Even though cryptocurrency took a while to attract investors in Australia, it has its fair share now. According to statistics, around 9% of Australians had invested in Bitcoin in 2021. With 8% investors, Ethereum also attracted a lot of attention.
Buying, selling, and trading of coins is done on online services or platforms called cryptocurrency exchanges. In return for their services as an intermediary between buyers and sellers, these platforms charge transaction fees. To deal in digital currencies, you first have to goto website and create an account. After completing some procedures, you become eligible for trading.
However, a satisfactory experience depends upon selecting the best exchange service. Here are some key aspects to consider before selecting a crypto exchange website.
It should have a physical address:
Any reliable cryptocurrency exchange will have a physical address mentioned on its website. If there is an address available, you can be assured of its legitimacy. In case of a dispute related to investments, you will know how to contact them.
Check the “About us” section:
When you visit the trading platform’s website, there will be an “about us” section. You will probably find it at the bottom of the page. Click on it and read about its history, objectives and vision. You will find information on how the company began its journey and the team involved. Doing this research is essential as it will help you understand the platform and its functioning.
What about the charges?
Not all crypto exchanges charge the same fees. Some might have a higher deposit rate, while others charge low trading fees. You could make a price comparison to check who offers the best deal. Deposits, tradings and withdrawals are the three fees you should check out. The deposit and withdrawal charges for fiat might differ from those for crypto on the platform. Choosing a crypto service that asks for no additional deposit charges is best. However, there will always be mining fees involved with all transactions.
The service must offer a lot of features:
You know a crypto trading platform is good only when it offers many features. It would be best to check the number of cryptocurrencies available for transactions. Go with one that has more than 250+ currencies since you might need to explore as many options as possible while investing. Secondly, they should also have an online live chat and customer support system if you face a problem. Thirdly, the exchange should have a portfolio tracking feature that allows you to check your profit or loss percentage for your holdings. Lastly, if you are an amateur cryptocurrency trader, it will help significantly if the website has a demo mode. The demo would introduce you to the trading process and gain valuable market experience.
Is there a free account setup?
What is its spread factor?
A spread is a difference between cryptocurrencies’ buying and selling prices on a platform. The difference between the currency’s value and the ultimate price you buy and sell is called a spread fee. Some trading platforms charge higher spreads, resulting in decreased overall profits. Check the spread fee of exchange and compare it with others before making the final decision.
Thus, before you go to a website and get started with cryptocurrency trading, you must keep in mind these factors. Investing in crypto is beneficial and extremely rewarding, but you will be unable to do that without selecting the best and most efficient crypto exchange service.