How to Choose a Reliable Platform to Buy Bitcoins

Financeby Mashum Mollah10 February 2021

Platform to Buy Bitcoins

Bitcoin is one of the most known cryptocurrencies present in the market. The primary concern that many investors have while trading in bitcoin is losing their money. The market of cryptocurrencies is evolving, and its high-volatility makes it more exciting for new investors.

As a new investor, you need to understand the importance of having a secure and reliable platform like Swyftx.  You will find so many bitcoin trading platforms on the internet but before choosing any, keep the following things in mind.

How to Choose a Reliable Platform to Buy Bitcoins?

Reputation

The bitcoin trading platform’s reputation is a crucial factor to consider before you decide to invest. Cryptocurrency is a fairly new concept and is still evolving.  So, to save your hard-earned money from any scam, you need to invest in a reliable platform.

The best way to do it is to look for it online and see what other people say about the platform. Typing the word scam or fraud along with the platform will tell you if they are legit or not. Lastly, read all the terms and conditions carefully to know how they do the business.

Transparency

It’s important to know if your platform is registered as a business or not. Gather information like who runs and owns the exchange. What are the laws applicable there, and is it applicable in your region? A registered company is undoubtedly a safer place than some platform that has no information about it. This information is provided on the platform under company registration details.

Legality

Many local laws and systems look at the number of fraud and other criminal activities associated with cryptocurrencies. AUSTRAC (Australian Transaction Reports and Analysis Centre) is one such regulator under the Australian Government to monitor bitcoin.

Guidelines under AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing Act, 2006) prevent the abuse of financial systems. Always go for a platform enrolled with AUSTRAC and registered under Digital Currency Exchange Register like Swyftx. It will ensure that the platform follows strict KYC guidelines and maintains a record of transactions.

Security Features

Security features of a bitcoin trading platform are very crucial. So, you must go and check the security policies of the platform you choose. Two-factor authentication is the accepted security level, and your platform must have a 2FA.

A platform that has 2FA will ensure that your account is secure. So, it’s best to avoid a platform that does not have a deposit and withdrawal authentication system.

Fees

Most of the trading platforms, including Swyftx, charge a small fee for each trade. Consider checking the fees that the platform charges. Remember that this charge is not standard, and some platforms may charge more or less than others. Most of the time, they are charged as some percentage of the trade. Since you will be trading regularly, even a charge that looks small will matter a lot in the long run. Some even ask for a fee on withdrawals. So, make a choice based on all the calculations.

Simple Individual Tax Reporting

Cryptocurrency trading and mining are taxable in Australia, and the Australian Tax Office (ATO) has made some strict guidelines. There are no taxes on the purchase or holding of cryptocurrencies, and you need to have accurate records for it.

But selling and trading bitcoin is taxable under the capital gains tax regime. A platform that offers a calculated tax report for a custom period makes it easy for you to pay your taxes.

Real-Time Asset Prices

Look for platforms that offer real-time asset prices. The charting time frame might differ, and many of them do it for free too. Real-time asset pricing provides an excellent backup data source when you lose quotes from the broker. It works as a free training tool for new traders.

By studying the trends, you can create strategies based on real-time prices. Platforms like Swyftx offer real-time asset prices, which update based on the order size.

Fiat Exchange

It’s an essential factor you need to consider before choosing a bitcoin trading platform. Fiat exchange is when you change the amount into national currency. Every trader needs it at some point in time. This exchange procedure is beneficial if you want to trade off your bitcoin and get out of the Crypto world. Most modern cryptocurrency platforms provide fiat exchange options. So, you should look for this system.

All these features in your trading platform will help you get the most of your investments. Every bitcoin platform has its way of dealing. So, make a decision based on your goals and level of investment. A trusted platform can help mitigate the risks and protect your profits. Compare and check all the features and then decide.

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Mashum Mollah

Mashum Mollah is the man behind TheDailyNotes. He loves sharing his experiences on popular sites- Mashum Mollah, Blogstellar.com etc.

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