It is believed that one in five people possess cryptocurrency in Australia, with exchanges recording a significant trading volume regularly. The number of daily active users of crypto wallet apps has also increased significantly.
Australians are investing for several reasons, from portfolio diversification to increased value. Interestingly, digital currency is more prevalent among millennials, exceeding its ownership counterparts. The number of crypto exchanges in Australia like Swyftx is also noticeable, as the total size of the exchange industry is approximately 32.6 AUD$ at present.
If you have decided to invest and deal in digital currencies, you must first select the best cryptocurrency exchange. It is essential to find the best one because of trading, storing, and finding cryptocurrencies. Here are some tips to help you out.
Is the sign-up process easy?
Almost all cryptocurrency exchange platforms require you to sign-up or create an account before making transactions, but you should choose an exchange where it is easy to create an account. Even though you will be asked for details like your name, email, and password, it should not take more than a few minutes.
How soon can you begin trading?
Good exchange platforms allow you to trade once you have created, verified, and activated your account via email, ID, or phone number. They might not even ask you for approvals or upload documents, both of which are inconvenient and take a lot of time.
What is the initial deposit amount?
The initial deposit amount will vary from one crypto platform to the next. Still, it is advisable to opt for one where you can immediately deposit up to 50,000 AUD$ or Bitcoin to your exchange account. You might also want to check the payment methods available and if it suits your requirements or not.
What are their fiat rates?
Crypto platforms charge fees for trading, deposit/withdrawal, interest, borrowing, or liquidation. Exchanges charge fees because that is their primary source of revenue. The first thing you should look out for is their rates for fiat deposits and withdrawals. (Fiat is a legal tender authorized by the government to act as money, and in the case of Australia, it is AUD$). It is better if they do not charge any fees for fiat deposit/withdrawal while allowing you to deposit at least 100,000 AUD$ the first time.
Do they have high trading fees?
Exchanges usually decide trading fees after considering trading volume or the buying and selling activity. Some have high trading fees, while others have as low as 0.6%, with high volume discounts and no trading limits. Another thing you might consider is the spreads, which refers to the difference between the buying and selling prices of a cryptocurrency. Choosing an exchange with high spreads will decrease your profit margin and lead you to incur losses with every transaction.
How many cryptocurrencies do they support?
You might be trading in Bitcoin for now but might want to explore more options in the future, including Ethereum, Solana, Dogecoin, and Cardano. The exchange should offer you various options and support at least 280 assets and 312 digital currencies besides tokens and coins. That will save the hassle of finding a crypto exchange every time you invest in a new digital currency.
Do they have sufficient features?
Suppose you exchange cryptocurrency for goods, services, or other currencies. In that case, you might have to submit tax returns in Australia, so check if the platform lets you download and generate tax reports in Australian dollars. The platform should also have sufficient features that make your trading experience smoother, including live chat and phone support, demo mode, portfolio tracking, recurrent orders, and an advanced password security system.
You should select a cryptocurrency exchange platform such as Swyftx after thorough research. The suitable exchange will make your transactions effortless, quicker, and profitable while providing the highest level of security.