Bitcoin is one of the most well-known cryptocurrencies in the market. The primary concern that many investors have while trading in Bitcoin is losing their money. A reliable platform to buy bitcoins helps users ensure they are not losing money.
The market of cryptocurrencies is evolving, and its high volatility makes it more exciting for new investors.
As a new investor, you must understand the importance of a secure and reliable platform like Swyftx. You will find so many bitcoin trading platforms on the internet, but keep the following things in mind before choosing any.
How to Choose a Reliable Platform to Buy Bitcoins?
Cryptocurrency is a sketchy avenue, especially if you do not know the ropes. You must know everything about buying bitcoins before making a purchase you regret.
Here are some essential factors when choosing a reliable platform to buy bitcoins.
Reputation
The reputation of the Bitcoin trading platform is a crucial factor to consider before investing. Cryptocurrency is a 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 others say about the platform. Typing the word scam or fraud along with the platform will tell you whether they are legit. Lastly, read all the terms and conditions carefully to know how they do business.
Transparency
It’s important to know whether your platform is registered as a business. Gather information like who runs and owns the exchange. What laws are applicable there, and are they relevant 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 frauds and other criminal activities associated with cryptocurrencies. AUSTRAC (Australian Transaction Reports and Analysis Centre) is one such regulator under the Australian Government that monitors 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 the Digital Currency Exchange Register, like Swyftx. It will ensure that the platform follows strict KYC guidelines and maintains a record of transactions.
Security Features
The security features of a bitcoin trading platform are 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 must have accurate records.
However, 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 are updated 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 the national currency. Every trader needs it at some point.
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 out of your investment. Every Bitcoin platform has its way of dealing. So, decide based on your goals and investment level.
A trusted platform can help mitigate the risks and protect your profits. Compare and check all the features and then decide.
Bitcoin FTW!
Now that you know how to choose a reliable platform to buy Bitcoins, you can easily invest in cryptocurrency. Knowing about the use case and the right platforms helps provide you with the peace of mind that’s often missing in this area.
Bitcoin and other cryptocurrencies have a bright future based on the trends and their performance so far. So, it would be best for you to invest in it with your eyes and ears open. This is to ensure you do not end up investing somewhere unsafe.
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