You have to be living in a cave if you haven’t already witnessed how cryptos are reforming the meaning of ‘investments.’ After all, which investment tool provides such great returns in such a short span?
The great returns by Bitcoin in 2017 have been the turning point for the crypto industry as now, more than ever; we are experiencing new traders and beginner investors showing their active interest in investing in cryptocurrency.
But, how much of these investments are rewarding? And where do you get started? Continue reading as we walk you through the basics of crypto investments while suggesting some of the best crypto exchanges to get started in 2022.
Why Invest In Cryptos?
Investing in cryptos is far more beneficial than what many have an idea of! Listed below are some of the primary reasons why you should be investing in cryptos:
High Returns Potential
When investing in cryptocurrency in Australia, you get the chance to invest in an asset class that has a proven history of performing great returns. Interestingly, stats suggest that Bitcoin (BTC) has gained over 60%, following a 302.8 percent return in the last three years.
The great returns have made cryptos one of the primary reasons many Australians are behind in investing in them. Even though cryptos have a volatile nature and are more volatile than a traditional asset class like bonds and stocks, it is an ideal tool for speculative investors with a high-risk tolerance.
Great Option For Portfolio Diversification
Besides the other investment tools you have access to, cryptos are a great way to build your portfolio. It helps spread the risk factor in your folio and optimize the risk-return ratio. Certain equities have also presented negative correlations with certain coins in the past. This way, they also act as a safety measure for investing your money.
Store of Value
Many speculators and analysts in the market have suggested that Bitcoin, among other cryptos, be an alternative for gold as it helps store monetary value. In terms of an asset, gold has been the valuable go-to option for investors to invest their money against inflation, making it an issue in certain countries now. This is where BTC and other cryptos are considered the ‘haven’ for investors during macroeconomic turmoil.
High Staking Rewards
Crypto staking is nothing new! Traditionally, this process resembles the functioning of financial institutions where you earn interest in the return of your funds. In terms of crypto staking, some of your crypto funds are ‘locked up,’ allowing you to validate transactions over the Blockchain network and earn a profit from them.
However, what sets apart staking from saving is the high yields you get over FIAT deposits. For instance, some crypto exchanges provide returns as high as 7.7% per annum on crypto staking.
Growing Use Case Application
Finally, investing in cryptos allows you to get several benefits besides just the speculative ones. With more merchants now being able to accept crypto payments for their services, customers are provided with a chance to help the customers maintain a higher level of anonymity in comparison to FIAT.
Furthermore, with the increasing prominence of DeFi (Decentralized Finance), which is all set to revolutionize the traditional borrowing and lending processes, crypto is all set to go mainstream! You might be able to obtain a loan off your crypto savings in the years ahead.
Now that you understand the perks of investing in cryptos, you might wonder where to start your journey. Interestingly, you can’t simply access cryptos from a stock exchange; cryptos buying, selling, and trading are limited to a crypto exchange.
Further, since the market is already filled with hundreds of crypto exchanges, you might want to get your hands on the best Australian crypto exchange.
While we can’t pick out one platform to be ideal for every user, we have suggested a few tips to help you find the best crypto exchange for yourself in the following section.
How To Choose The Best Cryptocurrency Exchange for You
Selecting the best crypto exchange in Australia is a simple process if you understand what you’re looking for.
When curating a list of the best crypto exchanges in Australia, here are some key metrics to keep in mind:
Going for a crypto exchange backed by regulating bodies is a thumb rule you must abide by! These financial institutions act as a means to ensure security & safety of the funds user’s keep with certain exchanges.
Coinbase, for example, is regulated in the United States. Following which we have eToro which is regulated under multiple bodies, including the likes of ASIC in Australia, CySEC, SEC, and FCA.
On the contrary, chances are that you might also come across platforms which aren’t approved by the governments but continue to operate in the markets. While you can always check out their websites to come across such platforms, you may also notice them as they offer excessive functionalities. Instances of which include ultra-low costs, massive leverage, and several sign-up bonuses. When discovering such crypto exchanges, you should always try to stay aware of them!
While Bitcoin has set itself as a trademark in terms of crypto, there are other projects in the industries as well! And since not every trader or investor can afford buying a complete unit of BTC, it is always a wise move to register yourself with exchanges that provide you with multiple options.
Therefore, before you sign up, ensure that you check what other cryptocurrencies are supported by an exchange. It would also help to look for exchanges that provide the options to invest in new and upcoming crypto projects.
When curating a list of the top Australian cryptocurrency exchanges, you might also want to look at the sign-up offers provided by the different exchanges. Some Australian crypto exchanges welcome their customers with a sign-up bonus. For instance, your account might be allocated with some free Bitcoins when you trade or deposit a given amount.
However, while these offers might seem attractive, most come with unfavorable conditions and stringent terms. Therefore, it would be a wise move to avoid choosing a crypto exchange, solely on the basis of a sign-up offer alone. Instead, we suggest you look at the more crucial metrics like fees and regulation.
When talking of the trading fee structure for Australian crypto exchanges, they basically comprise two key factors: spreads and commissions.
For instance, when trading above $200, Coinbase generally charges you a commission of 1.49%.
As such, taking a $1,000 trade would only cost you around $14.90 in commissions. However, since these platforms have a maker-taker fee, you might have to pay some commission again while closing your position.
Talking of spreads, these fees are often hidden and rarely advertised by crypto exchanges. Why? Because spread is the gap between the asking price and the bid you place for the crypto you’re looking to buy or sell. The wider the spread, the more fee you’re paying.
Besides considering the taxes and spreads, you might also want to have a look at the non-trading fee of your selected platform. This is because if you’ve signed up for a crypto exchange as an investor, you might attract unwanted fees in the form of deposits while funding your account using a credit or debit card.
Apart from the non-trading fee, you might also want to consider the applicable withdrawal fee. Moreover, if you are an advanced trader who uses leverage for trading, you might want to consider the daily funding rates.
Once you have curated a list of the top crypto exchanges, you still might end up with numerous crypto exchanges based on the tips. Being a beginner investor, sometimes, all you need is a list that you can refer to.
And to help you out with the same, we’ve curated a list of the top Australia crypto exchange in the following section.
Best Cryptocurrency Exchanges in Australia
- Digital Surge
Of all the crypto exchanges available in Australia, eToro is by far one of the best in terms of features and offerings. In terms of trust and security, eToro is regulated and authorized by several regulatory bodies. This includes the SEC from the US, FCA from the UK, and the Australian Securities and Investments Commission (ASIC).
This gives you the assurance to buy, sell, and even trade crypto assets without having to worry about the legitimacy of this Australian crypto exchange. Additionally, it is very simple to get started with eToro as all you need is to register with your personal details and upload some identification. Following this, you can deposit your funds and get started with crypto trading with no hassle whatsoever.
All fund transfers will attract a nominal fee of 0.5%, with the minimum amount to fund your account being $50. Furthermore, you need not worry about the markets supported as eToro supports various crypto assets, including AAVE, Bitcoin, Ethereum, Dogecoin, Cardano, XRP, Shiba Inu, and even Litecoin.
Besides that, eToro also provides its users with the copy trading feature. This allows you to choose the trading strategies from thousands of experienced and well-vetted crypto traders using the platform. Users can leverage the best practices used by these users and enhance their chances of garnering amplified returns.
The next exchange in this exhaustive list of finest Australian cryptocurrencies exchanges on the list is Capital.com. The platform is regulated under CFD as a broker, allowing users to trade crypto derivatives using leverages. This resembles that users have the option to buy or sell their orders with a leverage of about 1:2 in compliance with ASIC regulations. For instance, suppose one opens a position worth $1000, then the leverage will allow you to double the stakes to $2000.
One of the most appealing aspects of trading on Capital.com is you need not worry about any commission. Users need not pay even a single cent as a commission, but they only need to pay for the market spreads. In addition, the platform supports both short and long positions enabling you to profit from both falling and rising prices of cryptocurrencies.
If you are someone seeking access to a large number of markets, Capital.com is the ideal platform for you. The platform allows you to trade crypto cross and crypto-fiat markets with over 470 currency pairs. Thus, no matter the crypto you have your eye out for, Capital.com will provide you with a suitable market with no hassle whatsoever.
What’s even better about trading in Capital.com is the minimum deposit fee, which amounts to just $20. This makes it very easier for beginners to get started with crypto trading with no hassle whatsoever. However, if you need to transfer funds from your bank account, you will need to make a larger deposit of at least $250. But either way, the platform will not charge any withdrawal or deposit fees.
Crypto.com is one of the best Bitcoin brokers in Australia which has experienced exponential growth in the last couple of months. Currently, the platform serves over 10 million users with its highly user-friendly interface and a trading experience worth remembering. When you trade on Crypto.com, you seamlessly get access to more than 250 different cryptocurrencies.
The platform allows you to trade with the web browser or use the interactive mobile app for your convenience. If you are an advanced trader, you should use the latter as it gives you access to many amazing features and functionalities. For instance, you can access the maker/taker pricing structure allowing you to equate to 0.4% on either side of the trade. Additionally, if you are someone using Crypto.com’s native currency CRO, you can also avail of a 10% discount on the trading fees.
The Crypto.com mobile app is much suited for beginners as the platform makes crypto trading much easier. One can use this platform to buy cryptocurrencies instantly using debit or credit cards. Nonetheless, it is worth mentioning that you will need to pay a fee for the same amounting to 4%. But this fee is waived for the first 30 days of you starting the trade.
Besides, Crypto.com also gives you the option to make deposits using your AUD to purchase cryptos. The application will also offer you simplistic pricing charts and real-time data, making it very easy to keep tabs on the price movements. However, the best thing about Crypto.com is you also get a crypto debit card that allows you to spend your cryptocurrencies wherever possible.
This is a crypto trading platform not just popular in Australia but in almost every other country as well. Coinbase was launched back in 2012, and it has come a long way in just a span of a decade. The platform is effectively regulated, allowing it to garner some extensive reputation and goodwill in this field.
If you are someone looking for a user-friendly platform for crypto trading, Coinbase is the ideal choice for you. One can seamlessly get started with three simple steps where they need to provide personal information, get it verified, and get started with trading.
The platform provides you with access to 50 different cryptos, and a fee of 3.99% is charged when using debit or credit cards on the platform. However, Coinbase also gives you an alternative way to deposit funds with an Australian bank account without any fees. Once the funds are credited, the trader will need to pay a nominal fee of 1.49% on the crypto market they choose.
All the crypto markets on Coinbase can be traded for just $2, which makes it an ideal choice for beginners. You can even trade using the Coinbase mobile application that ensures unmatched security for your crypto wallet. The mobile application is available on both iOS and Android platforms.
Additionally, Coinbase is one of those few crypto exchange platforms that offer users crypto staking services. This offers an ideal option for everyone looking to generate yield on digital funds easily.
Digital Surge is one of those crypto exchanges that has earned quite a reputation for being one of the cheapest crypto exchanges in Australia. The platform allows you to deposit and withdraw your fiat currencies with no charges whatsoever. Trading your cryptos on Digital Surge will cost you just 0.5% per trade. One can even discount rates that amount to just 0.1% per trade if you trade more than AUD 1 million every month.
Digital Surge offers you access to over 300 different cryptos along with unique features ideally suited to facilitate long-term trading. This also includes the recurring buy orders to help you trade like a pro. Further, users can seamlessly dollar-cost average into any crypto of their choice. You can even benefit from the price alerts and limit orders to get the best prices even in the most volatile periods.
Just like most other crypto exchanges on the list, even Digital Surge comes with its own mobile application. This allows you to make the most of all buying opportunities even when on the go. Opening an account on Digital Surge is as simple as it gets, as the process will barely require two minutes before you can get started with crypto trading.
In terms of security, there is no room for any doubt with Digital Surge. AISC and AUSTRAC regulate the platform, so regulations should not be your concern here. The customer support offered by Digital Surge is also much appreciable as you can access support 24/7. Finally, you also get a crypto wallet that allows you to spend your cryptos wherever possible.
If spot trading is your forte, then Binance is certainly one of the finest crypto trading platforms you can use in Australia. This exchange will always assure you never fall short of trading opportunities as it supports more than 1000 markets. And of course, this includes both crypto-cross and fiat-crypto pairs.
Binance charges a spot trading fee of about 0.10%, earning it the title of one of the crypto trading platforms you can find in Australia. Besides, Binance also offers discounted commissions for users with larger trading volumes. This is also the case if you are holding the native cryptocurrency of the platform BNB.
The significant trading volumes that Binance attracts are also impressive as it ensures your liquidity levels remain sufficient. The platform also allows you to fund the account with a fee-free PayID transfer where the deposits are processed at a breakneck pace.
But the amazing offerings of Binance do not just end here because users can even reap the benefits of a crypto savings account. This account will help you generate interest on every digital asset you deposit. You can also access numerous yields and lock-up terms with ease.
Binance mandates a two-factor authentication for every account login attempt in security. Other than that, you can even access the yield farming functionality to earn interest on every idle token. And of course, Finance also comes with a mobile app that allows you to store and trade your cryptocurrencies on the go.
While beginners have numerous options to start their crypto journey, CoinSpot is certainly one of the finest options on this list. Trading on this platform is so easy that you will only need a couple of minutes to set up an account and get started. The instant buy feature of the platform allows users to buy and sell over 350 different cryptocurrencies in no time.
Users will have to pay 1% as charges for every transaction, which is a relatively competitive offering for crypto users in Australia. However, if you find this too expensive, you always have the option to use the spot trading platform. In this case, you will only need to pay a fee of 0.1% on each trade.
It is further worth mentioning that the spot trade platform is basically an OTC among members of the platform. This means the spreads can be relatively high compared to most other crypto exchanges in the country. Also, the minimum deposit required for CoinSpot is just $1, which is an ideal setup for people looking to get started with crypto trading.
Besides all that, CoinSpot has many other appealing features that include free portfolio tracking tools as well as crypto wallets. In addition, the platform also aces the customer support front with 24/7 live chat support. CoinSpot does not charge any fee for PayID, POLi, and direct deposits. In terms of security,
Finally, in terms of its safety, CoinSpot is backed by regulations from AUSTRAC and is further certified under ISO 27001 security standard. This ensures you have a safe and secure crypto trading experience at all times without any hassle.
Active crypto traders will surely love what Swyftx has to offer. This is one of those few crypto trading platforms that gives you access to advanced stop and limit order options, price alerts, etc. This platform is unique in almost every aspect you can think of.
Swyftx did not develop its own charting interface. Instead, it seamlessly integrated with TradingView, which is one of the finest charting platforms currently available in the market. This gives you access to hundreds of technical indicators and enhanced customization options that make it very easy to trade on this platform.
You read any Australian Bitcoin exchange review, and you will find that Swyftx has the most appealing pricing structure. The platform will charge you a fixed trading fee of 0.6%, which is both outstanding and highly competitive. Further, if you are interested in highly liquid assets such as Bitcoin, you can benefit from the low spreads of Swyftx, which amounts to 0.41%.
Swyftx has got it all covered in terms of security as it is registered with AUSTRAC making it as reliable as it gets. Besides that Swyftx also offers unmatched customer support with 24/7 live chat support. People can start trading with an amount as low as $1 without worrying about any withdrawal or deposit fees for fiat currencies on the platform.
|Crypto Exchange||Number Of Coins||Payment Methods||Minimum Deposit|
|eToro||50+||Debit/credit cards, e-wallets, bank transfer ||$50
|Capital.com||470+ pairs||Debit/credit cards, e-wallets, bank transfer||$20 (debit/credit cards and e-wallets only)|
|Crypto.com||250+||Debit/credit cards, e-wallets, bank transfer ||$20
|Coinbase||50+||Debit/credit cards, bank transfer ||$50
|Digital Surge ||300+||Debit cards (third-party) and PayID||$2
|Binance||1000+ markets||Debit/credit cards (third-party) and PayID||Depends on the payment processor
|CoinSpot||350+||Debit/credit cards (third-party), POLi, PayID||$1
|Swyftx||310+||Debit/credit cards (third-party) and PayID||$30
Several investors are still unfamiliar with cryptocurrencies such as Bitcoin. As a result, many people wonder how to invest in cryptos in Australia. Therefore, to help you out, we’ve listed some of the best payment options for buying cryptos in this section.
- Purchasing crypto using PayPal
PayPal has joined the lengthy list of payment providers that now accept crypto payments, allowing users to buy Bitcoin over the platform. Therefore, if you want to buy BTC using PayPal, simply go to the platform with a pre-funded account.
2. Purchasing crypto with credit or debit card
Purchasing cryptos via credit and debit cards is another reliable method accepted across many exchanges in Australia. Several crypto exchanges allow you to quickly purchase BTC or other tokens using a credit card without attracting additional fees. On the other hand, depositing your funds using a credit card can be expensive as it generally attracts fees as high as 3.99 percent.
3. Buy Bitcoin with Neteller or Skrill
Electronic payment options such as Skrill & Neteller have also grown as a popular options. Utilizing any of these payment methods to deposit funds in your exchange attracts no fee, making it the cheapest option to acquire BTC and other cryptos.
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Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.