Buy Bitcoin Australia: Strategies for Beginners

Strategies for clever Bitcoin investment: Bitcoin, the fascinating pioneering cryptocurrency, is all up in the news again as the bear market is turning into a bull market. If you are new to crypto, then buying Bitcoin is probably a great first step. Want to buy Bitcoin? Then keep some things in mind!

Investment strategies matter

Once you get your head around how to buy Bitcoin on CoinJar, you can then think about strategies that will hopefully make your Bitcoin grow in value.

Understanding the right strategies can make a difference to your wallet! So let’s dissect some clever ways to buy and invest in Bitcoin.

Buy Bitcoin directly

Investing in Bitcoin directly and holding onto it is becoming increasingly popular.

Unlike traditional investments, you don’t need to buy a whole Bitcoin. You can purchase smaller fractions, making it accessible for both small and large investors.

Like dollars and cents, Bitcoin can be broken down into smaller units, called Satoshis. Every Bitcoin is actually made up of 100,000,000 Satoshis. These are also called Sats. When you buy Bitcoin directly, you gain complete control over your investment. No intermediaries or third parties are involved.

Liquidity bonus

Bitcoin is highly liquid, meaning it is easy to buy and sell. You can adjust your portfolio swiftly in response to market movements.

Things to know about buying directly

When you buy Bitcoin on CoinJar, once your purchase is completed, it can just stay in your account on CoinJar where the platform holds it securely for you.

Here’s a link on how to buy crypto on CoinJar.

If you want to hang on to your Bitcoin for a while, you can move your crypto off the platform and into a digital wallet (hot wallet), or into a wallet that is not connected to the internet (cold wallet).

You can read more about wallets here.

The crypto space is prone to hacking and theft. If you choose to move your Bitcoin off CoinJar, be sure to use security measures like strong passwords and two-factor authentication.

Dollar-Cost Averaging (DCA)

DCA involves investing a fixed amount in Bitcoin at regular intervals (weekly, monthly). Here’s why some people think it is clever. It is thought to mitigate volatility. By spreading your investment over time, you reduce the impact of price fluctuations. DCA encourages consistent investing, regardless of short-term market movements.

An example of DCA

Suppose you have a hypothetical investment portfolio with a total value of $500,000. You decide to allocate 2.5% of your portfolio to Bitcoin. Instead of making a lump-sum purchase, you’ll use DCA to invest consistently over time.

You start with an initial investment of $12,500 (2.5% of $500,000).

At this point, the price of Bitcoin doesn’t matter; you’re committed to investing this amount.

Every week, you invest an additional $100 into Bitcoin.

If the price of Bitcoin falls during a particular week, your $100 will buy you more Bitcoin. If the price rises, your weekly investment will buy you less Bitcoin.

You continue this consistent approach, regardless of short-term market fluctuations.

By doing so, you “average out” the cost you pay for Bitcoin over the long term.

What are the potential outcomes of this?

If Bitcoin’s price is low, you accumulate more Bitcoin with your $100. If Bitcoin’s price is high, you accumulate less Bitcoin.

Over time, this disciplined approach helps you benefit from both market dips and rallies.

Remember, DCA is about consistency and long-term commitment. It allows you to participate in the growth potential of Bitcoin while minimising the impact of market volatility.

Long-Term HODLing

HODL (Hold On for Dear Life) is a strategy where you hold Bitcoin for the long term. Here is the thinking behind it.

Capitalising on appreciation

Bitcoin’s historical growth suggests that long-term holding can yield substantial returns. Patience is required. You will have to ignore short-term noise; focus on the big picture.

An example of HoDLing

Once upon a time, in the mystical land of Cryptonia, there lived an investor named Nicole. Nicole had heard whispers of a digital currency called Bitcoin. She was intrigued by its promise of decentralised wealth and financial sovereignty.

In the early days, Nicole acquired some Bitcoin. She didn’t panic when the price swung wildly like a pendulum — up, down, and sideways. Instead, she embraced the philosophy of HODLing. “Hold On for Dear Life,” she whispered to herself during moonlit nights.

As the seasons changed, so did the Bitcoin market. It soared to the heavens, and plunged back to Earth. Nicole resisted the sirens of panic selling. That might also have been about the fact that she was way too lazy to go get her cold wallet out of its secure storage facility. Ain’t nobody got time for dat.

When FUD (Fear, Uncertainty, and Doubt) spread like wildfire, she just let her cold wallet rest in its secure facility. It was a big effort to go put respectable clothes on and go get it.

One day, the sun rose from its dark crypto winter. Nicole’s HoDLings started to increase in value. She let them rise like a cake. As the years unfurled, the price went up and down, but mostly, over time, the price went up.

Nicole didn’t sell at the first sign of profit. Instead, she let her Bitcoin cake rise. Her friends, who had traded frantically, now envied her steadfast resolve.

The moral of the story? For some cryptocurrencies (but not all) HoDLing is one of the most effective ways to slowly grow your crypto portfolio.

But let’s not talk about all the side trading Nicole did with XRP and Ethereum, okay?

Diversify with altcoins

Consider diversifying your crypto portfolio beyond Bitcoin. Altcoins are any coins other than Bitcoin. People can have a lot of fun trading these cryptos. While not everyone makes money, it is fun to learn how to trade and get some wins.

CoinJar has multiple cryptocurrencies that you can play with. Each crypto has its own page on CoinJar where you can read about it, find out what it is used for, and it also has a price history.

Another interesting feature on the CoinJar crypto pages is an indicator of how much the price of that particular coin has risen over time.

For example, at the time of writing (08 April 2024), Pepe had risen 459.45% in the past five years, Ethereum has risen 2281.44% in the past five years, and Solana has risen by a mind-boggling +23603.57% in the past five years.

But hold up. Not every crypto, at this point in time, is a wild success story. Memecoin DOGE is down 11.23% over 5 years, Avalanche is down 50.80% over the past five years. Another memecoin, Shiba Inu, is down 7.52% over the past five years. That doesn’t mean that the prices won’t go back up again. But HoDLing isn’t a guaranteed success story on every crypto, so choose your cryptocurrencies wisely!

Educate yoself

Stay informed. Understand Bitcoin’s fundamentals, technology, and market trends. This article tells you how analysts read signals in price charts that could indicate when a price is about to go up or down.

Or, you could just follow leading analysts. An entertaining analyst is @PeterLBrandt on X, and another is @GarethSoloway. Also follow crypto media to see predictions about trends, new coins, and other interesting things.

#Buy Bitcoin in Australia: Conclusion Whether you choose direct investment, DCA, or HODLing, remember that crypto can be volatile. However, it is also fun and there are a lot of communities online that you can join to find like-minded people.