Let's dive into the numbers!
Which Australian Bitcoin Exchange is best? Buying and selling digital assets across Australia can be quite overwhelming due to the variety of exchanges and brokers available. Yes there are many more, but these are purely Australian owned.
Supporting a Bitcoin-only exchange has immense benefits for the industry and backs the only digital asset confirmed as a commodity in the eyes of regulators (it's here to stay!). One of the advantages of trading at an exchange that offers many types of crypto assets is the higher trading volume due to the array of choices. Consequently, they generally offer lower commissions and tighter spreads. You'll be astonished to see the results from one particular Bitcoin-only exchange that offers the tightest expenses.
Ultimately, the choice of exchange or broker is generally a matter of personal preference for the investor. Therefore, ensure that the exchange/broker you select is the right fit for you.
When buying and selling any type of financial asset, there are generally three main expenses you must be aware of:
1. Commission - This is the fee the exchange charges you for the transaction. It's usually applied to both buying and selling.
2. Spread - This represents the gap between the buy and sell prices. While not a hidden cost, it's an expense that sometimes outweighs the commission and is often overlooked.
3. FX conversion rate - Typically, when purchasing an asset in a foreign currency, an exchange rate is applied. We won't be calculating this in our examples.
All the buy and sell prices from these exchanges were captured simultaneously in video for these examples. However, we cannot guarantee 100% accuracy due to latency and refreshing. This guide aims to explain how the calculations are performed.
The examples to follow are for a $1,000 AUD parcel of Bitcoin to buy. We will then sell that parcel a few seconds later to calculate the total expenses of commission and spread.
We have no affiliation with any of these exchanges, and provide you this information in good faith for our members to make informed decisions.
So let's get into it, which Australian Bitcoin Exchange is best for bottom line?
COINSPOT - One of Australia's first and largest Cryptocurrency exchanges.
- Buy price per Bitcoin = $58,779
- Sell price per Bitcoin = $57,984
- Commission = 1% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*1%) / $58,779 = 0.01684268979 Bitcoin
- Amount to sell = (0.01684268979 x $57,984) = $977 - 1% Commission = $966.84
- -$33.16 round trip in expenses.
SWYFTX - Another popular Australian Cryptocurrency exchange.
- Buy price per Bitcoin = $58,224
- Sell price per Bitcoin = $57,495
- Commission = 0.6% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*0.6%) / $58,224 = 0.01707208577 Bitcoin
- Amount to sell = (0.01707208577 x $57,495) = $982 - 0.6% Commission = $975.67
- -$24.33 round trip in expenses.
INDEPENDENT RESERVE - A smaller tier exchange that offers other digital assets alongside Bitcoin.
- Buy price per Bitcoin = $58,190
- Sell price per Bitcoin = $57,922
- Commission = 0.5% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*0.5%) / $58,190 = 0.01709915793 Bitcoin
- Amount to sell = (0.01709915793 x $57,922) = $990.42 - 0.5% Commission = $985.47
- -$14.53 round trip in expenses.
DIGITAL SURGE - A smaller tier exchange that offers other digital assets alongside Bitcoin.
- Buy price per Bitcoin = $58,305
- Sell price per Bitcoin = $57,647
- Commission = 0.5% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*0.5%) / $58,305 = 0.01706543178 Bitcoin
- Amount to sell = (0.01706543178 x $57,647) = $983.77 - 0.5% Commission = $978.85
- -$21.15 round trip in expenses.
HARDBLOCK - An Australian BITCOIN ONLY Exchange. (Disclaimer. This review was performed 1 week after the others. The prices and spread were reviewed, then changed to reflect the average price of last week. This is subjective as their spreads may have been tighter, but none the less, the expenses were calculated.)
- Buy price per Bitcoin = $58,354
- Sell price per Bitcoin = $56,871
- Commission = 0% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*0%) / $58,354 = 0.01713678582 Bitcoin
- Amount to sell = (0.01713678582 x $56,871) = $974.6 - 0% Commission = $974.6
- -$25.42 round trip in expenses
AMBER APP - BITCOIN ONLY Exchange
- Buy price per Bitcoin = $58,367
- Sell price per Bitcoin = $57,642
- Commission = 1% (Buy & Sell)
Calculation:
- Amount to buy = ($1,000*1%) / $58,367 = 0.01696163928 Bitcoin
- Amount to sell = (0.01696163928 x $57,642) = $977.70 - 1% Commission = $967.93
- -$32.07 round trip in expenses.
BITAROO - BITCOIN Only Exchange - OUR TOP BITCOIN CHOICE. We have no affiliation with any of these exchanges.
- Buy price per Bitcoin = $58,241
- Sell price per Bitcoin = $57,788
- Commission = 0.16% (Buy & Sell average)
Calculation:
- Amount to buy = ($1,000*0.15%) / $58,241 = 0.01714436811 Bitcoin
- Amount to sell = (0.01714436811 x $57,788) = $990.74 - 0.19% Commission = $988.86
- -$11.14 round trip in expenses
The final table: Which Australian Bitcoin Exchange is best?
- Bitcoin balances on exchanges are at record lows! - November 12, 2024
- What is Bitcoin?The Brilliant Design of Bitcoin - September 6, 2024
- Understanding Bitcoin Seed Phrases: Why Your Bitcoin Isn’t Tied to a Wallet Provider - August 16, 2024
