Finding the best cryptocurrency platform for you
More than one in four Australians own cryptocurrency, and many more are keen to get started. Here's how to select a trading platform that suits you.
Bitcoin is back in the headlines, having soared from around $66,470 at the start of 2024 to $98,000 in mid-June.
Not surprisingly, this upswing is driving fresh interest in digital currencies.
But it's not just about rising values.
The world of crypto is changing.
Trust is being established in the sector as regulators impose good guidance.
Globally, we are seeing highly respected institutional investors such as BlackRock, the world's largest asset manager, invest in crypto.
Closer to home, the ASX has given the green light for the launch of Bitcoin-focused exchange traded funds.
This is building confidence in the crypto ecosystem, and it's a key factor driving investor interest.
Crypto platforms such as Easy Crypto are seeing a surge in the number of people eager to invest in digital currencies. And it's happening across all genders and all demographics.
Investing in digital currencies is not hard, though the sheer volume of platforms to choose from can be daunting.
But it's an important choice to make.
By partnering with the platform that is right for your needs, the crypto journey can be smoother and more rewarding.
Five features to look for in a crypto platform
Let's take a look at the five main factors to consider to pinpoint the platform best-suited to your needs:
1. Look for a local provider
While crypto is a global asset, look for a local platform regulated by Australian authorities.
All exchanges should list their credentials at the bottom of their home page.
Australian investors should look for an AUSTRAC number. Any business that provides digital currency exchange services must be registered with AUSTRAC.
Head to the Easy Crypto website, for example, and you'll see our AUSTRAC registration number displayed.
2. Find a platform that fits your level of knowledge
Crypto trading works differently to, say, share trading. Choose the wrong platform and you can quickly find yourself out of your depth.
That's why it makes sense to partner with a platform pitched at your level of experience.
In particular, look for a platform that is user-friendly, and offers a wealth of free educational resources. The two combined can see you get up to speed sooner.
3. Does the platform offer what you want?
The crypto universe is big - really big.
Bitcoin may be the poster child for digital currencies. But it doesn't end there. Investors can select from over 20,000 crypto assets.
We find Easy Crypto investors typically start out in Bitcoin, and explore other options as their confidence grows. Be sure to check that platforms offer the digital currencies you are interested in.
4. Know how much you need to get started
Part of the appeal of crypto is that it's possible to own fractions of a digital currency without investing in a whole unit.
As a guide, Bitcoin is trading for tens of thousands of dollars. But you can get started with far less.
Exactly how much you need varies between platforms.
Easy Crypto lets you get into digital currencies with as little as $50 to $100, which we believe makes crypto accessible to everyone.
Choosing a platform that allows you to start out small is a great way to build confidence. It also lets you take advantage of strategies such as dollar cost averaging to get into, and out of, the market.
5. Understand the cost
Fees are one area where it really does pay to shop around.
Comparison sites can be helpful to get an idea of the different costs across various platforms though this information can quickly become outdated, so some legwork of your own is still essential.
The thing to look for is transparency.
At Easy Crypto, the rate quoted on our main page is inclusive of all fees.
One additional feature to look for is the option to download your transaction history. Most platforms, though not all, allow investors to do this, and it can make tax reporting easier.
Crypto exchange versus wallet
One aspect first-time investors need to be aware of is the distinction between a crypto exchange platform, which allows users to buy, sell and swap digital currencies, and a crypto wallet, which allows users to securely store and transact cryptocurrencies.
Our new Easy Crypto Wallet lets investors buy, sell, swap and store crypto with just a few clicks, and switch easily between crypto and fiat currencies.
We have designed the wallet so it's easy to use, making the leap into crypto as seamless as possible.
The upshot is that investing in crypto can be financially rewarding, and while it is a volatile market and carries risk, it is this volatility that creates opportunities to earn strong returns.
I encourage people to have a dabble and invest in line with a plan. Plenty of Australians are earning healthy gains on crypto, and you can be among them.
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