Cryptocurrencies are high-risk and volatile assets. If you don’t know how to safeguard yourself, it can be easy to lose your money or even get scammed. However, there are a few ways to assure that your crypto trading is as safe as possible. Choosing a reputable and licensed crypto exchange in Australia is one of the most important considerations.

Ensure compliance with local laws and regulations

Knowing your local laws and regulations is essential before engaging in any crypto activity. The same goes for ensuring you comply with local laws and regulations, which means checking out the specifics of what they have on record.

In some cases, there might be a ban or restriction on certain types of crypto trading or exchanges, so you must find out beforehand if your country has such rules. You can start by checking out the website of Blockchain Australia. This may also include links to other relevant information about crypto trading and exchange regulation.

Choose the most trustworthy exchange

• Check the exchange reviews.
• Check if the exchange is regulated.
• Check if the exchange is safe.
• Check if the exchange has good standing and customer support.
• Look out for exchanges that have been hacked before, and see how they handled it.

Use a reputable wallet

Once you’ve found the proper exchange, it’s time to choose a wallet. A crypto wallet is one such option that allows users to store, send, and receive digital currencies like Bitcoin or Ethereum. Like an online bank account, most wallets provide access to your funds so that you can make payments or transfers instantly.

However, some wallets also allow users to trade cryptocurrencies on exchanges—and this is where things get complicated. Exchange-hosted wallets are more vulnerable to breaches when compared with offline options like paper and hardware wallets (the latter being more secure). If a hacker gets into one of these centralised exchanges and steals user funds from their hosted accounts, there will be nothing left for customers who have been defrauded by this breach when they try recovering their money from the site after the act.

But a reputable crypto exchange in Australia tends to provide insurance from such occurrences and is therefore suitable for crypto storage.

Keep your password safe

• Use a strong password. An assertive password contains a mix of letters, numbers, and symbols. It is at least 12 characters long.
• Use separate passwords for all your accounts; don’t use the same password in multiple places. Don’t write down your passwords, either. Remembering too many passwords can be challenging; writing them down makes it even more complex (and dangerous). If you must have one password you use everywhere, make sure it’s something tough to guess. A random series of letters and numbers generated by an online tool is recommended.
• Two-factor authentication using Google Authenticator or biometric verification is also helpful.

Many exchanges do not require identification to open an account.

This means that you could be trading with a financial institution based outside of Australia or operating in a country that does not have the same laws and regulations as Australia.

Whether or not you’re required to provide your identity when opening an account depends on your jurisdiction, so make sure you’ve done your research before proceeding. Also, it is better to trust a crypto exchange in Australia that authenticates all its users for safer transactions.

Conclusion

There is no perfect way to trade cryptocurrencies. You can do several things to ensure that your account is secure and that you’re not breaking any laws. But ultimately, it’s up to each user and their prudence before investing.