.

Changing Market

The scenario may change from positive to negative and vice versa. This is the reality of the modern market. On the positive side, it’s worth noting the active entry of corporations and numerous funds into the cryptocurrency market. Their investment opportunities are much more impressive than those of the average investor. Other features:

If an investor initially came with a long-term investment plan, he already knows how to react to such ups and downs  —  calmly and even somewhat philosophically. At times of significant market declines, investors usually have funds available to buy and to average.

With a one to three years investing horizon, getting rid of cryptocurrencies and falling to the overall trend is inexpedient. Otherwise, the long-term investor becomes an ordinary stock speculator. First of all, a long-term plan is to avoid panic and desire to run and take significant actions immediately after quotations change.

Take Losses, Freeze Positions

There is an opinion that investors who make long-term plans should provide for freezing deposits for 3-4 years. This becomes logical because of the possibility of ending the global ‘bull cycle’ ahead of time, that is, ahead of schedule. Such a chance does seem realistic. There is a high probability that the savings cycle associated with halving will make itself known again.

Bitcoin can lift from $35,000 to $60,000, which can happen over the next 2-3 years. In 6 months before the next halving, which will be in the middle of 2024, the trend will very likely change to a ‘bullish scenario.’ Sometimes freezing your money for a few years is better than locking in even a 20% loss. The scenario is also possible, especially if there are margin positions that are opened with credit or if other investment instruments are comparable in terms of returns.  

An investor engaged in long-term investing has minimal risks of losses. Experts often express this opinion: if you purchase crypto when the market passed a spot point, and you don’t fix or sell, you just have to wait for the next growth impulse.

You can detect this impulse in different ways. For example, some statements or actions of influential people, as we have seen in the example of Tesla’s CEO. The impulse can also be a halving, the launch of ETFs, regulatory policy changes in some countries, and other circumstances.

Interest in cryptocurrencies grows despite possible freezes and collapses caused, for example, by someone’s careless statement or stricter legislation in some countries. Both institutional and retail investors show interest—even their services, such as those offered by Cowen, an investment boutique in the United States. The company now provides hedge funds and asset management firms digital asset storage services.

Various surveys confirm the interest of people and companies in cryptocurrency. For example, almost 15% of Americans said they had invested money in this area. Experts believe that the number of investors will only grow and can double by the mid of 2022  — quite an optimistic prediction, even if taking potential freezes and losses into account.

Improper Storage Of Digital Assets

Storing crypto on unreliable exchanges is dangerous  —  so say, experts. If the currency is on an online platform that does not belong to the investor, it’s already risky in itself. The best way to store crypto is either a  hardware wallet or a reliable broker such as eToro. Sometimes investors also choose another way  —  storing cryptocurrency on a third-party computer at home. On a P.C. that is not used for day-to-day needs. It’s not a good long-term choice to store your Bitcoin or other cryptos.

High Volatility

Volatility is an unavoidable feature of the bitcoin market. There is no need to panic following a fall because a fall will almost always result in a rise. To be certain of this, just analyze the process over time, i.e., evaluate the historical behaviour of cryptocurrencies. To measure volatility and identify the risks objectively, it’s important to examine the fluctuations over a week, a day, or a month.

If you are concerned about volatility, perhaps, you should avoid working with the cryptocurrency market. Volatility is a natural element of the crypto market. However, you may look at it from a different perspective because volatility is what allows someone to generate money. The spot market is ideal for first-time investors because margin trading will result in losses if you do not have the necessary expertise. Losses on the spot market, for example, will be in the form of a standard unit, but losses on the margin kind of trading would be much larger  —  the precise amounts will depend on the leverage selected.

Sending Funds 

If you send crypto to the wrong address, it’s no longer possible to win it all back. You should take this risk as a given. Financial analysts say that when they start investing, many people are sure that various errors in addresses are not about them. But in fact, things turn out to be much sadder. Blockchain has no controlling links or persons controlling the transaction process, as banks do. The investor has to deal with a decentralized network without any technical support, control, or management. To avoid this risk, don’t believe those who promise the mountain of gold: check every transaction you make. 

Bitcoin Price Prediction & Analysis

At the moment, there are about 18,847,881.25 Bitcoins. The number changes every ten minutes as new blocks are mined. The block just generated adds 6.25 Bitcoins to the total circulation. It’s the limited number of Bitcoins that makes this cryptocurrency so attractive to investors. Experts at Buy Bitcoin Worldwide compare Bitcoin to gold:

‘Imagine we’re mining gold. With each new find, there is less gold. And that means gold becomes harder and more expensive to find and mine.

It’s the same with Bitcoin: when someone mines the coin, it becomes harder and harder to do the same thing. This levels out the risk of depreciation.’

As of October 19th 2021, the first Bitcoin Futures ETF was launched – setting a new milestone for the cryptocurrency industry. This catalyst towards mainstream acceptance now gathers global attention as Bitcoin Price begins to fight back towards $70,000 and is currently priced at $66,788.

Why Bitcoin is so popular?

Bitcoin is the most ‘transparent’ currency. Bitcoin’s monetary policy allows you to see when new units are created, how transactions are made, and how many items are circulating at any given moment. Then, sending money to anyone anywhere in the world is quite easy. 

Bitcoin is unaffected by inflation or government attempts to control conversion. Bank limitations have no effect on Bitcoin. Unlike banks, which maintain complete records of all transactions, participants in electronic payments merely reveal their email addresses. Furthermore, the coin is decentralized. It does not need the involvement of any financial institutions in order to be managed.

In addition, Bitcoin is considered an uncorrelated asset. This means that there is no correlation between Bitcoin and activity in the traditional stock and bond markets. Traders especially appreciate this property  —  supporters of risk diversification  — distributing funds when investing between financial instruments such as stocks, bonds, and so on. By adding Bitcoin to the portfolio, traders reduce the risk of a sharp drop in the value of stocks.

ExpressVPN Vice President Harold Lee believes that user anonymity and confidentiality of transactions is Bitcoin’s strength, which significantly affects its current and future side:

Bitcoin largely ensures the privacy of the market player. 

This is a big advantage of Bitcoin over-centralized, easily managed payment providers that rely on a credit system that collects personal data. When you pay via Bitcoin, you only have to provide your email, which allows you to maintain your privacy.

At the same time, a billionaire investor in Bitcoin, Mark Cuban, warns: 

‘Investing money in the cryptocurrency, users should be prepared for the fact that one day the value of Bitcoin can reach $100 thousand, and the next day tends to zero.’ 

The expert also questions the possibility of the total independence of cryptocurrency from economic processes. States will take measures to protect the national currency and the taxation system. Alas, the more people believe that Bitcoin is more than a means of savings, the higher the risk of government intervention awaits us.

Bitcoin: Historical Prices

Year Price Per BTC
2014 953 USD
2015 465 USD
2016 975 USD
2017 19,497 USD
2018 17,527 USD
2019 13,016 USD
2020 29,001 USD
2021 64,662 USD

 

Is It Always Safe To Invest In Cryptocurrency?

But opponents of cryptocurrency tend to demonize Bitcoin, believing that it’s the most attractive property  —  mystique  —  that makes cryptocurrency an effective tool in the hands of fraudsters. Various ciphers can serve not only to keep income information private but also to extort money from the victim through blackmail and not be held accountable for it.

For example, in July 2020, cybercriminals hacked Twitter and gained access to the accounts of famous personalities, including Barack Obama, Joe Biden, and Elon Musk. On behalf of politicians and artists, the scammers sent emails to subscribers asking them to send money in cryptocurrency. As a result of such false emails, the criminals collected about $120 thousand. The amount is relatively small, relative to the damage companies suffer when they fall victim to other cybercrimes. However, it did make us think about the issue of Bitcoin security.

However, to keep your money safe and sound, you need to follow several recommendations:

  1. Invest in more than one cryptocurrency wallet. For example, one can serve for daily transactions. The others are worth storing money in.
  2. Either use cold wallets or a reliable broker as eToro for storing cryptocurrency. Such a wallet has a built-in security system and encryption, it’s not connected to the network, so the private key remains private. eToro also provides you with a private key.
  3. Write down the private code on paper rather than storing it on any device. On the other hand, you can use virtual space to store passwords.

In addition, it’s crucial to understand that scammers often use the word ‘Bitcoin’ in an email or address bar, claiming it as if it’s a new payment system. Monitor such emails carefully and do not click on the links.

Bitcoin Price Analysis

In December 2020, the value of a single Bitcoin reached $20,000, according to Statista. This record figure made many people think about investing in cryptocurrency. At the same time, in January 2021, this figure increased to $34,000. A few days later, the amount dropped slightly to $31,500. Then, by the mid of January, the value of Bitcoin had almost reached $40 thousand.

The Times analysts say:

‘The recent jump in the value of Bitcoin is due to the infusion of money into the sector by institutional and private investors during the pandemic.’

The sharp rise in the value of Bitcoin can be attributed to factors such as:

  • Inflation and a decrease in the purchasing power of the population has forced users to think about how to store their savings most safely;
  • The Bitcoin mining mechanism (mining) attracts users as an additional option to earn money using computer resources;
  • Bitcoin is recognized by financial institutions and serious companies, which inspires confidence in the cryptocurrency’s potential;
  • The infrastructure built to support Bitcoin proves it’s safe for transactions.

What Do Experts Say?

The pronounced volatility is a major factor that has financiers around the world debating whether to invest in Bitcoin. If you translate the cryptocurrency’s performance into terminology involving investment gains and losses, the picture looks like this.

If you invested in Bitcoin at the beginning of 2020, you would be making a 300% return by the end of the year. But if you invested at the beginning of 2018, there was a risk of losing 73% of your money by December of that year. But why Bitcoin is so volatile?

On the Investopedia podcast, Grayscale Bitcoin Trust spokesman Michael Sonnenschein states:

‘The amount of fiscal stimulus that has been rolled into the system in the wake of the pandemic to support the economy has investors wondering what a better tool, able to counter inflation is and will protect portfolios. So investors are thinking about digital currency such as Bitcoin, with its limited amount, which is especially relevant in the context of fiat systems such as the U.S. dollar, which are multiplying incredibly fast.’

However, analyzing economic factors, Wall Street giants, namely Citibank and JPMorgan, claim that the value of Bitcoin will break all records this year. For example, a Citi report claims that Bitcoin has the potential to hit $318,000 by the end of 2021.’ A City spokesman calls Bitcoin ‘the gold of the 21st century.’

Mike MauGlon of Bloomberg Intelligence argues that Bitcoin will reach the $50,000 mark in 2021, rising to $1 trillion after a while. Tyler and Cameron Winklevoss believe that Bitcoin will manage to exceed $500 thousand. At the same time, investors suggest that this figure is not far off even if this mark will not be reached in 2021. Finally, PlanB experts predict that the value of Bitcoin will exceed $100 thousand by December 2021.

At the moment, Bitcoin is not regulated by the laws of the leading countries. However, if the optimistic predictions come true, Bitcoin will become interesting to the official banking system. For example, JPMorgan CEO Jamie Dimon said that the U.S. government is tempted to make Bitcoin part of the regulated financial policy if the cryptocurrency justifies itself. 

Moreover, central banks may introduce their digital currencies as the industry proves to be worthwhile. In particular, the IRS (U.S.), HM Revenue & Customs (U.K.), and ATO (Australia) are already taking action against users who refuse to declare savings in cryptocurrency.

Short Term Bitcoin Prediction: 2021-2022

Month Open Min-Max Close Total,%
2021
Aug $41,407 $37,793-$61,574 $50,720 22.5%
Sep $50,720 $47063-$62953 $58,835 42.1%
Oct $58,835 $58835-73026 $68,249 64.8%
Nov $68,249 $59665-68647 $64,156 54.9%
Dec $64,156 $50119-64156 $53,891 30.1%
2022
Jan $53,891 $49,236-$56,648 $52,942 27.9%
Feb $52,942 $52,942-$65,712 $61,413 48.3%
Mar $61,413 $61,413-$76,226 $71,239 72.0%
Apr $71,239 $71,239-$85,504 $79,910 93.0%
May $79,910 $79,910-$99,185 $92,696 124%
Jun $92,696 $92,696-$115,054 $107,527 160%
Jul $107,527 $107,527-$133,462 $124,731 201%
Aug $124,731 $106,171-$124,731 $114,162 176%
Sep $114,162 $110,665-$127,325 $118,995 187%
Oct $118,995 $118,995-$147,696 $138,034 233%
Nov $138,034 $124,091-$142,771 $133,431 222%
Dec $133,431 $133,431-$156,204 $145,985 253%

 

*According to LongForecast.com

Long Term Bitcoin Prediction: 2023  — 2033

Year Mid-Year Year-End Tod/End,%
2023 $92,086 $108,661 +156%
2024 $124,960 $141,026 +233%
2025 $149,149 $150,405 +255%
2026 $163,941 $172,823 +308%
2027 $164,471 $147,022 +247%
2028 $156,473 $165,861 +291%
2029 $141,780 $149,286 +252%
2030 $127,832 $131,814 +211%
2031 $137,746 $143,649 +239%
2032 $148,441 $154,250 +264%
2033 $160,034 $165,795 +291%

 

*According to Coinpriceforecast.com

Selling Bitcoin: A Quick Overview

When the time comes to cash out your Bitcoin, the procedure will differ based on how you purchased it and where you keep it.

For example, if you purchased Bitcoin using eToro, the procedure would be as follows:

  • You can sell Bitcoin at the press of a button if you utilize eToro.
  • The system will send cashback to your debit/credit card, e-wallet, or bank account.

However, if you were to utilize a cryptocurrency exchange and subsequently withdraw the Bitcoin to a private mobile, desktop, or hardware wallet, the procedure would be slightly more time-consuming.

Mainly because you will need to first send the coins to a broker (such as Coinbase or Capital.com), convert the Bitcoin to USD, EUR, etc., and then withdraw the cash to your bank account.

Conclusion

If you are looking for assets to invest in, Bitcoin may be a great fit for you in several situations:

  • You already invest in other assets and want to diversify your investment portfolio. In that case, Bitcoin is a great addition that can accelerate the growth of your portfolio. However, you should evaluate the risks wisely. Too much Bitcoin in your portfolio can increase your risks.
  • You have a desire to make money, you are aware of all the risks associated with the volatility of cryptocurrency, but you firmly believe in your investment strategy. 

Bitcoin is a great investment tool that can either make you money or cause portfolio drawdown. If you understand and consider all the risks, your chances to grow capital can overweight the risks of losing money.

FAQs

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Where to Buy Bitcoin?

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About Farkhad Fatkhulov PRO INVESTOR

Farhad is a commercial writer focusing on finance & investment and niche B2B. The author's distinctive feature is the depth of research and information analysis. With more than a thousand articles under his belt, Farhad combines financial knowledge with real-life investment portfolio managing experience. He also writes for FinTech & Crypto related projects due to his knack for technologies.