Since Bitcoin was created in 2009 cryptocurrencies as an investment opportunity have been gaining momentum. But what are cryptocurrencies and how can you begin investing in them?

Over the course of this article we will be looking at some of the best cryptocurrency exchanges in Australia, what you need to know about cryptocurrency exchanges, and how to choose an Australia cryptocurrency exchange.

Australian Bitcoin exchange comparison table

What is an Exchange?

When you decide to take the plunge into cryptocurrency investment, the first thing you will need to do is choose and exchange to work with. In simple terms, an Australian cryptocurrency exchange works in the same way as a real-world currency exchange. You deposit AUD or any accepted currency (which is know as fiat) and exchange it for a cryptocurrency.

There are thousands of cryptocurrency exchanges to choose from, all of which have slightly different terms, fees, and cryptocurrency availability. It’s important that you understand how exchanges work and what options are important for you before you make a deposit.

The 3 different types of exchange

There are 3 main types of exchange, which may or may not be suitable for you depending on how much cryptocurrency experience you have, and what your long-term goals are.

Broker

A broker exchange is essentially the same as a high street currency exchange office. The exchange allows you to buy and sell crypto at a price which fluctuates with the market value.

A broker exchange is perfect for dabblers, beginners, and experienced investors alike, thanks to its easy to understand model. The down side is that their fees are usually more expensive than other exchange types.

Trading Platform

A trading platform has far more in common with classic stocks and shares trading platform. Instead of buying crypto direct from the exchange, a trading platform allows you to buy and sell crypto with other users at a price which is defined by the market.

Trading platforms usually have a steeper learning curve than broker exchanges, so are more suited to intermediate to experienced crypto investors. However, they usually have lower fees, making the learning curve a worthwhile investment of your time.

Direct Trading

Direct trading exchanges share a lot of features with trading platforms. The main difference being that sellers set their own prices irrespective of market values.

This model does give sellers more control over the value of their crypto, which can be an appealing prospect. However, it is much more susceptible to fraud, so is far rarer than other exchange types and should be approached with caution.

Tips on how to choose the RIGHT exchange

With so many exchanges to choose from finding the right one can seem impossible. To make the task of finding the best cryptocurrency exchange in Australia for you a little easier, you should compare the following aspects.

Compare the transaction fees

Transaction fees vary greatly from exchange to exchange and high fees can eat up any profits you make. Make finding out an exchanges fees and fee structure (variable/fixed) one of your first tasks. As a rule, it’s a good idea to avoid exchanges where this information is difficult or impossible to find.

Type of exchange

As mentioned earlier there are three types of exchange. Before choosing an exchange, decide which type will be best suited to your needs.

Check the accepted payment methods and fiat

Not all exchanges accept all payment methods or fiat. Making sure that you will be able to make deposits easily will save you time and effort later on.

Exchange security and reputation

Before settling on an exchange, you should always check online for hacking reports and customer reviews (although it’s worth taking the later with a pinch of salt). Hackers attack exchanges every day, so you want to be sure that your chosen exchange is up to the task of protecting your money and personal details.

Transaction limits

Many exchanges will impose limits on how much cryptocurrency you can buy during a set time period. Some also impose limits on transactions, minimum and maximum deposits, and how much crypto you can hold. While these restrictions may not be a problem when you begin cryptocurrency investing, you should consider whether they will affect you if you choose to expand your portfolio in future.

Which cryptocurrencies are available

There are currently thousands of cryptocurrencies, but most exchanges only allow you to invest in a handful. Before settling on a exchange, ensure they have a currency that interests you.

Case Study: Coinjar vs Coinspot

Transaction Fees

Coinjar charges a fee of 2.9% while Coinspot charges between 2% and 3% depending on which coin you are buying. When you also factor in the 1% commission on some withdrawals and transfers charged by Coinjar, Coinspot seems the more affordable option.

Exchange Type

Both exchanges are brokered.

Payment Methods

Both exchanges accept POLi, BPAY, Cash. Coinjar also accepts credit cards from UK residents however this is unlikely to have any advantages for Australian customers.

Exchange security and reputation

Both have received criticism for poor customer support but no major hacking incidents.

Transaction Limits

Both exchanges have a daily transaction limit of $2,000 which can be increased with verification.

Cryptocurrency availability

Coinspot has an extensive list of cryptocurrencies available to buy and sell, while Coinjar only trades in Bitcoin.

Based on this breakdown we can see that Coinjar and Coinspot are similar on all but two of our criteria. Coinspot seems to have a marginally more appealing fee structure and has many more cryptocurrencies available to purchase. This would suggest that Coinspot is the better of the two exchanges and worth further investigation. However you should also factor in your goals, it’s irrelevant how many cryptocurrencies are available if you only want to invest in Bitcoin.

A look at the top 10 cryptocurrency exchanges for Australians

Coinspot Australia Review

Available coins: BTC, LTC, ETH, DASH, EVM, XRP, XMR and Many More
Type of wallet: Multi-Currency
Transaction limits: Daily purchase limit of $2,000 (can be increased)

Coinspot is on of the most popular exchange choices and is also a top Australian Ethereum exchange. It supports a wide variety of cryptocurrencies giving you plenty of choice when it comes to investing and is fairly easy for a novice to navigate. It has several convenient deposit methods, although these do not include credit and debit cards.
The fees on Coinspot are transparent and easy to understand, if a little on the high side.

Cointree Review

Available coins: BTC, LTC, Dash, ETH, XRP, XMR, ZEC, and More
Type of wallet: Bitcoin only
Transaction limits: Minimum order value $200

Coinjar Review

Available coins: Bitcoin
Type of wallet: Bitcoin and Fiat
Transaction limits: Daily transaction limit of $2,000 for unverified users

Coinjar is another contender for the best Bitcoin exchange in Australia, thanks to its simple to use interface and additional services such as their swipe and touch payment methods which allow you to make payments direct from your account using a card or smartphone app.
One of the downsides of this platform is that it only allows you to buy and sell Bitcoin, which will be limiting if you are hoping to diversify into altcoins. There are also some reports of long delays to the verification process, although this may be as a result of the recent Bitcoin activity.

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Coinbase Review

Available coins: BTC, ETH, and LTE
Type of wallet: Multi-Currency
Transaction limits: Vary depending on location

Coinbase is one of the top US exchanges trading worldwide with a New York BitLicense. Their platform is very user friendly for novices wanting to test the water, but it’s worth noting that the service is aimed entirely at entry level users so once you have some experience you will probably want to move on.

Unlike the other exchanges reviewed so far, Coinbase doesn’t have a focus on Australian markets, it is also very limited as to which Cryptocurrencies are available.

Coinmama Review

Available coins: Bitcoin
Type of wallet: None
Transaction limits: Daily limit $5,000, monthly limit $20,000

Although Coinmama is technically an exchange, a better description would be to call it a shop. The only service available through Coinmama is the purchase of Bitcoin and unlike most exchanges it doesn’t provide a wallet service so you will need to have your own wallet ready and waiting to send your coins to.

One of the biggest advantages to Coinmama is the ease of use. The interface is simple to use, you can pay via credit or debit card, and transactions are processed quickly. Although, it’s worth noting that deposit fees at Coinmama are some of the highest you will find.

BTC Markets Review

Binance Review

Available coins: BTC, ETH, LTC, BCC, OMG, IOTA, ICN, MCO, SALT, KNC, CTRm SNLS, FUN, BQX, XVG, ZRX, BQX, and More
Type of wallet: Multi-Currency
Transaction limits: Unverified users will be limited to 2BTC per day

Binance is a fairly new exchange which focuses on the Chinese market but accepts traders worldwide. It’s worth noting that there is some uncertainty about the future of cryptocurrency trading in China due to new and expected regulations.

Unlike most other exchanges Binance doesn’t accept fiat deposits, so if you are new to trading you will need to buy cryptocurrency elsewhere and transfer it in. Despite this hurdle Binance does offer both a user-friendly novice interface and a more advanced pro interface, which make it a great choice for new users who want an exchange which will grow with them.

Shapeshift Review

Available coins: BTC, ETH, LTC, BCC, OMG, IOTA, ICN, MCO, SALT, KNC, CTRm SNLS, FUN, BQX, XVG, ZRX, BQX, and More
Type of wallet: None, but it is supported on several external wallets
Transaction limits: Varies

Shapeshift is a Swiss exchange which focuses on swapping currencies rather than trading. The advantage of this is that you don’t need to sign up for an account or verify your identity, which is idea for anyone wanting to protect their anonymity while making quick swaps between currency.
Shapeshift doesn’t charge flat fees or percentage fees in the same way as most exchanges, instead it charges a mining fee which is specific to each currency. It’s worth noting that Shapeshift doesn’t allow you to purchase crypto with fiat currency, so you will need to purchase currency elsewhere.

When you get paid you probably put your money in a bank, but what do you do with your cryptocurrency? 

The answer is simple, you keep it in your wallet… just not the leather kind!

A cryptocurrency wallet is a piece of security software which connects to the blockchain (where the details of all cryptocurrency transactions are held) and allows you to view your balance, send and receive currency.

Your first experience of a wallet will probably be one supplied by your exchange. This will be relatively easy to set up and use but you should bare in mind that the wallet belongs to your exchange, so there is a very real risk that if the exchange is hacked you will lose everything. As a result, it is recommended that you immediately transfer your coin into a more secure wallet.

When choosing the best crypto or altcoin wallet, you should consider the following options.

Desktop or Smartphone Wallets

These are programs that you download onto your desktop or device. They are relatively easy to set up and are fairly safe so long as you keep your antivirus and firewall up to date.
One of the best desktop altcoin wallets in Australia is Exodus, which is not only multi-currency, but allows you to exchange coins from within your wallet using Shapeshift. Alternatively, Jaxx is a top pick if you’re looking for a Litecoin wallet on iOS.

Hardware Wallet

If you want even more security for your hard-earned coins, a hardware wallet is the way to go. The software is similar to that used in a desktop wallet, with the major difference being that it’s stored on a memory stick. This allows you to access your wallet from any computer, while also reducing the risk of hacking by keeping the wallet disconnected the majority of the time.

Paper

A paper wallet is much more difficult to set up as you will need to generate your own keys for the blockchain, you will also need to set up a digital wallet of some kind in order to transfer funds to recipients. This method is usually only used by extremely advanced investors who need to ensure their security is bullet proof. 

FAQs

How does the blockchain affect the speed of my transactions?
Blockchain (https://www.blockchain.com/) is the name of the databases software which is the backbone of every cryptocurrency. Each cryptocurrency has its own blockchain and each blockchain is slightly different meaning that the speed at which it can be accessed, allowing you to buy and sell currency, will vary.

Another factor which will affect the speed of transactions is how congested the blockchain is. If there are a large number of people making small transactions on any one currency, this could have a knock-on effect on how quickly those transactions are processed.

How do I decide which cryptocurrency to invest in?

There is no easy answer to this. Each crypto has its own real-world purpose, so if you want to choose the next big thing you’ll need to weigh many factors such as whether the real-world application is viable, the abilities of the team developing it, and publicity. Before taking the plunge it’s wise to spend some time researching techniques for finding a good crypto investment.

How stable is the cryptocurrency market? Will my money be safe?

According to an interview with Ari Paul on Business Insider (http://uk.businessinsider.com/crypto-hedge-fund-cio-three-biggest-risks-investing-in-cryptocurrencies-2017-12?r=US&IR=T ) cryptocurrencies are incredibly volatile and difficult to predict. As a result, investing in them will always be high risk. However, the equally high rewards make it an attractive prospect for those willing to accept the risk level.
In addition to the general high risk of cryptocurrency investment, there are some who believe that Bitcoin is currently in a bubble (http://www.independent.co.uk/news/business/news/bitcoin-bubble-investment-value-cryptocurrency-burst-digital-boom-currency-a8086256.html). While there is no way to know if the bubble exists and if so when it will burst, it is worth baring this in mind and keeping a level head.

Do I need to be tech savvy to invest in cryptocurrency?

You don’t need to be a computer expert to invest in crypto but you will find it hard to make an informed investment decision unless you have a good understanding of computers and technology.

Should I be concerned about scams?

In a word, yes. The head of the US financial regulator recently expressed concern regarding the lack of protection for cryptocurrency investors (https://www.theguardian.com/technology/2017/dec/12/bitcoin-buyer-beware-us-sec-warns-extreme-caution-over-cryptocurrency-investments ). The possibility of hacking is an ever-present danger, but there are other risks for investors such as scam exchanges and fake currencies.
Given the risks, you should always use a secure wallet which isn’t connected to an exchange and thoroughly research any exchange or cryptocurrency before investing money with them.

TLDR: Whats the Best cryptocurrency exchange in Australia?

Cryptocurrency exchanges come in all shapes and sizes and it’s important to choose the right one, particularly when you are new to cryptocurrency investing. Taking your time and doing your research before taking the plunge, could save you time and money in the long run and may also save you from falling victim to scams. However, you should remember that your first choice doesn’t need to be your last. Transferring crypto between exchanges is usually cheap and easy, so if you’re not completely satisfied with your first choice you can always try again.

What is RP Data?

RP Data is Australia’s largest residential and commercial property database. Their 150 million property records are updated daily in real time, and account for 98% of Australia’s properties.

Users of RP Data are able to easily search for specific properties or locations, and view comprehensive property reports including a wealth of information about the properties history, potential for investment, and surrounding area.

With such a comprehensive coverage it is unsurprising that they are the preferred database for government bodies and real estate agents.

How can RP Data help me make smart property decisions?

With any investment, the key to success is knowledge. If you make a habit of investing in property without thoroughly researching its history and location, sooner or later you will end up getting your fingers burnt.

What RP Data provides is an easy, cost effective way to delve into the details of nearly any property in Australia and New Zealand. Not only will RP Data allow you to comprehensively research your investment proposition in minutes, it will also provide estimates for things like rental income and yield, indicate how the property might fair as an investment, give you an insight into the type of people who might be your tenants should you buy the property, and the opportunity to easily research similar potential property investments.

Once you have found a property that you feel would make a good investment, you can also order title documents direct from the RP Data website.

As a result of these features you will very quickly have a clear picture of your potential investment, which will allow you to make an informed “smart” decision regarding its viability.

RP Data Features

RP data is available in two forms, a free service which is very limited as to what property details are available, or a premium subscription which provides you with a comprehensive insight into any property in Australia.

Some of the more interesting features included in the premium subscription are as follows.

RP Data title search

RP Data’s user-friendly title search function allows you to order land titles and related documents on a national level all in one place. Gaining access to order these documents has also been made as simple as possible by adding a link into each property file. The process is further simplified by the system automatically knowing which property you are interested in and pre-filling the property information for you.

Ownership Data

Each property report includes a complete history including details of the current owner.

Property Insights

Property insights provides you with a high-level overview of a property’s estimated financial value. This section of the report includes handy details such as a estimate of the property’s value, and its rental potential.

Investor Scores

Most of RP Data’s property files include an investment score which is their estimate of how well the property will do in different investment situations including Capital Growth, Cashflow, and low risk.

Property Comparison

Using RP Data you can not only look at properties, but also compare them.

There are two main methods of comparing properties within RP Data. You could search for an area, rather than an address. This will bring up a map of the requested area on which you can view both for sale and sold properties. Alternatively, You can view nearby properties from within each property file.

Neighbourhood Demographic

The demographic of the area you are investing in is arguably just as important as the property itself as it will dictate the type of tenant you are likely to attract.

The RP Data report includes a comprehensive breakdown of the area’s demographic, including information such as age, income, household structure, and whether surrounding homes are owned or rented.

Market Trends

Each property report includes a market trends graph which allows you to see at a glance the areas sales and rental performance over the past year.

This is a valuable insight into the property market in the area, which may affect your choice to invest.

How to get free RP data reports

If you need full access to RP Data’s reports via their website, you will have little choice but to sign up to one of their pro accounts or pay a one off fee of $39.50, but there is a way to get this report completely free!

This method is entirely legal and above board, and only requires you to have a smartphone and the ability to get online.

Please note you cannot access the BOQ properties app from outside Australia.

RP data alternatives

Although RP Data is the largest company of its type and a favourite with estate agents and government officials, it isn’t the only choice and does have some competition.

APM Price Finder

www.pricefinder.com.au

Price Finder is RP Data’s main competitor. It works in a similar way to RP Data, with a large searchable and a subscription fee if you want to see full reports.

Before RP Data updated their website, many individual users preferred Price Finder, claiming it was far more user friendly, if slower. The jury is still out on whether RP Data have done enough to their website to change that view, but it certainly seems so.

The data that Price Finder supplies also seems to be comparable to that supplied by RP Data. Some users even claim that Price Finder is more accurate.

Price is one of the few areas where Price Finder and RP Data differ. Price Finder offer only one package at $175, where as RP Data offer a vide variety of prices and options.

RipeHouse

www.ripehouse.com.au

RipeHouse is a slightly different proposition for investors. Instead of providing you with an in-depth property report, it uses advanced AI to choose investment opportunities for you.

On signing up, you are asked to complete a 2 minute survey, the details of which help the site to decide your risk appetite and the type of investment that would be best for you. It will then suggest a number of properties that fit with your profile without you so much as lifting a finger.

Although this might sound ideal to new investors, it comes at the steep price of $1597 per year and the hands off approach won’t be for everyone.

RP Data subscription costs

RP Data subscription costs are highly flexible, with different package lengths to suit nearly any need. You can also purchase a one-off report for $39.50, or alternatively you can purchase fixed term access of the following lengths:

Conclusion

RP Data is the market leader in their industry and it’s not difficult to see why. Their front-end service is well designed and user friendly and the level of detail and added value in their reports is impressive. The fact that RP Data is the preferred supplier for professional bodies also lends it a high degree of credibility.

Although some investors have been put off RP Data in the past due to its lack of a user-friendly interface, the recent CoreLogic RP Data rebrand appears to have addressed this with a new website packed with intuitive features.

RP Data also appears to have taken individual users into account when looking at their pricing structure as it now has a number of affordable options to suit most circumstances. However, if you are only looking to get one or two reports and you are happy for them to be slightly abridged, it is worth accessing the reports for free via BOQ Properties.