How does an Australian crypto exchange work?
Once you decide you want to buy Bitcoin and become a part of the cryptocurrency market, you should be able to identify the inner workings of an Australian crypto exchange. In this article, we are going to explain the technical and the economic components of a virtual trading platform.
The exchange is a digital marketplace that acts as an intermediary between buyers and sellers of crypto-coins and fiat currencies (AUD, EUR and USD).
Let’s start off with the basic principals of trading on an exchange. The role of the platform is to match buyers and sellers of any given cryptocurrency, and it lets you, as a trader, place a market order or a limit order.
- Market order - is when you place an order through the service to buy or sell immediately at best available current price.
- Limit order - is when you place a “take-profit” order through the service to buy or sell at a previously set price.
For example, if you want to buy Bitcoin with a market order on the exchange, you will acquire your crypto-coin at the best available current price set from other sellers at the moment. Your order will be filled without any restrictions. However, if you are waiting for a better price (buying or selling), then you will place a limit order, meaning your order will not be filled as long as the price is not matched (price restrictions).
What the virtual exchange does is that it allows you, as a trader, place these orders, and it matches them with the requirements of the other trader orders on the platform. All cryptocurrency exchanges have transactions fees, which apply for every order completed through the platform.
The best cryptocurrency exchange in Australia-Blockbid
If you are searching for the best cryptocurrency exchange in Australia to start trading, then you should consider Blockbid. It runs on Australia’s fastest exchange network, which offers direct data links to over 180 co-location facilities on five continents. Furthermore, you can trade with all of the mainstream fiat currencies and popular Altcoins on the same platform without losing money in fees and time in additional transfers between exchanges.
Blockbid is an Australian crypto exchange based in Melbourne, and it has an experienced team of developers, Blockchain experts, ASX traders, a brokerage specialist, market research advisors and a corporate legal team. The team behind Blockbid includes Ben Sapper (CEO), David Sapper (COO), Gabriel Govinda (Director), Michael Zollo (Corporate Advisor), Luke Hamilton (Chief Technology Officer) and Emma Hoffman (Chief Marketing Officer).
On the Blockbid ICO crowdsale, 80 percent of the total supply of Blockbid tokens were available (maximum of 30 million). You can use Blockbid tokens to reduce transaction costs on the exchange, meaning that, as a holder, you will receive a 100 percent discount on transaction costs during the first year and a 50 percent discount every year after that.
They function like time units, for example, one Blockbid token gives you a 30-minute window in which you can trade as much as you want on the platform without paying transaction fees. If you own more then one, you can combine them and use them as you wish.
The emphasis on the Blockbid exchange is put on security. The virtual platform features full cybersecurity insurance, and it has an offline multi-signature hardware vault for storing crypto assets. It can perform up to 1 million transactions per second, and it can facilitate the trading of more coins on a single platform than any other exchange in the world.
Blockbid has a user-friendly interface, which allows traders from all levels to trade on the exchange intuitively. Blockbid is fully compliant with Australian cryptocurrency laws and AML/CTF guidelines drawn by AUSTRAC.
The Australian cryptocurrency exchange regulations
Since April 3, 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced that all Australian cryptocurrency exchanges must register with the authorities and comply with AML/CTF guidelines. Australian exchanges have a grace period till May 14, 2018, to register with AUSTRAC. They are obliged to implement the following changes:
- Exchanges have to develop a unique program that regulates money laundering and terrorism financing risks. The in-house rules have to describe the procedures for identifying, mitigating and managing threats.
- The cryptocurrency platforms also have to verify the identity of their clients.
- Every transaction that falls under suspicion regarding AML/CTF guidelines and is $10,000 or more has to be reported to AUSTRAC.
- Certain records should be kept at least seven years.
How are the new cryptocurrency regulations affecting the traders?
The opinion on this subject is divided among traders. Some believe that the legal framework will lift consumers to try and test the waters of the prevalent cryptocurrency industry, while others argue that it will chase investors offshore. However, the new laws are corresponding to the global trend towards cryptocurrency, with Canada, the USA, the UK, Japan and Russia drafting and implementing their own crypto legislation.
The end game for cryptocurrencies is mainstream adoption, and a legal framework is a necessary step in that process.
Choosing a crypto exchange in Australia
Choosing the right crypto exchange in Australia can affect not only your trading experience but also your financial advances. With Blockbid, you wouldn’t have to worry about the security of your crypto assets and, most importantly, you can save time and money by trading with more crypto-coins on a single platform than any other exchange in the world.
“Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”
- Marc Andreessen, American entrepreneur, investor and software engineer
When choosing an Australian crypto exchange, you should always have the Australian cryptocurrency regulations in mind and if the virtual platform is compliant with them. One of the main goals of the Blockbid exchange is to aid with the development of the global cryptocurrency and Blockchain community. If you want to learn more about cryptocurrency, read Blockbid’s Bitcoin guide