With Bitcoin currently setting an all-time record and turning simple Australian traders into multimillionaires, the time to invest in the once-feared cryptocurrency sector has never been right. Nonetheless, the sector is still the most volatile asset base and investors can lose millions of dollars in minutes. There are many things that you need to know including how to choose a crypto exchange. Choosing the wrong crypto exchange can easily lead you down a path of wasted efforts and distractions. Read on to learn how to choose the right crypto exchange.
Several cryptocurrency exchanges have suffered severe cyberattacks in the past, losing millions of dollars worth of coins in the process. For example, when you look at Australian crypto exchanges, you want to choose an exchange platform with an impressive security system and no history of violations. A legitimate Exchange website should start with HTTPS, and websites that start with HTTP should be avoided at first. Also, check to see if the retailer offers cold storage options, a two-factor authentication system, and active security surveillance programs.
2. Types of Coins Offered
Most crypto exchanges offer major digital currencies like Ethereum, Bitcoin, and Litecoin, but there are hundreds of other coins that you can invest in. If you want to invest in the lesser-known digital currencies, you may want to check that they are provided by the platform you choose.
3. Payment methods
Most exchange platforms offer their customers several payment options. Remember, you will need to buy your initial cryptocurrency with fiat money. Make sure 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 charge costly fees for deposits and withdrawals. In addition, the platform’s exchange rates should correspond to current market values.
4. User experience
What is the trader’s online trading platform like? Is it easy to use and responsive? While the complex trading features can be attractive to experienced traders, they can be confusing to beginners. An ideal platform should have several new features that they can update as they become familiar with the system. In addition, the platform should be compatible with desktop, Android and iOS devices.
A perfect exchange platform should be transparent about how customer information and security standards are stored. Additionally, the customer support system should respond to any concerns raised by customers.
Liquidity is the spread of the trading volume for certain assets on a platform. A platform with highly liquid assets makes faster transactions while minimizing the impact of price volatility. An ideal exchange platform with high liquidity offers locked-in prices that record the transaction time, even if the transaction is not settled immediately.
There are many reputable crypto exchange platforms in Australia and choosing the right one can determine your success in the crypto sector. Always consult experts before making any major investment decisions and weigh many factors when choosing a crypto exchange.