Choosing the Most Secure Crypto Exchange in Australia
Finding a secure crypto exchange is a priority when we want to invest in cryptocurrencies. A reputable exchange is an invaluable aspect when investing in cryptocurrency; after all, you will be conducting your transactions with them. Therefore, before you leap into the world of cryptocurrencies in Australia, it would be wise to evaluate and consider your options. Generally, these platforms are usually the target for many computer attacks and if they do not have an updated security system, they could steal information, and in some cases, even funds from the wallets. Bad policies are also one of the main causes for the user to lose money within an exchange platform, so we want to be sure to choose the best one.
In this opportunity, we will discuss the most important aspects that every secure crypto exchange must have and you can identify them later.
What defines a secure crypto exchange?
There are a number of aspects that define every secure crypto exchange and you can spot them as you use the service. The correct security measures can be discovered from the moment you become a user of said exchange platform and they will always work consistently.
Know Your Customer, or KYC verification is a series of steps that attempt to confirm the identity of the person who registers to the exchange and to know the customer. Every reputable exchange company needs to properly receive this kind of user data, in order to establish a secure system of verification for each individual.
If an exchange company demands KYC requirements, it is a good sign that they take the security of their platform very seriously and establish an order within the daily registry of users. Some of the steps to complete a KYC verification can be to upload a photo of your passport, driver’s license, or identity document.
Think of each exchange platform as a business partner that provides you service and with whom you have to establish a bilateral trust bond.
It may not be necessary to complete these types of requirements to use the basics of exchange since in some cases they only require you to carry out a KYC verification to withdraw certain amounts and enjoy the best experience.
Two-Factor Authentication, or 2FA for short, is a security protocol available on almost all exchange platforms, which consists of verifying that the person who tries to log into an account is really its owner. Generally, after entering your email and password, a message will be sent to your phone number and / or email with a code. This code must be entered when you log in to be able to access your account and enjoy the functions.
It is imperative that an exchange platform has 2FA and if it does not, perhaps you should distrust the service, since it is a basic security measure. In some cases, the 2FA procedure is even stricter when logging in from a different IP, in order to prevent someone outside your account from logging in and withdrawing your funds.
Cold wallet fund storage
Cold wallets are offline wallets where funds are stored and kept out of the reach of hackers and anyone who tries to breach the security of the platform to get hold of the tokens. Usually, more than 80% of user funds are stored in cold wallets, while 20% (or even much less) is stored in hot wallets (online wallets).
If an exchange keeps almost all the funds of users in cold wallets, this means that in the event of a hypothetical hacking event, they could take care of the loss and replace said tokens since most of the assets are in safe keeping and only one is lost. small part. Every responsible exchange platform takes offline wallets into account to keep its users safe.
Assuming that you get an exchange platform that catches your attention and after doing your research, you find that almost all the funds are stored in hot wallets, you could be running a lot of risks when depositing your tokens on that platform. Remember that hacks in the crypto ecosystem are very frequent and exchange companies with vulnerabilities are the perfect victims for cybercriminals.
When we talk about a secure crypto exchange platform, we refer to a site where you will not lose money because of third parties. Unfortunately, many exchange companies have good security systems for their platforms but they practice terrible policies that are harmful to user funds.
This can range from the processing time of a withdrawal in cryptocurrencies (if it takes too long your money could devalue), very high spreads that greatly affect the capital of traders and excessive commission rates. Having this in mind, it is recommended to choose an exchange platform that provides its services fairly and with a reasonable fee structure.
Factors to consider when exchanging cryptocurrency in Australia
Even if they do get a secure crypto exchange platform, there are some factors that Australian residents should take into account when investing and seeking profitability through asset exchange activities.
Fiat currency deposits
Although cryptocurrencies are highly accepted in Australia, some people just don’t have tokens yet and would like to make their deposits/withdrawals in fiat currency, so we need to be sure the chosen exchange platform allows bank wire transfers and/or debit card payments. Funds in AUD should be transferred quickly to your bank account.
In Austria, mandatory taxes prevent cryptocurrencies from being used for illicit purposes such as illegal payments and money laundering. For this reason, a control and record is established on the crypto operations carried out by users.
Although you will not be charged fees for having cryptocurrencies in your possession or buying them on an exchange platform, if you will have to pay taxes when selling them regardless of whether you have received profits or losses. The good thing is that you will only have to pay taxes based on the amount you are receiving as ROI (Return on Investment) and not on the total amount of the operation.
As long as the product of your cryptocurrency operations is classified as CGT (Capital Gain Tax), the ATO (Australian Tax Office) will be in charge of collecting the corresponding taxes.
Secure crypto exchange in Australia
If you are looking for a secure crypto exchange platform in Australia, we recommend joining one that meets all security standards and has several cryptocurrencies at the same time.
Easy Crypto AU will allow you to exchange your cryptocurrency tokens and make deposits/withdrawals in fiat currency (if you wish), while enjoying the peace of mind of having your money in a safe and legitimate platform.
Easy Crypto is ideal for those who do not have a high level of experience in crypto exchanges and for Australian residents. Considering that you can verify your account with KYC procedures, each user is taken into account as an official member of the platform.