Aussie crypto exchanges have reported a big increase in new customers following Binance Australia’s suspension of AUD fiat services.
On May 18, Binance Australia told customers that its Aussie dollar services were suspended “due to a decision made by our third-party payment provider”. Meanwhile, the Australian Financial Review reported that Westpac had stopped its customers from transacting with Binance amid concerns over the use of overseas exchanges by scammers.
National exchanges have since reported a significant increase in traffic and downloads across their platforms.
Aussie crypto users move to local exchanges
Jason Titman, chief operating officer at Australian-owned exchange Swyftx, said:
“We’ve just seen a seven-month high in the number of new customer registrations. Aussie crypto users want the peace of mind that comes from dealing with a secure, large national exchange at the moment.”
Binance Australia has told its customers that they can continue to withdraw AUD via bank transfer until June 1. In its latest update, the exchange also said it was “working hard to find an alternative provider to continue offering AUD deposits and withdrawals.”
In a media statement on May 18, Westpac Group Executive of Customer Services and Technology, Scott Collary, said: “Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges.”
New research reveals Aussie crypto users biggest consideration when choosing an exchange
Titman said new Swyftx customer research had shown Australian ownership was now the biggest consideration for local crypto users when choosing an exchange.
“There has been a major shift in sentiment over the last six months and especially since the collapse of FTX, with local crypto users opting for local crypto exchanges.”
“Australians want to trade on secure exchanges that are based in the country and operate to local standards.”
“Swyftx has one of the largest teams in the country and we work closely behind the scenes with banks and law enforcement to keep our customers safe, with around 15% of our team dedicated to security and scam prevention.”
ASIC’s civil court legal action against BPS Financial Limited — the company that launched Qoin in late 2019 — also alleges unlicensed conduct and that BPS falsely conveyed that the company and its wallet app were regulated and legally compliant.
In a statement issued on Tuesday October 25, ASIC Deputy Chair Sarah Court said:
“ASIC is particularly concerned about the alleged misrepresentation that the Qoin Facility is regulated in Australia, as we believe the more than 79,000 individuals and entities who have been issued with the Qoin Facility may have believed that it was compliant with financial services laws, when ASIC considers it was not.”
ASIC Deputy Chair Sarah Court
An announcement on the Qoin website states that BPS is reviewing the allegations, does not agree with ASIC’s position, and will be defending the matter.
Limits on Exchanging Tokens Raises Concern for Consumers
The idea behind Qoin tokens is that they can be used by consumers as a digital currency within a large ecosystem of participating businesses, to enable secure and contactless payments — upon its launch, BPS claimed to have more than 35,000 merchants signed up.
BPS also marketed that Qoin tokens could be swapped for crypto and Australian dollars, via Block Trade Exchange Limited, aka the BTX Exchange, which is linked to BPS and has the same directors.
Early critics argued this closed system reduced the token’s utility and created a potential conflict of interest. Frustrated investors have long been complaining about difficulties in selling Qoin.
Biggest crypto scam in Australia I've been warning people about for years is collapsing. For years there was no way to sell $QOIN, but it finally got added to a tiny exchange & even with a $100/day sell limit it's collapsing. Investors stand to lose millions. 🇦🇺🚨💰 #ausbiz#scampic.twitter.com/2KKscwEo1N
Core allegations being made by ASIC related to the current civil court action include that BPS falsely assured investors that they could exchange their Qoin tokens for other crypto assets or fiat currency, and that they could use Qoin tokens to purchase goods and services from a growing number of merchants.
“We allege that, despite what BPS represented in its marketing, Qoin merchant numbers have been declining, and that there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges.”
ASIC Deputy Chair Sarah Court
ASIC is seeking declarations, pecuniary penalties, injunctions and adverse publicity orders from the Court.
Coin’s Chequered Crypto Journey
In its short history, the Qoin token has been embroiled in controversies including:
November 2021: Salerno – an Australian crypto dispute specialist law firm – began preparations for a class action suit against Qoin for A$100 million, based on potential fraud and pyramid-like selling of financial products.
March 2022: A Queensland construction company, Privium, moved into liquidation after taking a A$3 million gamble on Qoin tokens.
A failed investment in the controversial cryptocurrency known as Qoin may have contributed to the collapse of a major Queensland building company Privium Group earlier this year. https://t.co/1KaqkLKf7E
Swyftx is one of the best options on the market for Australian cryptocurrency investors. The platform offers low trading fees (0.6%) and tight spreads, making it a cost-effective crypto exchange for buying, selling and trading digital currencies.
The crypto exchange’s streamlined design, support for recurring buys and live chat make it a comfortable choice for complete cryptocurrency novices.
More experienced users will enjoy a comprehensive earn hub, crypto bundles and a huge range of supported assets.
Advanced derivatives traders may want to look for an alternative exchange, as Swyftx does not offer futures, options or perpetual contracts.
Swyftx is an Australian cryptocurrency exchange headquartered in Milton, Brisbane. The platform was founded in 2017 by Alex Harper and Angus Goldman and has since expanded to service customers from New Zealand. The company also has plans to support customers from the UK and Canada.
Users can buy, sell and trade over 310 crypto assets using the platform’s streamlined yet customisable user interface. The huge variety of digital assets on offer makes Swyftx an excellent choice for both beginner and more experienced investors.
Australian crypto exchanges can be notorious for high, undisclosed spreads, but Swyftx is renowned for its fee transparency. The trading fee is a flat 0.6%, with the possibility of discounts based on high trading volume, and spreads are easily visible
The platform supports a competitive earn hub, SMSF (Self-Managed Super Fund) support, advanced order options and a demo trading mode.
In its relatively short life, Swyftx has established itself as a reliable, cost-effective and secure exchange. Beginners and intermediate investors alike will find themselves at home using the platform, although advanced users wishing to trade derivatives will want to look elsewhere.
Pros and cons
Pros
Cons
Competitive trading fees (0.6%) and transparent spreads, especially for an Australian exchange
Fees are a bit high for day-traders, compared to international trading platforms (like FTX or Binance)
Excellent reputation for security and trustworthiness
No advanced trading options like derivatives
Well-optimised and sleek mobile app
No insurance fund
Wide range of supported cryptocurrencies
Helpful features like earning, SMSF support and tax report generation
Is Swyftx safe?
Swyftx has built a reputation among the Australian community for being a trustworthy and safe exchange. In its 3+ years of operation, the platform has never reported a hack or other compromising event. Swyftx is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and abides by all Anti-Money Laundering (AML), Know Your Customer (KYC) and Counter-Terrorism Financing (CTF) laws.
The cryptocurrency exchange prioritises the safety of its customer’s assets and utilises a multi-tiered security approach. Swyftx uses industry-standard security measures such as Two-Factor Authentication (2FA), cold storage, penetration testing, data encryption and the least privilege principle. Swyftx also aims to become one of the very few Australian exchanges to receive ISO 27001 certification. This certification is regarded as the international benchmark for security management.
Swyftx does not currently offer an insurance fund for crypto assets and fiat currency held on the platform. This does not necessarily make Swyftx any less safe than alternatives — particularly given its sparklingly clean track record — but it is still worth keeping in mind.
Swyftx customer support
Swyftx has one of the best customer support services for Australians wanting to buy and sell crypto. The platform hosts a comprehensive Help Centre, filled with 100+ helpful articles that walk customers through depositing AUD, placing buy/sell orders or customising the dashboard.
If the Help Centre doesn’t answer the question, Swyftx offers a 24/7 live chat. The support team is Australia-based and responsive, with wait times usually ten to fifteen minutes during work hours.
Swyftx has a 4.7/5 star rating on TrustPilot (from 3,822 reviews) and a 4.6/5 star rating on ProductReview (from 3,686 reviews), demonstrating the team’s excellent customer service.
Swyftx fees
Australian crypto exchange platforms are generally a little costlier than international alternatives, but Swyftx’s competitive trading fees stack up well against its local and overseas competitors.
Overall, Digital Surge is the only Australian exchange that currently has cheaper combined transaction fees and spreads than Swyftx.
Trading fees
Swyftx charges a flat trading fee of 0.6% on all transactions. This includes buying and selling cryptocurrencies with AUD or swapping one coin for another.
Customers can expect around a 1% trading fee on average when using other Australian exchanges, making Swyftx quite cost-effective.
Deposit & withdrawal fees
Fiat
Swyftx does not charge any fees on AUD deposits and withdrawals from an Australian bank account. Free and near-instant fiat transactions are a great feature of the exchange.
The deposit and withdrawal limit for AUD is $50,000 per transaction, per day. However, both of these limits can be extended upon request.
Credit/debit card deposits will incur a 3.6% third-party processing fee from Banxa. The maximum card deposit is $60,000 per month.
Cryptocurrency
Swyftx does not charge any fees for sending or receiving cryptocurrencies to a wallet. However, standard network (gas) fees will apply.
Spreads
Spreads are the difference in an asset’s price between the time an order is placed, and the time it is executed. Spreads are hidden fees that can make trades more expensive than they appear. Those new to trading may not know what spreads are and quickly become confused at the extra costs.
Swyftx hangs its hat on providing some of the tightest spreads in Australia. The platform is transparent with the spreads for each trade, with fees starting as low as 0.45%. The overall average spread of 1.7% is extremely competitive in the Australian market. Some customers have reported Swyftx’s competitors charging very high spreads of over 4%.
Swyftx features
Trading on Swyftx
Swyftx’s trading interface is clean and easy to navigate. Beginners can easily build their portfolio by setting up instant orders for buying or selling cryptocurrency. Finding coins to purchase is easy — users can simply type the coin’s name into the search bar and click “Buy”. Alternatively, customers can sort through the 310+ digital currencies based on recent price movements or market cap.
More experienced traders can set up advanced orders that trigger when an asset hits a specific price (effectively a limit order). This can be used to potentially buy or sell cryptocurrencies at a preferred value, instead of at the current market rate. The Swyftx trading terminal also offers a customisable chart.
It’s worth mentioning that Swyftx lacks several features advanced traders might desire, such as derivatives, market depth and an order book.
Earn
Swyftx supports earn wallets for 20 assets, where customers can lock up their tokens and passively earn returns of up to 65+%. Generally, the earning rates on offer are competitive for a centralized exchange. Although yields typically fluctuate, the APYs for assets like Kusama, Kava and Tron are above average. On the other hand, Ethereum and Solana have lower earning rates than if investors staked them on-chain.
Each asset is divided into three tiers, where the more cryptocurrency a customer locks up, the lower their earning rate. For example, someone staking less than 3 ETH could earn an APY of 2.5%. However, if they are staking more than 6 ETH, that APY drops to just 1.5%.
The Earn program works similarly to a high-interest savings account, where cryptocurrencies locked in an earn wallet are loaned to Swyftx without a minimum period. Swyftx then repays the “at-call” loan with interest.
There are no fees for depositing or withdrawing cryptocurrency from the Earn wallet. Some major digital currencies supported include Solana, Cardano, Ethereum, Cosmos and Polkadot.
In 2022, Swyftx removed four cryptocurrencies from their earn program — TrueAUD, USD Coin, USD Tether and Bitcoin — as a preventive method to ensure customer safety. Unfortunately, these cryptos are typically in high demand for passive earning, so some investors will need to find a suitable alternative.
Demo mode
Demo mode is a fantastic initiative by Swyftx that allows beginners to practice trading cryptocurrency without risking any capital. Swyftx is one of few exchanges that offer crypto demo trading accounts.
Switching to demo mode will provide each account with $10,000 in “mock” currency, which can then be used to build a virtual portfolio. Demo mode is a great way for newcomers to get used to the Swyftx platform, and for experienced investors to test new trading strategies.
Bundles
Swyftx offers nine different crypto bundles for customers to invest in. Bundles are a bit like exchange-traded funds (ETFs), being a curated basket of multiple digital currencies. Bundles are a great way to diversify your portfolio, as they are less exposed to the price swings of a single cryptocurrency.
Bundles range from the simple “Big Two”, which contains only Bitcoin and Ethereum, to the “Staking Coin”, which is filled with ten assets that can all be staked via Swyftx Earn.
SMSF
Swyftx allows eligible Australians to add cryptocurrency to their self-managed super fund (SMSF). This has become increasingly popular due to its tax benefits and the overall performance of cryptocurrency since its inception. Swyftx has partnered with crypto SMSF specialists New Brighton Capital to meet growing demand and address any regulatory risks.
To comply with Australian policies, users must create a separate Swyftx account specifically for trading crypto within an SMSF. To be approved for this account, customers must supply supporting documentation including financial records. For a full list of SMSF requirements, refer to the ATO.
Creating an SMSF can be a convoluted and confusing process, which is why Swyftx offers consultations with their experts.
OTC
High-volume traders, institutions and SMSF accounts can buy and sell over 280+ cryptocurrencies over the counter (OTC). Swyftx’s OTC desk supports trades of over $100,000 AUD and offers global liquidity and lower fees than other Australian competitors.
Affiliate program
Swyftx offers an affiliate program that more than 70,000 crypto investors have used. Customers with a valid Australian Business Number (ABN) will receive a commission for sharing promotional material and registering new users. Affiliates will receive 30% on all fees paid by new accounts that sign up with their unique referral link. Commissions are paid on the first week of every month.
Recurring orders
Swyftx allows its customers to automate investing through recurring orders, also known as dollar-cost averaging (DCA). DCA involves buying a certain amount of one — or multiple — cryptocurrency at regular intervals. This way, investors can ignore the short-term price fluctuations of an asset and continue accumulating.
Recurring orders are a powerful way for beginners to build a long-term crypto portfolio while mitigating the risks of trying to time the market. Swyftx customers can set up DCA orders for all 310+ supported assets, as well as crypto bundles.
Tax reports
One of Swyftx’s most compelling features is the platform’s ability to integrate with useful tax software. The Australian Tax Office (ATO) has cracked down on tax reporting for crypto investors, so Swyftx can help its customers ensure they’re meeting all their obligations.
Swyftx offers a free tax calculator. Using it is simple — customers just enter the value of disposed cryptocurrencies at the time of purchase and sale, as well as their taxable income. The calculator will then estimate the Capital Gains Tax owing come tax time.
Alternatively, Swyftx can be easily integrated with the popular tax reporting software Koinly and Crypto tax Calculator. Users can export a CSV file of their Swyftx trades for a specific timeframe and feed it into the Koinly software. That’s all there is to it — Koinly will then generate a tax report. Koinly can also connect directly to the Swyftx platform via an API key.
Business accounts
Swyftx supports business and trust accounts for professional traders and other crypto-related service providers. Personal, SMSF and entity accounts can all be linked to a single login, making cycling through them quite convenient.
Note: Users are required to create a personal account before they can open an entity account for their business or trust.
Swyftx mobile app
Swyftx offers a clean and responsive smartphone application for Android and iOS devices. The app supports most of the main features found on the desktop platform, including trading cryptocurrency on the go, receiving price notifications and transferring assets to an earn wallet.
The Swyftx mobile app has been generally well-received, with a 4.6/5 star rating and hundreds of thousands of downloads.
How to sign up to Swyftx
As one would expect from a modern, reputable exchange, signing up for a new account on Swyftx is an incredibly simple process.
Step 1
To get started, navigate to the Swyftx platform’s home page. From here, customers can select either the white “Signup” button in the top-right corner, or the large orange “Sign Up Now” button in the middle of the page.
Step 2
Even if you wish to create an entity or SMSF account, you will need to start off by registering a personal account. Continue the signup process by entering your country of residence and email address. Once done, select “Next”.
Step 3
Swyftx will now send a 6-digit verification code to verify the email address entered in the previous step. Input the numbers to complete email verification.
Step 4
Next, enter your first and last name, along with a mobile number. Swyftx will then require you to enter another 6-digit code, this time verifying the mobile number provided.
Step 5
Finally, new accounts must pass Know Your Customer (KYC) verification before they can start depositing AUD and trading cryptocurrency on the Swyftx platform. This is due to the Australian government’s AML and CTF policies.
To pass this process, you must have access to some form of government-issued identification, such as a driver’s license, passport or identity card. Take a photo (using a smartphone to do this is advisable) and upload them to complete verification. Once verified, the account is registered and ready to begin trading cryptocurrencies! The verification process usually takes a couple of minutes.
Although not a requirement, it is always recommended that new accounts enable Two-Factor Authentication (2FA) before doing anything else.
Frequently asked questions
Is Swyftx legitimate?
Yes, Swyftx is a legitimate cryptocurrency exchange that was founded in 2017 and has been servicing customers since 2019. Swyftx is headquartered in Brisbane, Australia and licensed as an Australian business.
Is Swyftx safe?
Yes, Swyftx is one of the safest exchanges on the market. The platform is dedicated to protecting its user’s assets, employing industry-standard security measures such as hot/cold wallet storage, data encryption and 2FA. The exchange has never experienced a hack or other form of public attack.
Is Swyftx a wallet?
Swyftx itself is not a wallet, however, the exchange does support storing over 310 cryptocurrencies on the platform. Additionally, Swyftx supports 15+ Earn wallets for customers to passively earn income on assets like Tron, Cardano and Ethereum. Although Swyftx’s wallets are safe, it is typically recommended to withdraw cryptocurrencies from exchange wallets to a third-party hardware wallet.
Can Swyftx be trusted?
Yes, Swyftx is one of the more reputable exchanges available to Australian investors. The company has an Australian-based support and development team and is registered with the relevant government agencies. Additionally, Swyftx has garnered impressive ratings of 4.5+ on Australian review websites such as TrustPilot and ProductReview.
Is Swyftx regulated?
Yes, Swyftx is registered with and regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC). It is advised that crypto beginners stick to regulated exchanges, making Swyftx a solid option.
If you’re curious about crypto but slightly overwhelmed by the possibilities of the market, a crypto demo account can be the perfect starting point. Demo trading, also called paper trading, is the practice of utilising simulated funds to try your hand at cryptocurrency trading without the attached risk from a real transaction.
Jumping headfirst into crypto trading, as a beginner, can significantly increase your chances of losing money. Therefore, it is imperative that every trader is aware of the risks associated with the market, and that they are prepared to make smart financial decisions. With the crypto market known for its volatility, a crypto demo account provides the perfect ‘safe space’ to learn crypto trading and experiment with different trading strategies.
There are multiple demo crypto and bitcoin trading accounts on offer for those looking to experience the market. This page will cover the tips, tricks, and benefits of demo trading, alongside an introduction to some of the best crypto demo accounts in circulation.
What is crypto demo trading?
Crypto demo trading is an exercise designed to offer a trader the opportunity to gain exposure to market conditions and practice trading without risking their own money. When you begin your demo, you will receive a sum of artificial money that you can put towards buying, selling, and trading cryptocurrency. A virtual account is typically linked to real market data, meaning that not only can these accounts be useful for crypto beginners, but they also provide the perfect opportunity for more experienced traders to try various strategies.
Demo accounts can be found on numerous trading platforms and crypto exchanges. Not all crypto practice accounts are available for free; however, most will be. Each platform will vary in terms of usability, available trading tools and crypto pairs, and beginner-friendliness.
Benefits of Crypto Demo Trading
There are several benefits associated with demo trading. Not only are these practice accounts excellent for helping beginner investors find their feet within the market, but they also provide the perfect environment for experienced traders to trial trading strategies. Put simply, the benefits of crypto demo accounts are that they can be:
Great for beginner traders,
Helpful for the development of trading strategies, and
Ideal for building skills that may reduce financial risk.
Access to advanced trading tools
Important to remember: Experimenting with a free demo account does not substitute thorough investment research. These accounts serve to allow traders to put their research to the test. Ensure you are knowledgeable about the trading you wish to partake in, and then utilise a demo account to build on this.
Best crypto demo accounts
Unfortunately, most crypto exchanges and trading platforms don’t offer a demo mode. However, there are still several options available to Aussies. The following will be a comprehensive list of all the best demo accounts, to help simplify your decision.
1. Swyftx
Swyftx demo mode is beginner-friendly, prioritising ease of use and allowing traders to imitate most of the trading features Swyftx has to offer. Swyftx demo mode is quite intuitive and designed to mimic its real-world trading platform. Therefore, any potential confusion a trader might experience when switching Swyftx’s actual trading platform is removed. As the demo platform is aligned with the live platform, users can access features such as:
Price alerts,
More than 310 tradable assets,
Market depth and global liquidity,
Portfolio progress tracking,
Mobile and desktop applications, and
Live market trends
Every Swyftx demo account is credited with $10,000 USD of virtual funds, called ‘Mock Currency’. The balance cannot be added to once the account is opened; however, the customer support team can reset your Swyftx demo trading mode upon request. These funds can be used to buy, sell and trade BTC, ETH, XRP, DOGE, ADA and hundreds more.
Swyftx demo. Source: Swyftx
Creating a Swyftx demo trading account
It couldn’t be easier to get started with a Swyftx crypto demo, all you need to do is:
Create a Swyftx account: Sign up to the exchange using your name, email address, and phone number.
Switch your account to ‘demo mode’: You’ll find the switch at the top right side of your screen. Once you switch, a yellow banner will show at the top of your screen to indicate that you’re in demo mode.
Begin trading: Your mock currency will be credited, and you are then ready to start experimenting with the market.
It is important that you see the yellow banner if you are intending to trade crypto using the demo mode. If you’d like to trade with real-market data and zero financial risk, a Swyftx demo account might be right for you.
2. eToro
Trading platform and global financial brokerage, eToro, offers one of the more comprehensive demo accounts. Notably, the eToro demo mode permits its users to trade across a much broader range of markets, including stocks, commodities, currencies, indices, ETFs, and crypto. eToro’s demo crypto trading account grants traders $100,000 in artificial funds to put towards the development of a virtual portfolio.
Aside from Bitcoin demo trading, eToro allows users to select from 15 other cryptocurrencies for their mock transactions. Additionally, a standout feature for the eToro demo is the ‘social trading news feed’. This is the perfect space for interaction with other traders, offering you the opportunity to share your strategies or learn from others. Whilst you should not blindly follow a strategy without conducting your own research, this can be a great way to learn from more experienced traders. This social platform can be sorted by ‘popular investors’, thereby giving you direct access to the strategies of successful traders.
2. Access your ‘Virtual Portfolio’: Under your username, you will be presented with a dropdown. Click ‘Virtual portfolio’ which will take you to your demo account.
3. Begin trading: Your artificial funds will be deposited, and you are ready to begin to practise trading with real-time market data.
The eToro demo account enables traders to follow each investment’s real-time trends thanks to advanced analysis tools. Traders can also experiment with applying leverage, Stop Loss, and Take Profit features. eToro also lets its customers access ready-made thematic portfolios for further ease of use.
3. Binance
Crypto’s biggest exchange, Binance, calls its demo trading account ‘Mock Trading’; this can be found under Binance Futures trading. Futures is a more speculative trading style that involves trading derivative contracts at a set future price and date. The simulation trading platform is less accessible than other demos; however, as Futures trading is quite risky, learning without financial commitments can be very valuable.
Once you open your Binance Futures testnet (demo) account, you are credited 3000 USDT which is the equivalent of $3000 USD. Your virtual portfolio will permit you to utilise up to 25x leverage, place stop-losses, and take profit orders. The testnet also allows traders to adjust the risk level, providing an opportunity for investors of all calibres to grow. This demo account can additionally be accessed on mobile. Note that the Mock Trading environment’s candlestick charts and prices may differ from the market value.
Confirm a Binance Futures account: Under the profile icon in the top right corner, click ‘Mock Trading’ and confirm your intentions to make a Binance Futures testnet account.
Start trading: Experiment with trading futures.
Note that one negative aspect of the Binance demo account is that it does not cater to spot trading.
4. TradingView
The charting and social networking site, TradingView, was initially focused on stock scanning and charting. However, the site recently bridged into cryptocurrency and now monitors the historical prices of trading pairs across a variety of markets. Studying historical prices and conducting technical analysis can be useful for identifying patterns that may translate to the future price movements of assets. TradingView is not an exchange; therefore, users cannot deposit and trade with real currency. However, TradingView does offer demo crypto trading, permitting its users to learn from its advanced charting system.
TradingView calls its demo crypto account ‘Paper Trading’ and primarily caters to more advanced traders who seek to utilise a variety of charting tools to expand on their existing knowledge. Some of the key features of a TradingView crypto demo include:
Real market data from multiple exchanges
Price alerts and other indicators per chart
Trading strategy simulations and result measurements
Hundreds of trading pairs
Creating a TradingView demo trading account
Create an account: Once you have an account with TradingView, select ‘Paper Trading’ under the trading panel.
Start trading: To get started all you need to do is right-click on your chosen chart, hover your cursor over ‘Trade’, then click ‘Create New Order’ and you are ready to begin.
5. Plus500
Plus500 is notably one of the top-performing Contract for Difference (CFD) trading platforms. CFD means that traders are investing in financial products which track the prices of assets such as stocks, indices, Forex, ETFs, and cryptocurrencies. Due to this, any funds you invest in crypto, cannot be withdrawn to an external wallet. Plus500 is especially good for beginners, as it can teach aspiring traders the ropes. The interface is easy to use, and the ‘order entry window’ summarises useful trades for beginners using the demo crypto account.
Demo users can trade their CFDs with up to 30x leverage and can use artificial funds to trade with 17 different cryptocurrencies. Thanks to its functionality, Plus500 allows seasoned traders to practice high-risk trades. Tutorials can be accessed to guide beginner traders, and customer service is available at any time. Once you feel that you have had enough practice under your belt, the process of switching back to live trading is simple.
Creating a Plus500 demo trading account
Activate a demo crypto account: You do not need to open a real trading account to begin a demo; instead, when you reach the registration window click ‘Select Account Mode’ and sign up for the Demo Mode.
Complete the tutorial: The tutorial will guide you through the functionalities of the platform and teach you how to place trades.
Note that if the sum of your artificial funds drops under $200, your balance will be reset.
6. BitMart
BitMart is known for its multiple interesting features, including trading futures, crypto lending, and staking. Its demo crypto account interface almost perfectly matches its live trading interface and gives users access to integrated TradingView charts, which offer a range of technical indicators to assist with trading strategies. The user interface does have some slight variations in appearance for its futures markets, as to include the leverage options.
The practice account supplies a practice amount for the purchase of cryptocurrencies. And, whilst most live features can be accessed on the demo, switching to live trading offers multiple features, including:
Futures market trading with leverage up to 100x
Spot market trading with more than 90 crypto pairs against BTC, BMX, USDT, and ETH tokens
Lending on digital assets, with the potential to earn crypto interest up to 6.25% APY
Mobile app access for trading and monitoring your portfolio.
7. Bitsgap
Bitsgap is a trading platform with several valuable features, such as allowing users to manage multiple portfolios, trade multiple digital assets, and access trading bots. Integrated with 25 of the biggest global cryptocurrency exchanges (such as Kraken and Coinbase Pro), Bitsgap’s demo account (https://bitsgap.com/demo-trading) has access to all the features on its live trading platform. The demo account operates by replicating its supported exchange’s order books, offering traders the opportunity to:
Utilise the Smart order options and risk management tools to create safe investment strategies
Allow trading bots to trade for you when offline
Practice trading with multiple order types
Monitor portfolio profits and losses
Creating a Bitsgap demo account
Sign up or log in: The Bitsgap site can be easily navigated to register or log in.
Switch to the demo: You can enable Demo mode under your profile in the top right corner of your screen. You must make sure that the status is changed to ON.
Try it out: The Bitsgap Demo FAQ section provides a list of things it recommends beginners try if you aren’t sure where to begin.
Once your account is up and running you will receive 10 (demo) Bitcoin. This Bitcoin demo trading will help you to polish your trading skills at your own pace.
Tips to make demo trading more realistic
The primary aim of utilising demo trading is to learn in the most realistic scenario imaginable, without the attached financial risk. Therefore, to ensure you achieve this goal, we have compiled some tips to make sure your experience is as practical as possible.
1. Pretend it’s real money
If you can successfully disassociate from the notion that demo trading is fake, and instead pretend the funds you use are real, you are more likely to learn from the experience.
Moving into a demo experience fully committed to the concept that you are using real money, limits the chances of you making reckless decisions you might otherwise avoid. The downside of a demo account is that, for some, removing the risk also removes the commitment to learn the basic fundamentals of crypto trading. Therefore, pretending that all the financial risk remains, will likely prompt you to make smarter decisions, and you will thereby take more from the opportunity.
2. Account for slippage
The difference between the value of an asset when an order is placed, and its value when the order is fulfilled, is called slippage. Slippage can result in either a loss or a gain, and it is imperative that you take this into account in both a crypto demo and live trading.
You can work on accounting for slippage in your demo trading by:
Utilising a limit order
Determining your slippage tolerance
Using strategies (i.e. dividing one large order into multiple smaller ones)
Consider slippage when choosing the exchange you will eventually live trade with, as some exchanges have more features to aid with this than others.
3. Make high-volume trades that you wouldn’t normally make
Whilst you should do your best to pretend that your demo crypto account trading is real, don’t neglect the fact that you can experiment with the volume of your trades. Making higher volume trades that you might traditionally avoid in the real market is a great way to play with the concept of risk and reward.
At the end of the day, demo accounts create a safe environment for you to test your ideas and develop new strategies!
4. Research an asset before investing
Just because you have experimented with the best crypto demo accounts, and the real assets that you are interested in, does not mean you won’t require further research. Any investment you make, whether crypto-related or not, should be supported by in-depth research and understanding.
Once you switch to live trading the risk is real and making reckless trades without conducting thorough research can end up costing you.
Key Takeaways: Simulated trading is designed to offer you the opportunity to experiment with the market without fear of financial loss. There are multiple demo accounts on offer to suit traders of all experience levels. You can utilise these accounts to learn or test strategies; however, demo experimentation will never substitute quality investment research.
Black Mountain Energy, a US-owned resource company headquartered in Australia, has received a “non-binding” letter of intent from Highwire Energy Partners regarding collaboration for potential entry into the bitcoin mining industry.
The proposed location for the crypto mining project is a fracking site in the Kimberly region of northwest Western Australia; however, despite BME’s charter of “responsibly developed and environmentally conscious natural gas supply”, environmentalists claim the project will not benefit from emission reductions.
BME is exploring project Valhalla in the Kimberley region of northwest Western Australia.
Flared Methane to be Diverted to Crypto Servers
Highwire Energy Partners will likely work with BME to divert flared methane gas from well-testing to power mobile cryptocurrency servers. This well-testing, and eventual project roll-out, is taking place at BME’s Valhalla Project fracking site in the Kimberley’s Canning Basin.
Rhett Bennett, BME’s chief executive officer, has stated that the process would likely aid in a reduction in emissions by avoiding flaring off the excess gas, allegedly reducing CO2-equivalent emissions by around 63 percent.
Flaring natural gas certainly is not [Environment, Social and Governance]-friendly … so the ability to utilise that gas for power and ultimately create a product, in this form, is a much better solution.
Rhett Bennett, CEO, Black Mountain Energy
BME’s current negotiations involve the use of 5 terajoules of gas per day, which can supply up to 25 megawatts of power for the crypto servers. This translates into approximately A$100,000 worth of Bitcoin daily, providing BME uses the best available mining equipment.
However, anti-fracking organisations are retaliating against the plan, suggesting that bitcoin miners should have to use a renewable energy source rather than environmentally damaging fracked gas. As noted by Dr David Glance, director of the University of Western Australia’s Centre for Software Practice, mining operation computers established in hot and remote areas require more energy to cool.
From an environmental perspective, it makes absolutely no difference whatsoever if they burn the gas or they use it to mine cryptocurrency … It will still produce carbon dioxide.
Dr David Glance, UWA Centre for Software Practice
As it stands, the Valhalla project is yet to receive approval from the Environmental Protection Agency (EPA), which does not expect to have a report finalised until early 2023.
Other Energy Giants Mining Crypto
Black Mountain Energy is not the first company to utilise natural resources for crypto mining. In March, ExxonMobil diverted some of its unused natural gas to power mining operations in North Dakota, US. This was managed via a partnership with solutions specialist Crusoe Energy Systems, which converted the gas into mobile generators that then powered the mining operations.
Meanwhile, back in Australia, Canadian oil and gas miner Bengal Energy has commenced an assessment of the profitability of mining bitcoin from stranded gas assets in the Australian outback. The project has already led to the reassembly of previously out-of-operation gas wells in South Australia’s Cooper Basin.
This comes as National Australia Bank (NAB) and Australia and New Zealand Banking Group (ANZ) declare they won’t permit their customers to trade crypto, and the Commonwealth Bank (CBA) admits to facing challenges with its crypto project.
AFR: ANZ and National Australia Bank have ruled out allowing customers to trade cryptocurrencies, while Commonwealth Bank has confirmed its controversial crypto project faces hurdles amid a sharp downturn in digital asset markets. ( Something is not right here )
This week’s AFR banking summit has left three of Australia’s ‘Big Four’ banks with some food for thought. Simon Cant, co-founder of venture capital firm Reinventure Group, suggested during the summit that the biggest threat to Aussie banks will be the arrival of ‘super apps’. Customers could potentially find an app for all their financial needs, from everyday banking and taking out loans to getting paid, trading crypto, and investing.
One such example of super-app providers is US-based tech giant Square, which has recently acquired Afterpay and has plans to go global with its Cash App. Dom Pym, co-founder of Up – an Aussie neobank – has also encouraged the big banks to investigate human resources software, social media giants, and gaming apps.
This is where people are using technology, and so they’re going to use finance and banking through that … that’s where the next generation of banking customers are.
Dom Pym, co-founder, Up
Traditional financial institutions delaying or denying progress in the crypto sector could be shooting themselves in the foot. NAB’s spokesperson has stated the company is taking a “wait and see” approach to the retail use of crypto, instead focusing on underlying blockchain technology. CBA also seems to be monitoring the market with its CEO, Matt Comyn, stating that “crypto, clearly, is a polarising topic”, despite believing that the industry will be a continuing source of innovation over the coming decade:
The Commonwealth Bank has been working on bringing crypto to its customers for several months now. In late 2021, CBA began developing methods for customers to earn interest on crypto. To do so the bank entered a partnership with Gemini, a crypto custodian and exchange.
However, last month CBA halted its trading pilot due to impending regulation and market turmoil. There has been no mention of when the pilot might restart, with the trading of those trialling it at the time put on hold.
The Australian Taxation Office (ATO) has announced its priorities for the upcoming tax 2022 year and included is a warning for crypto investors to ensure they don’t disregard their tax obligations when it comes to the disposal of digital assets:
ATO: “Report your crypto taxes correctly”
Also ATO: *No additional legislative guidance to help taxpayers report their crypto taxes correctly* https://t.co/D95Z5DCpeo
Crypto capital gains are one of the four priorities for tax time listed in the May 16 media release, with the ATO flagging legal action against anyone guilty of falsifying records or who fails to substantiate their claims:
Dr Raftery warned that switching cryptocurrencies within a trading account was still a taxable event & he had seen the ATO flagging these transactions with taxpayers.
The price of the biggest crypto, Bitcoin, has halved since November, but Raftery said .https://t.co/MrAqMu202B
Tim Loh, the ATO’s assistant commissioner, has stated that while the ATO has a reasonable idea of investor activity, diligence on the part of taxpayers is recommended when it comes to recording transactions:
Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember, you can’t offset your crypto losses against your salary and wages.
Tim Loh, ATO assistant commissioner
NFTs are also within the scope of the assets that must be accounted for, as they will be subject to tax if sold for a profit.
Crypto Taxes in Other Forms
With the 2022 federal election only days away, the policy is being prepared for the regulation of digital assets and artists. NFTs reportedly needed quick policy implementation to prevent a drain on the economy. However, pro-crypto NSW Senator Andrew Bragg has said that such taxing is “inadvertent” and offers no real transfer of value.
June 2021 saw the assembly of a cooperative task force consisting of the ATO, the Australian Securities and Investments Commission (ASIC), the Federal Police, and the Australian Criminal Intelligence Commission (ACIC). Labelled the Serious Financial Crime Taskforce (SFCT), its role is to investigate the circumstances surrounding crypto money laundering, fraud, and tax avoidance.
Australian digital marketing agency ‘Be Media’ has sold a significant stake in the company to Animoca Brands, the crypto investment giant behind the Sandbox. Be Media is said to be already filling positions for blockchain-based development:
— Be Media by Animoca Brands (@bemediagroupau) April 18, 2022
Hong Kong-based Animoca Brands now has a particularly large stake in the Perth-based digital marketing agency. This comes as the company pivots towards crypto after prioritising the provision of Web2 companies for its digital strategies.
Be Media Stake Part of Animoca Expansion Plan
Animoca appears to have purchased its stake as part of its incursion into Australia with aspirations of inducting more companies into Web3. Although Be Media is not strictly crypto-related, the agency makes a good starting point for Animoca’s expansion plan. Be Media has already begun “aggressive hiring” for project management and blockchain-based development positions.
Be Media founder and CEO Jordan Fogarty will retain his current role and a minor stake in the company. Fogarty is reportedly enthusiastic about the pairing and “honoured” to be a part of the introduction of Web3 to local companies.
High Performing Sales
The Sandbox’s token SAND has performed well since its release, hitting an all-time high in November 2021. Animoca announced its intention to release Metaverse Alpha the following month, which had a knock-on effect on token sales. The play-to-earn game hosted the event for just a month.
More recently, NFT gaming platform Balthazar raised US$3 million through an Animoca Brands token sale. The sale valued the DAO at US$30 million and elevated Balthazar to its status as one of the leading platforms in the metaverse.
The Monetary Authority of Singapore (MAS) and the Australian Treasury have come together to sign the Australia-Singapore FinTech Bridge Agreement, which an MAS media release describes as a measure to strengthen cooperation between both countries’ FinTech ecosystems:
Australia Treasury and MAS have signed the Australia-Singapore FinTech Bridge Agreement to strengthen cooperation between the FinTech ecosystems of both countries.
The agreement will see two industry regulators facilitating trade and investment in their respective sectors. These regulators will also develop ties among industry groups, policy officials and other regulators, with further plans to develop FinTech companies in each other’s markets to create new opportunities and minimise entry barriers.
MAS and the Australian Treasury have flagged a FinTech agreement.
The Bridge Agreement is likely to explore joint innovation projects in other emerging areas including blockchain, sustainable finance, data portability, and cross-border data connectivity. However, the first step for the partnership is to develop a framework for bilateral collaboration and joint projects.
Australian CBDC Partnerships
The agreement comes less than a month after the central banks of Australia, Malaysia, South Africa, Singapore, and the Bank for International settlements (BIS) announced plans to explore multi-CBDC platforms.
On March 25, BIS released a report announcing the results of two multi-CBDC platforms it had been working on, finding that while these platforms were technically viable, they faced governance, coordination, and jurisdictional challenges. Opportunities are available, although more exploration into the application of these platforms is required.
The Australian Securities and Investments Commission (ASIC) has announced that crypto exchanges can now receive a tick of approval. Any exchange that is government-approved will earn a “badge” signifying a uniquely Australian stamp of quality.
this seems to be a direct response to MyCryptoWallet scamming everyone https://t.co/6eRPXyG7Sc
— your #1 source for absurdist true crime 🐍👑 🌷 (@davidgerard) March 21, 2022
Senator Jane Hume, federal Minister for the Digital Economy, announced a market licensing regime for crypto exchanges at Australian Blockchain Week 2022.
Australian investors will be sure that if they use a licensed Australian exchange, they can trust that exchange will deliver on its commitments to customers and have appropriate protections.
Jane Hume, Minister for the Digital Economy
Senator Hume stated that she believes the way forward for the Australian crypto industry is through the regulation of exchanges. While ASIC badges of approval represent only a small change, it is seen as a positive step toward local cryptocurrency integration.
ASIC Busy on the Crypto Front
ASIC has had to deal with a plethora of cryptocurrency-related concerns recently, issuing a variety of warnings to Australian exchanges and investors. Most recently, it warned crypto companies to expect greater regulation in future, in line with those governing traditional finance companies.
In July 2021, ASIC chairman Joe Longo declared crypto trading a “significant area of concern“, particularly in the wake of the Covid-19 pandemic. And, in November 2021, ASIC shut down A One Multi, an unlicensed financial services business based on Australia’s Gold Coast, for suspected unlawful activity.
