DCA
Dollar Cost Averaging into Bitcoin: A 3-Year Backtest
We backtested weekly DCA into BTC from 2022 to 2024. The results show why regular contributions often beat lump-sum investing in volatile markets.
Read guide →📖 8 min read
Strategies Explained
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Dollar Cost Averaging (DCA)
BeginnerBuy a fixed dollar amount of crypto on a regular schedule (weekly, fortnightly or monthly) regardless of price. DCA removes the emotion and timing pressure from investing by spreading purchases across different price points.
Advantages
- ✓No need to time the market
- ✓Reduces impact of volatility
- ✓Easy to automate on most Australian exchanges
- ✓Tax-efficient: each purchase has its own cost base
Disadvantages
- ✗May underperform lump-sum in strong bull markets
- ✗Requires discipline over long periods
Australian Tax Note: Each DCA purchase is a separate CGT acquisition event with its own cost base and holding period. Good record keeping is essential.
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Technical Analysis (TA)
IntermediateTechnical analysis uses price charts, volume data and indicators like RSI, MACD and moving averages to identify patterns and potential entry and exit points. It is most useful for timing trades rather than selecting assets.
Advantages
- ✓Can identify short-term opportunities
- ✓Useful for setting stop-loss levels
- ✓Widely used; large community and tools available
Disadvantages
- ✗Requires significant learning time
- ✗Not reliable as a standalone strategy
- ✗Crypto markets are influenced by sentiment that charts cannot capture
Australian Tax Note: Frequent trading triggered by TA signals means more CGT events. Active traders may be classified as carrying on a business, with different tax treatment.
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On-Chain Metrics Analysis
IntermediateOn-chain analysis looks at blockchain data: active addresses, exchange flows, whale movements, network hash rate and other metrics that reveal what participants are actually doing rather than just what prices are doing.
Advantages
- ✓Unique insight not available in traditional markets
- ✓Hard to manipulate
- ✓Useful for identifying accumulation and distribution phases
Disadvantages
- ✗Steep learning curve
- ✗Data interpretation is subjective
- ✗Requires access to analytics platforms (Glassnode, Nansen, etc.)
Australian Tax Note: Same CGT rules apply regardless of the analysis method used. On-chain tools do not create tax events; trades do.
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Portfolio Rebalancing
IntermediateSet target allocations (e.g. 60% BTC, 25% ETH, 15% altcoins) and periodically sell assets that have grown above target and buy those that have fallen below. Forces disciplined profit-taking and buying dips automatically.
Advantages
- ✓Enforces sell-high, buy-low discipline
- ✓Manages concentration risk
- ✓Can be automated via portfolio tools
Disadvantages
- ✗Each rebalancing trade is a CGT event
- ✗May trigger large tax bills if done frequently in up-markets
- ✗Requires clear documentation
Australian Tax Note: Rebalancing creates CGT events each time you sell an overweight asset. Consider the 12-month CGT discount before triggering sales. Rebalance less frequently to reduce tax complexity.
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Tax-Loss Harvesting
AdvancedSell underperforming assets at a loss to realise capital losses that can offset capital gains elsewhere in your portfolio. Common at the end of the financial year (June 30 in Australia). The wash-sale rule that applies in the US does not apply in Australia, but the ATO may apply Part IVA anti-avoidance provisions in extreme cases.
Advantages
- ✓Reduces net CGT liability
- ✓Legally effective in Australia
- ✓Can improve overall portfolio returns on an after-tax basis
Disadvantages
- ✗ATO may scrutinise arrangements that appear to exist purely for tax benefit
- ✗Need to re-enter positions at different prices
- ✗Resets cost base and holding period
Australian Tax Note: Capital losses can be applied against capital gains in the same financial year or carried forward to future years. They cannot be applied against ordinary income.
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Common Beginner Mistakes
Essential ReadingUnderstanding what not to do is as valuable as any strategy. These are the most common and costly errors made by Australian crypto investors.
Common Mistakes
- •FOMO buying at market peaks
- •No stop-loss or risk management plan
- •Leaving large holdings on exchanges (not your keys, not your crypto)
- •Ignoring CGT obligations and being surprised at tax time
- •Over-allocating to high-risk altcoins
- •Not keeping transaction records throughout the year
Australian Tax Note: Failing to declare crypto gains is a legal risk. The ATO receives data from Australian exchanges and matches it against tax returns. Voluntary disclosure is always preferable to an audit.
Australian Exchange Comparison
The best exchange for you depends on your trading style, volume and what coins you want to buy. Here is how the main options compare.
CoinSpot
Best for: Beginners & DCA
Fees: 0.1% maker/taker (instant buy: 1%)
Min deposit: $5 AUD
Coins: 370+
Founded: 2013
Strengths: Easiest AUD onramp. SMSF friendly. Largest Australian user base. Good for beginners and DCA buyers.
Watch out: Instant buy spread is high. OTC requires manual contact. Not ideal for active traders.
Swyftx
Best for: Intermediate traders
Fees: 0.6% spread (no maker/taker)
Min deposit: $5 AUD
Coins: 320+
Founded: 2018
Strengths: Clean interface. Good mobile app. Competitive for small to mid-size trades. Australian customer support.
Watch out: Spread-based pricing can be higher than limit order exchanges. Fewer advanced trading tools.
Independent Reserve
Best for: SMSF & large trades
Fees: 0.05% to 0.5% (volume tiered)
Min deposit: $10 AUD
Coins: 35+
Founded: 2013
Strengths: Institutional grade. SMSF specialist. OTC desk. Best for large AUD purchases. AUSTRAC registered since 2013.
Watch out: Smaller coin selection. Interface is functional but not polished. Not ideal for altcoin traders.
Kraken (AU)
Best for: Active traders & stakers
Fees: 0% to 0.26% maker/taker
Min deposit: Varies by asset
Coins: 200+
Founded: 2011 (US); AU operations 2020
Strengths: Very low fees for high-volume traders. Strong staking offering. Advanced order types. Excellent security record.
Watch out: AUD deposit/withdrawal more complex than local exchanges. Customer support slower than local competitors.
Fees and features change frequently. Always check the exchange website for current pricing before trading.
Trading Guides
Technical Analysis
RSI and MACD for Crypto: A Beginner's TA Guide
How to read the two most popular technical indicators and what they can and cannot tell you about crypto price direction.
Read guide →📖 10 min read
On-Chain
On-Chain Metrics Every Australian Crypto Investor Should Know
SOPR, exchange netflow, active addresses and the MVRV ratio. What they mean and where to find them for free.
Read guide →📖 11 min read
Rebalancing
Crypto Portfolio Rebalancing: How to Do It Tax-Efficiently in Australia
A step-by-step guide to rebalancing your portfolio while minimising CGT events. Includes worked examples for the Australian financial year.
Read guide →📖 9 min read
Tax
Tax-Loss Harvesting in Australia: What the ATO Allows
Australia does not have a wash-sale rule. Here is how to harvest losses legally and what anti-avoidance rules you need to be aware of.
Read guide →📖 12 min read
Beginner
10 Crypto Trading Mistakes That Cost Australian Investors Money
From FOMO to ignoring custody, these are the most costly and most common errors. Read this before making your next trade.
Read guide →📖 7 min read
Model Your Portfolio Allocation
Use our free calculator to plan BTC, ETH and altcoin allocations and see projected values at different growth scenarios.