A Guide to Choosing a New Zealand Bitcoin Exchange Platform
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a dispersed public ledger called a blockchain. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as legal modes of payment. The current price of Bitcoin in New Zealand is around NZ$16,130.60.
If you are looking to get into Bitcoin, you first need to find an exchange platform. Here are some tips on finding the best NZ bitcoin exchange platform.
What is a Crypto Exchange?
Approximately 1.5 percent of New Zealanders already own cryptocurrency. The most popular digital asset, Bitcoin, can be bought and sold on a crypto exchange.
A cryptocurrency exchange is a digital marketplace where traders can buy and sell cryptocurrencies using different fiat currencies or altcoins. A crypto exchange acts as an intermediary between buyers and sellers of digital assets. Different types of exchanges cater to different needs. Some exchanges only offer crypto-to-fiat trading, while others only provide crypto-to-crypto trading. Some offer a hybrid of both services.
How Does the Platform Work?
Here is how an NZ bitcoin exchange platform works. To start, you need to create an account and verify your identity. Once you are logged in, you can deposit New Zealand dollars (NZD) into your account using a bank transfer or a credit/debit card. The funds will then be converted into bitcoin and stored in your account.
Choose the amount you want to buy, select your payment method, and click “Buy Now.” The bitcoin will be deposited into your account immediately.
To sell bitcoin, select the amount of bitcoin you want to sell and click “Sell Now.” The funds will be converted back into NZD and deposited into your account.
Here are some features to check in the platform:
- Security
A good platform will have robust security measures to protect your personal and financial information. Look for features like two-factor authentication and multi-signature wallets.
When choosing a Bitcoin exchange in New Zealand, it is essential to look for a platform that offers high levels of security. Good exchanges will have two-factor authentication and multi-signature wallets to protect your information.
- Two-factor Authentication: Two-factor authentication is a security layer that requires you to confirm your identity before being able to log in. It usually takes the form of a code that is sent to your mobile phone.
- Multi-signature wallets: A multi-signature wallet requires more than one person to sign off on a transaction before it can be processed. It adds a layer of security, as hackers would need access to more than one device or account to steal your funds.
- License and Regulation: Any Bitcoin exchange platform worth its salt will be appropriately licensed and regulated. It ensures that the platform follows best practices in security and anti-money laundering.
A reputable company should be registered under the Financial Service Providers Register. The platform should also have a published physical address and contact information like an email or phone number.
AUSTRAC is the financial intelligence agency in Australia that monitors businesses to prevent money laundering and terrorism financing. They have a specific set of regulations that Bitcoin exchanges must comply with to operate legally. You can check if an exchange is registered with AUSTRAC by searching their public register. The New Zealand Financial Markets Authority (FMA) is the regulator of financial services in NZ. They don’t have specific regulations for Bitcoin exchanges, but they guide their website. At the very least, the platform should be registered with either AUSTRAC or the FMA.
- Fees
The fees charged by a Bitcoin exchange can vary quite a bit. Some platforms do not charge any trading fees, while others charge up to 0.50 per cent. Some hidden charges may include:
- Withdrawal fees
- Deposit fees
- Conversion fees
- Network fees
When considering a Bitcoin exchange, it is essential to check what kind of fee structure they have. And if any hidden charges will eat into your profits. The important thing is to find an exchange that suits your trading style and needs. Some common trading styles are:
- Day trading is when you open and close trades within the same day.
- Swing trading: This is when you hold trades for a few days to weeks.
- Scalping is when you take advantage of small price movements to make a profit.
Conclusion
Bitcoins are becoming more and more popular each day. Knowing what features to look for in a New Zealand bitcoin exchange platform is essential to keep up with the trend. You must choose a reputable and reliable platform with low fees, a user-friendly interface, and various payment methods.
