“Where an exchange does not require 2FA by default, they often restrict the account functionality so that funds cannot be transferred out without 2FA being configured. Digital Surge, for example, operates in this way. Exchanges also use machine learning and artificial intelligence to detect anomalous or fraudulent activity.
“They all do essentially the same thing. But for Aussies looking to buy larger amounts of crypto or invest in crypto for their self-managed superannuation fund, dealing with a local exchange is particularly reassuring for both credibility, security, and customer service.
We recommend a two-step verification process for any fiat or digital currency withdrawal.
— Jess Renden, Cointree
“It’s quite common now for custodial exchanges to hold a large percentage of crypto assets in cold storage. In some jurisdictions, particularly Canada, it’s commonplace for exchanges to have insurance on crypto assets held in custody. This is not the case in Australia, yet.”
Jess Renden, chief operating officer of Australian crypto exchange Cointree, says the security of the platform should be a key priority for investors.
“We recommend a two-step verification process for any fiat or digital currency withdrawal, that application credentials are kept separate from the database and codebase to mitigate the damage of a security breach, and all website traffic must run over an encrypted Secure Sockets Layer [SSL],” she says.
“Investors must also check any reporting on the exchange domestically and in the exchange’s home market to determine if they have been involved in past allegations or if there have been any investors on the platform that have been burned and gone public. This is a good sign that the exchange is not putting the interests of its investors first.”
Boyd sees a strong preference on Finty.com for local crypto exchanges among Australians despite all the major international exchanges – Binance, Coinbase, Gemini – being active in the…
