Cryptocurrency Exchanges

Cryptocurrency Exchanges are online platforms that facilitate the trading of cryptocurrencies for other assets such as digital and fiat currencies. Cryptocurrency exchanges can be both centralised and decentralised. For instance, you can use these changes to trade one cryptocurrency for another. E.g. converting Bitcoin to Ethereum, and vice versa. Additionally, you would be able to buy cryptocurrency such as BTC using a regular currency such as AUD or the U.S. Dollar. Here, the exchanges will reflect all current live market prices on all the cryptocurrencies they are offering, as well as foreign exchange rates. If a user is satisfied with their profits on their cryptocurrency holdings, they can always be converted back into a fiat such as the AUD on the exchange, which can then be withdrawn to the users bank account.

When choosing an exchange, location is important as it may disallow the buying and selling of cryptocurrencies on certain exchanges due to regulations in the given country. There is much regulation requirements, such as KYC for those signing up to centralised exchanges. Security is also of utmost importance, as cryptocurrency holdings aren’t protected in the same way as money is by a bank, as there are no central institutions backing them. Users should always ensure exchanges have insurance policies to protect their digital assets being held in the exchange. Fees and liquidity are also important. If you play to buy, sell, or trade your cryptocurrency, you should always ensure the exchange has enough trade volume to allow your digital asset holdings to be relatively liquid. You also want to ensure you pick an exchange that has lower fees, thus when trading you won’t be being charged unnecessary amounts that eat into your profits.

Cryptocurrency has become increasingly popular throughout Australia, which has led to many different cryptocurrency exchanges to choose from. The most popular Australian exchanges are Digital Surge, Swytftx and Coinspot. Digital surge is great for those starting out in cryptocurrency as it has really low fees and spreads, as well as being safe and legitimate as it is registered with both ASIC and AUSTRAC. Users can access over 300 different cryptocurrencies that can be purchased directly with AUD. Swyftx is great for both beginners and advanced traders. It includes an interface that is simple and easy to use, low fees, a live help chat, demo mode as well as staking that allows users to earn interest on their cryptocurrency holdings. Coinspot has over 2.5 million users, having the largest amount of transactions of all cryptocurrency exchanges in the country. It’s very easy to use, and they offer over 350 different cryptocurrencies, the largest range of any Australian exchanges. They also offer staking on 22 coins.