Security key for choosing a crypto exchange

“If an exchange doesn’t require 2FA by default, it often limits account functionality so money cannot be transferred without 2FA configured. Digital Surge, for example, works this way. Exchanges also use machine learning and artificial intelligence to detect anomalous or fraudulent activity.

“Actually they all do the same thing. But for Australians looking to buy larger amounts of crypto or invest in crypto for their self-managed retirement fund, dealing with a local exchange is particularly reassuring for credibility, security and customer service.

We recommend a two-step verification process for the withdrawal of fiat or digital currencies.

Jess Renden, Cointree

“It is now quite common for custodial exchanges to keep a large percentage of crypto assets in cold storage. In some jurisdictions, especially Canada, it is common for exchanges to have insurance for crypto assets held in custody. This is not yet the case in Australia.

Jess Renden, COO of Australian crypto exchange Cointree, said platform security should be a top priority for investors.

“We recommend a two-step verification process for any fiat or digital currency withdrawal, separating the application credentials from the database and codebase to limit the damage of a breach. Security, and all website traffic must pass over an encrypted Secure Sockets Layer.” walk. [SSL],” she says.

“Investors should also check all reports on the exchange nationally and in the exchange’s home market to determine if they have been involved in any previous allegations or if there are investors on the platform that have been burned and made public. This is a good sign that the stock market is not putting the interests of its investors first.

Boyd sees a strong preference on Finty.com for local crypto exchanges among Australians, despite all the major international exchanges – Binance, Coinbase, Gemini – being active in the market.

tax consequences

The local exchange Swyftx is often compared to the largest exchange in the world, Binance. According to Finty, both are popular and both provide reliable services to Australian investors and traders.

But Finty’s overall verdict is that Swyftx “offers low trading fees, robust trading features and a great mobile app.”

With live chat and an integrated licensing and tax system, Swyftx is ideal for Australians who want to trade without sacrificing too much on fees and spreads or worrying about the logistical or tax implications behind their trades when withdrawing.

James Glennon of CryptoRanking.com.au also compared Swyftx and Binance and concluded: “Not only is Swyftx the lowest cost exchange in Australia, but it is also designed for beginners. This means that the user interface is so simple that a person using the space for the first time can navigate through it successfully.

“While not really a bad thing, Binance is more suited to more advanced crypto users. The user interface is simple enough for more experienced users, but it can be a bit confusing for a new user,” says Glennon.

Ryan Parsons, CEO of Swyftx, says one of the benefits of going international, for now anyway, is that some of the larger global exchanges have already developed more sophisticated institutional offerings.

“But from a retail perspective you will not get any real price or liquidity advantage whether you choose to buy assets through an Australian or international exchange. It’s just the reality of trading in an open, global market,” he says.

“Where Australian exchanges have a real advantage is in areas like service and speed. Customer experience is paramount and national exchanges have faster integration for depositing and withdrawing dollars. They also have a more personal approach to customer support.

In addition, if cryptocurrency trading is subject to tougher local regulations, there is a risk that international platforms will leave Australia.

“This is a trend we are currently seeing in the UK where over 60 companies have either withdrawn their applications from the UK Financial Conduct Authority or have had their applications rejected outright.

“All of this plays into broader concerns that people may have about blockchain companies that appear to be everywhere, but cannot be tied to one particular jurisdiction.”

Leave a Comment