Best Bitcoin & Cryptocurrency Exchanges in NZ

Crypto exchanges serves as a dedicated marketplace in New Zealand where individuals can seamlessly trade a variety of cryptocurrencies, including popular options like Bitcoin, Ether, or Dogecoin. These platforms operate much like other trading platforms you may already be familiar with, making it easy for you to participate in the dynamic world of cryptocurrency.

Cryptocurrency exchanges may also offer additional advanced trading features, though the availability of such features can vary. For instance, some exchanges support margin accounts and futures trading, while others may provide opportunities for cryptocurrency staking or loans. These unique features can empower you to potentially earn interest on your crypto holdings or explore more complex trading strategies.

Crypto exchanges in New Zealand operate as digital platforms where users can engage in various transactions involving cryptocurrencies. Much like brokerage platforms in the traditional financial world, these exchanges provide a user-friendly interface that enables individuals to place different types of orders to buy, sell, or speculate on various cryptocurrencies in collaboration with other users.

Centralized Crypto Exchanges: Centralized exchanges, often managed by a single corporate authority, function as intermediaries that facilitate secure cryptocurrency trading. These platforms are akin to brokerage companies, offering a structured environment for users to trade.

Decentralized Crypto Exchanges: On the other hand, decentralized exchanges follow a different model. They distribute verification and transaction certification powers to any participant who wishes to join the network. This approach closely aligns with the principles of cryptocurrency blockchains, enhancing accountability and transparency within the exchange system.

Centralized Exchange (CEX): In New Zealand, the most popular method for buying, selling, and trading digital assets like Bitcoin, Ethereum, and Litecoin is through centralized crypto exchanges (CEX). These crypto exchanges, such as Gate.io Bybit, and Binance, are owned and operated by private companies and have gained widespread adoption due to their user-friendly interfaces and extensive cryptocurrency offerings.

One essential aspect is that centralized exchanges in NZ adhere to regulatory requirements, particularly the Know Your Customer guidelines. As per these regulations, users are required to register and provide their identity, which assists in combating money laundering and preventing other illicit activities.

Decentralized Exchange (DEX): A decentralized exchange (DEX) is a type of crypto exchange that operates on a decentralized blockchain network instead of a central server. DEXs enable users to trade cryptocurrencies without intermediaries, providing more control to traders. Unlike centralized exchanges, DEXs don't require users to deposit funds into the exchange's wallet, and users maintain complete control over their private keys, enhancing security and reducing vulnerability to hacking.

Some popular decentralized exchanges in New Zealand include Uniswap, PancakeSwap, and Kyber Network. These platforms offer a wide range of trading pairs and low fees, making them an attractive option for traders looking for greater privacy and security.

Trading Fees: Trading fees can take different forms, such as a fixed percentage of your cryptocurrency transaction's value or varying rates for maker and taker orders, each responsible for either adding or removing liquidity from the exchange. Generally, maker fees are slightly lower.

While seeking an exchange with low costs is wise, getting bogged down in the intricacies of maker and taker fees can be counterproductive. This is because you don't control whether your order is treated as a maker or taker. Instead, it's more beneficial to consider overall fees and potential discounts based on your trading volume or holding the exchange's native token.

Withdrawal Fees: Many cryptocurrency exchanges charge fees for withdrawing coins. If you plan to move your crypto to a secure wallet or another exchange, opt for platforms offering fee-free withdrawals.

Additional Fees: Engaging in advanced trading strategies like margin trading may incur extra borrowing fees. User-friendly exchanges often feature quick buy options with slightly higher fees, which can be avoided by learning to trade on the platform.

Order Books: The order book constitutes a fundamental element in the structure of a centralized exchange. Its primary purpose is to facilitate trading activities for customers. Essentially, the order book functions as a comprehensive ledger documenting buy and sell requests from traders for a specific asset pair. This system typically comprises a sell-side and buy-side, with prices denoted relative to the base currency.

In the standard order book framework, orders are systematically organized based on their price levels, with specific prices being computed and displayed in the book. Sell orders are positioned in ascending order, starting from the lowest asking price, while buy orders are arranged in descending order, commencing with the highest bid.

Fiat On-Ramp/Off-Ramp: Acquiring cryptocurrency with fiat money is streamlined by centralized exchanges, thanks to fiat on-ramp services. These services empower New Zealanders to buy cryptocurrencies using funds from their conventional banks such as Kiwibank or ANZ, often involving a third-party financial service provider to execute purchase requests on behalf of both the exchange and the customer.

It's important to note that when it comes to converting cryptocurrency back to New Zealand Dollars (NZD), the options for off-ramping may be limited, with only a few platforms available, including Easy Crypto NZ, Binance NZ, and Pay it Now (PIN).

KYC Requirement: Centralized exchanges implement KYC (Know-Your-Customer) protocols as a distinctive customer profiling process. This procedure serves as the exchange's means of verifying a customer's identity and confirming their authenticity. KYC aims to thwart illicit activities.

Typically, KYC procedures entail the submission of personal information, including national identity cards, facial identification, and registered phone numbers. While these measures enhance security, it is crucial to acknowledge that the imposition of KYC does compromise the inherent anonymity and ethos of cryptocurrencies, which are designed to operate on a decentralized and pseudonymous basis.

In addition to centralized and decentralized exchanges, there are other cryptocurrency exchange options available to users in NZ:

Peer-to-peer (P2P): P2P platforms allow users to buy and sell cryptocurrencies directly with each other, without the need for a central authority or intermediary. These platforms can offer users more privacy and flexibility, but they may have lower liquidity and higher transaction fees than centralized exchanges. (NZ's own P2P marketplace)

Brokerages: Cryptocurrency brokerages operate like traditional stock brokers, allowing users to buy and sell cryptocurrencies at a set price. Brokerages can be a good option for beginners who are new to cryptocurrency trading. (Easycrypto is the safest and fastest)

OTC (Over-the-Counter) exchanges: OTC exchanges are designed for high-volume traders and allow users to buy and sell large amounts of crypto without affecting the market price. These exchanges typically have higher fees than other types of exchanges, but they can offer greater liquidity and flexibility.