Cryptocurrency is an increasingly popular way for New Zealanders to trade and invest. It’s a virtual currency that can only be used to purchase and exchange online products. Just like physical money, it has unique and unpredictable codes (encryption) to indicate its authenticity and value.
Simply referred to as crypto, it works using the blockchain technology to manage and record transactions. One of its best selling points is its security and freedom, as it can exist outside the control of the government and central agencies.
If you want to start trading and investing your money in bitcoin, dogecoin, ethereum, and the like, read this ultimate guide on how to buy cryptocurrency in NZ.
Cryptocurrency works as a digital, encrypted, and decentralised money to exchange goods and services on the internet. Unlike physical currency, it doesn’t have a central or reserve bank that sets the regulations. The users’ behaviour is the biggest factor that influences its value.
As mentioned, the cryptographic process is made through blockchain. This technology makes the transaction verified and recorded, giving you the confidence to entrust your money online.
Blockchain works like an open ledger that keeps track of every transaction made using cryptocurrency. Each exchange corresponds to a unique code. This makes it almost impossible to make counterfeit and fraudulent transactions. It’s also an open-source and decentralised system to prevent anyone from tampering the records.
Coming from the name itself, blockchain consists of two components — the block and the chain. They work together to create an easy and secured transaction process.
A block is the data storage for every transaction made using cryptocurrency.
When you make a transaction, every information is formed into a block. Once the transaction is formed into a block, it can’t be rewritten, edited, nor removed. This ensures the security and reliability of the transaction.
When the block is finalised, it will be formed into a link of other blocks through a set of chains.
The chain is the digital link between each block. The block comes right after the other, creating a series of tamper-proof blocks containing every single cryptocurrency transaction.
Most blockchains consist of one unbroken chain of blocks — or simply called blockchain. Although, some blockchains may branch out different chains, creating a web-like structure rather than a single chain.
It’s important to note that not all cryptocurrencies use blockchain technology, and not all blockchain work similarly. Nonetheless, most cryptocurrencies work along these principles.
For starters, Bitcoin and Ethereum are types of virtual currency. You can think of them much like Euro and Dollar as their physical counterparts. Of course, there are other cryptocurrencies just like there are plenty of other physical currencies.
Other popular cryptocurrencies available are:
Aside from the usual payments for goods and services, there are different ways to use digital currency. Here are some of the most popular methods of crypto use:
One of the most popular ways to use cryptocurrencies are trading and investing. Users simply hold on to their money and sell them when they finally increase in value. Then, they use the profit to buy more cryptos to sell later on.
Otherwise, they simply take advantage of smart contracts. There are over a thousand cryptos so your ways of trading and investing may vary.
Some cryptos are designed for quick and easy money transfers. This is a popular choice for international companies as they can make money transfers to different parts of the world in just a few seconds without any additional fees.
Cryptos are also used as a tipping platform. When you find someone entertaining or informative on different social platforms, you can use crypto to tip someone. Popular examples are Bits for streaming on Twitch, and Stars for streaming on Facebook.
Unlike popular belief, getting started with crypto isn’t difficult. Here are three simple steps you need to take to get started with crypto.
As mentioned, there are plenty of cryptos available, and getting access to them is very easy. You have to choose a currency that offers you the usage and benefit you want. If you need to diversify your portfolio, Bitcoin and Ethereum can be a good start.
Like physical money, you also need a wallet to keep your cryptocurrency. Most of these wallets come in the form of a computer program that you can access through your phone or desktop.
Different wallets also come with different purposes such as holding coins, exchanging on the market, and purchasing. Make sure to get a wallet that matches your needs and usage.
Exchanging physical money is the best way to buy cryptocurrencies and services. Conversions from physical to virtual currency are usually calculated with USD, but some can easily be converted into NZD, EUR, or AUS.
For first time buyers, here’s a handy guide.
The best digital currency exchanges may vary per person. Generally, these are the most common cryptocurrency exchanges where you can buy, sell, trade, and invest cryptos. Take a look at this side by side comparison.
|Deposit methods||Fiat currencies||Cryptocurrencies|
|Easy Cryptocurrency Exchange||Bank transfer, POLi||NZD||104 cryptocurrencies|
|Crypto.com||Bank transfer, BPAY, Osko, PayID, NPP, Credit or Debit Card||USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY, ZAR, among others||66 cryptocurrencies|
|eToro Cryptocurrency Trading & CFDs||Bank transfer (ACH), PayPal||EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK, among others||16 cryptocurrencies|
|YoBit Cryptocurrency Exchange||Bank transfer (ACH)||USD, RUB||1,427 cryptocurrencies|
|Huobi Cryptocurrency Exchange||Cryptocurrency||GBP, USD, AUD, EUR, INR, BRL, KHR, CAD, CNY, NZD, among others||290 cryptocurrencies|
|Binance Cryptocurrency Exchange||Bank transfer (ACH)||USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK, among others||269 cryptocurrencies|
|OKEx Cryptocurrency Exchange||Bank transfer (ACH)||USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK, among others||263 cryptocurrencies|
|CoinSwitch Cryptocurrency Exchange||Bank transfer (ACH)||USD, JPY, RUB, EUR||987 cryptocurrencies|
|Changelly Crypto-to-Crypto Exchange||Bank transfer (ACH)||USD, EUR, GBP, AUD, CAD, CHF, HKD, JPY, PHP, ZAR, among others||146 cryptocurrencies|
|Bitfinex Professional Trading Exchange||Cryptocurrency||USD, EUR, GBP, JPY||164 cryptocurrencies|
If you have a family member, relative, or friend overseas that you need to constantly wire money, cryptocurrency may be the best way to go! It’s quick and easy, and involves only a simple process. But if you don’t find crypto fitting to your needs, there are plenty of other international money transfer options for you!
Early withdrawal with KiwiSaver? It's possible! While KiwiSaver is meant to be accessed at 65, you can withdraw money from your...
Know everything about the copper to fibre switch, including your right as a consumer. Here are some frequently asked questions ...
I found Glimp when I was looking for Internet Providers that I would have to sit through and compare myself. I at first thought Glimp was an Internet provider but then I was pleasantly surprised when they came up as a website solely for comparing all sorts of different things so the customer could find the best deal. I found my new Internet provider on there and even found out I could be with a better Power company then the one I am with now. Very Useful and I recommend Glimp to the bargain hunters!
Agent very helpful in getting me the best deal, made the whole process so easy, Highly recommend!
So happy with this service. Makes finding a new internet provider so much easier and offers the best deals! 10/10!!
Used Glimp to compare prices for Broadband and toke thier adivce and signed up with a new plan saving a fair bit each month... I should have first gone to my provider as the yoffered me a better price to stay with them... lesson learnt