Recent research reveals that one in five Kiwis plans to or has already invested in cryptocurrency. On the other hand, the percentage of cryptocurrency investors in New Zealand has risen from 3% to 9.5% between March last year and April this year.
But if you wish to buy crypto New Zealand, you need to find a reliable exchange offering the best crypto trading platform. Top brokers in the country feature their platforms with low trading fees and spreads for various cryptocurrencies.
Here are a few aspects experts suggest considering before buying cryptocurrencies in New Zealand.
The Theoretical Aspects Of Buying Cryptocurrency
The penetration rate helps decide how crypto-active a country is. New Zealand is one of the countries that stand out, with an exceptional penetration rate of 4.49%.
Understanding such theoretical aspects of cryptocurrency trading is vital before you buy crypto in the country.
Top crypto exchanges offer a demo mode that provides insights into basics, such as spread charts, depth, and other terms standard in this market. Once you know the various terminologies, you can follow the crypto trends better. This will help improve your purchasing decisions.
Paying Attention To The Market Cap
The latest August-September monthly stats show that the current bitcoin prices in NZD have been relatively stable, at around $62k, with a market cap of $1.18 T. Based on these values, experts believe that New Zealand's cryptocurrency market has excellent prospects.
So when planning to buy crypto in New Zealand, looking at the coin's current price cannot be the only decisive factor. It would help if you considered the circulation supply.
For instance, along with the current price, you may observe the percentage of the overall market cap that you intend to purchase. The closer the cryptocurrency is to the market cap, the higher the demand to sell the coin will be in the future.
Learning About FOMO
New Zealand has witnessed an increase in social media users, with three-quarters of its population actively using social media in 2021.
When you have such a large section of people active on social media, some crypto traders are sure to use these platforms to talk about their investments. They try instilling FOMO among people, thus increasing demand, and consequently, the prices of the coins.
Be cautious, as they purchase a large unit of crypto at a low cost, and then try raising the rates to sell at higher prices, thus making a profit. The problem is that, when they sell large quantities of any cryptocurrency, the prices come hurtling down, resulting in huge losses for you.
Reputed cryptocurrency trading platforms help you avoid such pump and dump market scenarios. They offer features that ensure you don't get caught by market volatility, and you can buy coins at the prices you want.
Diversifying Your Crypto-Investments
You may get tempted to invest in one particular coin that is expected to yield high volumes and liquidity. But buying different cryptocurrencies and diversifying your portfolio can help offset the risks in case things don’t go according to plan.
Reliable crypto exchanges in New Zealand provide a broad range of cryptocurrencies, including Bitcoin, Ethereum, and XRP. You may also explore your options with altcoins, such as Aave and Uniswap. With access to such alternatives and having a good risk management strategy, you can smartly diversify your crypto investments.
Choosing A Trusted Cryptocurrency Exchange
When choosing a cryptocurrency exchange to buy crypto, ensure it has a straightforward user interface with a wide selection of coins. Crypto exchanges should be highly secure and provide excellent features and customer support.
Reputed exchanges in New Zealand offer features such as real-time price feed, 2FA security, live chat support, and mobile web app, making them trustworthy and user-friendly.
