An introduction to Bitcoin
Before we delve into the finer points of how to buy Bitcoin in New Zealand, we should first consider what Bitcoin actually is. To the uninitiated, Bitcoin has an aura of mystique, with many believing cryptocurrencies are the preserve of tech entrepreneurs and super-rich investors looking to take advantage of an exciting new asset. However, the nature of blockchain and the original intention of Bitcoin is more about accessibility than exclusivity.
The technology emerged in 2009. The idea was to develop an entirely digital currency that did not require a central authority – i.e a bank – to validate transactions. This was achievable using blockchain technology, which effectively acts as a giant ledger system stored on a network of independent computers.
The Bitcoin token is effectively what powers the Bitcoin blockchain. Specialist computers confirm Bitcoin transactions by solving complex equations which allow them to chain the blocks of the network together – this is commonly known as mining. Maintaining the integrity of the blockchain this way requires a huge amount of computational power and other resources, so the Bitcoin algorithm rewards miners with the Bitcoin cryptocurrency. Aside from buying and selling Bitcoin, it’s also possible to find Bitcoin mining software or even cloud mining sites that will allow you to take part in this process for yourself.
As the tokens themselves underpin the technology that allows blockchain to work as it does, they have inevitably become highly valued and for this reason, bitcoin trading has flourished with mainstream investors.
Bitcoin trading explained
As the incredible potential of blockchain became apparent, Bitcoin currency soon started to draw the attention of investors. As more and more coins came onto the market, investing and trading in cryptocurrency became increasingly more mainstream, with established commodity trading platforms expanding their offerings to support crypto. Whilst some places took longer than others to embrace the technology, bitcoin trading has become big business in recent years for both casual and professional traders.
Nowadays, there are generally two types of trading platforms on the market – exchanges and brokers. This is an important difference to note when choosing a provider. Basic exchanges will simply allow investors to buy and sell cryptocurrencies. These cryptos are then stored in a crypto wallet – which might be a piece of software (hot wallets) or a physical device (cold wallets). These exchanges are usually the best option for beginners who are new to Bitcoin trading.
Brokers, on the other hand, offer more complex trading options, usually including CFDs which means traders effectively bet against the broker on whether the value of a coin will rise or fall. One of the main benefits of CFD trading is that you can profit from a coin losing value, known as short selling, as well as from an increase if you choose to sell long. Brokers also offer leveraged trading, but this is ill-advised for novice traders.
Bitcoin trading in New Zealand
Bitcoin trading is extremely popular and there are numerous reliable cryptocurrency exchanges and brokers that are owned and operated domestically. These home-grown platforms are often the best way to buy bitcoin in New Zealand and often offer resources for the local crypto market. However, traders will be pleased to learn that plenty of global platforms can also be used in New Zealand.
Getting a secure & fair experience Bitcoin trading
Bitcoin trading in New Zealand has come under increased scrutiny since a widely publicised security breach at the Cryptopia trading platform in 2019. However, new traders interested in cryptocurrency should not be deterred, as the incident inevitably led to an industry-wide overhaul of security measures. There are also several ways in which you can keep your assets and data secure when Bitcoin trading in New Zealand, as we shall see.
When looking for a bitcoin trading platform in New Zealand, you should always check the security protocols employed by each. For example, SSL encryption of the site itself and DDoS protection should be expected as standard. You also always want to have the option of two-factor authentication, which is again an industry-standard these days.
Those new to crypto trading should also ensure they are familiar with security protocols related to the assets themselves. For example, cold wallets – i.e. those that keep cryptocurrencies offline – are far more secure than hot wallets. You can also look at how an exchange processes withdrawals – whether these are done manually, for example, or whether there are procedures in place to prevent fraud.
Finally, even the best bitcoin trading platform in New Zealand cannot safeguard against user carelessness, so it’s important to keep things like your password and crypto keys somewhere safe and ensure your device is protected with the latest antivirus software.
Editor’s recommendation – the best trading platform for Bitcoin in New Zealand
There are numerous platforms offering bitcoin trading in New Zealand, but we believe Kraken to be one of the best all-rounders currently on the market. Founded mid-2011, Kraken is actually based in the US. Some readers may wonder if a US platform is suitable for users in New Zealand, but we found that the number of trading options and international support meant Kraken trumped any of the domestic platforms. The exchange has a huge range of currency options and is one of the more versatile trading platforms on the market, offering an interface that’s simple enough for beginners to use whilst still providing a suite of professional trading tools. Of course, it would be better if the platform supported the domestic NZ currency, but realistically the number of platforms offering NZD support is relatively small, so this is a sacrifice Kiwis may have to accept if they want to use the more global platforms. As such, Kraken is a great option for both new investors and seasoned traders.
This is How Our Experts Test Crypto Trading Platforms
When you are learning how to buy Bitcoin in New Zealand, it’s important to know you are doing so via a trusted and reliable platform. With this in mind, our experts subject each offering to a thorough review procedure. The categories outlined below should also give you a good idea of important considerations when planning to start Bitcoin trading in New Zealand.
Getting to grips with Bitcoin trading is more or less the same as learning how to acquire any other cryptocurrency. As such, you might find that once you are up and running you want to diversify your portfolio with a few other coins. With this in mind, we review which cryptocurrencies are supported by each platform.
You might be a beginner investor looking for an accessible way to start trading in general, or you might be an experienced forex or commodities investor who is considering expanding their portfolio. In either case, you might be interested to know whether platforms support trading of other assets besides crypto.
Jurisdiction and Limits
When trading cryptocurrency, or any other financial instrument, via an online provider, you need to ensure that you find an exchange that is well supported in your country. Similarly, if you travel a lot or wish to trade globally, you may be interested in which countries and jurisdictions a platform can operate in. This is something our reviewers will consider when appraising each platform.
Bitcoin trading in New Zealand can be a great income stream, but it’s important to be aware of the fees involved – after all, there’s little point in trading at all if most of your profit will be eaten away in transaction costs. Most platforms will have fees of some kind and we look at how these are structured and how they may affect novices and seasoned traders differently.
Usability Look & Feel
Learning how to buy Bitcoin in New Zealand is much easier when using an intuitive and user-friendly platform. Our reviewers take a look at each platform’s interface and consider how easy it is to navigate and actually make trades.
Payment options are another important consideration when bitcoin trading in New Zealand. Most platforms that operate outside of New Zealand are unlikely to support NZD, so it is important to be aware of what options there are for depositing and withdrawing as well as any costs involved in currency conversion.
Entering the world of crypto trading can be a complicated business. There are also numerous technical issues that can arise with new platforms on the market. As such, it’s important to know that your trading platform can provide quick and reliable customer support, should you need it.
License and Security
Security should be of primary concern to anyone looking to get into Bitcoin trading in New Zealand. This is why our experts carefully review the security protocols employed by a given platform and assess the steps each one takes to keep users’ private data secured.
Of course, one of the most important aspects of any cryptocurrency exchange is the trading itself. We look at what options a platform offers, such as trading pairs, leverage or asset ownership as well as the different tools that are available to users. Whilst those new to bitcoin trading in New Zealand might initially be looking for the most simple platform on the market, it’s worth thinking about the long term and whether or not you might require more advanced options in the future.
Reputation and Customer Feedback
Alongside our own thorough review, we also look at the reputation of cryptocurrency exchanges and look at existing customer feedback – both good and bad. This helps to build a more objective picture of the pros and cons of each platform.
How To Buy Bitcoin In New Zealand – Where to Start
How to buy Bitcoin in New Zealand is actually fairly straightforward and in many ways is no different to using any other e-commerce platform. However, before rushing to set up a trading account, the first step should be making sure you have a good understanding of what cryptocurrency is and what it is not. Learning how to buy Bitcoin in New Zealand should start with research. One of the best ways to become familiar with the markets is to open a practice account. Many platforms will allow you to try them out without risking any real money and this is highly advised as a first step. This then begs the question: how to decide on a platform to buy and sell bitcoin in New Zealand?
Bitcoin Trading in New Zealand – Choosing the right platform
Choosing the right platform for trading cryptocurrency will largely come down to personal preference. Fortunately, at Bitreviews we provide a comprehensive information resource that can help you make this decision. Learning to trade cryptocurrencies is very straightforward – but it’s important to make sure you choose the right platform for doing so. The best bitcoin trading app New Zealand will be the one that helps you to continue learning, as well as offer all the trading tools you require. Before deciding on a platform, you should consider what sort of trader you want to be, what your current knowledge level is and how adept you are at using complex software.
Learning how to buy Bitcoin in New Zealand is an exciting endeavour that could prove very lucrative in the long term. Before taking the plunge, you should familiarise yourself with the different platforms available and what each one offers. The markets change quickly, so it’s a good idea to find a trusted source of information that will allow you to keep your finger on the pulse. Finding a reliable platform and learning how to buy and sell cryptocurrencies is the first step, but it is the start of an ongoing journey into the exciting world of crypto trading that requires ongoing education and a commitment to learning about the ever-changing technological applications of blockchain.