With Bitcoin currently setting an all-time high record and turning simple Australian traders into multi-millionaires in the process, the timing to invest in the once dreaded cryptocurrency sector has never been this right. Nonetheless, the sector is still the most volatile asset base, and investors can lose millions of dollars in a matter of minutes. There are many things you need to know, among them how to choose a crypto exchange. Picking the wrong crypto exchange can easily lead you down a path full of wasted effort and distractions. Read on to learn how to choose the right crypto exchange.
1. Security
Several cryptocurrency exchange platforms have come under severe cyber-attacks in the past and have lost millions worth of coins in the process. For instance, when looking at Australian crypto exchanges, you want to pick an exchange platform with a formidable security system and no history of breaches. A legitimate exchange website should start with HTTPS, and sites starting with HTTP should be avoided, for starters. Additionally, check if the merchant offers cold storage options, a two-factor authentication system, and active security auditing programs.
2. Types of coins offered
Most crypto exchanges provide major digital currencies, such as Ethereum, Bitcoin, and Litecoin, but there are hundreds of other coins that you can invest in. If you want to invest in the less-known digital currencies, you may want to check if they are provided by the platform you choose.
3. Payment methods
Most exchange platforms offer multiple payment options to their customers. Remember, you will have to purchase your initial cryptocurrency using fiat money. Ensure that your preferred exchange platform offers convenient payment options, including bank transfers and credit cards. This is also an ideal time to look at their fee structure as some companies have costly charges on deposits and withdrawals. Additionally, the platform’s exchange rates should match the current market values.
4. User experience
How is the merchant’s online trading platform? Is it easy to use and responsive? While the complex trading features may be appealing to experienced traders, they can be confusing for beginners. An ideal platform should have distinct features for beginners who can upgrade them as they get acquainted with the system. In addition, the platform should be compatible with desktop, android, and iOS devices.
5. Transparency
A perfect exchange platform should be transparent on how it stores customer’s information and its safety standards. Additionally, its customer support system should be responsive to any concerns raised by clients.
6. Liquidity
Liquidity is the range of trading volume on certain assets on a platform. A platform with highly liquid assets conducts faster transactions while minimizing the effects of price volatility. An ideal exchange platform with high liquidity offers locked-in prices that record the transaction time even if the transaction doesn’t settle immediately.
Endnote
There are many reputable crypto exchange platforms in Australia, and choosing the right one can determine your success in the crypto sector. Always consult with experts before making crucial investment decisions and balance many factors when choosing a crypto exchange.