Choosing the best cryptocurrency exchange is not easy. With tons of selections to begin with, if you are a beginner, that can be not very clear. However, that should never stop you from investing, especially that cryptocurrency is dominating the trading scene.
Whether you are a trader or an investor, it’s vital to know which cryptocurrency exchange is best by knowing each transaction’s ratings. Guided with factors such as trading fees, ease of use, trading features, and support are a few essential factors you should keep in mind.
How Do You Choose A Crypto Exchange In Australia
The cryptocurrency industry can be scary for beginners. However, going into the right place to trade, sell, or buy is vital. The process should allow you to learn and adapt quickly and must be of full convenience.
There are a few yet reliable and trusted sites for you to find the best crypto exchange with intensive research. You want to avoid a transfer that goes down to bankruptcy or potential risk from hackers. One of the most reliable platforms we’ve seen is instantbitex.com, and they have the core qualities needed for a secure system. The best crypto exchanges are still based on individual preference, availability on your region, security, etc.
There are essential factors to consider before you invest in the cryptocurrency exchange. With digital currency on the rise, it’s best to find the right trade. Looking for a safe and reputable exchange can save your digital investments.
8 Essential Factors On How To Choose The Right Cryptocurrency Exchange (Australia)
1. Availability In Your Region
Not all exchanges are available in your country or supported by your jurisdiction. It is due to the financial laws and regulations governed by the cryptocurrency market.
An excellent example of this one is, if you are residing in Australia, the exchange here accepts USD, NZD, and AUD deposits. However, you cannot deposit funds if you live in New Zealand even if NZD currency is taken.
To understand every country’s jurisdiction, you have to contact the exchange support team or check their FAQs to ensure the two essential things: if it supports deposit funds coming from your country and if the exchange accepts currency from local fiat.
2. Trading Fees
A competitive and low trading fee is also an essential factor to consider for every trader and investor. Keep in mind that high trading costs can eat local currency deposits by deducting the percentage off every time. The trading fee is applied for every transaction you make; buy, sell, or trade your cryptocurrency.
If left unchecked, this can lead to a considerable amount, especially for investors, since investors don’t hold assets for a longer time, unlike traders. Furthermore, checking spread fees must take into consideration as most exchanges don’t disclose hidden charges.
3. Reputation
Doing yourself a favor before signing up for any crypto exchange is as essential as investing in the cryptocurrency industry. Since cryptocurrency is still a new industry, security is still under solid construction.
Knowing which exchange has a solid foundation is crucial. You can search for every trade’s legitimacy and reputation by searching for its name on search engines like Google (add +SCAM), and it will reveal to you of any possible breach in the exchange lifetime.
Lastly, it’s not advisable to keep digital assets on your chosen exchange for a longer time. Your funds must be held to your possession via a hardware wallet, which works like a bank account.
4. Available Cryptocurrencies
The major cryptocurrency exchanges enable investors to sell, trade, or buy first coins like Ethereum, Bitcoin, Ripple, and Litecoin. You can check the available cryptocurrencies on every exchange site.
5. Security
The security measures implemented on the platform is vital. Since most exchanges have centralized nature, your funds are kept into the platform at a particular time, then the security of these platforms must be of extreme excellence.
You can check into the site what their security features are. The exchanges must offer:
- SSL Certificate
- Two-Factor Authentication
- Multi-Signature Authorizations When Withdrawing
- Option To Transfer Your Funds Directly To Your Hardware
- Wallet
- Cold Storage Wallet
6. Insurance Fund
Finding the right cryptocurrency exchange with an available insurance fund is crucial. This will keep you compensated in case of unwanted scenarios or specific circumstances that may affect your investments.
While not all crypto exchanges have insurance funds available, it’s an excellent factor to determine the reliability and credibility you want to invest your resources with.
7. Fiat Exchange Options
Fiat exchange options, availability, and compatibility are essential to every investor and traders. It will allow you to transfer your national or local currencies into the cryptocurrency world and trade, buy, sell, or cash out your industry profits.
Every crypto exchange has its sets of rules and fiat options for specific bank compatibility. It is necessary to check this option as it can affect your trading experience significantly to the compatible fiat currencies on your chosen exchange site.
8. Exchange Volume
The number of participants on every trading platform affects the number of assets available to trade, buy, or sell. It’s an essential factor that affects the user’s experience from entering to leaving their positions and the trading market value.
With a low-volume exchange in participants, it will be a challenge to trade or sell your assets at a higher price. It will force you to trade them beyond the minimum amount, leading to selling assets at the lowest offered amount the said exchange has to provide.
While it’s also a challenge for investors and traders to track real-time exchange volume, the process can be tricky and requires additional monitoring from previous order books coming from various crypto exchanges.
Checking third-party sites that provide the said data is possible. You can check OnChainFX, CoinMarketCap, and Coin360 among your options for the crypto exchange volume data. With these data present, it will be easier for you to determine the stability of a cryptocurrency exchange you’re eyeing.
Conclusion
As a newbie or experienced, understanding how the world of cryptocurrency works is essential. Doing a few research, checking forums, and feedback from various social media sites allows you to decide which exchange is reliable and safe.
Keeping these factors in mind to effectively find the right crypto exchange, you can have secured digital assets like Bitcoin, Ethereum, etc.
