The first step to buying cryptocurrency is to find a good online exchange.
There are a number of elements that make up a good crypto exchange, and the best one for you will depend on your priorities and the type of trading you’re most interested in.
What to look for
Here are a few of the main factors to look out for when choosing a crypto exchange.
- Security: The security of your crypto exchange is critical. A poorly secured exchange could leave you vulnerable to losing your assets. When evaluating a potential exchange, check for security features like two factor authentication, biometric facial recognition, cold storage of funds offline and regularly updated multi-layered security.
- User interface: Some exchanges are more user friendly than others. If you’re starting out or just want to do some basic trading, opt for a simple interface that’s easy to use.
- Fees: There is a wide variation in different fees and charges between exchanges, and this includes hidden fees that are not always apparent from the start. Be wary of exchanges that say they charge no fees but instead use other methods to make money, like hidden currency conversion fees or listing their coins at higher prices than other exchanges.
- Spreads: The spread is the difference between the quoted buy and the sell price. The lower the spread the better when it comes to minimising your losses and fees.
- Customer support: The importance of customer support is often overlooked when people are choosing a crypto exchange, but it’s imperative especially if you’re new to crypto. Look for Australian-based customer support, transparency around fees and a commitment to educating customers on all things crypto.
- Instant trading: If you’re in Australia, it’s important to choose an exchange that offers free AUD deposits. This makes it easier to purchase, withdraw and deposit cryptocurrency. There will be a few set-up steps involved, but once you’re up and running, instant trading is easy and convenient.
- Coin selection: Whether you want an exchange that gives you access to a range of different cryptocurrencies or just one is a matter of preference, but make sure you take the coin selection into consideration when making your choice.
- Local vs international: As a general guide, you’re best off choosing an exchange that’s local to the country you’re in. This helps with regulatory changes, taxes and customer support among other things.
The right crypto exchange can make a big difference to your overall experience, so it’s worth shopping around and finding the right one depending on your trading needs. Take the time to do your homework now and it’ll pay off in the long run!
Photo by Austin Distel on Unsplash
