How to Choose A Bitcoin Exchange in Australia?
What is Bitcoin exchange and how does it work? A Bitcoin exchange is a service that functions as an intermediary between users and cryptocurrency markets,.
What is Bitcoin exchange and how does it work?
A Bitcoin exchange is a service that functions as an intermediary between users and cryptocurrency markets, allowing them to buy and sell Bitcoin and hundreds of other digital assets, just like CFDs (Contracts For Difference) between cryptocurrency pairs.
These markets are offered to people through these companies that are in charge of preparing decent platforms with all the necessary tools so that the user has a satisfactory experience in their investments.
The Bitcoin exchange began to appear years after the creation of Bitcoin itself, at the time when new cryptocurrency projects and independent tokens emerged that went on sale in their respective ICOs (Initial Coin Offering) and obtained a quote, thus creating with over time (and among many other projects) the cryptocurrency market.
These companies also allow cryptocurrencies to operate as pairs with fiat currencies such as USD, EUR, AUD and others, in addition to accepting deposits with credit / debit cards and bank wire transfers.
Most Bitcoin exchanges allow you to transform the balance available on the platform to cryptocurrencies and make withdrawals to another wallet or to your personal bank account, if you prefer fiat withdrawals.
For example; if you are using a Bitcoin exchange in Australia and would like to receive your earnings in AUD, the platform recognizes your withdrawal petition and sends the money to your bank account after requesting it.
If you want a BTC withdrawal, you can receive your tokens in a personal wallet and keep them for hodling or you can also sell Bitcoin in Australia, as it is completely legal.
What to consider when choosing the Bitcoin exchange?
Before depositing our money to any Bitcoin exchange in Australia or any country, we must ensure that we are choosing the best possible service. We will know this by analyzing the properties and capabilities of each exchange company to determine if it is worth our trust.
Due to the fact that these platforms move huge amounts of money they are frequently targeted by phishing and cyber attacks. Criminals will take advantage of any type of vulnerability or system failure to access significant amounts of money belonging to users and withdraw them between different wallets.
For this reason, trustworthy exchange companies decide to encrypt their systems using complex security protocols and keep most of the funds in cold storage (offline storage), which prevents anyone from accessing these funds without authorization.
Another important aspect is 2FA (2-factor authentication), a security protocol that verifies if the person behind the login is really the user by sending a verification code to their mobile device and email, which will have to be entered to the system to access the account.
It is logical that we look for a Bitcoin exchange built on recent technologies and the platform is programmed to respond to every request made by a user. It will depend on this aspect that our actions within the exchange can be carried out successfully.
Each Bitcoin exchange has to be fair to its users, this includes the internal policies of the platform and the company in general terms.
Let’s also remember that there are many fraudulent exchange platforms that scam their users through requests such as deposit minimums and use the money invested for other purposes, which begins to trigger problems when users make a withdrawal.
We recommend using regulated exchange services because you can count on your money to be safe. If a Bitcoin exchange is regulated, you can be sure that they will not be able to commit fraudulent maneuvers, improperly take advantage of users’ investment or manipulate prices at will.
Generally, we can know if an exchange company is regulated by whether it asks for KYC (Know Your Customer) verifications in order to operate on its platform.
In addition, we also recommend using a Bitcoin exchange that can support users in the event of a security breach since the blame does not fall on the users (logically).
Bitcoin exchanges receive profits through trading fees and spread with which they establish market prices. This means that a percentage will be taken from each transaction and for each contract you buy, they will receive a small part. You might as well choose an exchange with low fees.
The exchange platform that we are going to use must be smooth and easy to use, which means that we should not go through bugs or difficulties when placing an order or canceling it. We also need to be able to understand the interface and familiarize ourselves with the options, in order to be able to play a good role in our experience.
Where to buy Bitcoin in Australia?
You can buy or sell Bitcoin in Australia using an exchange company that meets the requirements you are looking to create an account, buy the BTC tokens from friends or family who are interested in exchanging them or simply buy BTC from a Bitcoin ATM in Australia. These devices process your transaction and allow cash and card purchases to then send the equivalent amount in BTC to a wallet that you must specify.
If you are looking to get the best crypto exchange in Australia that means you’re looking for a transparent option that allows you to directly deposit in AUD and buy tokens to your preference, so it is recommended that you use a local platform like Easy Crypto Australia.
Easy Crypto is an exchange service for Bitcoin and many other cryptocurrencies that will allow you to make purchases in AUD and/or other cryptocurrencies, as long as there is a wallet for it.
This service also allows bank wire transfers and will ask you to go through a KYC verification before you can buy or sell digital assets on the platform.
Signing in is very easy and the platform has a friendly interface that will allow you to explore every inch of it so you can get used to how the options work.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated August 29, 2022