Exploring Bitcoin Exchanges in Australia

Bitcoin is on the rise again, steadily hitting all-time highs while hovering around $70,000. Despite what everyone has had to say over the past few years, it is increasingly the reality that Bitcoin is here to stay. Already, some analysts predict that it will hit $100,000 as early as this year. And who knows where it will be at the end of the next year?

There has never been a better time to get on the Bitcoin train. So, are you an Australian looking to get started? You have come to the right place. In this article, we will discuss everything that you need to know about exploring Bitcoin exchanges in the country.

The Bitcoin Ecosystem in Australia

Australia has held on to its reputation for being a progressive country, with its leading regulatory framework on Bitcoin and the crypto ecosystem in general. This has paved the way for a lot of exciting activity in the crypto ecosystem in the country. Here are some talking points: 

  • Crypto exchanges

There is a high number of crypto exchanges in the ecosystem. From an Australian Bitcoin Exchange like Bitcoin.com.au to the more globally-focused exchanges like Binance, Coinbase, Kraken, and so on. They allow you to exchange your Australian Dollar for Bitcoin and other crypto tokens as easily as possible. They all have different features and advantages for you to consider in choosing your preferred Bitcoin exchange in Australia.

  • Transaction volume

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The Australian government first laid out its regulatory framework for crypto in 2017. And in the time since then, transaction volumes within the country have risen sharply. Between 2017 and 2020, an estimated $853m in Bitcoins was sent into the country, and $374m in outward transactions. Comparatively, in the 5 years prior, transaction volumes were only $16.34m inward and $6.51m outward.

  • Cryptocurrency ATMs

While ATMs are still a novel feature in the crypto ecosystem globally, they have already taken root in Australia. There are an estimated 849 crypto ATMs in the country, making Australia third after only the United States and Canada.

  • Corporate adoption

Corporate entities have not been left out, as we have seen a number of them introducing crypto payment methods. Coca-Cola, for example, now allows users to buy soda using Bitcoin at about 2,000 vending machines across Australia and New Zealand.

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Choosing the Right Bitcoin Exchange

Of the many bitcoin exchanges within Australia, how does one know which one to choose? Well, every one of these exchanges typically has strengths and weaknesses peculiar to them. So, it’s seldom a matter of one being greater than the other. However, there are a few factors on which they can be evaluated, and on which you can then make your choice, depending on which factors are the most important to you.

  • Security

At the top of the list of factors to consider in choosing the right crypto exchange is security. Every other factor pales in comparison if your Bitcoins cannot be kept safe from cybercriminals. So, for all the exchanges that you are considering, get a good look at their security protocols. Do they have strict policies around biometric login, two-factor authentication, and other similar measures? Do they frequently conduct security audits and make reinforcements? No one is entirely immune from cyber attacks, but it’s always best to be prepared.

  • Variety of Crypto Tokens

Another factor to consider is the variety of tokens that they support. Everybody trades the big 3 tokens – Bitcoin, Ethereum, and Solana. However, there is also a lot of action in the mid to small-cap crypto market. So, if you want to get the most out of day-trading cryptos, it would serve you well to choose an exchange that allows you a wide variety of trading options.

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  • Strength of Support

Also customer support is another very key factor. Every now and then, you would need to reach out to customer support to clear up one issue or another. You do not want to be stuck with an exchange that just sticks you with an AI-run customer service program for hours on end when a less than 5-minute phone call with an actual human rep would immediately clear up the problem.

  • Fee Structures

Exchanges typically charge fees for all sorts of activities. There can be deposit fees, withdrawal fees, and trading fees. Whether these fees are charged or whatever amount is charged ultimately depends on the exchange. These fees are typically small, but can add up; especially if you are a high-activity user. So, before you make your choice, you may want to check out the fees and decide which exchange charges fees that you are comfortable with.

  • Liquidity

Liquidity simply refers to the ease with which you can exchange your crypto for fiat. Basically, it is about how much fiat from buyers is available on the exchange. For example, if you want to sell 1 Bitcoin valued at $40,000, you need to have a counterparty that is willing to pay that amount for the Bitcoin.

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In the instance where there are a lot of them, and liquidity is high, it is easy to get the right value for your token. On the other hand, when liquidity is low, you may struggle to sell your tokens at the right price, or even sell them at all. So, to check the level of liquidity, all you may just need to do is to check the trading volumes on the exchange per time – for example, 24-hour volume or weekly volume.

  • Regulation Compliance

Finally, regulation must be a very important factor in making your decision. In Australia, the government is relatively welcoming of crypto, so there isn’t a major problem. However, there are some minimal levels of regulations that must be complied with by your chosen crypto exchange. So, check whether it is, first of all, properly licensed by the government. Also, check what the attitude to regulation is, and if they have had any run-ins with the law.

Conclusion

Australia is a very forward-thinking country, especially when it comes to Bitcoin and the crypto ecosystem in general. We expect the ecosystem in the country to continue to grow steadily over the next decade, as new opportunities open up. Now is the best time to join in, to take advantage of this coming rapid growth.