Here is a series of guides for crypto newbies, with a focus on investing in Australia, although a lot of the advice will be suitable for a global audience.  This is a guide from the point of view of people new to the space, without in depth knowledge of blockchain, defi etc.. and so will seem very basic to seasoned crypto investors but there seems to be little simple information available to those just starting out.

Part 1 : Basics

For buying there are tonnes of options, they vary in fees to deposit/withdraw money, buying fees and the actual exchange rate i.e AUD to Bitcoin (BTC) can vary between sites.  There are various comparisons online, on forums, Reddit etc...  Some sites have better selections of coins, some of the more obscure ones are not on all sites, or only on one. 

Its recommended to transfer off exchanges and into a private wallet in case the exchange gets hacked, ‘not your keys, not your crypto’, the key is a 12 or 24 word passphrase you use to back up or restore your wallet.  With this key anyone can steal your crypto so do not type it out anywhere, do not take a photo on your phone of it and keep it somewhere safe.  You can use a cold wallet like those made by Ledger or Trezor for extra security above a hot wallet on a computer or phone.  Hot wallets are usually free but you need to make sure it’s not a scam site or app, as if you transfer to a dodgy address it’s gone for good.  Remember its super volatile so do not invest more than you can afford to lose and be prepared for big surges and dips over short periods of time and have a strategy for when you will sell or how long you plan to hold. 

You can track your transactions for tax using Koinly, some websites will link in and provide info, some you have to enter manually.  It is important to know that any asset you’ve owned for over 12 months before you sell gets you a 50% discount on capital gains tax, so there is a benefit to holding longer term if you can before selling.  Anything you’ve sold at a loss can offset gains, and is transferred to future years if needed.  (According to current Australian Tax laws - however, I am not a lawyer or accountant so this is not professional advice).

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