As you are likely aware, crypto currency has gained a lot of popularity in the past few years, particularly in the United States. Many people have been investing in it, hoping to make a profit. However, there are many pitfalls to be avoided, so you must be careful. Here are a few things to consider when you're investing in crypto.
Taxation

Cryptocurrency taxation in Australia is relatively complex. There is a range of information available, including that sourced from the Australian Taxation Office, but it is not always clear what is required to be reported. For this reason, it is important to seek advice from a tax professional.

The Australian Taxation Office (ATO) has published general guidance on the taxation of digital currencies. It will introduce legislation to require investors to pay capital gains tax on their gains.

Cryptocurrency is treated as an asset by the ATO. In particular, the ATO recognises Bitcoin as a CGT asset.

As part of this process, the ATO is collecting details of crypto transactions. This includes personal details such as name and address, transaction details and account details. Having this information on hand can help the ATO identify tax avoidance and other activities.

The ATO has also developed forensic tools for tracking transactions. Some of these include data matching programs with major crypto exchanges.

While the ATO has yet to provide an official definition of crypto, the industry has been disappointed with the ATO's recent decision to treat cryptocurrencies as assets. The budget confirmed that crypto gains would be taxed.

The Australian government is planning to introduce legislation on the taxation of digital currencies. However, until this happens, crypto users need to make sure that they are not in breach of any tax obligations. outlookindia.com/outlook-spotlight/bybit-referral-code-vipgift-get-...

ATO data sharing programs with major crypto exchanges have been in place since April. Users have the option of uploading their crypto transaction data through a CSV file or API. The ATO can also offer a prefill report if a user is interested.

Capital gains are calculated using the market value of a disposed cryptocurrency. A 50% discount applies to assets held for at least 12 months.
Exchanges

When looking to buy crypto currency in Australia, you'll want to make sure you choose a reliable platform. Whether you're just getting started, or you're an experienced investor, you'll want to find an exchange that suits your unique trading needs.

The top three exchanges in Australia are CoinSpot, SwyftX, and Bybit. These platforms all offer a wide range of cryptocurrencies, low fees, and user-friendly interfaces. They also provide excellent support, making them a good choice for anyone new to the industry.

CoinSpot is one of the most secure and trusted crypto exchanges in the world. It offers a huge selection of coins, including some obscure ones you won't find elsewhere. And, it's regulated by AUSTRAC.

Binance is the world's largest crypto exchange by trading volume. It's also one of the most feature-rich. You can buy, sell, and trade over 300 coins with AUD on Binance. If you're new to crypto trading, you may find it hard to navigate the exchange's complexities.

Bybit is one of the simplest and most popular exchanges in Australia. They offer over 280 cryptocurrencies, and it's easy to set up an account. In addition to that, they offer a wide range of deposit and withdrawal options.

Another exchange with a wide variety of features is eToro. They offer a mobile app, as well as a desktop version. eToro offers a selection of 75 cryptocurrencies, along with forex and stocks. However, it does require a currency conversion fee when you want to trade in AUD.

SwyftX is another exchange that's geared toward beginner traders. This platform offers a variety of coins, low spreads, and a demo mode. It also provides free deposits, as well as 24/7 support.
Wallets

One of the best places to store your crypto currency is on a crypto wallet. A crypto wallet is a software application that enables you to store and manage your cryptocurrencies such as bitcoin. These nifty little devices are the crypto equivalent of a bank account.

Crypto wallets come in two flavors, cold and hot. Cold wallets are usually stored offline, while hot wallets are connected to the web. You can also choose to use a hardware wallet like the Trezor model T. Using a hardware wallet increases your security, but is not always convenient.

One of the best examples of a crypto wallet is the Ledger Nano X, which is more affordable than its predecessors, but offers some extra features. It also has a long track record of reliable performance.

SwyftX is a crypto wallet based out of Australia that provides an interesting trading experience. Considering its hefty entry fee, this may not be a great choice for beginners. However, its robust trading platform, which supports more than 1,600 coins, makes it worth your while.

Coinbase is an online platform that allows users to buy and sell cryptocurrency. They offer a free and secure Bitcoin wallet as well as the ability to buy cryptocurrencies using fiat. In addition, they allow you to transfer coins to your Australian bank account. The company is a favorite amongst crypto enthusiasts in the country, but is lacking in the consumer protection department.

Other than SwyftX, there are a number of other crypto-centric wallets to choose from. Although a crypto wallet is no substitute for a safe, the right wallet can help you keep your assets protected and your portfolio organized.
Social media influencers

Australian crypto influencers are promoting ultra-risky trading strategies to their fans. This is creating a false sense of security and FOMO effect. The ACCC has started a sweep to identify misleading testimonials.

According to the ACCC, these social media influencers may be violating Australia's consumer laws. Influencers are obligated to disclose any financial payment they receive for a promotion. If they do not, they could be subject to penalties.

The ACCC says it has received more than 150 tip-offs and is preparing to conduct a review of more than 100 influencers, advertisers, brands and social media platforms. Most of those involved are in the fashion, beauty and parenting categories.

The ACCC is particularly focused on travel and health. They are identifying misleading testimonials and endorsements by influencers. It has also started a sweep to find misrepresentations of products and services.

According to the ACCC, many social media influencers have failed to disclose their relationship with a company. This can result in penalties up to $2.5 million. Also, it is important for influencers to be aware of the promotion laws.

Influencers can be liable for market manipulation if they fail to disclose a potential conflict of interest. Some followers invest in crypto coins, but there are no GST taxes on crypto.

While some influencers are legitimate, others are more likely to ghost subscribers. During a bear market, less legitimate influencers could face increased scrutiny.

Those who promote crypto-assets will need to follow the same rules as other financial promotions. For example, if they share affiliate links to online brokers, they may need a licence.

However, Australian crypto influencers are not required to hold an Australian Financial Services Licence. Instead, they should follow a voluntary code of ethics.
Scams

There has been a dramatic increase in crypto currency investment scams in Australia this year. These scams, which are not regulated in the country, target retail investors.

According to the Australian Securities and Investment Commission, the number of crypto scams has increased by 270%. The commission has also published a public advisory to warn consumers of the top signs of a scam.

Some of the key indicators include receiving a payment in crypto or receiving an offer out of the blue. Moreover, potential investors should be wary of claims that they will be offered a guaranteed return.

If you believe you've been a victim of a crypto scam, you should report the incident to your financial institution, the Australian Competition and Consumer Commission, the AFP, or the Australian Financial Complaints Authority. You can also check out ASIC's Moneysmart website for further advice.

Cryptocurrency is not accepted as legal tender in Australia. However, some businesses do accept the currency as a form of payment.

To help Australians combat fraud, the government has invested in intelligence, data, and anti-scam systems. This has helped the number of phoney text messages decline by more than half since the introduction of the Reducing Scams Call Code in 2020.

Despite the growing threat of crypto investment scams, Australia remains a prime target for criminals. According to the Australian Competition and Consumer Commission, Australians are losing up to AU$700 million a year to these scams.

As a result of these losses, the ACCC has launched a new anti-scam centre to fight cybercrime. It has received $10 million in seed funding and will support the community's fight against cybercriminals.

In addition to the new anti-scam centre, the ACCC has announced that it will be taking action against Facebook parent company Meta.