As cryptocurrencies become increasingly popular in Australia, there are plenty of exchanges to choose from. How do you choose which ones are legit, which ones are scams, and which ones are best for you? We’ve researched to help you find the right currency exchange for your needs. Please note that our recommendations are based on actual test results and not market noise.
Top 3 exchanges for Australians
Binance
Binance is the most popular cryptocurrency exchange that Australian customers have access to in terms of trading volume; In contrast, Coinbase has more registered users, but more people trade large amounts of cryptocurrency on Binance.
This makes sense as it has by far the widest range of altcoins that can be traded on spot or margin. It has more coins listed than other exchanges in this review – over 500 DeFi coins and tokens.
Like Bybit, Binance has all the technical indicators you look for in a trading platform.
Binance supports DeFi staking, cryptocurrency staking, mining, and yield farming. Visit the Binance Earn section of their website, downloadable desktop client, or mobile app to learn how these forms of passive crypto income work.
Like eToro, Binance offers a secure wallet, Trustwallet, with 10 million users worldwide.
Like Bybit, Binance does not offer social trading and is unregulated. Still, it has stood the test of time in the cryptocurrency landscape, a popular exchange with a positive reputation since 2017.
Pros
- Accepts most cryptocurrencies
- Advanced TA Indicators
- Spot and margin trading
Cons
- No social trading
- Not regulated
eToro – Regulated by ASIC
eToro is one of the earliest cryptocurrency exchanges; in fact, it was founded in 2006 before the invention of Bitcoin and cryptocurrencies. At the time, it was a stockbroker and currency trader; it also accepted trading of these assets with cryptocurrencies, ETFs and commodities.
eToro is regulated by ASIC (Australian Securities and Investment Commission). It also holds an Australian Financial Services License (AFSL). One of its offices is located in Sydney, New South Wales.
eToro is open to customers in Australia, New Zealand, and most parts of the world. FCA and CySEC also regulate it. There are currently over 120 cryptocurrencies listed for buying and selling.
eToro has social trading features – every user who opens an account receives their own style of social media profiles where they can post their opinions on the markets and see what others think of each crypto asset.
Certain professional traders are welcome on the eToro copy trading platform: you can choose to copy the trades of one or more proven traders. EToro will automatically use the part of your wallet you choose to replicate other people’s trades without paying any administration fees.
Alternatively, there is a “portfolio copy” feature where you can copy the portfolio allocation instead of copying trades, ideal for long-term altcoin holders who prefer to hold as an investment strategy rather than to negotiate.
eToro also offers a free cryptocurrency wallet: eToro Money Wallet. It has state-of-the-art security standards to protect your funds and protect you from DDoS attacks and unauthorized access. Users can also obtain a crypto debit card to use their crypto funds for retail purchases.
Staking
eToro also pays rewards for staking because, with many cryptocurrency exchanges, you can earn passive income by owning certain currencies. On eToro, they focus on Ethereum (ETH), Cardano (ADA), or Tron (TRX).
eToro uses a distribution system purpose instead of charging costs to the manufacturer and the debtor. Also, it has fewer indicators to use when tracking price action than Bybit or Binance.
For both of these reasons, day and active swing traders may prefer to only use eToro for its copy trading features and social trading and for its own trading and reselling using Binance or Bybit.
eToro supports the largest range of deposit options for any cryptocurrency exchange that customers in Australia can use, including bank transfers, credit and debit cards, Skrill, Neteller, Paypal, and more.
Also, eToro requires KYC verification – you’ll need to upload a photo of your government-issued ID, like a passport or driver’s license. However, some traders prefer this, as exchanges that do not require this information may face other regulatory restrictions.
Pros
- Australian Regulated Stock Exchange
- Free crypto wallet with a private key that cannot be lost
- Social trading and copy trading
- Wide range of deposit options
Cons
- No leverage for cryptocurrencies, just other asset classes
- Requires identity verification
- Scalping and day trading Binance and Bybit
Bybit – Free Cryptocurrency Futures Trading
Unlike eToro, the ByBit exchange offers spot trading and margin trading for cryptocurrencies, also known as futures trading.
This implies that you can short or long the price of Bitcoin and other cryptocurrencies by buying contracts (also called CFDs) rather than holding the underlying asset.
The advantage of Bybit is that you get a 0.025% maker discount when placing limit orders for future trades. It’s not just a free form of cryptocurrency trading, as they don’t charge a commission when you close or open your position; it’s a way to make money as you are being paid – these profits are small, but they increase over time.
This maker rebate is higher than Kucoin and Bitfinex, where it is 0.02%, and Binance does not pay a producer rebate when the trading margin – only certain high-volume spot traders can earn a maker rebate hundreds of bitcoins a month. The Bybit maker discount is available regardless of transaction volume.
You can open a 1x forward hedge position when you want to sell: a 1x short position cannot lead to liquidation even if the price goes up. It’s the same as selling your cryptocurrency for cash, but you avoid commissions, every eight hours, you’ll receive a manufacturer discount plus funding, which generally favors shorts. Typically, the funding rate is 0.01%, which means that longs pay 0.01% interest to those that are sold during each eight-hour funding period.
Leverage
Never forget to use a stop loss if you open short positions with more than 1x leverage or open a long position: 1x long positions can be liquidated. Leverage is a useful tool for increasing profits, but it can also destroy your account if you use it recklessly or without limit loss. Increase your positions by layering your bids to get a better average vote.
ByBit currently does not have social transactions or a separate wallet with a physical debit card like eToro and Binance. However, it offers staking options and a mobile app.
Users can withdraw up to 2BTC per day without providing a government-issued ID, ideal for those who prefer anonymity.
Keep in mind that Bybit is unregulated but has a good reputation in the cryptocurrency community. It has been around since 2018 without any issues with data leaks, hacks, scams, blocked accounts, etc.
Pros
• Maker rebate on futures
• More technical indicators: full charts from Tradingview
Cons
- Fewer deposit options
- Not regulated
- No social transactions
The Verdict
Most traders today open accounts for various cryptocurrency exchanges. This gives you the peace of mind of splitting your funds in multiple places instead of keeping all your eggs in one basket.
It also lets investors take advantage of the various features of the trading platforms – you can choose to invest on autopilot by using part of your portfolio on eToro, through its Trade Copy or Portfolio Copy features. Then allocate another part of your trading portfolio to platforms more suitable for intraday trading, such as Binance and ByBit.
eToro offers free training courses on learning to trade if you are trying to trade cryptocurrencies.
Alternatively, you can use multiple trades as you have Ethereum to stake rewards on eToro and altcoins with a lower market cap to speculate on Binance. Or you can charge ByBit funding fees at times when longs pay off, such as a stake, which is another free source of money.
You can buy cryptocurrency from Coinbase in Australia. To withdraw from your AU bank account, you will need to send it to another cryptocurrency exchange first, as Coinbase does not process withdrawals from Australian banks.
As for deciding which is the best cryptocurrency exchange for Australians, eToro has a financial services license from the ASIC (Australian Securities and Investment Commission). So, this would be the best exchange Australian investors can sign up for in terms of regulation and security. But overall, I’d go with Binance than the other listed exchanges.
