These days there are a huge amount of cryptocurrency exchanges, so which one should you be using?
In Australia our options are limited, but luckily the two main exchanges are excellent. We’ve compiled the top 10 best exchanges in our table below including information on the location, currency, available cryptocurrencies and the fees.
Our rating is based on the most important factors such as security, ease of use, fees and support.
|Website||Overall Rating||Location & Currency||Available Cryptocurrencies||Market Fees||Our Review||Visit Site|
||0.1%||CoinSpot Review||Visit Site|
||0.5%||Independent Reserve Review||Visit Site|
||0.1%||Binance Review||Visit Site|
||Daily Fees||eToro Review||Visit Site|
||4%||Coinbase Review||Visit Site|
We hope this detailed list has helped clarify which are the best exchanges to use in Australia.
Our suggestion would be to pick one exchange and stick with it, it will make your life much easier. The alternative would be keeping cryptocurrencies on different exchanges which is hard to keep track of and comes with risks.
If you still aren’t sure which exchange will work best for you, see our below detailed breakdowns for the top 5 exchanges to help you make a more informed decision.
Leonard – Crypto Head Founder
Best Cryptocurrency Exchanges in Australia: Reviews July 2019
One of the things we like most about CoinSpot is their interaction with the community and how they are constantly listening to users to improve their platform. If you would like a new coin added to their coin list then you can post a message on their Facebook wall, if it gets enough likes/traction they’ll work to add it ASAP. They are very quick to add new coins that come out of ICO which is great if you are looking to invest in emerging coins. Check out our more in-depth CoinSpot review page which provides much more information on the business, it’s history and more technical aspects.
Independent Reserve is another Australian based exchange. They offer a great platform to buy coins but it can be a little difficult to get the hang of to begin with. IR supports 13 cryptocurrencies in total. These are Bitcoin, Ethereum, BCH, XRP, LTC, EOS, XLM, BAT, GNT, REP, OMG, 0x and PLA. Independent Reserve has the lowest fees out of all the Australian exchanges which is why it is one of the most popular. It is also much safer to keep your coins in their online wallet as opposed to keeping them on an international exchange like the others on this list.
Security is one of Independent Reserve’s highest priorities so you know you are trading on a safe platform which gives peace of mind. They also now offer insurance with Premium Accounts and have an integrated KPMG tax tool.
Binance is quickly becoming the most used exchange in the world and for good reason. The platform is perfect for experienced users but not recommended for beginner users which is why it’s not higher up on our featured list. Binance has pairings for all of the major cryptocurrencies you would want to trade. The main drawback is that you can’t connect up a bank account and put money in to buy cryptocurrencies. To use this exchange you will need existing cryptocurrencies which you send to this exchange and trade for other currencies.
eToro is a huge financial brokerage that allows for financial trading and investment for a wide range of industries including Crypto, ETFs, Stocks, Indices, Commodities and Currencies. This can be seen as a good and a bad thing, firstly they have been around since 2006 so they can be trusted much more than the exchanges developed purely for cryptocurrency a lot later. eToro includes a number of very interesting features they have developed including following popular people to see how they are investing.
They are still working on improving the Crypto section of their website and plan to add more coins over time, currently they only have the most popular coins available to trade. We suggest not leaving your coins on this platform due to the fees, you pay fees daily depending on how much you are storing – it is much easier to move it to an external wallet.
Coinbase is the largest foreign exchange, even so, we highly suggest not leaving your coins on this platform. We always advise against leaving your coins on any foreign exchanges, instead you can transfer it to a hardware wallet or online wallet. This exchange has very high fees for trading as it is the largest exchange and has been for quite some time, in essence you are paying for quality and assurance. People often have a bit of difficulty using this exchange due to it’s lack of user friendliness, but this can be found across most exchanges. There are a lot of stories of bad experiences with this exchange when trying to cash out, they have been known to hold accounts for up to a year.
Bittrex has a huge range of coins available and the most by far on our top 10 list. The exchange does have a large turnover for the cryptocurrencies it lists, this has been criticised due to it’s “pump and dump” nature. However if you are looking for a new or less popular coin there is a high chance that Bittrex has it for trading. As stated previously and especially for this exchange, we highly recommend not leaving your coins on this exchange.
CoinMama, was founded in 2013 and has been a leading cryptocurrency exchange for many years. It is available in over 188+ countries making it quite a popular exchange worldwide. Unfortunately, the main downfall of this exchange is the fees, 6% is the highest featured on our list. The main problem with the high fees is that they aren’t justified, this exchange doesn’t provide anything more than other exchanges and in many ways is actually sub-par to the main exchanges featured on this list.
Kraken was founded in 2011 making it one of the oldest exchanges currently on the market. It has been plagued by bad press over the years making people cautious when approaching this exchange. However, this is still one of the most used exchanges in the world which we find quite interesting. Our recommendation is to avoid this exchange, we have heard many stories of people getting their assets frozen on their platform and not hearing any response for up to 1 year. Even though this is a highly used exchange it isn’t worth the risk, there are much more reliable exchanges out there.
Bitfinex is currently the largest exchange being used globally, this is mainly being used in east-asia and in the united states. Bitfinex was hacked in August 2016 with over 120,000 Bitcoin being stolen, however they have since improved their security protocols and the way that they store users assets. Even though this is the largest exchange globally we wouldn’t recommend it for Australian users as there are much better options available that have better support.
Kucoin is a much smaller exchange and one of the main drawbacks here is that there aren’t really many people trading for you to be able to make fast transactions. Something like Binance would be a better option however Kucoin features a lot more Cryptocurrencies which is why people will opt to use it. Similar to other exchanges there is no option to deposit funds from your bank and buy cryptocurrencies on the go which is why this exchange is recommended for experienced users. Kucoin has experienced some bad press with some arguments with certain Cryptocurrencies such as RaiBlocks (XRB now rebranded to NANO).
OKEx is a relatively new Cryptocurrency exchange opening in May 2017. The OKEx platform is very versatile which is why it is gaining increasing popularity. However there are a number of reasons why we wouldn’t recommend it including support and that it is more tailored towards experienced users.
Reviewing the best crypto exchanges in Australia: Why we do it!
The cryptocurrency world can be a scary place for someone starting off, choosing the right place to buy, sell and trade is very important. Our aim is to make the process as easy as possible and we focus on the most important aspect, security. Luckily there are two great Australian exchanges that take security very seriously as opposed to the overseas exchanges which are less trusted.
At Crypto Head we always suggest doing a lot of research before investing into cryptocurrency, just as we have done for this top 10 list. The last thing you want, is to trade on an exchange that could go into bankruptcy like the Mt. Gox scandal or is at risk of being hacked.
Frequently Asked Questions
Cryptocurrency can often be a complex topic and as an informational platform, we often get asked a lot of questions from our users. We’ve included thorough answers to some of the most common questions we get in the hopes that we can help aspiring Crypto Head’s.
Can you use Coinbase in Australia?
Currently you can use Coinbase in Australia to buy digital currencies, however the platform does not allow you to sell it at the moment. Coinbase have said they are working on bringing more functionality to the platform for Australians but it seems unlikely to happen anytime soon due to complications with Australian law. Coinbase was founded in 2012 and has been one of the main Cryptocurrency trading exchanges in the world, however they’ve been slammed by bad press and currently only have 3 coins available on their platform which is why we wouldn’t recommend them for Australians.
What is a crypto wallet?
A cryptocurrency wallet allows you to send, receive and store your coins in a safe digital environment. In most cases the Cryptocurrency will have a dedicated wallet that you can use to store your coins. Other options include storing your coins on an exchange, a third party wallet or a hardware wallet. There are multiple types of crypto wallets which you can read more about here. We would always advise against leaving Cryptocurrencies on exchanges purely because of history and the risk of the exchange shutting down or something going wrong is too high. On our site we suggest using a hardware wallet as it is the safest method of storing your digital assets.
Is CoinSpot a wallet?
CoinSpot does include a wallet on their platform as most exchanges do, you can send, recieve and store your coins using their multicoin wallet. All of their Cryptocurrency reserves are stored in escrow so there is less risk of something going wrong. The CoinSpot wallet is very easy to use which is why it is our recommended exchange for Australian users. One of the great features is that it allows you to easily swap, sell or send your digital assets. CoinSpot’s platform is the most versatile exchange that we have used and perfect for beginner users.
Which was the first Cryptocurrency?
The first decentralised Cryptocurrency was Bitcoin, invented in 2009. It was ground breaking technology and aimed to creat a more anonymous environment for the internet, it initially got used for illegal activities and a method to store wealth in a digital form. However, this was never it’s intended use and it’s only in the past few years that the real value of Bitcoin and Cryptocurrency general is being realised.
Who invented Cryptocurrency?
Cryptocurrency was invented by an incredibly talented computer scientsit and Cryptographer, Satoshi Nakamoto. To this day nobody knows who this person is but they authored the original Bitcoin white paper and created the original code. Satoshi Nakamoto was active in the development of Cryptocurrency until late 2010 and hasn’t contributed since. Currently the only assumed facts about Satoshi Nakamoto is that he is Japanese and was born in 1975. It’s possible that this mystery will never be solved and Nakamoto will never reveal his true identity.
Are Cryptocurrency Exchanges Safe?
Cryptocurrency exchanges always come with risk, there have been plenty of horror stories over the years about dealings with exchanges and it’s one of the main reasons adoption hasn’t grown as fast as it could. Exchanges have been known to shut down and users lose all of their digital assets. However, the environment we are in today is very different and this is becoming far less common with a crack down on regulation all over the world. Even so we still highly recommend not leaving your digital assets on an exchange and would instead recommend keeping it on a hardware wallet.
Where should I store my Cryptocurrency?
This question really depends on how actively you plan on buying, selling and swapping your Cryptocurrencies. Whenever you send your coins to another platform you’ll pay a fee so it can be cumbersome to constantly send your funds around. If you are planning to trade on a daily basis it would be easiest to leave the assets you are trading on an exchange so you can easily swap them around. However, if you are looking for a more long term solution then a hardware wallet is a much better option.
Cryptocurrency Exchanges – What They are, and How to Find the Best One for Yourself
Cryptocurrency is an emerging industry that some people are very familiar with, and others not so much. If you are considering investing or trading in this emerging market, and looking for how to buy bitcoin in Australia, you will first have to exchange your fiat currency for the cryptocurrency of your choice. To do this, you will need to look for the cryptocurrency exchange that fits you best.
Before getting yourself too involved in the research process, the first thing you should understand is the types of exchanges, their benefits, and the potential risks that you should look out for.
If you are a just getting started with cryptocurrencies, or if you were an early adopter, it is always best to understand the process and different providers when it comes to exchanges. There are both risks and rewards, depending upon your chosen method of obtaining your coins.
Traditional exchanges, such as Coinbase or Kraken, are organizations that buy and sell cryptocurrencies as a business. Often, these types of exchanges offer the best rates, but they also come with the most requirements.
Since these are organizations, facilitating, transmitting, and exchanging currencies, they have many regulations and procedures in place both as required by law, and also as a means to protect themselves from fraud.
Often, you will encounter wait times for either the transfer of funds from you to the exchange or wait times when it comes to verifying your identity. After you are an established client, in most cases, the exchange will lessen the time it takes for you to receive your cryptocurrency.
The reason the transfer of funds takes a considerable amount of time is because of the limited payment options provided by traditional exchanges. With traditional exchanges, most often, the only way to exchange your fiat currency for a cryptocurrency is through a bank transfer of funds to the exchange. This transfer takes time to clear, delaying the time it takes for you to receive your cryptocurrency.
If you are considering utilising a traditional exchange, you should still carefully research the requirements set forth by that individual exchange. Every exchange may set their own requirements and restrictions. Requirements range from purchase limits to limits on the geographic area you may be located in. Before registering with any exchange, carefully review their policies to ensure the exchange fits your needs.
Peer to Peer Exchanges
Peer to peer exchanges, or exchanges where you exchange fiat currency for cryptocurrency through a transaction conducted between two private individuals. These peer to peer exchanges share many similarities with traditional exchanges, though they do come with their own unique risks and benefits.
Often, the wait time and verifications steps will be less than what you would experience with a traditional exchange. You are taking on other risks though for these added benefits. Since you are conducting a private transaction with another individual, you are not afforded the same protections you would trading with an established, reputable, traditional exchange.
Most likely, your transaction on a peer to peer exchange will go smoothly. Every day, thousands of people conduct successful peer to peer trades, but there are select instances when people are taken advantage of. For this reason, one of the most important things to consider when using a peer to peer exchange is the feedback and history of the user you are conducting business with. The experience fellow users have had with traders will give insight into the experience you are likely to have.
If you can find someone on a peer to peer exchange that is reputable and you trust, you may find a peer to peer exchange better suited for yourself, over a traditional exchange.
With a peer to peer exchange, you often get your cryptocurrency in a short amount of time and you are free to use the currency as you wish. You may have to pay a slightly inflated price when using a peer to peer exchange since the trader you are exchanging with is also trying to make a profit. The payment method and amount of currency you are exchanging will also play a large role in the price you pay.
Some payment forms may be priced relatively competitive with traditional exchanges, while some offers may be priced significantly above traditional exchange prices. The reason for this discrepancy is the risk your trader is facing when it comes to collecting their payments, some payment forms may carry more risk than others.
How to Know What Type of Exchange to Choose
The differences in the two main types of exchange may cause some pause when deciding on the best means to obtain your cryptocurrency. One method; traditional, comes with less risk, but you may have longer wait times and have to go through a more extensive verification process, especially for new clients.
On the other hand, if you opt to go with a peer to peer exchange, you are likely to get your cryptocurrency faster, often times in a matter of minutes. But, you will likely pay a slightly higher margin over the spot price, resulting in a negative experience.
If you need to make the exchange and have the cryptocurrency in your possession in the faster amount of time, you likely will opt to go with a peer to peer exchange. As long as you have chosen a common payment method, you should have little difficulty clearing the trade quickly. As mentioned previously, when considering a peer to peer trade, you may have several different payment methods available. These payment methods will often determine the amount you pay and also the time it takes to get your cryptocurrency, again because of the different risks levels associated with each payment form.
If on the other hand, you are not in a rush to possess your cryptocurrency, or possibly if you are making a large purchase, you may be better off working through a traditional exchange. With a traditional exchange, you will get the peace of mind of trading with a reputable company, along with the benefit of the most competitive prices, which could be critical for large purchases. Traditional exchanges can take 1 day up to 2 weeks to verify a user, it depends on a number of factors.
Industry Leaders in Each Category
Coinbase: Coinbase can be classified as a traditional exchange. Coinbase is a US-based exchange, with over 10 million users and over $50 billion worth of cryptocurrency exchanged since the company was founded in 2012. Coinbase is one of the largest exchanges in the world, easily making its mark as one of the leaders in the traditional exchange category. At the time of writing, Coinbase lets you buy and sell Bitcoin, Ethereum, and Litecoin.
Bitstamp: Bitstamp is an exchange based on Slovenia, offering instant buy and sell orders of many cryptocurrencies. Bitstamp is a large player in the traditional exchanges, facilitating millions of dollars’ worth of trades every month, Bitstamp is a great option, especially if you are located somewhere where other options are not available to you.
LocalBitcoins: LocalBitcoins is one of the largest and most well-known peer to exchanges available today. With Localbitcoins, you are free to register an account to buy or sell cryptocurrencies. The size of the community and also the well-known aspect of this platform is a benefit in your favor when looking for a trading partner. The size of the community will ensure you have many options when it comes to trading partners and payment methods, hopefully also ensuring you can find the most competitive price currently available on the market.
Obviously, with the size and strength of the growing cryptocurrency market, there are many more options outside of the select few mentioned here. These exchanges are just a few, and some of the largest and most well know options available. Before settling on any of these exchanges or any other exchange you may be considering, it is crucial you research the exchange and verify it is the best one for yourself (while also looking at which altcoins you can buy on them – like Bitcoin Cash, Monero, IOTA, Verge, Ripple and NEO).
Keep in mind the location of the exchange or trading partner, along with any history and reviews you can find online. When conducting any transaction of value, you want to verify the legitimacy of your trading partner or exchange.
Something that most frequent traders do is store their crypto funds in a “stable coin” so that they still have it in a digital currency but they don’t risk the fluctuations of most other coins. A stable coin is a cryptocurrency that is meant to stay at a 1:1 ratio with the US dollar, the most popular one is called Tether. However, Facebook have released their own stable coin which is an exciting development in the Cryptocurrency space, this coin is called Libra. If you are interested then check out our guide – how to buy libra, if you are looking at storing your wealth in the digital space then Libra is a great way to do this.
Finally, verify you are able to complete any verification steps put in place by the exchange or your trading partner. After you have completed the verification steps, the last step should be to confirm your desired payment method is available and complete your trade.
If you are considering getting involved with cryptocurrencies, or if you were an early adopter, it is still equally important you choose the best exchange. A careful review of exchange types and the different options will help ensure your trading experience is successful.