In this article, you will learn about the cryptocurrency in Australia and the best crypto exchanges for Aussies, and how you should select one of them. Also, you will find the answer to your every query till the end.
Cryptocurrency in Australia: A Complete Walkthrough for Aussie Investors
Cryptocurrency is not promoted in a specific piece of land, and it's receiving an overwhelming reaction worldwide, and investors are shifting their business on it. In Australia, cryptocurrency is now a talk of every second person, and the government is considering it a legal currency.
For the new Aussie investors, cryptocurrency in Australia should be their favorite topic. There is a considerable margin of profit in this industry, and the best choice for Australia is government new announcements.
In this article, you will learn about the cryptocurrency market and best exchanges in Australia and how you should select one of them. Also, you will find the answer to your every query till the end.
Scope of Cryptocurrency in Australia
It would be wrong to say that the cryptocurrency market is only a few years old. The idea of shifting from a traditional financial system to a decentralized chain was considered in the 80s. However, developing the whole system was a tough nut to crack, and software engineers took almost 25 years to build a blockchain.
In 2008, Satoshi Nakamoto introduced the first Bitcoin white paper while the investors were unsure about it. But later on, in 2017, cryptocurrency started growing all over the world, including Australia. First, the Australian government didn't accept this due to fear of upcoming economic disasters. Later on, a complete crypto regulation developed in Australia, and people started investing in it. Today, massive traffic on crypto exchanges is from the Aussie countries.
Best Platforms for Crypto Trading in Australia
Since the introduction of cryptocurrency, many exchange platforms have existed to serve investors. However, only a few names perform best and make you wealthy with crypto trading. Here we listed the 5 best crypto exchange platforms available for Aussie Traders. Let's explore the benefit of each of them:
Swyftx: Best Overall
Swyftx positioned itself at the top of the list due to its incredible features for Australian traders. The platform has been registered on AUSTRAC and is located in Milton to serve the local community. The part that helps Swyftx stand out is the large number of cryptocurrencies listed on it and allows the conversion of fiat to cryptocurrency.
Another significant aspect of this exchange is competitive fees and a transparent pricing system. You don't have to pay for deposits/withdrawals and only be charged 0.6% for the trading. The average industry spread is 5.2%, while you have to pay between 0.2% to 0.8%.
The platform follows the AML and KYC policies to ensure the best security practices. However, you can quickly fill out the KYC form within 2 minutes because of transaction monitoring programs. Apart from that, 2-factor Authentication provides an extra layer of security. Considering all the above aspects, there is no exaggeration in saying the Swyftx is best of all.
Digital Surge: Best for Beginners
The second exchange in our list is Digital Surge, launched in 2017 and based in Brisbane, Australia. The founders of this platform, Josh Lehman and Dan Rutter want to provide excellent customer support and ease of use in crypto trading through Digital Surge. Because of its user-friendly features and easy-to-understand interface, beginners would never face difficulty while trading on it.
To purchase cryptocurrency for the first time on the platform, payment methods play a huge role. In the case of Digital Surge, you have the option to choose from OSKO, POLi, BPAY, and PayID. Moreover, you can purchase and trade-in 250+ cryptocurrencies, which is phenomenal for the new exchange.
The trading fee is not touching the sky and goes maximum to 0.5%. This is treated for the big investors as they can make more profit while paying less fee. However, it varies with the trading volume and even comes to 0.1% for small trades. Moreover, it is also connected with AUSTRAC, which confirms the AML and CTF policies for ultimate security.
Binance: Best Global Platform
In the past few years, when someone goes to Google to check the best cryptocurrency platform, the name they saw is none other than Binance. Although the company was launched in 2017, arrays of features make the incredible exchange—the best thing about Binance rich diversity of trading under one roof and expanding worldwide.
Binance has the highest number of cryptocurrencies available for trading, and it's the only platform that supports 42+ major fiat currencies. Its native coin, BNB, is the talk of the town among the investors because of its upgoing price charts. In addition, the company collaborated with a third party to ensure foolproof security of your digital assets.
Moreover, you can earn passive income through this platform by contributing to the liquidity pools. The gas fee on this platform is comparatively high, which is acceptable due to the above incredible features. Only a single hacking incident happened in 2019, but the company returned the user's assets from their pocket.
Coinbase: Biggest International Crypto Exchange
Coinbase was launched in 2012, and since then, it's growing worldwide due to its irresistible features. However, the aspect that makes it more authentic is being regulated by FinCEN as Money Service Business and having many other licenses because a friendly interface and jargon-free language make it an excellent choice for beginner traders.
Although there is not a long list of cryptocurrencies on the platform, you will get the cream of the crop. Such a low number is that Coinbase has a strict Digital Asset Framework to add new cryptocurrencies to the list. Moreover, you can deposit your fiat currency through many payment methods, including wire transfer, bank transfer, and credit cards.
The platform would charge a 1.49% to 3.99% fee on your crypto trading, which is slightly high. But if we consider its top-notch security and other amazing features, high prices can be neglected. Apart from 2FA for security, the platform uses cold storage for your digital assets to avoid hacking incidents.
eToro: Best for CFD Crypto Trading
eToro is not only a crypto trading platform, but offers you to trade in CFDs, stocks, ETFs, and many more. The platform was founded in 2006, and the goal was to provide easy access to any kind of trading, including crypto. Although it's not specifically for cryptocurrencies, the available coins listed on the platform are more than 90.
The amazing feature of eToro is copy-trading, and you can follow the tactics of experts to earn more profit. Apart from that, you will be given with virtual currency of $100,000 to practice different techniques as a beginner. Moreover, the aspects like 2FA, SSL encryption, and cold storage show that it's one of the most secure exchanges.
eToro has been licensed by the Australian Securities Investment Commission for thorough regulations. They have both the support tickets and live chat to solve the customer queries. The unique thing about the eToro is daily charges rather than transaction base. We recommend to check eToro Australia review for more information.
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Types of Crypto Exchange in Australia
When we hear the word 'exchange,' it doesn't mean crypto trading. The exchange platforms have many other options. There are four significant types of exchanges in Australia, depending on the use cases. Here is the brief of all these four:
Crypto Exchange for Trading
This is the most common type; you heard many times in a trading journey. It's majorly for crypto trading, and no other function is available. You can purchase, stake, and trade cryptocurrency through these platforms by choosing the effective trading pair. Some of these have options beyond simple trading like margin trading on eToro. However, being user-friendly is an important aspect for beginners while selecting one from the piles.
The crypto brokerage services are specifically for beginners new in the trading industry and looking for some experience. They can easily convert their fiat currency into crypto assets through these platforms within a few clicks. Moreover, the methods are not so complex and don't demand too much information. The perfect example is CoinSpot.
Crypto CFD Provider
The CFD provider allows you to copy the exact strategy of the experienced traders and apply it for yourself. This feature is perfect for beginners, and the chances of loss are low. It's not illegal as such platforms give incentives to experts for their strategies. eToro is the perfect example of such exchanges.
Future & Derivatives Crypto Exchanges
Derivatives are the future of crypto trading, where investors can purchase or sell contracts at a fixed price. The working phenomenon is freezing the coin price in a volatile environment at one state. Although it's not implemented entirely on all platforms, some started practicing it.
How to Choose a Cryptocurrency Platform?
Before investing in any platform, make sure whether it's worth choosing or not. To simplify the selection process, we mentioned five features to confirm the credibility of the exchange.
Ease of Use
The difference between different crypto platforms is their services and functions. Many websites are specifically for beginners with a sophisticated interface and easy-to-use operations.
So, if you are looking to invest your hard-earned money on any platform, have a look at the interface. On the landing page, you will check the user-friendliness and make sure everything is understandable.
It's critical to know about the crypto coins you want to purchase after joining the platform. More than 4000 altcoins are circulating in the market, and they are not available on a single platform. So, try to choose the exchange with at least all major cryptocurrencies. But also make sure that you can pick any other option if you want in the future. So, the crypto platform with more cryptocurrencies available is the best choice to go with.
Exchange Rates & Trading Fees
Another important aspect to check before finalizing the platform is the transaction fee. Ensure that the company has no hidden fees and all prices are listed on the website. Most of the exchanges have a high gas fee and other charges. Choosing these platforms is not a sensible decision, and the best option is to go with low-fee exchanges that provide maximum features.
Security should be your first concern in digital space because everything is online, and any incident is expected. But if the platform ensures the best security, it gives peace of mind to investors. Here are some factors that are critical in deciding the quality of security.
- Supports 2-factor Authentication
- Fully secured private keys
- Digital assets in the cold storage
- Notifications on every account activity
- Proof of reserve and regular audits
It doesn't seem like an important factor, but you will go to the exchange's customer support for many issues. So before selecting the platform, ask some questions and find their answers on the exchange website.
- How many ways to communicate with them?
- Is the live chat option available?
- How long do they take to respond to your emails?
- Can they help customers in their native languages?
- Are they available 24/7 on business days?
How to Buy Crypto Coins in Australia?
Purchasing the first cryptocurrency in Australia is not a tough nut to crack, and you just need to remember the following four steps.
Step 1: Choose the Right Platform
First of all, you need to select the right platform. Then, compare the above exchanges and go with your best option. We recommend Digital Surge if you are a beginner.
Step 2: Setup an Account
The next step is creating an account on your selected exchange. It's not a tricky thing, and you just need to provide some basic information, and your account will be created. After signing up, you have to fill KYC form for security purposes.
Step 3: Fund Your Account with AUD
Because it's your first time on any crypto exchange platform, you need to buy digital assets with fiat currency. After purchase, you can trade them with any other cryptocurrency. Every platform has different payment options. But most of them allow purchase through credit card, so it's not a big deal.
Step 4: Purchase Cryptocurrency
Once your account has been funded, you need to choose a cryptocurrency of your choice. After selecting the coin and the amount you want to purchase, the estimated price in AUD will appear on the screen. If everything is okay, you can hit the buy button and it's all done. You have successfully purchased your first cryptocurrency.
Cryptocurrency Regulations in Australia
At the start of cryptocurrency, the Australian government applied double taxation under the GST, and investors had to pay tax when purchasing and spending. Later on, the new bill passed, and digital assets were now subjected to Capital Gains Tax.
Moreover, the Counter-Terrorism Financing Amendment Act and Anti-Money Laundering approve cryptocurrency legal and real-world assets. Today, Aussies use crypto for daily life payments, and different organizations integrate digital assets as payment methods. It's a sign of a country's development and rise of economic value globally.
Pros & Cons of Cryptocurrency
- You can earn high rewards in a short interval of time due to the volatile feature
- Crypto coins build on blockchain are highly secure
- No need to pay high fees to banks and transfer money through decentralized platforms
- The next big investing market in the worldwide
- You can trade any hour of the day
- The payment for daily life purchases is also possible
- Some governments still didn't accept it
- Chances of hacking are very high
- The real-world use is still limited
Should you invest in cryptocurrency?
If we give a straightforward answer to this question, then yes. Although many risks are involved while investing in this market, it's the only way to touch the sky within a few months. Apart from that, it's the only way to get out of trouble with banks and traditional transaction methods.
Where to store cryptocurrencies in Australia?
You can store digital assets on the platform's original wallets. However, separate crypto wallets are also available, designed for this purpose. Cold wallets are the best option for ultimate security, but you can pick hot wallets if you want free access.
How to Invest in Crypto in Australia?
Investing in crypto doesn't involve any rocket science, and you just need to pick any exchange, deposit funds, and purchase cryptocurrency. Then you can do different things with those coins, like staking or reselling.
In the era of fast-paced technology, if you don't align your business and investments with new market trends, you are missing a lot. Cryptocurrency is the hype of the 21st century, and people are calling it a future of transactions and investments. However, if we consider specifically Australia, there is a lot of potential in this market. The Aussies are taking it more seriously, and the industry is expanding day by day.