New research has revealed that three out of four Aussies are turning a profit from their crypto investments, with the average Australian crypto trader making around A$10,000 over the past 12 months.
Aussies Making Bank with Crypto
According to research from international analytics firm YouGov, more than three-quarters of Aussies have made good profits over the last year, averaging out at A$10,662, the equivalent of nearly two months’ average salary in Australia. However, more than one in five Aussie cryptocurrency holders say they made profits worth over A$30,000.
The survey was commissioned by Australian crypto exchange Swyftx, which has more than 320,000 customers, and uncovered some interesting statistics about Aussie crypto traders.
Aussie millennials and gen Xers saw especially big returns, with around one in five saying they made more than $20,000 over the last year from cryptocurrency. Aussie mums and dads appear to have been especially successful, as well as men in general and [other] crypto users who report a strong or some understanding of the market.
Tommy Honan, head of strategic partnerships, Swyftx
The survey found that Aussie parents with children under 18 were the most likely to make money from their cryptocurrency trading, with 86 percent reporting an average profit of A$12,428.
In terms of location, crypto users in Brisbane were the most likely to report a profit with 83 per cent, followed by Sydney and Melbourne at 76 per cent and then Perth.
A previous report by Nine News showed that more than a quarter of Aussies are now trading crypto.
Experienced investors have been buying the dip, with some Aussies expecting bitcoin to hit the US$100,000 price mark by the end of the year.
New Users Urged to DYOR
With the increase of crypto adoption, Honan stated that it’s becoming increasingly important to do your own research (DYOR). The survey found that “the group who were least likely to report a profit on their crypto holdings over the last year were people who said they had little or no understanding of the market”.
At the moment, this is a relatively small proportion of crypto users in the country, just 16 per cent [who] report having little or no understanding. But for this group and anyone who wants to grow their confidence, it really is essential to do your research.
Tommy Honan, Swyftx
According to Honan, one of many pro tips is to “research the team behind any digital assets you are thinking of buying, and also look at indicators like the size of a coin’s market and its liquidity”.
That said, the Australian Securities and Investments Commission (ASIC) has again cautioned citizens to be wary when investing in unlicensed cryptocurrency companies. New users have lost significant amounts of money to scams, hacks, and using crypto products like options and leverage without proper understanding of how they work and the associated risks.
Not only could crypto investing be risky to newcomers, they also need to be aware of the tax implications. During the past few months, the Australian Tax Office (ATO) has reminded Australian crypto investors that they will be put under the microscope when filing their 2020-21 returns.
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