The cryptocurrency market has grown in popularity in recent years, opening up a slew of possibilities for traders to bet on market values. Significant elements fuelling the expansion of the cryptocurrency business include transparency or distributed ledger technology, and an increase in venture capital investments.
Many investors choose to trade cryptocurrency because of its high-volatility element. Trading crypto can provide considerably greater returns than traditional investments if one times the market correctly. It is not unusual for a cryptocurrency’s price to vary over 10% in a day.
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Bitcoin is the most popular cryptocurrency in the world and is a highly volatile asset. The volatility of Bitcoin is the price that its investors pay for its limited supply and lack of a central bank to control that supply.
How can one trade Bitcoin in NZ?
Bitcoin can be purchased or sold in many ways. This can be done through crypto exchanges, and a specific price can be chosen by an investor or over-the-counter brokers for a set price or in private deals.
When a Bitcoin is bought from a broker or exchange, funding is generally allowed using a bank transfer, a debit or a credit card, or an e-wallet like PayPal or POLI. The respective exchange/broker will deliver the coins to a BTC wallet after completion of the purchase.
There are numerous Bitcoin platforms to acquire Bitcoin in New Zealand.
- Easy Crypto is a simple way to trade various cryptocurrencies in NZ, straight to and from the user’s crypto wallet. It has 109 coins available, including Bitcoin, and charges fee in the range of 3%-3.5%.
- Binance is one of the world’s largest crypto exchanges and provides many services like crypto fixed income products, derivative products, including a gateway to purchasing Bitcoin locally.
- BitPrime is an NZ financial services provider to trade cryptos and is a crypto retailer. With BitPrime, users need to make their own crypto wallet first or nominate an address to deliver the cryptocurrency. It has more than 89 different coins, including Bitcoin, with fee dependent on payment methods.
Independent Reserve Exchange, LocalBitcoins, crypto/com are some of the other well-known platforms for Bitcoin trading.
NZ to explore CBDCs through public consultations
On 8 July, the RBNZ provided a blueprint in its statement that draws on previous work done in future approaches to payments in New Zealand.
The RBNZ will spend the upcoming months consulting the public on topics ranging from stablecoins to central bank digital currencies (CBDC).
Assistant Governor of the RBNZ, Christian Hawkesby, stated that the RBNZ, as a guardian bank, would make NZ’s cash and currency system more robust and stable. It will also look for ways to adapt to digital money and payments developments effectively.
He stated that the first meeting would present and look for comments on the broad ideas of money and cash stewardship and planned specific subjects would be discussed in subsequent meetings.
The possibility for a CBDC to function along with cash as government-backed money, challenges emerging from new electronic money forms such as crypto assets and how the cash system would need to evolve to continue to fulfil the demands of users will be explored in the future papers.