Trading crypto is becoming increasingly popular in Australia and around the world. With the rise in popularity of Bitcoin and other digital currencies, more and more people are looking to invest in this new asset class.
However, with so many cryptocurrency exchanges operating in Australia, knowing which one to choose can be challenging. Some factors to consider are mentioned below.
Security
Security is an imperative factor to consider when choosing a cryptocurrency exchange. Cryptocurrency exchanges hold large amounts of digital currency on behalf of their users, so they are a prime target for hackers.
There have been several hacks of cryptocurrency exchanges in recent years, so it is crucial to ensure that the exchange you choose has robust security measures.
Regulation
Another factor to consider when choosing a cryptocurrency exchange is regulation. In Australia, cryptocurrency exchanges are regulated by the Australian Securities and Investments Commission (ASIC).
ASIC is responsible for ensuring that exchanges comply with financial laws and regulations, and they also provide consumer protection.
When choosing an exchange, it is vital to ensure that ASIC regulates it. It will give you contentment knowing that the exchange is operating legally and that your funds are safe.
Fees
Most cryptocurrency exchanges charge fees for their services. When choosing an exchange, you should compare the fees charged by different exchanges to see which one is the most affordable.
Some exchanges charge flat fees, while others charge a percentage of the trade value. Some exchanges also offer discounts for trading more significant amounts of digital currency.
Payment Methods
Another factor to consider when choosing a cryptocurrency exchange is the supported payment methods. Some exchanges only accept bank transfers, while others also accept credit cards and other payment methods.
If you want to buy cryptocurrency with a credit card, you must find an exchange supporting this payment method. Otherwise, you will need to use another exchange or payment method.
Supported Currencies
When choosing a cryptocurrency exchange, you should check which digital currencies the exchange supports. Some exchanges only support a few digital currencies, while others support many different ones.
If there is a specific digital currency that you want to trade, you will need to find an exchange that supports it. Otherwise, you may need to use another exchange.
Trading Volume
The trading volume of an exchange is another crucial factor to consider. The trading volume is a measure of how much activity the exchange has.
Generally, exchanges with a higher trading volume will have more liquidity, which means buying and selling digital currencies will be more accessible.
Order Types
Some cryptocurrency exchanges only support basic order types, while others also support advanced ones. If you are experienced, you may want to find an exchange that supports advanced order types to take advantage of them.
Customer Support
If you encounter problems when using a cryptocurrency exchange, you must rely on customer support to resolve them. When choosing an exchange, you should check to see what kind of customer support is available and how responsive it is.
Ideally, you must choose an exchange with 24/7 customer support to get help whenever needed.
Benefits of trading cryptocurrencies
Cryptocurrencies are decentralised
A significant benefit of trading crypto is that they are decentralised, meaning that there is no central authority that controls them. Instead, they are managed by a global network of computers that run the blockchain.
Cryptocurrencies are global
Another benefit of cryptocurrencies is that they are global. Unlike fiat currencies, which are only accepted in certain countries, traders can use cryptocurrencies worldwide.
Cryptocurrencies are secure
Cryptocurrencies are also very secure. They use cryptography to ensure that your transactions are secure and to prevent fraud.
Cryptocurrencies are private
Cryptocurrencies are also private. Unlike public bank accounts, cryptocurrency wallets are usually not linked to your real-world identity. It means that nobody can trace your transactions back to you.
Cryptocurrencies are fast
Cryptocurrency transactions are also speedy. They are usually confirmed within a few minutes, and the funds can be used immediately.