Why is there a discrepancy between my deposit amount and the balance in my account?
A great question, and the answer essentially comes down to liquidity! Crypto assets are traded globally against the USD by an overwhelming majority, and although some of the higher volume assets such as Bitcoin and Ethereum do have their own trading pairs against the AUD directly. This pairing is of a much lower liquidity base which can lead to larger spreads, especially during times of high volatility. As such, Swyftx converts all deposits made to the platform directly into USD to give greater liquidity across all trading pairs, which results in more competitive pricing and tighter spreads all around!
The mechanism by which this occurs is a standard FX conversion from AUD to USD at the best available market prices we have access to. This rate is quoted at all times on the deposit screen, and there is a live chart available within the platform on the Australian Dollar / US Dollar Asset page (depending on what your base currency is set to).
FX conversions incur a spread which is usually between 0.4%-0.6% on the deposited amount. That spread is what causes the indicative AUD value of your account to show as slightly less than the original amount that left your bank account.
It is important to note however, that the underlying cash balance in your account is actually held in USD for trading purposes, as such, many will find it more straightforward to convert your base currency to USD immediately to work off of those balances from the get-go! Of course, you can always switch back to an AUD view to get the indicative AUD balance of your account at any time!
Check the gif below for more info on how to change your base currency 👇
If you have any further questions relating to this AUD/USD conversion, please don't hesitate to contact us via live-chat.