Copyright 2023 @ Cryptocurrency NZ
How to Invest in Cryptocurrency NZ
- Last updated: May 24, 2023
The safest, fastest, and easiest way to invest into Cryptocurrencies like Bitcoin, Ethereum and other cryptocurrency in New Zealand is through a Kiwi crypto retailer like Easy Crypto NZ or Binance NZ.
Disclaimer: All information, guides and recommendations below are based on our own research, preferences and experiences. You should always do preemptive research on anything you buy and on any financial service you use. None of this is to be interpreted as any form of financial advice.
What is Cryptocurrency Investing in NZ?
With Bitcoin becoming the best performing asset of the 2010‘s, it’s evident to us that this is the way of the future.
How to Invest in Cryptocurrency in NZ
Tip!
Cryptocurrency NZ strongly advises against keeping your Bitcoin or other assets on a cryptocurrency exchange like Binance NZ. Security risks are inherent, and safeguarding your digital assets in a private wallet ensures greater control and protection against potential vulnerabilities.
Setting Up a Cryptocurrency Wallet in NZ
Your cryptocurrency wallet is essentially your ‘bank account for crypto’; anyone in NZ can create and own a cryptocurrency wallet.
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Cryptocurrency NZ has a step-by-step cryptocurrency wallets guide to teach you everything you need to know.
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Cryptocurrency NZ recommend looking at using Exodus as your first cryptocurrency wallet. Below is more detail about Exodus Wallet.
Exodus Desktop
Purchase Cost: Free
Cloud Storage: No
Cold Storage: No
Cryptocurrency NZ Chooses Exodus as the best Bitcoin wallet for beginners due to its exceptional features. Being a free wallet, it offers an accessible entry point for newcomers. Additionally, Exodus provides great customer support.
Pros Of Exodus Wallet:
✔️ Built-in Exchange: Exodus offers the convenience of a built-in exchange, allowing users to easily trade between supported cryptocurrencies without leaving the wallet interface.
✔️ Good Customer Support: With responsive and helpful customer support, Exodus ensures that users receive assistance promptly, enhancing their overall wallet experience.
✔️ Easy Setup Process: Exodus boasts a user-friendly and straightforward setup process, making it an ideal choice for beginners entering the world of cryptocurrency.
Cons Of Exodus Wallet :
- ❌ Closed Source Software: The closed-source nature of Exodus’s software may raise concerns for security-conscious users, as they have limited visibility into the codebase and potential vulnerabilities.
- ❌ Lacks 2FA Security Protection: Unfortunately, Exodus currently lacks Two-Factor Authentication (2FA), which is an additional layer of security desired by some users to protect their accounts from unauthorized access.
Exodus is a user-friendly desktop and mobile wallet known for its straightforward interface and built-in exchange. With the ability to swap between over 250 cryptocurrencies, it offers great versatility for users. Beginners appreciate its simplicity and excellent customer support, making it an ideal entry point into the world of crypto.
However, more advanced users might find it lacking due to its closed-source nature, raising potential security concerns. Despite this, Exodus allows custom fee settings and ensures prompt transaction completion, adding to its appeal for users seeking cost-effective and efficient transactions.
How to Set up Exodus Wallet in NZ
Get a secure device to operate from
First, you need a to use a secure device, computer or phone to create a your NZ Exodus cryptocurrency wallet on.
Be aware that existing malware software on compromised devices can scrape crypto private keys from your device. You may want to consider buying a fresh device, resetting your existing device, or even better; buying a hardware wallet.
It’s always best practice to run a virus scanner such as MalwareBytes on your computer to help ensure your device is secure before creating a new NZ crypto wallet. It’s better to be safe than sorry, especially when storing thousands of NZD worth of Bitcoin.
Step 1: Download and launch Exodus wallet
For the desktop (PC) Exodus: head to the official Exodus website on your secure laptop or desktop PC and click on ‘download for desktop’ – https://www.exodus.com/download/
For the mobile (Android or IOS): Head to the official Exodus website and click on the App Store or Google Play links, alternatively you can search for Exodus wallet in your phone/tablet app store.
Note: Desktop wallets are generally safer, and we recommend Kiwis conduct the majority of their crypto operations from a computer instead of a phone which can be stolen easily. The desktop version of Exodus also offers more settings, such as the ‘developer tools’ for importing private keys.
Step 2: Backup your Exodus crypto wallet
When you launch your Exodus crypto wallet for the first time, you will be immediately prompted to backup your new wallet’s 12-word passphrase. We recommend taking extreme care in the back-up process and checking out our NZ crypto wallet recovery system guide, so you can understand the best methods to ensuring you can recover your wallet if anything goes wrong with your devices. I can also help you set this up if you need assistance.
Step 3: Configure Your Settings
Next it’s always a good idea to configure your crypto wallet settings to your personal preferences. I.e. do you want your portfolio displayed in USD or NZD? Do you prefer the light or dark mode interface? Would you like to enable face-ID authentication? And finally, which assets do you want to see on your portfolio page? I personally feel more comfortable with new software after I’ve explored the settings and configured them to my preferences.
Step 5: Receive Crypto
Now that you have backed up your wallet. securing it for the years to come, and configured your settings, the final step is to receive crypto to your new wallet – so you can have an account balance, to spent, trade and use your Bitcoin (BTC). As mentioned, your public key is the address you receive to.
Buying Cryptocurrency in New Zealand
Currently in New Zealand there are only two ways to purchase cryptocurrencies, through a centralized entity, or through peer-to-peer transactions (P2P).
To learn more about how to buy through a centralized entity, visit our guide on how to buy cryptocurrency in New Zealand.
For more information about P2P trading, visit our portal and guide here.
Easy Crypto NZ
Best Way to Buy Cryptocurrency For Beginners
Easy Crypto NZ is New Zealand’s most popular crypto retailer, making it safe, fast, and easy for Kiwis to buy and sell over 110+ cryptocurrencies in minutes – including Bitcoin, Ethereum, Monero, Dogecoin & XRP.
Here at Cryptocurrency NZ, we’ve used Easy Crypto without any issues for over 5 years.
They’ve helped mainline hundreds of thousands of New Zealanders into the cryptocurrency markets.
Easy Crypto is a reputable, reliable and Kiwi focused crypto retailer who without a doubt achieves their mission of making it safe, fast and easy for Kiwis to buy and sell Bitcoin and 160+ other coins in NZ.
EC typically provide rapid order speeds through their simple interface and are well suited to first time crypto investors.
Our biggest critique would be EC’s excessive compliance program, requiring users to jump through increasingly heavier identity and source of funds verification steps for users seeking to acquire privacy coins such as Monero (XMR).
For privacy focused users, non-KYC’ed options such as the NZ P2P Crypto Marketplace may be better suited.
Pros of Easy Crypto NZ
✔️ Beginner friendly: Easy Crypto’s interface is well suited to first time or casual investors.
✔️ Near instant KYC: you can typically create an account, verify your ID and trade within minutes.
✔️ Non-custodial: crypto is sent directly to your own private wallet, Easy Crypto doesn’t store it for you.
✔️ Transparent fee structure: When you place an order, you can see the exact numbers of how much you’ll receive.
✔️ Local customer support: when you need help, EC provides high quality one-on-one assistance.
Cons of Easy Crypto NZ
❌ Limited features: day traders are better suited to live exchanges like Binance NZ or Kiwicoin
❌ Excessive compliance: You can’t buy privacy coins like Monero without proving the source of your funds.
❌ No on-site wallet: users must have a secure wallet already set up to buy and sell through Easy Crypto.
❌ Slippage: There’s sometimes a difference in prices between when you locked in your fees vs current prices.
❌ KYC: You have to verify your identity in order to actually buy or sell. This data is then passed on to the government.
Easy Crypto NZ is a homegrown, non-custodial crypto retailer with a strong reputation in the NZ crypto community.
They have a strong presence in the domestic crypto industry , sponsoring Cryptocurrency NZ’s meetups and are known to actively engage in New Zealand’s various community forums, groups and events.
Since launching in 2018, ECNZ has generated over 200,000+ users in New Zealand alone and has processed over 2 Billion NZD in order volume – securing their title as New Zealand’s crypto heavy weight.
Janine Grainger, EC’s co-founder and other members of EC’s exec team are active members in financial technology and blockchain lobbying bodies across NZ such as Blockchain NZ and Fintech NZ.
Pay It Now (PIN)
Best Way to Buy / Sell for NZD Users
Pay It Now – PIN is the largest crypto payment network in NZ, with 300+ Kiwi businesses already using their payment system. They have done an incredible job at simplifying the process of accepting Bitcoin or Ethereum.
Website: www.payitnow.io/
Cryptocurrency NZ has enthusiastically opted for Pay it Now (PIN), and for good reason.
With its New Zealand origins, PIN perfectly aligns with the local values that Cryptocurrency NZ holds dear. Unlike simple on/off ramps, PIN offers a holistic ecosystem that extends well beyond basic transaction facilitation. By bridging merchants with its extensive user base, PIN empowers businesses throughout New Zealand to effortlessly access the realm of crypto.
Pros Of Pay it Now (PIN)
✔️ PIN Scan Block Explorer: The dedicated block explorer, PIN Scan, enhances transparency by allowing users to easily track and monitor transactions on the PIN Network, fostering trust.
✔️ Wallet-Less Crypto Transactions with PIN Swap: The wallet-less connection process through PIN Swap offers a user-friendly and secure method for transferring crypto assets directly into users’ wallets, simplifying the interaction with smart contracts.
✔️ Point of Sale (PoS) Integration: The integration of PIN Payments with prominent Point of Sale providers like Sipo PoS, Todays Software, Lightspeed X, and Salespoint streamlines crypto payments for merchants, potentially increasing the adoption of cryptocurrencies.
✔️ In-App Functionality for Users: The PIN Network App’s user-centric features, such as in-app buying, bridging tokens, gas-less swaps, and instant peer-to-peer transactions, create a convenient and seamless experience for users engaging with digital assets.
✔️ Cross-Border Payments: The ability to send and receive digital currency instantly among PIN Network App users facilitates cross-border transactions, potentially reducing traditional financial barriers.
✔️ Staking and Rewards: The in-app staking functionality offers users the opportunity to earn staking rewards and bonuses, providing an additional incentive within the PIN ecosystem.
Cons of Pay it Now (PIN)
❌ Integration Challenges: While the PoS integration is designed to be user-friendly, potential integration challenges with different PoS providers might arise.
❌ Limited Cryptocurrency Compatibility: The availability of supported tokens for bridging and swapping might be limited, potentially limiting user choices.
❌ Security Considerations: Introducing wallet-less transactions and sensitive data handling within the app necessitates robust security measures to protect user assets and information.
❌ Regulatory Challenges: The integration of cryptocurrencies and payment solutions could subject the project to regulatory scrutiny and compliance requirements in different jurisdictions.
PIN implements a fee structure that comprises two distinct types of fees. The first involves un-bridging transactions, in which a fee of 4% is applicable. However, it’s noteworthy that PIN doesn’t impose gas fees on its users. Instead, for bridge transactions, there’s a fixed fee of $0.40 USD, offering users a straightforward and predictable cost for their transactions.
Binance NZ
Best Exchange for Advanced Traders
Binance, the world’s largest crypto exchange, is a highly popular platform for Kiwis interested in crypto trading in NZ.
Binance offers over 1400 trading pairs, such as NZD to BTC, with some of the lowest fees in the industry.
Here at Cryptocurrency NZ, we have used Binance for over 4 years without any issues.
Binance is the world’s largest crypto exchange, accounting for over 40% of the total crypto market’s trade volume. They have world class platform, access to liquidity, a plethora of coins to trade and are known to be reliable and secure.
They are however still a centralized exchange and the age old ‘not your keys, not your crypto’ still applies. We don’t recommend storing large amounts of coin long term on exchanges and instead recommend using a hardware wallet.
If you’re a day trader, looking to swing trade or practice technical analysis and chart drawing, Binance is very solid.
Pros of Binance NZ
✔️Plethora of coins: Humongous selection of cryptocurrencies available for trading.
✔️ Competitive Rates: Famously low trading fees, especially for high-volume traders and those who hold BNB.
✔️ SAFU Fund: Binance has a “SAFU’ fund to protect users in the event of a security breach or hack. Learn more.
✔️ Registered in NZ: Binance is a registered Financial Service Provider in NZ.
✔️ Advanced Features: Offers world class trading tools and charts.
✔️ IOS & Android: Mobile apps available for trading on-the-go.
Cons of Binance NZ
❌ Regulatory exposure: Ongoing regulatory scrutiny and potential for government restrictions.
❌Mixed Reviews: Some negative user reviews and complaints about poor customer service.
❌ High withdrawal fees: Withdrawing some coins can be higher than fifty dollars, depending on market prices.
❌ Customer Support: Limited customer support during high-traffic periods
❌ Centralized Exchange: Potential for hacking or security breaches.
❌ KYC: You have to verify your identity in order to buy or sell. This data is then passed on to the government.
Binance has has over 6,000 staff globally, and since registering in Zealand in September 2022 as a Financial Services Provider, they have invested heavily into marketing, complying with NZ regulations and developing an NZ based team.
Ben Rose, Binance’s CEO is a member on the Blockchain NZ council, and many of the Binance NZ team are public.
Binance is an international exchange, headed and founded by Changpeng Zhao (CZ), one of the most well known and trusted crypto developers and entrepreneurs in the world. Binance NZ is in it’s early days, but is gearing for the long haul.
Important!
When considering selling your Bitcoin on Binance NZ, users have two primary options for a seamless off-ramp. One approach involves transferring the cryptocurrency to another platform, such as Easy Crypto NZ, known for its NZD off-ramp capabilities. Alternatively, Binance NZ offers a peer-to-peer (P2P) system, providing a direct and secure method for selling cryptocurrency.
Cryptocurrency Investing Tips
Have a plan – Whether it be if you’re investing long or short term, having a certain gain or loss you must achieve before you exit, or a list of items you plan to spend your millions on. With no plan of attack, it can be easy to get caught up in watching your investments fluctuate. If your emotions override your decision making, you are likely to lose money.
Consider only investing in projects you actually believe have real value. This will introduce you to the spectrum of technical vs fundamental analysis and investing. Gold standards for these include BTC & ETH.
Don’t sweat the small stuff – It’s virtually guaranteed you’ll make mistakes, so make sure you learn from them and use them to your future advantage. Everyone starts off as an absolute crypto rookie.
Buy Low Sell High, not the other way around. Probably the most commonly occurring mistake in all time crypto history. Don’t be that guy.
You cannot “buy the dips” if you have all your money to invest already invested.
Bitcoin is the mother ship, but consider diversifying into alts. “You diversify to mitigate risk, and go all in to maximize gain”. Walk this fine line based on your unique preferences, circumstances and risk tolerance.
Remember to zoom out before making big moves – i.e converting all your BTC to Doge for the shits.
Store your crypto in your own wallet! See our NZ Cryptocurrency Wallets Guide here.
Take it easy on Shitcoins, when in doubt follow our NZ Shitcoin Investing Guide here.
You don’t have to take on crypto investing alone – there are local crypto advisors / mentors such as Crypto Consulting NZ.
Cryptocurrency NZ Meetups
Now that you’ve acquired some bitcoin, the best place to interact and talk crypto is on the ground floor of Cryptocurrency NZ Meetups.
These monthly gatherings, taking place on the last Wednesday of every month, offer an unregulated space for Kiwis across New Zealand to converge and delve into discussions about Bitcoin, Ethereum, various cryptocurrencies, financial liberty, NFTs, DAOS, and more. Proudly supported by notable entities like Easy Crypto NZ, Binance NZ, Blockchain NZ, Pay it Now, these meetups provide an invaluable opportunity to meet like-minded individuals, forge new connections, and gain insights from some of the most passionate crypto enthusiasts in the country.
Whether you’re seeking to expand your crypto knowledge or simply looking to enjoy a complimentary drink courtesy of NZ’s crypto titans, the Cryptocurrency NZ Meetups are the ideal setting for you. Explore this vibrant community and embrace the shared enthusiasm for crypto in NZ.
Short Term vs Long Term Investing
Cryptocurrency investing can prove profitable in both the short and long term. It’s helpful to make a plan detailing your investment life cycle, exit strategies, personal risk tolerance, and diversification preferences. 👍
Having a plan before investing is valuable as it empowers you with an extra element of control over your cryptocurrency investments.
What your personal plan looks like will vary depending on your goals amongst other previously mentioned factors.
Short Term Investing
Short term investing in the cryptocurrency realm is the buying of cryptocurrency with the intention of cashing out within 3 months or less (this could be weeks, days, or even minutes), at a higher price than what you it purchased at.
There’s many short term strategies out there, all with key variations depending on time frames, technical analysis abilities, profit or loss acceptances, excel spreadsheet skills, among other factors; however the one factor they all have in common is the goal of achieving a profit.
Popular short term investing strategies include:
- Dollar Cost Averaging (DCA) strategy
- Golden cross / Death cross strategy
- RSI divergence Strategy
Long Term Investing
Embracing a long-term investment approach has emerged as the favored strategy for realizing profits in the New Zealand cryptocurrency realm. This preference is driven by optimistic long-term price projections and the inherent simplicity of securely holding digital assets.
Investors find solace in the enduring potential of their crypto holdings, aligning with positive forecasts, while concurrently benefiting from the ease and security that long-term asset retention provides. As New Zealanders increasingly recognize the enduring value of cryptocurrencies, the practice of prolonged holding remains a cornerstone for those seeking sustained growth and stability in their investment portfolios.
Lets explore one strategy that has proven its worth… Dollar Cost Averaging.
Crypto Dollar Cost Averaging in NZ
Dollar cost averaging (DCA) is a cryptocurrency investment strategy where instead of investing 100% of your capital in one action off the bat, (a strategy which most beginners naturally practice), you split your investment into say 10 parts, and invest it over a specified period averaging out your buy in price. An example of Dollar Cost Averaging goes as follows;
You have $10,000 NZD to spend and you want to DCA over 10 weeks instead of going all in on one lump sum. You split your $10k into 10 partials of $1,000 NZD, and invest every Friday at the same time for 10 weeks in a row, thus averaging out your buy in price.
Crypto dollar cost averaging is a conservative, long-term investing strategy which can be customized to your preferences. Factors in your control include the amount you’re investing or if you DCA on a daily, weekly, or monthly basis. 🕒
Key benefits of the dollar cost averaging strategy:
Blind automation gives you a more optimal purchase price compared to trying to time the market and buying with a lump sum.
The strategy is stress and hassle free in comparison to actively trading and being stuck to your screen all day.
It takes a lot of the emotion out of cryptocurrency investing, as you’re not waiting for dips or trying to time the market.
Cryptocurrency NZ | Mastering Dollar-Cost Averaging (DCA)
Navigating the unpredictable realm of crypto poses challenges when it comes to timing the market. Dollar-cost averaging (DCA) emerges as a customized investment strategy.
Yield Farming
Now that you’re a proud crypto owner, did you know you can use it to earn you even more? I introduce you to staking & farming; an advanced feature of decentralized finance where you store your crypto in a wallet that earns you interest for just having it sit there.
Note: If you’re new to cryptocurrency, you don’t need to understand the following. It’s bonus info.
What is Yield Farming in NZ?
Yield farming is any efforts you make to put your crypto to work, in efforts to maximize the possible returns. This includes staking or adding liquidity.
Farming could entail moving coins around between different staking pools, or swapping cryptocurrencies to other ones that are currently earning more yield.
There are many aspects to farming. The decentralised finance side of crypto can be extremely confusing, so don’t be discouraged if you find it difficult.
What is Cryptocurrency Staking in NZ?
Staking is the act of putting your crypto into an external service to earn interest, such as the act of participating in the validation of transactions on a proof of stake blockchain. Similar to that of a cryptocurrency miner’s role on a proof of work blockchain (PoW), stakers lock up their funds in a decentralized network and receive a reward in exchange for providing capital; therefore ensuring the integrity, security, and continuity of the network.
Staking is an advanced topic in the cryptocurrency realm, comparative to loaning out your money and charging interest.
What is Liquidity Mining in NZ?
Liquidity mining is a type of yield farming where you put assets such as NZDD into a liquidity pool and earn additional tokens.
Liquidity pools consist of large amounts of coins locked in smart contracts, that provide liquidity to decentralised exchanges.
When someone makes an exchange through UniSwap, they are charged a 0.3% fee for that service, most of this fee is then proportionally paid out to you, the liquidity provider, based on your contribution to the liquidity reserves.
In essence, liquidity miners receive an incentive in the form of more coins, for providing liquidity, in addition to the gains they might receive from the tokens increasing in value.
How to Stake NZDD on Uniswap
Now you understand How to earn interest on your cryptocurrency lets dive into some starting areas you can explore yourself. To maximize your NZDD holdings stake them on Uniswap, a decentralized cryptocurrency exchange.
This step-by-step guide will walk you through the seamless process of contributing liquidity to the NZDD and USDC pair.
Visit the Uniswap Website: Head to the Uniswap website by typing “uniswap.org“
Navigate to the Pools Tab: Once on the Uniswap website, locate and click on the “Pools” tab. This is where you can manage liquidity pools.
Connect Your Wallet: Connect your MetaMask Wallet or other compatible browser wallet by clicking on the “Connect Wallet” button. Follow the prompts to complete the connection.
Click on “New Position”: Within the Pools section, find and click on the “New Position” or similar option, depending on the Uniswap interface.
Add NZDD and USDC Pair: In the process of creating a new position, select the NZDD and USDC pair. Note that USDC is typically the available stablecoin for liquidity pairing.
Add Your Liquidity: Input the amount of NZDD and USDC you want to contribute to the pool. This step helps to create a balanced pair for trading.
Approve the Contract via Wallet: After setting the liquidity amount, you will likely need to approve the contract. Confirm this action through your connected wallet, such as MetaMask, and follow any additional steps prompted by the wallet.
Yield Farming Risk
Engaging in yield farming involves financial risks for both borrowers and lenders. For instance, during periods of cryptocurrency market volatility, users may encounter losses and experience price slippage.
Potential Challenges for New Zealand Users in Yield Farming:
Impermanent Loss: In automated market makers (AMMs), impermanent loss arises due to the mechanism ensuring balanced liquidity between tokens in the pool. If token prices experience significant changes post-liquidity provision, the platform’s automated system may rebalance the pool by purchasing more of the cheaper tokens and selling the pricier ones. This realignment can lead to losses for farmers.
Smart Contract Vulnerabilities: DeFi protocols rely on smart contracts, and any flaws or vulnerabilities in the code can be exploited.
Fluctuating Yields: Yields are subject to change based on supply and demand dynamics, making it challenging to predict future rewards accurately. For instance, yields may diminish as more users contribute assets.
Price Volatility: The highly volatile nature of cryptocurrency prices can impact the value of rewards and deposited assets. If the token in which you earn rewards experiences a significant drop in value, your profits could be substantially diminished.
Cryptocurrency NZ Final Verdict
Cryptocurrency NZ believes that venturing into the world of cryptocurrencies is not just an investment opportunity but a transformative journey with immense potential. Even those starting with modest amounts of money, to delve into and explore various avenues within the crypto space. It serves as an open gateway to understanding the dynamic world of digital assets, offering a unique and exciting journey for enthusiasts.
We trust that this guide has proven beneficial to you in various aspects.
Cryptocurrency NZ is committed to an ongoing enhancement of this guide, incorporating additional information to empower the average New Zealander in making informed financial decisions, particularly regarding the choice to invest in cryptocurrency in NZ.