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Coinjar is an Australian-based cryptocurrency exchange broker that facilitates the buying and selling of various cryptocurrencies. The platform supports deposits and withdrawals in fiat currency, but these options are limited to Australian residents exclusively.
Before engaging in cryptocurrency trading on Coinjar, it is advisable to familiarize yourself with our comprehensive guide. It covers essential information such as fees, supported coins, security measures, user-friendliness, and more.
Overview of Coinjar
Coinjar serves as a cryptocurrency exchange broker where users can buy and sell cryptocurrencies. The platform specifically lists five prominent coins: Bitcoin, Ethereum, Litecoin, Ripple, and Zcash.
Coinjar is highly popular in Australia due to its convenience for local residents who can deposit and withdraw funds using their bank accounts. However, individuals outside of Australia can only utilize the Coinjar platform for cryptocurrency deposits.
The Coinjar team has future plans to expand its user base to other countries, although no specific timeline has been provided at the time of writing.
In addition to its traditional exchange services, Coinjar offers a cryptocurrency index fund. This feature enables users to speculate on the price movements of four cryptocurrencies through a single investment.
Functioning of Coinjar
Coinjar operates similarly to most cryptocurrency exchanges. Australian residents have the option to fund their accounts using their local bank accounts, whereas non-Australian users need to deposit funds in the form of cryptocurrencies. Once the account is funded, users can proceed with buying and selling cryptocurrencies.
Coinjar generates revenue by imposing transaction fees on each trade conducted.
After purchasing a preferred cryptocurrency, users can store it in the Coinjar wallet or transfer it to their preferred private Bitcoin wallets.
In addition to traditional brokerage services, Coinjar facilitates crypto-to-crypto trading pairs on its platform. This includes real-time technical charts to aid users in making informed trading decisions.
It's important to note that at Coinjar, users can only engage in long positions when trading Bitcoin and other cryptocurrencies. If you wish to speculate on the market's decline, you will need to use a platform like Coinbase.
Supported Cryptocurrencies on Coinjar
Coinjar currently supports a limited selection of five cryptocurrencies, which restricts the ability to create a diversified portfolio.
The supported coins on the platform include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- Litecoin (LTC)
- Ripple (XRP)
- Cardano (ADA), and
- Dogecoin (DOGE)
Coinjar has expressed intentions to add more cryptocurrencies to its platform in the near future, although specific dates have not been disclosed yet.
Supported Countries on Coinjar
As an exchange based in Australia, Coinjar primarily focuses on serving Australian residents. Therefore, individuals looking to deposit fiat currency must be Australian residents to utilize this feature.
However, if you are comfortable with conducting cryptocurrency-only deposits and withdrawals, the Coinjar platform is accessible worldwide. At present, Coinjar does not explicitly exclude any particular countries, making the platform available globally.
Coinjar Fees
Coinjar applies fees for its cryptocurrency exchange services. Fees may be incurred for depositing or withdrawing funds, as well as for trading activities. The main fee breakdown is as follows:
Deposit Fees:
- Crypto deposits: Free
- BPAY (Australian residents only): Free
- Blueshyft cash deposit (Australian residents only): 1.5%
Withdrawal Fees:
- Debit card withdrawals: Not applicable
- Credit card withdrawals: Not applicable
- Australian bank account: 1%
- Swipe: Free
- BPAY Biller: 0.5%
- External crypto address: No charge except for mining fees
Trading Fees
Coinjar adopts a straightforward fee structure for trading. Each time a user buys or sells a cryptocurrency on the platform, a trading fee of 1% is levied. This fee is higher than the 0.5% charged by Bitoasis per trade.
For example, if you were to purchase $100 worth of cryptocurrency on Coinjar, you would incur a $1 trading fee. If you were to subsequently sell the same investment at the same price, you would again be charged an additional $1. While this may seem insignificant, a 1% trading fee can be substantial for day trading professionals.
Coinjar Platform Dashboard
Although Coinjar has limitations for users outside of Australia and only allows the trading of five different cryptocurrencies, the platform boasts a user-friendly interface. Coinjar adopts a simplified design approach, making it particularly accessible for beginners.
Regarding the actual buying and selling process, transactions are straightforward. Upon selecting the desired cryptocurrency for purchase, you simply enter the amount in USD or the local currency, and the trading box updates with the corresponding amount of cryptocurrency you will receive.
Additionally, Coinjar offers an informative guide section to provide ongoing support. This section addresses frequently asked questions, including topics such as fees, account opening, and withdrawal times.
Regulation and Safety of Coinjar
It is important to note that Coinjar is not regulated by prominent financial authorities. However, the platform is registered with the Australian Transaction Reports and Analysis Centre, ensuring compliance with domestic and international anti-money laundering regulations.
In terms of safety, since Coinjar lacks regulation by a national financial body, there is no guarantee of the complete security of your funds. While Coinjar has not experienced significant hacks thus far, it remains vulnerable to external malpractice.
Therefore, we cannot endorse Coinjar as a completely safe and secure platform, primarily due to the absence of regulatory oversight.
Coinjar Security Measures
Despite the aforementioned considerations, Coinjar implements certain security features to safeguard funds:
- Two-factor authentication
- The majority (minimum 90%) of customer funds are held in cold storage, although this percentage is relatively low compared to industry standards.
- Employment of multi-signature technologies for online storage
- Website encryption
Does Coinjar Provide a Wallet?
Coinjar has developed its own native cryptocurrency wallet, accessible worldwide. The wallet supports storage of the five cryptocurrencies available on the platform: Bitcoin, Ethereum, Litecoin, Ripple, and Zcash.
The Coinjar wallet incorporates multi-factor authentication to enhance security, requiring secondary device confirmation for access. The wallet is compatible with desktop and mobile devices (Android and iPhone). It enables users to send and receive funds, check balances, and review account transactions.
Does Coinjar Have an App?
Coinjar offers a mobile app that corresponds with its wallet. The app can be downloaded free of charge on Android and iPhone devices. Although the Coinjar app allows for the same account functionalities as the desktop site, there are limitations.
Coinjar Customer Service:
Customer support at Coinjar is limited. The support team operates from Monday to Friday, between 8 am and 6 pm Melbourne time. This could pose challenges for individuals located in different time zones, as contacting the support team may require reaching out during inconvenient hours.
Furthermore, Coinjar's customer support can only be accessed via a support ticket system. While responses are typically received within approximately two hours during working hours, this method can still be inconvenient.
Conclusion
Making a compelling case for Coinjar is challenging. The platform's restrictions on fiat currency facilities for non-Australian residents and its limited selection of only five cryptocurrencies hinder its appeal. In comparison, regulated platforms like Coinbase offer a more favorable alternative.
Furthermore, Coinjar lacks regulation by national financial bodies, resulting in a lack of guarantee for fund safety. While Coinjar has not experienced major hacks to date, this does not eliminate the possibility of external vulnerabilities.
Considering the above factors, we cannot endorse Coinjar as a top choice.
