Bitcoin is one of the most widely accepted cryptocurrencies in the world. It is a digital currency controlled by a secure decentralized network of users. Bitcoin has greater liquidity and lowers transaction fees as compared to other cryptocurrencies. New Zealand became the first nation to legalize salary payment through Bitcoin.
A cryptocurrency exchange is a platform wherein users can exchange or trade Bitcoin. You can visit platforms like swyftx.io.nz to understand the concept of a cryptocurrency exchange and its roles in trading.
Here are 8 benefits of using a cryptocurrency exchange for trading Bitcoin.
A user-friendly platform embedded with modern and secure interfaces is the USP of cryptocurrency exchanges. Beginners can sign up with an exchange, make a deposit, and start trading on a centralized platform. They get a cohesive view of their account, trades, the market, their balances and more.
Some exchanges make the process of trading all the more comfortable and flexible with mobile applications. They also offer advanced features such as integrated trading view charts, trigger settings for automatic buying and selling of assets when it reaches the desired price point.
The state-of-the-art internet platforms allow exchanges to integrate security mechanisms, ensuring your account’s integrity at all times. The 2-factor authentication, biometric logins are different security strategies adopted by exchanges to protect your account.
They offer several deposit and withdrawal methods like bank transfers, PayID, POLi or OSKO, ensuring payments are made through secure options.
Cryptocurrency exchanges in New Zealand are considered reliable, owing to their centralised platform. Exchanges offer you a transparent view of your account, the trading fees involved, combined order books, advanced APIs, and integrated trade views.
With such features at your disposal trading with a cryptocurrency exchange is reliable as compared to peer-to-peer transactions.
You may buy, sell and trade Bitcoin 24*7. As compared to the traditional market which strictly adheres to an opening and closing time, you can trade Bitcoin whenever you want to. You can trade Bitcoin over the weekend while travelling using just your smartphone.
With features such as real-time price feed and automatic triggers, the exchange will take care of your trades without you even needing to log in.
Leverage Demo Mode
As a beginner in cryptocurrency trading, you must utilise the demo mode offered by exchange platforms to understand the market and the trading process. Demo modes are usually stimulated with real-life liquidity and market depth. You could buy, sell and learn how to build your portfolio without actually spending anything.
Using the demo mode, you can judge if you would be comfortable with the cryptocurrency exchange interface. Exchange platforms in New Zealand offer free demo modes that you can leverage to gain market experience.
Transparent Fee Structure
There are various fees associated with deposit, withdrawal and trading in both traditional and cryptocurrency exchanges. The cryptocurrency exchange platforms provide you with complete transparency over the fees they charge.
A spread represents a difference between the buying and selling price of an asset. In the case of Bitcoin, it is the amount charged by the exchange to place the trades on your behalf. This amount is automatically deducted from the buying price. The typical spread percentages for Bitcoin in New Zealand range from 0.41% to 5%, and this percentage is mentioned to users beforehand.
Trade with Coins
When you are dealing with cryptocurrencies, there is a mining charge to be paid. This mining charge is for the hardware employed for secure and reliable transactions across the currency network. Cryptocurrency exchanges offer users the freedom to trade with coins.
When dealing with fiat currencies, there are deposit and withdrawal fees associated with the same. But, when it comes to cryptocurrency, deposit and withdrawal are usually free with you having to pay only the mining charges.
In New Zealand, there is no special legislation in place for cryptocurrencies. Activities related to this type of currency are considered financial services and governed under the Financial Markets Conduct Act 2013.
Certain cryptocurrency exchanges offer you with the feature of downloading tax reports for a period of your choice in New Zealand dollars to comply with the tax and accounting requirements in place.
cryptocurrency exchange is a valuable platform for novice investors starting in the field of cryptocurrency trading. At the same time, if you are an experienced investor, you can leverage features such as combined order books, real-time price feed, and an integrated view of digital assets. With the instant settlement, secure and reliable transactions, cryptocurrency exchanges are here to stay.