In the digital age, cryptocurrencies have become a popular investment option in Australia. Due to their increasing value, more and more people are looking to invest in digital currencies. In Australia, 1 in 5 people own some cryptocurrency.
One of the most important decisions you will make when investing in cryptos is which crypto exchange platform to use. Many different platforms are available, so it can be challenging to decide which one is best for you.
The following article will discuss tips for choosing the best Australian crypto exchange platform.
1) Decide What Type of Investor You Are
Are you a long-term investor or a day-trader? Depending on your investment strategy, different platforms might be better suited for you.
If you plan to hold cryptocurrencies for the long term, you will want to find a platform that offers low fees and secure storage. If you are a day-trader, on the other hand, you will need a platform that offers high liquidity and fast execution.
2) Consider the Fees
Around 16.7 per cent of the population owns a Bitcoin in Australia. It shows the high potential of the market in the country.
Crypto exchange platforms usually charge fees for their services. Each platform charges different fees for its services. Some platforms might charge a flat fee per trade, while others might take a percentage of the total amount traded.
a) Flat fee: A flat fee is a set amount you will be charged per trade, no matter how much you are trading. For example, if the flat fee is $0.25 and you make a trade worth $100, you will be charged $0.25.
b) Percentage of trade: A percentage of trade fee is based on a percentage of the total amount traded. For example, if the percentage fee is 0.25 per cent and you make a trade worth $100, you will be charged $0.25.
Ensure to compare the fees charged by different platforms before deciding. You should also consider whether the fees are worth it in terms of the features and services offered by the platform.
3) Look for a Platform with High Liquidity
Liquidity refers to how easily you can buy or sell an asset without affecting the asset’s price. A highly liquid asset can be bought or sold quickly and at a low cost.
Cryptocurrencies are still relatively new, so finding the best Australian crypto exchange with high liquidity is essential. It will ensure that you can buy and sell cryptocurrencies quickly and at a fair price.
To find out an exchange’s liquidity, you can look at its trading volume. The trading volume is the number of times an asset is bought and sold in a given period. The more the trading volume, the more liquid exchange is.
You can also look at an exchange’s order book. The order book lists all the buy and sells orders placed on an exchange. It will give an idea of how easy it is to buy or sell an asset.
An order book will have other details like:
-The size of the order
-The time it was placed
Crypto exchange platforms are something that you should consider when getting into cryptocurrency trading. These platforms will allow you to trade with other people in a secure and hassle-free manner.