You can purchase cryptocurrencies such as Bitcoin and Ethereum or trade Cosmos with Swyftx, a reputable crypto exchange. It is not easy for everyone to understand how to trade cryptocurrency because the entire subject is shrouded in mystery for the average person. People are not aware of how to buy cryptocurrency, trade cryptocurrency, or the ways to turn a profit with digital currency. In this article, you can learn how to start trading cryptocurrency on a crypto exchange. A crypto exchange is an online trading platform for digital currencies investors.
Background Information & Facts About Trading Cryptocurrency
Today, there are more than a hundred different crypto exchanges in Australia and many more cryptocurrencies. Trading cryptocurrency in Australia became legal in 2017. In April 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC) implemented new laws in coordination with the Digital Currency Exchange (DCE) that legalized cryptocurrency. Investors can learn more about the tax treatment of cryptocurrencies trading in Australia from the Australian Taxation Office.
Investors turn to a cryptocurrency exchange to buy, sell, and trade different cryptocurrencies. Most of the crypto exchanges in Australia operate in much the same way. The following is a list of the procedures investors need to follow to start trading cryptocurrencies.
New users need to provide basic demographic information to create an account with any crypto exchange. The mandatory information you need to create an account includes your full name, address, country of residence, mobile number, and email address.
A crypto exchange will complete the identity verification process after collecting your personal information. Identity verification is a mandatory requirement in Australia to comply with Know Your Customer laws (KYC) and Anti Money-Laundering (AML) regulations. The crypto exchange will require you to set up a 2-factor authentication for your profile. Identity verification will be a double-edged sword for you and the crypto exchange.
A centralized crypto exchange can require new users to make a minimum deposit to your account using traditional money. You can purchase cryptocurrency with the funds in your account. Some crypto exchanges incentivize the initial deposit process by providing new users with a certain amount of demo account funds to help new users get familiar with the user interface.
Each crypto exchange offers its users the ability to trade in many different cryptocurrencies. Ensure the crypto exchange you choose has the cryptocurrency you are looking for before registering an account with any crypto exchange.
Significant Characteristics Of A Crypto Exchange
Make a comparison between the characteristics of different crypto exchanges before selecting anyone. The oldest crypto exchange is not always the best choice. Assess the way you can store your capital on their site. Do they offer 2-factor authentication in coordination with their wallet facilities? Is their user interface easy to understand and navigate?
Does the crypto exchange have any history of security breaches? Compare the trading fees of different crypto exchanges. Do they offer their users the facility of making payments using more than one payment method? The answers to all of these questions will help you find the best crypto exchange to trade cryptocurrency.