- Amber Smith
- November 25, 2022
If you’re a crypto trader, you’ll likely require exchanging your cryptocurrency for another type or buying more using cash. Likewise, you may also require converting your crypto into regular currency. Finally, you’ll also need safe yet easily accessible storage for cryptocurrency and regular cash so you can have your funds at your disposal anytime. For these purposes, you’ll need a crypto exchange app.
You’ll find various crypto exchange platforms on the web and other applications. For instance, looking at Crypto Wisdom’s favourite Australian crypto exchanges might make you realize that most of them have similar features, which you may find helpful as a trader. Experts believe there’s not one perfect crypto exchange app, and each may have something unique to offer users. Because of this, it’s up to you to find one that best suits your needs and preferences. There are several cryptocurrency wallet users manuals on the internet; you always go through them before selecting your crypto wallet for the investment.
This article discusses the features you can find in the best crypto exchange app. Read on to learn more.
Looking at various reviews of the best Australian exchanges, you may find that one of the main aspects to consider when selecting a crypto exchange app is accessibility. Some apps may be more easily accessible than others, as their use is not limited to just a specific country or region.
While many platforms operate without restrictions imposed by local governments or banking regulations, some may be unavailable or lack legal authorization to work in your area. Hence, you’ll need to ensure that the exchange channel can be legally used in your location to avoid any repercussions or limitations that can hinder you from trading as required.
Liquidity is a desirable feature in a crypto exchange app as it will allow you to move funds, buy crypto, trade, or sell your currency anytime. To achieve this, the exchange app should have a sufficient trade volume and fewer restrictions so you can use your funds as you see fit. Commonly, the biggest and most popular exchange platforms have the liquidity traders look for.
Several factors influence an exchange factor’s liquidity, including market activity, regulations, and acceptance of the currency. You can find the ideal app by selecting one with high trading volumes, has fewer restrictions or rules in moving or trading currency, and offers crypto with high acceptance rates across the market. This way, you’ll know that the app can support any future funds movement you may need to do.
- Transaction Fees And Tax Information
While saving on exchange fees for each transaction is ideal, paying higher prices on a crypto trading app may not always be a disadvantage. For one, the added costs may be allocated to enhance the security and protection provided for app users. Some may also charge fees for insurance coverage for the same purposes. Hence, it’s essential to carefully review what the transaction fees cover so you can weigh whether the costs are justifiable.
Aside from the fees, you’ll also need to check when the charges apply, which may vary for sellers and buyers. Understanding when you’ll be charged the costs before making any financial decisions is crucial in getting the most out of each transaction.
Another aspect to consider when managing transaction costs is tax information. According to the IRS Notice 2014-21 released by the United States Internal Revenue Service (IRS), cryptocurrency use, sale or exchange has tax consequences that may equate to tax liability. Hence, you’ll also need to factor in the tax liability of each transaction when calculating gains.
There’s no denying the success crypto trading has amassed over the years, and one downside to it is attracting the interest of cybercriminals. For instance, blockchain forensics firm CipherTrace reported that the digital currency industry lost almost $1.4 billion in cryptocurrency due to cyber theft in 2020.
Since cryptocurrency is decentralized, the protection and risk guarantee levels aren’t the same as fiat money under banks and government institutions. Because of this, it’s essential for crypto traders to carefully consider security when selecting an exchange and storage platform for their digital investments.
One factor you can look for when choosing a crypto exchange app is the insurance protection extended to users. Some may offer insurance coverage that protects the users against hacking or fraud. Others may also have offline storage options, which makes it more difficult for hackers to access crypto funds. Lastly, you can look at the online security measures the exchange platform has in place, such as authentication requirements.
Overall, experts believe that the most secure exchange platforms are those already established or well-known in the industry. Aside from their experience and expertise in securing funds, most companies have the financial capability to protect users through insurance coverage. On the other hand, this advantage may not be offered by new players in the business since they’ve yet to establish their brand and gain enough client trust.
- Currency Availability
There are over 10,000 cryptocurrencies in existence in 2022, but not everyone offers the same value or stability as others widely used in the market. Because of this, some cryptocurrencies may not be provided on exchange platforms. So, checking if the currency you’ll need is available on the crypto trading app is essential.
- Currency Storage
The ideal currency storage for beginners is one where you can easily access your funds and use them for buying, selling, exchanging, and investing. However, some crypto marketplaces may restrict users from storing the currency they bought or traded within the same platform, which may not be ideal if you want to explore other venues. For instance, you may need a crypto wallet to participate in an NFT marketplace. This means you’ll have easy access to your funds to move and use them as needed.
As you gain more experience using cryptocurrency, you may also find cold storage, or offline storage options, to be desirable because you’ll be the only one who can access your funds. Hence, you can consider the storage feature of the crypto exchange app to be a temporary or long-term solution to your storage needs, depending on your preference.
There are several factors to consider when looking for the best crypto exchange app, including accessibility, transaction fees, security, currency offering, and liquidity. Apart from these, you’ll also need to consider the quality of customer support an app can provide and the ease of using the platform.
Finding an application with features that will help you navigate it more efficiently is best. Lastly, your knowledge about cryptocurrency exchange will be the most helpful tool which can help you optimize your investment and earnings. This is why it’s always advisable to conduct thorough research before trading.