Choosing a cryptocurrency exchange in NZ
Before choosing a cryptocurrency exchange, you should focus on which exchange features are most important for you. Below, we explore the top eight factors to consider when choosing a cryptocurrency exchange.
8 Things To Consider When Choosing A Cryptocurrency Exchange:
1. User interface & ease-of-use
Buying and selling crypto doesn’t need to be complicated. While advanced trading features can appeal to experienced traders doing high volume/futures/leverage trading, most crypto users are after a simple way to buy and sell that’s safe and easy to understand. If this is you, you may want to look for an exchange that:
- Is designed for simplicity and emphasises a user-friendly experience
- Offers a clean and no-nonsense display of your assets and the current markets
- Provides a free, personal wallet (kept on the exchange) upon sign up
- Offers educational guides on the basics of crypto
- Offers useful features such as recurring buys/dollar-cost-averaging, price notifications
- Has a desktop/mobile app that’s easy to use
- Isn’t convoluted offering advanced trading features you’re unlikely to use
2. Platform security
Platform security is paramount. If an exchange is insecure, potentially, you could lose your assets. Look for sites offering security features including:
- Two-factor verification (2FA) – especially for withdrawals
- The vast majority of customer funds stored offline in cold storage
- A web address that starts with https (NOT http)
- A KYC (know your customer) policy that ensures the integrity of the platform
- Biometric face or fingerprint recognition, which greatly improves your account security
- Sophisticated and regularly updated multi-layered security
- Regular security reviews and criminal background checks of employee
If you have a large holding of crypto, a cold, offline hardware wallet offers added security.
3. Company authenticity & customer-support
The authenticity and transparency of the company and people who run the exchange are very important. If you’re new to crypto, there’s a good chance you may need to contact your exchange at some point, so it’s really worth looking into an exchange that:
- Offers responsive and NZ- or Australia-based customer support
- Is passionate about crypto education and getting newcomers crypto-savvy
- Openly reveals its owners, company location and the members of its team
- Has members who are personally involved with local crypto events and active in crypto forums and Facebook groups
- Has an upfront and transparent fee schedule (be aware that most exchanges claim this even if it isn’t true)
- Registered on the Financial Service Providers Register (FSPR)
- A member of a dispute resolution scheme
- Holds your NZD in a trust account
There are a few exchanges that have a Kiwi focus and accept Kiwi dollars, these include:
| Provider | Cryptocurrencies |
| Easy Crypto/Swyftx | 400+ |
| Independent Reserve | 35+ |
| Lightning Pay | Bitcoin only |
| Revolut | 175+ |
| Sharesies | 4 |
This information is not an endorsement by Canstar of cryptocurrency or any specific provider. Canstar is providing factual information supplied by providers. Cryptocurrencies are speculative, complex and involve significant risks. Canstar is not providing a recommendation for your individual circumstances or in relation to any particular product or provider.
4. Fees & charges
It’s important to thoroughly check the fees charged by an exchange, as many are tucked away in small print on a website. Even if you’re using a site that accepts NZ$, you’ll probably still have to pay FX fees, because crypto trades are ultimately made in US$.
Standard charges include:
- Foreign exchange fees of around 0.5%
- Standard trading fees: 0.5%-1%
- Most exchanges charge credit card/debit card transaction fees: 1%-3.5%
- You can also be charged withdrawal fees, for example Independent Reserve charges NZ$29 for crypto withdrawals
Looking for an exchange that locks-in your trades (also called guaranteed pricing) can ensure that you get the price you see at the time of your transaction, even if the trade doesn’t settle immediately.
5. Selection of coins
It’s been a long time since Bitcoin was the only crypto available. Hundreds of other crypto currencies offer investment opportunities, so if you want access to more than just Bitcoin and Ethereum, it’s worth considering exchanges that trade a wide selection of coins.
6. Local or international exchange
Generally speaking, it’s better to choose an exchange from the country you are in. This makes things easier with:
- Any legal and regulatory changes
- Doing your crypto taxes at the end of the year
- Having quality customer-support
- Buying crypto directly with NZ$
7. Spreads & liquidity
Spreads are another way you can be charged fees, so get savvy about them before you start investing.
The spread is the difference between the quoted buy and sell price on an exchange. Having tighter spreads (a lower difference between the quoted prices) is beneficial in a number of ways, and will minimise your fees and losses when trading cryptocurrency.
Not only do spreads affect every trade you make, but they are often not stated upfront, and may leave you out of pocket.
Liquidity, on the other hand, makes it possible to complete transactions faster, more easily and without so much price volatility.
The higher the trading volume, the more liquid an exchange or any individual asset. It’s probably a good idea to prioritise exchanges that offer locked-in trades/guaranteed pricing.
8. Instant trading, verification & method of purchase
Having access to instant withdrawals and deposits is desirable for most traders. Additionally, the method of purchasing cryptocurrency can vary between platforms. Some exchanges offer deposits by bank transfer, PayPal, POLi, or credit and debit cards. Others only accept other cryptocurrencies or USD.
Choosing an exchange that offers free, instant NZ deposits will reduce the fees you pay.
It usually helps to choose an exchange that has fast/instant account verification, especially if you’re eager to get trading. You’ll usually need to provide an official ID document and do a biometric face check for instant verification to be possible.
Weighing it all up
When choosing the right cryptocurrency exchange for your needs, don’t be afraid of creating accounts with more than one exchange, to check out what’s on offer from each. Some even offer demo trading modes, so you can get accustomed to buying and selling cryptocurrencies before making a real investment.
Choosing the right exchange can make a big difference to your crypto experience, so it’s worth shopping around and assessing your options.
About the author of this page
Bruce Pitchers is Canstar NZ’s Content Manager. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery puzzle book 5 Minute Murder.
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