No, you don't need to buy a whole bitcoin. Bitcoin is divisible to the eighth decimal place, allowing you to purchase fractions of a bitcoin, known as satoshis. One satoshi is 0.00000001 bitcoin.

Storing bitcoins in an exchange account carries risk. Exchanges can be vulnerable to hacks and other security breaches. It's generally recommended to transfer your bitcoins to a personal wallet where you control the private keys.

The choice between a hardware wallet and a software wallet depends on your needs. Hardware wallets offer enhanced security, as they store private keys offline. Software wallets are more convenient for daily transactions but are less secure as they are connected to the internet.

Multisig, short for multi-signature, is a security feature that requires multiple private keys to authorize a bitcoin transaction. It's akin to requiring multiple signatures on a cheque and enhances security by distributing trust among multiple parties.

Yes, it's legal to buy, sell, and hold bitcoin in Australia. However, there are regulatory requirements that need to be adhered to, especially around anti-money laundering (AML) and counter-terrorism financing (CTF).

Yes, the Australian Taxation Office (ATO) requires you to declare your bitcoin transactions. Bitcoin is considered an asset for tax purposes, and capital gains tax applies to any gains made upon disposal. Consult the ATO web site and your tax advisor for more information.

Not necessarily for each bitcoin, but it is recommended to use a new address for each transaction to enhance privacy and security. Most modern wallets automatically generate a new address for each transaction.

Custodial services hold and manage your bitcoins for you, while with non-custodial services, you have full control over your bitcoins and private keys. Custodial solutions are simpler but less secure, as you rely on a third party.

Non-custodial bitcoin is more secure because you have full control over your private keys, and thus your bitcoins. It reduces the risk of loss through third-party breaches or mismanagement.

If you lose your seed phrase and don't have a backup, it's unlikely you'll be able to recover your bitcoin. The seed phrase is critical for restoring access to your bitcoin wallet.

Yes, if you lose your seed phrase and someone else finds it, they can access and steal your bitcoins. It's crucial to store your seed phrase in a secure, offline location, and consider using additional security measures such as multisig wallets for enhanced protection.

Storing your seed phrase in a password manager carries risks. If the manager is compromised, your seed phrase could be exposed. It's safer to store it offline in a secure location.

It's not recommended to take a photo of your seed phrase with your phone. Photos can be hacked or inadvertently shared, compromising the security of your seed phrase.

Bitcoin uses a distributed ledger technology called blockchain, combined with cryptographic techniques, to ensure the integrity and security of transactions. Every transaction is verified and recorded on the blockchain, making it nearly impossible to alter.

No, bitcoin transactions are irreversible. Once a transaction is confirmed and added to the blockchain, it cannot be reversed. This underscores the importance of double-checking all transaction details.

Mining is the process by which new bitcoins are created and transactions are confirmed on the network. Miners use powerful computers to solve complex mathematical problems, validating transactions and ensuring network security.

Bitcoin's price is influenced by a variety of factors, including supply and demand, market sentiment, regulatory news, and technological advancements. Its decentralised nature means it can also be affected by geopolitical events.

Timing the market is challenging. It's advisable to research and understand market trends, but also consider long-term investment strategies rather than short-term speculation. Consider Dollar Cost Averaging (DCA) where you make set purchases regularly over time.

Bitcoin halvings are events where the reward for mining new blocks is halved, occurring approximately every four years. They reduce the rate at which new bitcoins are generated, influencing supply and potentially impacting price.