CoinSpot cryptocurrency exchange – February 2018 review

Buy bitcoin with Australian dollars and enjoy free withdrawals to your bank account on this popular cryptocurrency exchange.

CoinSpot is one of Australia’s most popular cryptocurrency exchanges. The main reason it’s so popular is probably because it’s local. That means Australians can make fast exchanges, and avoid transfer and currency exchange fees to get much better value for money on CoinSpot than elsewhere.

It also lets you buy and sell more than 50 cryptocurrencies with AUD, including bitcoin, Ether, Monero, Ripple and all the other top performers.

Plus, it’s well-established. It was founded in 2013, and has long-held reputation for reliability.

It has a lot of advantages for Australians, but how do the platform fees and features compare to others in the market?

Product Name CoinSpot Cryptocurrency Marketplace
Available Fiat Currencies AUD
Available Cryptocurrencies BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 45+ more
Payment Methods Cash, BPAY, POLi, Cryptocurrency

Pros

  • Buy with Australian dollars
  • Huge selection of altcoins available to buy/sell
  • Beginner-friendly interface
  • Fund your account with cash, BPAY and POLi

Cons

  • High fees compared to other platforms
  • Transaction limits for new users
  • Verification required for AUD withdrawals
This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

What is CoinSpot?

CoinSpot is a cryptocurrency trading platform that allows users to buy, sell and exchange dozens of different cryptocurrencies.

Cryptocurrency is a digital asset exchanged around the world, but getting started usually means buying with fiat currency (ie, government-issued currency like AUD).

Because CoinSpot is based in Australia it can offer some special advantages. The main one is that it streamlines the trading process by making it simple, quick and cheap to deposit AUD into a CoinSpot trading account, as well as to withdraw funds to your Australian bank account, with minimal transfer fees.

These advantages, combined with its unique features, mean a lot of Australians choose CoinSpot to buy their first cryptocurrency, and many experts keep using it simply because they like it so much.

What are the best features of CoinSpot?

Trading cryptocurrency can be confronting. Anyone who’s compared enough exchanges has encountered too many poorly designed websites, with confusing layouts, unclear features and unattractive interfaces.

CoinSpot’s easy-to-use interface offers a pleasant experience that other exchanges could learn from. The hardest part is deciding which crypto to buy and how much to invest, but actually buying and selling is very straightforward.

Just pick the crypto you want from the list, and click on it. That shows you the current prices. It even includes the commission fee so you can see how much it actually costs.

All you need to do then is choose either how much crypto you want to buy or sell, or how much AUD you want to spend or earn. The page automatically updates the prices when you enter your amounts. Once you’ve found the amount you want, just click the buy/sell button.

Which cryptocurrencies can I buy/sell?

CoinSpot offers exceptional variety by any standards, but especially compared to most Australian exchanges. It also tends to be very good about offering brand new coins as soon as they’re available, so investors can get in at ground level.

CoinSpot offers as many as 65 different cryptocurrencies. It’s hard to imagine a better exchange for anyone who wants to invest AUD into a diverse cryptocurrency portfolio, all in one place.

Which countries does CoinSpot support?

Currently CoinSpot caters to the local Australian market only. Cryptocurrency is a borderless technology, but exchanges like CoinSpot are still be subject to local laws and regulations. This can be both an advantage and a disadvantage.

Traders who want more flexibility might prefer a service that’s not subject to Australian law, but others might enjoy the peace of mind that comes from using a compliant exchange, and offers Australian-based customer service.

Cryptocurrency regulation in Australia is subject to ongoing debate in Canberra. This is something all crypto traders should be mindful of when weighing investment risks. Nonetheless, it's clear the Australian Government is taking a progressive attitude towards cryptocurrency and blockchain technology. Future regulation may change how cryptocurrency is purchased, traded or taxed locally but, at least for the foreseeable future, Australia looks to remain a crypto-friendly environment.

Which payment methods are accepted?

CoinSpot offers you the following options for deposits, with various fees:

Payment methodFeeMinimum depositMaximum deposit
BPAY0.9%None$1,000 per 24 hour period
Online bank transfer (POLi)*None$1$5,000 per 24 hour period**
Blueshyft cash deposit3%$50$1,000 per 24 hour period

*Not available with ANZ

**You may contact CoinSpot to request a higher POLi deposit limit

Fees and charges

The exact transaction fees on CoinSpot can vary from coin to coin, but the breakdown of costs is relatively straightforward.

Transaction typePercentage of transaction total
Buying/selling2-3%*
Crypto-to-crypto exchange1%
Withdrawal of coins to a wallet outside CoinSpotVaries**

*For convenience this fee is automatically included in the buy/sell price you are shown.

**It varies between coins, and depending on how busy that coin network is. This fee will typically be almost identical across most exchanges worldwide.


CoinSpot has very clear-cut commission fees and there are no hidden charges to worry about.

The bad news is that CoinSpot trades with fairly wide spreads. You’re typically buying at the high end and selling at the low end of market rates, and then paying a 2-3% commission fees on top of that. It's a high price to pay for convenience and simplicity.

However, once you factor in CoinSpot’s (lack of) deposit and withdrawal fees it starts looking like much better value for money.

Payment typeAUD deposit feeAUD withdrawal fee
POLiNoneNone (Bank transfer only)
BPAY0.9% of transfer amount
Cash3%

This is the value of using a local Australian exchange. Even if you save money on better rates elsewhere, the fees will often tip it back the other way.

For some perspective, a deposit that’s completely fee-free on CoinSpot might involve a flat $30 wire transfer fee on the deposit amount plus a 5% AUD to USD currency exchange fee, when using a large global exchange.

Despite the somewhat unfavourable rates, it might still be hard to beat CoinSpot for value. This is especially true for smaller purchases that would get eaten up by flat transfer fees on other exchanges. This also works well with the exceptionally low minimum deposits available.

CoinSpot is one of the few exchanges where you could feasibly deposit some spare change to buy a few dollars of cryptocurrency at a time.

Are there any transfer/withdrawal limits?

Each buy/sell order is capped at a maximum of $5,000 per transaction and additional restrictions apply to POLi deposits from new customers. There is no limit on how much you can withdraw at once.

Transaction typeLimit
Buy/sell order$5,000 per transaction
POLi deposit$2,000 per 24 hours
BPAY$10,000 per 24 hour period
Cash deposit$2,000 per 24 hour period

Additional restrictions apply to POLi deposits for new customers.

  • There is a deposit limit of $500 per 24 hour period for the first week
  • Seven days after depositing a total of $500 with POLi payment deposits, the limits are raised to $2,000 per 24 hour period.

How fast will my funds be available?

  • Wallet transfers. CoinSpot indicates most transfers will be sent immediately, once a send action has been confirmed. However, the platform does say that this may take up to 12 hours when sending coins to a wallet outside CoinSpot. Manual approval is also sometimes required for certain wallets, so it’s important for you to keep this in mind when considering processing times.
  • Withdrawals to AUD. All withdrawals from CoinSpot are processed within 3 business days of the withdrawal request being received. Once the request has been processed, the transfer then depends upon standard domestic processing times.

These limits are in place because CoinSpot is bound by Australian financial regulations. Due to Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act, and the present debate surrounding crypto regulation, it’s possible that the rules surrounding daily limits may change in future.

Is CoinSpot safe?

CoinSpot is registered under an Australian Business Number (ABN), and is a member of the Australian Digital Commerce Association. These two factors are strong starting points when you’re assessing CoinSpot’s approach to privacy and security on their exchange.

CoinSpot utilises a two-factor authentication (2FA) system requiring users to verify their identities via their emails and mobile phones. 2FA provides an extra layer of security against any viruses or attempts to hack. It also helps to decrease risk of identity theft or other traders using a false persona to trade with on the platform.

In addition, CoinSpot operates in adherence to Australia’s Privacy Act 1988. The terms of use contain the standard disclaimers you see in many exchanges of this kind – that you must not engage in illegal activity, and if you do your information may then be made available to authorities. Other than that, CoinSpot terms offer privacy for users.

Customer support

CoinSpot features a customer support service run off the industry standard, Zendesk. It also offers the option for direct contact via email enquiry. In keeping with its user friendly approach, CoinSpot ticks the boxes in this regard for offering a help section and clear channel of communication when needed, although some users have reported delayed response times.

How do I create a CoinSpot account?

Signing up to CoinSpot is similar to most exchanges, although verification requires some additional steps compared to other services.

CoinSpot verification requires you to:

  • Enter your full name and current Australian address
  • Provide an Australian mobile phone number
  • Upload a photo of your driver’s licence, learner’s permit or proof of age card to provide proof of name.
  • Upload a photo of a utility bill or the back of your driver’s license to show proof of address
  • Set up two factor authentication

You will also need to upload a photo of yourself with a signed statement saying: “I, [Your Full Name], submit this photo to apply for a CoinSpot account to trade digital currency and my code is [Your Code number]. [Your Signature]”

Your code number can be found under the Account > Verification section, as part of the verification process.

A CoinSpot representative will also contact you on the phone number provided to ask some questions and ask you to confirm certain details.

CoinSpot exchange

Pros and Cons

Pros

  • A local exchange headquartered in Australia
  • Allows users to buy directly in AUD
  • Direct deposits available via bank account, BPAY and POLi
  • User-friendly interface
  • Wide selection of cryptocurrencies
Cons

  • Global traders may find the platform’s local Australia-only access frustrating
  • Transaction fees higher compared to other exchanges
  • Transaction speeds may be too slow for daily traders long term

Frequently asked questions

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14 Responses

  1. Default Gravatar
    JoeFebruary 8, 2018

    I am a complete novice and need a ‘dummies’ explanation on how to use CoinSpot. For eg when I open a wallet it says:

    “We provide a managed wallet for xxxx which you can send coins to anyone at anytime. We don’t currently allow sending xxxx into CoinSpot.”

    What does this mean?
    (Maybe I’m too old a dog??)

    • Staff
      JhezelynFebruary 17, 2018Staff

      Hi Joe,

      Thank you for your comment.

      Just a bit of background, wallets can only store/hold certain coins it supports. So for CoinSpot, the coins available in it are mentioned above. With the wallet, you can use it to send and receive cryptocurrencies. Currently CoinSpot only support DOGE, BTC and LTC “inbound transactions.”

      Hope this helps.

      Regards,
      Jhezelyn

  2. Default Gravatar
    JoelFebruary 1, 2018

    Should we be careful with coinspot because when coins are having a hard fork most websites are telling me that exchanges can collect our coins?? It seems coinspot is not passing a lot of these on to us?? I know we should hold these in our own wallets but it would be misleading and false if exchanges are pocketing investors entitlements??

    • Staff
      AshFebruary 16, 2018Staff

      Hi Joel,

      Thank you for reaching out to us.

      CoinSpot is safe to use as it is registered under an Australian Business Number (ABN), and is a member of the Australian Digital Commerce Association.

      About your coins from a fork, if you want a guarantee to receive these coins or tokens, you must send the coins or tokens to your own private wallet, but please note that CoinSpot does not provide guarantees that they will support private wallet initiatives.

      You can visit CoinSpot’s official website (by clicking the green “Go site” button above) if you need more information about coins having a hard fork.

      I hope this helps.

      Please do not hesitate to reach out to us again if you have additional questions.

      Cheers,
      Ash

  3. Default Gravatar
    ScotDecember 22, 2017

    Do the crypto coins expire? Example if I brought 500 Ripple coins how long can I hold them for? I’m looking for long term investment.

    • Staff
      HaroldDecember 22, 2017Staff

      Hi Scot,

      Thank you for your inquiry.

      Coins don’t expire you can hold them as long as you want. But storage method can be worth considering and you might want further details on this page for a better understanding of the different storage options.

      I hope this information has helped.

      Cheers,
      Harold

  4. Default Gravatar
    marioDecember 21, 2017

    does CoinSpot work like a stock exchange? Can you day-trade or trade often like Ton theASX? Is there enough stock (coins) always available to do that? Thankyou

    • Staff
      JudithDecember 23, 2017Staff

      Hi Mario,

      Thanks for your question. I hope you are having a great day today.

      CoinSpot is not a conventional trading platform no – it’s actually a broker. It allows you to buy and sell various cryptocurrencies using Australian dollars (although AUD deposits have been temporarily disabled), or swap one coin for another then withdraw to your cryptocurrency wallet or bank account.

      You may go to this page for more trading options and for a guide on how cryptocurrency trading works.

      Please note that it is always advisable to conduct a thorough research on any cryptocurrency or exchanges before buying or investing, because there are significant risks involved.

      I hope this helps.

      Cheers,
      Judith

  5. Default Gravatar
    taniaDecember 13, 2017

    how ridiculous you dont accept passports for id but u expect us to hold up a piece of paper with some number on it for verification? i think ive just dodged a bullet… going elsewhere! cheers

  6. Default Gravatar
    AereneNovember 30, 2017

    I heard that on ID verification you don’t accept scanned Driver’s license, only want picture from mobile phone? If yes why is that, & whats difference does it make.
    Thanks

    • Staff
      MayDecember 1, 2017Staff

      Hi Aerene,

      Thank you for reaching out. We are a financial comparison website and general information service designed to help consumers make better decisions.

      With CoinSpot, part of the verification process is to upload a copy of your driver’s license and photo of yourself. This actually a common approach for user verification across the cryptocurrency business, since you cannot start trading unless you’ve verified your ID. If you need further clarification or assistance in the verification of your ID with CoinSpot, best to contact them directly.

      Cheers,
      May

    • Default Gravatar
      taniaDecember 13, 2017

      good one!! that really answers the question doesn’t it!

  7. Default Gravatar
    LeaneNovember 3, 2017

    Can I use a Trezor wallet with CoinSpot? I am becoming extremely frustrated trying to open an account with CoinBase & a friend recommended CoinSpot so I will probably give this a go.

    • Staff
      ArnoldNovember 3, 2017Staff

      Hi Leane,

      Thanks for your inquiry

      Yes, Trezor is compatible with CoinSpot. Please check this page out for more information on Trezor. If you want more info on CoinSpot, you can refer to the page above. If you want to open an account, please click the ‘go to site’ button to be redirected to their site.

      Hope this information helps

      Cheers,
      Arnold

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