- Senate opposing crypto bill poses legislative roadblock in Australia.
- SEC delays decision on Invesco, WisdomTree, and Valkyrie ETFs.
- Ether nears ‘death cross,’ while investors await US jobs report.
- Visa to send stablecoin USDC over Solana to pay vendors in crypto.
- Market ‘dramatically underestimates’ bullishness of Bitcoin ETFs.
- SBI expands Ripple tech to banks in Vietnam, Indonesia, Philippines.
BTC Markets in the news
BTC Markets at Intersekt 2023
The Future is Crypto-Finance: The Latest Crypto-Financial Products
BTC Markets recently participated in Intersekt 2023, Australia's premier gathering of professionals in the financial technology ecosystem, including fintechs, hubs, accelerators, policymakers, regulators, investors, and advisors. This event was dedicated to exploring, discussing, and unlocking the immense potential of Australia's fintech market.
Our CEO, Caroline Bowler, had the privilege of joining a panel discussion alongside prominent industry figures such as Lisa Wade from Digital X and Vicent Gramoli from Redbelly Network. The panel was moderated by David Kreltszheim from Cornwalls. Together, they delved into an insightful conversation about the current state of the financial system and how the industry can harness this foundation to shape the future of finance and the digital asset economy.
“For us the future that we’re living in is very clear. We can see that the infrastructure has been built and is no longer in proof-of-concept stage. The infrastructure has been built for the crypto financial services future. For us at BTC Markets, we are now preparing ourselves to collaborate and build financial products that are based primarily on crypto.” – Caroline Bowler, CEO BTC Markets.
Cryptocurrency bill rejection impacts Aussie digital asset landscape.
Australia's digital asset landscape is in a state of flux, marked by the recent rejection of the cryptocurrency bill by the Australian Senate Committee on Economics Legislation. This setback signifies a critical juncture in Australia's quest to establish a regulatory framework for digital assets. While hurdles were encountered, and approval remained elusive, the push back has ignited a broader conversation involving government, private sector stakeholders, and the community about the importance of embracing digital assets. Read our blog article here.
Ether nears ‘death cross,’ while investors await US jobs report.
Last week, Forkast News approached us for our perspective on the technical indications for Ethereum and the significance of the impending "death cross" for this asset. We shared our insights with Forkast, stating, "The current technical signals for Ethereum appear to be undergoing a period of mixed trends across different time frames."
In Ethereum's market data, there are indications that the token is approaching what is known as a "death cross." This development is often regarded cautiously by market participants. The "death cross" occurs when the short-term average falls below the long-term trend, typically signalling potential further losses.
We emphasised that Ethereum has entered negative territory in a weekly timeframe, which could potentially lead to a short-term pullback. We also stressed the importance of assessing these movements within the broader context of the cryptocurrency market, given its propensity for rapid price fluctuations. Read the full article here.
BTC Markets announcements
ICYMI: BTC Markets partners with Syla, offering a crypto tax solution for Australians.
Syla's integration streamlines crypto taxation and optimises CGT outcomes. It supports SMSF entities and provides ATO-compliant reports for various account types. Users can access a 30% discount on Syla subscriptions through BTCMSAVETAX code. Read all about our collaboration here.
For more information, visit the Syla website.
To learn more about our tax reporting process, visit our tax help page.
State of crypto
During a relatively uneventful week in the cryptocurrency market, price movements have remained calm and confined within a narrow range with Bitcoin finding support around the US$26,000 range.
The recent period of price consolidation in the market followed a 6% price surge driven by Grayscales legal victory against the U.S. Securities and Exchange Commission (SEC). However, this was swiftly followed by a 5% price pullback when the SEC announced its decision to delay judgment on several Bitcoin ETF applications until mid-October, with the potential for further postponements.
In response to these developments, Grayscale has indicated its readiness to operate a Bitcoin ETF once regulatory approval is obtained. The company stated that it eagerly looks forward to engaging constructively with the SEC as it navigates this evolving regulatory landscape.
In a separate report, Henley & Partners, a London-based investment migration consultancy firm, has revealed an intriguing statistic. It suggests that there are now more than 40,000 crypto millionaires globally who hold Bitcoin, emphasising the growing wealth associated with the crypto market.
Furthermore, Visa has expanded its stablecoin settlement capabilities to include merchant acquirers, with pilot programs involving Worldpay and Nuvei. This expansion incorporates the utilisation of the Solana blockchain, marking another step in the adoption of blockchain technology in traditional financial services.
At the close of the crypto trading week on Monday, Bitcoin (BTC), settled at a final price of US$25,971.21, marking a minor decline of 0.54% throughout the week. Ethereum (ETH), experienced a 1.36% dip, closing the week at US$1,635.84. XRP, still precariously hovering just above the 50 US cent threshold, concluded at US$0.5047, suffering a 3.61% setback. Litecoin (LTC) mirrored the bearish sentiment with a 2.23% loss, closing the week at US$63.93. Cardano (ADA) wrapped up the week at US$0.2559, marking a decrease of 2.85% in value.
When assessing market capitalisation, Bitcoin displayed a slight resurgence, advancing by 0.39% and sealing the week with a dominance rate of 49.33%. Nonetheless, the broader cryptocurrency market saw a contraction of 0.82%, culminating in a total market capitalisation of US$1.025 trillion by week's end.
When considering the year-to-date performance from a wider perspective, Bitcoin retains its front-runner position with a significant 55.79% increase. XRP, once the leading contender, has experienced a slight decrease in its advantage but still boasts a 48.39% gain. Ethereum closely follows with a 36.55% rise, while Cardano maintains a positive trajectory with a 4.96% increase. In contrast, Litecoin is still in negative territory, showing a decline of 10.35% over the course of the year.
*The weekly trading stats as of Monday, September 4th at 10:00 am AEST, based on data from Tradingview in USD.
**Year -to-date performance as of Thursday September 7th at 10:00 am AEST, based on data from Tradingview.
The week ahead: upcoming economic events
September 7th: Australia’s Balance of Trade. China’s Balance of Trade.
September 8th: Canada’s Unemployment Rate.
September 9th: G20 Summit, India. China’s Inflation Rate.
September 10th: G20 Summit, India.
September 12th: Australia’s Westpac Consumer Confidence Change and NAB Business Confidence. United Kingdoms’ Unemployment Rate. Germany’s ZEW Economic Sentiment Index.
September 13th: United States’ Annual, Monthly and Core Inflation Rate. United Kingdoms’ Monthly GDP.
September 14th: Euro Area European Central Bank (ECB) Interest Rate Decision. ECB Press Conference. United States’ Monthly PPI and Monthly Retail Sales.
Economic Calendar (tradingeconomics.com)
Senate committee opposing crypto bill poses legislative roadblock in Australia.
Australia’s Senate Economics Legislation Committee has recommended against passing a key digital asset bill, citing it as an inadequate vehicle for implementing regulation in the country. The Digital Assets (Market Regulation) Bill, first introduced by Liberal Senator Andrew Bragg in March, aimed to create a licensing framework for digital assets including cryptocurrencies and CBDCs.
The committee, while supportive of further regulation for the industry, raised several concerns on Monday, according to the committee’s report. Notably, it emphasised Australia’s existing financial product regulations are well-developed but found that digital assets require further legislative attention.
“The bill lacks the detail and certainty that investors, consumers, and the industry should be provided with,” the committee said in its report.
The committee’s recommendations on Monday will likely slow down the legislative process but aim to ensure a more stable and robust framework for digital asset regulation in Australia. One of the major shortcomings of the legislation, the committee said, is its misalignment with international regulatory standards, a concern voiced by multiple inquiry participants.
Adding to the regulatory concerns, the committee expressed apprehension that the bill’s insufficient integration with the existing financial regulatory landscape could lead to regulatory arbitrage, potentially undermining the digital asset industry in Australia.
Despite its criticism, the committee commended the Australian Government’s recent initiatives to consult with industry stakeholders, terming them as “the most appropriate approach” for future digital asset regulation. While it has stalled further legislative progress, the committee is urging the government to continue its consultations to craft more suitable legislation.
US SEC delays decision on Invesco, WisdomTree, and Valkyrie Bitcoin ETFs.
The U.S. Securities and Exchange Commission (SEC) has delayed a decision on whether to approve applications for spot Bitcoin exchange-traded funds (ETF) from Invesco (IVZ.N), WisdomTree (WT.N) and Valkyrie, a filing by the regulator showed on Thursday.
The SEC has pushed back the decision dates for the three proposals by several weeks to mid-October but could potentially delay further. It was previously due to decide by next week.
The delay comes just two days after a federal appeals court ruled on Tuesday that the SEC was wrong to reject an application from Grayscale Investments to create a spot Bitcoin ETF. A three-judge panel of the District of Columbia Court of Appeals in Washington said the regulator failed to fully explain its reasoning when denying Grayscale's product.
The ruling requires the SEC to review Grayscale's application, meaning there is no certainty it will reach a different conclusion and green-light the product. The regulatory agency, which on Tuesday said it was studying the ruling, could appeal.
- RBA holds rates steady at 4.10% with further tightening ahead.
- Corporate profits tumble 13.1% in Q2 with challenges to come.
- Australian economy achieved consistent but moderate Q2 growth.
- Job advertisements increased by 1.9% in August.
The Reserve Bank of Australia (RBA) has chosen to maintain interest rates at the current level of 4.10% for the third consecutive month, demonstrating a cautious approach considering ongoing economic uncertainties. It's worth noting that this decision represents a cumulative 4% increase in rates since May of the previous year. The RBA's adjustments in rates aim to strike a delicate balance between supply and demand within the economy, as indicated in the minutes from the RBA meeting.
Governor Lowe highlighted the challenge of managing inflation, acknowledging that "Inflation in Australia is declining but is still too high at 6 percent." He emphasised the RBA's commitment to managing inflation by stating, "The central forecast is for CPI inflation to continue to decline." This forecast anticipates a gradual decrease in CPI inflation, targeting approximately 3.25% by the end of 2024, ultimately returning to the 2–3% target range by late 2025.
Despite signs pointing to below-trend growth, particularly in household consumption and dwelling investment, with a projected GDP growth of 1.45% in 2024, Governor Lowe hinted at the possibility of "some further tightening of monetary policy" to ensure a timely return to the inflation target range. This reaffirms the RBA's unwavering commitment to achieving its inflation objectives. In the face of uncertainties related to persistent services price inflation and the effects of monetary policy, the RBA board remains vigilant, closely monitoring global trends, spending patterns, inflation, and the labour market, all aligned with their mandate to target inflation effectively.
In the corporate sector, Australia faced a significant setback as corporate profits tumbled by 13.1% quarter-on-quarter in Q2 of 2023, portraying a challenging economic landscape. On a positive note, job advertisements in Australia displayed resilience, surging by 1.9% month-over-month in August, despite elevated interest rates and inflation, signalling ongoing labour demand.
Additionally, while the Australian economy achieved consistent but moderate growth in the second quarter of 2023, supported by favourable contributions from net trade, fixed investment, and government spending, the persistent trends of subdued household consumption and reduced savings rates, along with a slight dip in the annual growth rate compared to the previous quarter, are noteworthy aspects of the economic landscape.
During July, the softening demand for commodities in China had a significant impact on metal prices, resulting in Australian exporters experiencing diminished profit margins on their exports. This decline in demand was reflected in China's reduced imports of commodities during the same period, aligning with the broader economic challenges faced by Australia's largest trading partner as it navigates a slowdown in post-COVID economic growth.
- US inflation continues to rise with unsustainable consumer spending.
- More jobs added to the US market, but unemployment rate rises.
- US recession risk downgraded by market analysts.
- China's Country Garden averts default with last minute payment.
In July, the US Core PCE Inflation Gauge saw modest gains, with the Federal Reserve's favoured measure of underlying inflation experiencing its smallest consecutive increases since late 2020. Core PCE inflation reached the expected 4.2%, while the yearly change in the Personal Consumption Expenditures (PCE) Price Index also met market forecasts at 3.3%. Despite these elevated inflation figures, consumer spending continued to rise, indicating a desire for leisure and consumption.
However, it's important to note that the recent surge in consumer spending may not be sustainable, as households are depleting their pandemic savings, and factors like student debt repayments and higher borrowing costs could limit credit usage.
Additionally, August saw nonfarm payrolls rise by 187,000, surpassing expectations, although July's initial increase was revised down. The unemployment rate slightly increased to 3.8%, but the labour force participation rate improved to 62.8%. Wage inflation slightly dipped to 4.3% year-on-year from 4.4%. There's a growing consensus that a rate hike in November or further increases are less likely, potentially favouring stocks and gold and impacting the US Dollar.
This data also indicates a unique dynamic where more jobs were added, yet the unemployment rate increased, explained by a growing labour force, signalling a balanced labour market. This nuanced perspective has eased concerns about an overheated job market contributing to inflation and influenced investor sentiment.
The S&P Global US Manufacturing PMI indicates a more pronounced downturn in operating conditions, reflecting a challenging month for US manufacturers. Whilst, the ISM Services PMI unexpectedly surged, signalling robust growth in the services sector, the strongest in six months. However, price pressures intensified, suggesting increased inflation concerns, and the backlog of orders contracted. Despite these challenges, Anthony Nieves, Chair of the ISM Services Business Survey Committee, noted that sentiments among industry respondents varied but leaned toward positivity regarding business and economic conditions.
China's Country Garden successfully made interest payments on US dollar bonds, averting default for the second time in four days and providing some relief to the beleaguered property sector.
China's economic data for August reveals several key trends. The official manufacturing purchasing managers' index (PMI) and the Caixin/S&P Global manufacturing PMI both showed growth, with the Caixin PMI reaching its highest level since February.
However, China's non-manufacturing PMI declined slightly, indicating a softer services sector amid an economic slowdown. The construction subindex improved, likely due to local government projects.
Composite PMIs, which include both manufacturing and non-manufacturing activity, remained in expansion, but the services sector's momentum slowed. Capital Economics suggests that while the economy still faces challenges, a modest cyclical recovery is possible with continued policy support.
In July, Germany's trade balance stood at €15.9 billion, falling short of the expected €18.0 billion.
Previously reported as €18.7 billion, the figure has been revised to €18.8 billion. This adjustment reflects a slight reduction in Germany's trade surplus for July, with exports decreasing by 0.9% compared to the previous month, while imports increased by 1.4% over the same period.
India's GDP growth for the April-June quarter surged to 7.8%, its highest in a year, driven by robust services activity and strong consumer demand. Despite the Reserve Bank of India's policy tightening, services, and construction sectors thrived, and private consumption and manufacturing also saw growth.
However, concerns arise due to a dry monsoon season, impacting agriculture and causing food price inflation. The upcoming rainy season and its effects on the agriculture sector will be closely monitored, as they could influence India's economic trajectory soon.
French inflation exceeded expectations in August, reaching a 12-month rate of 5.7%, primarily due to a rebound in energy prices, while food prices moderated slightly. This inflation surge was higher than the anticipated 5.4%.
High food prices continue to be a concern for both the government and European governments. French Finance Minister Bruno Le Maire is engaging with retailers and suppliers to address this issue. Additionally, France's economy expanded by 0.5% in the second quarter, following a 0.1% growth in the first quarter.
In August, Italy's annual inflation rate decreased to 5.5% from 5.9% in July, indicating a moderation in consumer price inflation. This decline was attributed to factors such as a year-on-year decrease in prices for non-regulated energy products, a reduction in food prices, and a slowdown in the annual rate of price growth for a "trolley" index encompassing various goods.
Additionally, a recent report highlighted the challenges Italian companies face in attracting and hiring young workers due to the declining birth rate and the skills gap among available job seekers.
Canada's economy contracted unexpectedly in the second quarter at an annualised rate of 0.2%, falling short of both the Bank of Canada's projection of 1.5% growth and analysts' expectations of a 1.2% increase. Additionally, GDP for June declined by 0.2% from the previous month, aligning with forecasts. This surprising economic performance may lead the central bank to maintain current interest rates to mitigate the risk of a recession and support economic stability.
The Big 3
Crypto market ‘dramatically underestimates’ bullishness of spot Bitcoin ETFs.
The potential of a spot Bitcoin exchange-traded fund (ETF) approval to drive prices up is dramatically underestimated by the crypto market, claim analysts from crypto research firm K33 — formerly Arcane Research.
In a market report released on September 5th, K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth said the last three months had greatly improved the chances of a spot Bitcoin ETF approval, but that sentiment had not been reflected in the price of Bitcoin or other mainstay crypto assets.
The analysts explained while Bitcoin had all but given up its gains in the wake of Grayscale’s legal victory over the Securities and Exchange Commission, an approval would “attract enormous inflows” and significantly increase buying pressure for Bitcoin. However, the downside of a potential spot ETF rejection would be “negligible” and Bitcoin prices would simply maintain business as usual, they wrote.
“I firmly believe the market is wrong. This is, by all accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC at current levels.”
Lunde and Helseth added that given the increased likelihood of spot ETF approvals — with several Bloomberg analysts now predicting a 75% chance of approval within the year — the market's outlook on ETFs is fundamentally incorrect.
Bolstering their bullish prediction, the analysts looked to the recent 2% gain in the tech-heavy Nasdaq-100 index, often viewed as an indicator of the broader market's risk appetite.
Buy Bitcoin on BTC Markets.
MetaMask launches feature to sell ETH for fiat currency.
Cryptocurrency wallet MetaMask has announced the launch of a feature allowing users to sell Ether (ETH) for fiat currency and send it to a bank account or PayPal account. MetaMask said the initial rollout was limited to ETH but planned to expand to “native gas tokens on layer 2 networks” in the future.
With more than 30 million monthly active users, MetaMask is a popular Ethereum wallet and browser extension that can be used on Google Chrome, Brave, Edge, and Firefox. It connects an internet browser to Ethereum’s blockchain, allowing users to store their keys and make transactions with exchanges and on decentralised apps (dApps), such as decentralised finance protocols or crypto games.
In a September 5th post on X — formerly Twitter — MetaMask said users with crypto wallets connected to the platform’s portfolio decentralised application would be able to cash out ETH and send fiat to their bank accounts in the United States, United Kingdom, and parts of Europe.
"Ensuring a way for users to enter and exit crypto freely is important," the company said.
There are four known crypto-fiat off-ramps that MetaMask is working with, including MoonPay, Transak, Sardine and Banxa. Each of these services will offer real-time quotes to users who’d like to sell Eth. Once a user selects their provider, they’ll be redirected to its website, where they’ll have to link their bank account. After the transaction is confirmed in a user’s MetaMask wallet, funds will be available in the linked account within a few days.
Just last month, MetaMask launched an optimised Apple Pay option in partnership with fiat-to-crypto onramp and fintech firm Banxa. The sell feature comes roughly five months after MetaMask launched a function allowing users to purchase cryptocurrencies using fiat from bank accounts, PayPal, and debit and credit cards.
Buy ETH now on BTC Markets.
SBI expands Ripple remittance tech to banks in Vietnam, Indonesia, Philippines.
Japanese financial holding company SBI Group has announced that its international remittance services arm, SBI Remit, has partnered with Ripple and SBI Ripple Asia to offer an XRP remittance service to bank accounts in several Southeast Asian countries.
In an announcement, the company highlighted that SBI Remit has been using Ripple payments services for international remittances since 2017. Furthermore, SBI Remit also introduced solutions using crypto in 2021, claiming that it was the first in Japan to provide remittance services using XRP to crypto wallets in the Philippines.
With the new update, the payment technology service will be expanded to bank accounts in the Philippines, Vietnam and Indonesia. Through the program, SBI Remit will use XRP as a bridge currency to allow fast and cost-effective remittances.
According to the announcement, SBI expects adoption to accelerate, as the volume of remittances to bank accounts in the countries mentioned above is high. Meanwhile, SBI also highlighted that it partnered with the cross-border payment solutions company Tranglo to make the expansion possible.
SBI did not mention an exact date for when the service will be available, but the company highlighted that it will be rolled out within this month.
Buy XRP now on BTC Markets.
Visa to send stablecoin USDC over Solana to help pay vendors in crypto.
The native token of the Solana blockchain jumped Tuesday after Visa announced it will expand its stablecoin capabilities to the Ethereum alternative. At one point it rose as much as 6%.
The move came after Visa announced it will introduce settlement of the USDC stablecoin over the Solana network. The payments giant said in a statement that the development could help:
“improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury.”
The announcement follows the launch of PayPal’s company-branded stablecoin, PayPal USD. The company said the function of PayPal USD is to reduce friction for in-experience payments in virtual settings and allow direct flows to developers.
Visa has been experimenting with USDC, the second-largest stablecoin in the market, since 2021, exploring how it could be used inside its treasury operations to make currency conversion in cross-border payments shorter and cheaper.
SOL is currently trading at AU$30.74.
Australia’s crypto bill rejected by the Senate.
Australia's digital asset landscape is in a state of flux, marked by the recent rejection of the Digital Assets (Market Regulation) Bill 2023 (Bill), by the Australian Senate Committee on Economics Legislation (Committee). This setback signifies a critical juncture in Australia's quest to establish a regulatory framework for digital assets. While hurdles were encountered, and approval remained elusive, the push back has ignited a broader conversation involving government, private sector stakeholders, and the community about the importance of embracing digital assets.
The Department of the Treasury, as the primary economic advisor to the Australian Government, leads this effort, fostering a diverse range of ideas and perspectives. Earlier this year, Senator Andrew Bragg introduced a comprehensive private member’s bill proposing reforms for the cryptocurrency sector. These reforms encompassed a wide-ranging framework covering digital asset exchanges, custody services, stablecoin issuance, and mandatory monitoring/reporting related to specific offshore central bank digital currencies (CBDCs). The framework was detailed in the Bill, and subsequently referred to the Committee for examination.
When the Committee released its findings, it ultimately recommended that the Bill not be passed. Instead, they suggested that the Australian Government engage in continued consultation with the crypto industry to formulate more appropriate digital asset regulations for Australia. This outcome had been widely anticipated within the industry, as the reforms were expected to align with Treasury's ongoing token mapping exercise, the results of which are still pending.
BTC Markets contributed to the above conversation* and submitted commentary to the Australian government during the recent senate hearing on the Bill. We recognise that progress in regulatory matters is not always a linear journey. The Bill's rejection prompts a re-evaluation of our regulatory approach, offering an opportunity to refine and enhance the framework.
The rejection of the bill has not dampened the enthusiasm of the Australian digital asset industry. The community remains actively engaged in advocating for appropriate and proportionate regulation, shaping an environment that fosters innovation while safeguarding security and consumer protection.
At BTC Markets, we recognise the significance of regulation in this industry. In response to the evolving regulatory landscape, our CEO, Caroline Bowler will be exploring alternative, offshore regulatory options in Q4 of this year, ensuring that we can continue to provide a secure and compliant platform for our clients.
While the outcome of the cryptocurrency bill may be disappointing, it is but a chapter in Australia's ongoing journey toward a regulated digital asset landscape. Progress is evident, and the ongoing dialogue surrounding regulation and innovation remains vibrant. Australia's unique position and its ability to adapt and learn from global experiences position it for a promising and secure future in the digital asset space.
*View the Hansard report.
Beware the promise of sky-high returns on your investment.
The world of cryptocurrencies has been a game-changer in the financial landscape, offering exciting opportunities for investors. However, like any promising venture, it has attracted the attention of scammers who prey on the unwary. One common scam that has emerged in the crypto space is the promise of sky-high investment returns. In this section, we'll shed light on the dangers of falling for investment schemes that guarantee astronomical profits overnight.
The temptation of guaranteed returns.
Who wouldn't want to double or triple their investments in a matter of days? The allure of guaranteed high returns is a powerful magnet that often lures victims into investment scams. These scams are usually meticulously designed with elaborate websites or apps, complete with enticing visuals and persuasive marketing pitches.
The scammer's playbook:
- Too good to be true promises: Scammers will promise returns that are simply too good to be true. They claim to have found a secret formula or investment strategy that can multiply your crypto holdings overnight. Beware of phrases like "guaranteed profits" or "risk-free investments."
- Pressure tactics: To create a sense of urgency, scammers often employ pressure tactics. They might tell you that this incredible opportunity is available for a limited time only or that others are already profiting from it. They want you to make impulsive decisions without thinking them through.
- Lack of transparency: Legitimate investment platforms are transparent about the risks involved in trading and investing. Scammers, on the other hand, tend to omit or downplay the risks. They don't provide clear information about how your money will be invested or the technology behind their supposed "profit-generating" system.
- Fake testimonials: To gain your trust, scammers may use fabricated testimonials or reviews from supposed satisfied customers. These testimonials are often accompanied by stock photos of people who don't exist.
How to protect yourself:
- Scepticism is key: The first line of defence against investment scams is healthy scepticism. If an investment opportunity promises guaranteed, sky-high returns with no risk, it's likely a scam.
- Research: Before investing in anything, thoroughly research the platform or company. Look for reviews, ratings, and any negative feedback. Legitimate investments have a track record that you can verify.
- Consult with experts: If you're unsure about an investment opportunity, seek advice from financial experts or professionals who can provide an objective assessment.
- Ask questions: Don't be afraid to ask questions. Legitimate investment providers should be willing and able to answer your inquiries about their operations, strategies, and risks.
- Use trusted platforms: Stick to well-known and reputable cryptocurrency exchanges and investment platforms. These platforms are more likely to have security measures in place to protect your investments.
- Educate yourself: Understanding the basics of cryptocurrency and investment can go a long way in protecting yourself from scams. Knowledge is your best defence.
The promise of sky-high investment returns can be incredibly tempting, especially in the fast-paced world of cryptocurrencies. However, it's crucial to remember that all investments carry risk, and there are no guarantees of overnight wealth. Scammers take advantage of this desire for quick profits, but with vigilance, research, and a healthy dose of scepticism, you can protect yourself and your hard-earned crypto assets from falling victim to such scams. Always remember: if it sounds too good to be true, it probably is. ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.
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Prices are accurate as of 10:00 AM AEST, on 07/09/2023.