Coinspot review: Cryptocurrency exchange according to an experienced and long term investor on the path to Financial Independence.
Coinspot is an easy to use Australian and New Zealand cryptocurrency exchange that provides an attractive way to buy and hold over 234 different types of cryptocurrencies such as Bitcoin, Ethereum and altcoins with an incredibly low .1% brokerage.
Coinspot allows exchanges between coins, and also offers coin bundles, which are diversified offerings of multiple cryptocurrencies similar to a ‘fund style investment’.
Coinspot conforms to ISO27001 Standards for Information Security, is AUSTRAC compliant and is one of Australia’s oldest crypto exchanges, making it one of the safer crypto exchanges. However, that being said, no ‘hot wallet’ or crypto exchange is 100% entirely secure so you should consider use of a cold wallet for your crypto.
“Cryptocurrency or ‘Crypto’ is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.”
- Low fees for market orders – 0.1% brokerage
- Easy to use platform
- Education and training provided
- Great security features – compliant with ISO27001
- Access to pretty much EVERY possible crypto you can think of
- Need to transfer significant holdings into a ‘cold wallet’ for increased security
- Instant buy, sell and swap, take profit, stop and limit order fees are 1% brokerage which is fairly high
Verdict: Coinspot is an easy way to buy Crypto in Australia. You can either pay 1% commission for the simple ‘Buy it now’ option at the spot price or place market orders for 0.1% brokerage – Free $10 of BTC on sign up
Introduction to Coinspot
Coinspot was founded in 2013 by a bloke using the psudoname Russell Wilson. Coinspot caters exclusively to the Australian and New Zealand markets, and is regulated by Australian and New Zealand financial watchdogs. Currently headquartered in Melbourne, Victoria, Coinspot is one of the biggest and most comprehensive cryptocurrency exchange in Australia, currently offering over 234 different cryptocurrencies. The platform itself is intuitive, easy to use and has a clear fee structure.
Signing up to Coinspot
Signing up to Coinspot is straightforward, and I had an account in under 10 minutes.
Step 1: Use a Bonus sign up code so you get your free AUD $10 worth of Bitcoin when you join. Make sure to follow the bonus code link to the Coinspot homepage
Step 2: Enter your email address and follow the prompts on the website
Step 3: Verify your email address by opening the link they email to you
Step 4: Verify your account by uploading a copy of your Drivers Licence or Passport (I used drivers licence as I didn’t feel comfortable using a passport).
Step 5: Configure your privacy, security and two factor authentication settings
Funding your Coinspot account
Funding your coinspot account is super quick and easy. I used the PayID option via OSKO from my ING bank account and the transfer was instant, the money was in my Coinspot account within seconds. Other ways you can fund your Coinspot account include;
- Standard Bank Transfer – same day
- BPAY – same day
- POLi – instant
- Cash – YES that’s right, you can actually deposit cash into your account at a huge number of newsagents (but will pay a 2.5% transaction fee)
- Transferring Cryptocurrency from your other accounts, vaults or wallets.
Using Coinspot to buy and swap cryptocurrencies
Once you have funded your account, You are live and ready to start buying your preferred coins. Just a warning – go easy and don’t rush into anything. I found this part super confusing and have no clue what half of these cryptocurrencies are. Obviously the two big names are Bitcoin and Ethereum, but make sure you know exactly what you are buying because this works just like the stock market and can be overwhelming seeing all these ticker codes.
Buying individual cryptocurrencies on Coinspot
The Coinspot exchange lets you buy and sell individual cryptocurrencies using the AUD $.
Buying diversified bundles of cryptocurrency on Coinspot
In order to get slightly better diversification into the cryptocurrency asset class, Coinspot offer several different bundles (or packets) of cryptocurrencies. These are intended as an instantly diversified crypto portfolio. Whilst I wouldn’t go so far as to call them ‘diversified’, if you did intend on buying all of those constituent coins, then it does look on face value to be a more efficient and cheaper option in terms of fees and management.
Exchanging your cryptocurrencies on Coinspot
Not only can you buy and sell individual cryptocurrencies and crypto bundles using the AUD $, you can also exchange the cryptocurrencies that you own. For example, if you wished to exchange some of your Bitcoin (BTC) for Ethereum (ETH).
Coinspot charge a number small fees and do charge brokerage on transactions. For BPAY you will pay .9%, and cash deposits you will pay a 2.5% fee – which is pretty hefty IMO so you would be best to avoid doing this.
Brokerage on standard trades (market orders and OTC) are a very attractive 0.1%. My personal rule of thumb for any brokerage transaction (such as shares) is that if its less than 1% then its OK in my book. More advances trades on coinspot such as instant trades, Take Profit, Stop loss, Limit orders and Recurring Buys sit right on this limit of mine, charged at 1.0%.
Is Coinspot safe?
Coinspot operates under bank level security and has had nearly a decade of experience since it was founded in 2013, making it one of the oldest and most mature Australian cryptocurrency exchanges. Further, Coinspot is a member of multiple financial professional bodies, including Blockchain Australia, the Australian Digital Commerce Association and is registered with AUSTRAC (the Australian government financial and cyber crime watchdog). They are a registered Australian Business operating as CASEY BLOCK SERVICES PTY LTD ABN 19 619 574 186 registered to Windsor (3181), Victoria, with a street address of 114 William Street, Melbourne, Victoria, Australia.
In terms of your own personal safety, Coinspot operate under ISO27001 Standards for Information Security, and as a certified member of Blockchain Australia they operate in accordance with the Blockchain Australia code of conduct – which sets out strict security and support guidelines.
This is why Coinspot must record your personal information, notify significant transactions to AUSTRAC (over $10,000) as well as keep records for 7 years. These steps keep you as consumer and investors safer.
In general, for added security you can transfer your coins from the exchange into your wallet. For more tips on how to protect yourself and keep your Cryptocurrency safe, check out this article by Block geeks: How To Keep Your Cryptocurrency Safe: 7 Must Have Wallets. Further, check out this list of crypto ponzi schemes and people who were promoting them.
Finally, remember that cryptocurrencies themselves are highly volatile, and are not really thought of as a safe investment. You should always do your own research (read the coins whitepaper and not just a youtube spruiker) and never invest more than you are willing to lose. In general, you need to establish your strategy, diversify investments and take security seriously – which means not trading from compromised electronics/phones or non-secure networks.
CaptainFI’s opinion on cryptocurrency
I should start out by saying that I am a staunch advocate of index fund investing, I keep little to no cash (choosing to instead be as fully invested as I can), and I enjoy being ruthlessly efficient – in my investments, business and personal life. I have previously thought of investing in crypto currency as investing in ‘virtual gold’ and operating on the greater fool principle, and as such I haven’t touched the stuff.
But I have also been wrong before. I was wrong when I tried to do stock picking, I was wrong when I started several businesses (most of which have failed) and I have been wrong in almost every conversation with the fairer sex 😅
But, Crypto isn’t as smooth sailing as the stock market and ETFs we know, trust and love. You typically hear about the success stories on crypto – but just like gambling addicts, you don’t hear about the crippling losses. Crypto in general is filled with crazy trading behaviour, illegal and shady criminal activity, market manipulation, pump and dumps and straight out ponzi schemes. Don’t let FOMO make you rush into something, and certainly don’t just buy Doge coin because some guy on Reddit said ‘its going to the moon’.
I will just say this now – I am fairly disgusted by some of the behaviour I see with the ‘alt coins’ and it just reeks of active day trading and pump and dumps on steroids. The Aussie Firebug and I discussed this on his Ask Firebug Fridays show, where I voiced my warnings about cryptocurrencies and how bearish I was on them.
All things considered, I am eating my words and made a small purchase into Bitcoin (BTC) and making a second, small purchase into Ethereum (ETH). I want to say that I don’t strictly consider this an investment (my investments are things that produce a yield and that will fund my Financial Independence and Early Retirement). This is more of a small gamble – a bit of a fun, an educational/learning experience and somewhat of a small hedge against my own prior cynical bets. If it all goes tits up then that’s a good lesson, and I will report regularly about what happens in my monthly net worth updates.
As an update, in March 2022 I have approximately just under $5,000 worth of Crypto split between BTC and ETH.
Frequently Asked Questions about Coinspot
Answers to frequently asked questions about Coinspot
Is CoinSpot legit?
Yes. Coinspot is legit. Coinspot is a member of multiple financial professional bodies, including Blockchain Australia, the Australian Digital Commerce Association and is registered with AUSTRAC (the Australian government financial and cyber crime watchdog). They are a registered Australian Business operating as CASEY BLOCK SERVICES PTY LTD ABN 19 619 574 186 registered to Windsor (3181), Victoria, with a street address of 114 William Street, Melbourne, Victoria, Australia.
What is CoinSpot Australia?
CoinSpot is an online crypto currency exchange that has been operating since 2013, and allow investors to buy, sell or swap over 200 types of crypto currencies.
Is Coinspot trustworthy?
Yes, CoinSpot is trustworthy. They are registered with AUSTRAC and ASIC and are frequently audited.
How do I get my money out of CoinSpot?
Withdrawing your money from CoinSpot is quick and easy. Simply go to ‘My Account’ > ‘Withdraw AUD’ and then enter the amount you wish to withdraw to your nominated Australian bank account. You must have funds in your account as AUD, which means if want to get your crypto out as AUD you have to sell it first. Alternately, you can send your crypto to an external ‘cold wallet’.
What are CoinSpot fees?
Coinspot charge 0.1% brokerage on market orders and OTC (over the counter) crypto trades. For Limit orders, stop loss, profit takes, and instant transactions, the brokerage charge is 1%.
How long does Coinspot Take to withdraw?
CoinSpot say it takes 1-4 business days to withdraw money, however I tested this and it took 2 business days.
What is the best crypto exchange in Australia?
CoinSpot is the best crypto exchange in Australia.
How old do you have to be to use Coinspot?
You must be a minimum of 16 years old to apply for a CoinSpot account.
Coinspot is an easy to use Australian and New Zealand cryptocurrency exchange that provides an attractive way to buy and hold over 234 different types of cryptocurrencies such as Bitcoin, Ethereum and altcoins with an incredibly low .1% brokerage. Coinspot allows exchanges between coins, and also offers coin bundles, which are diversified offerings of multiple cryptocurrencies similar to a ‘fund style investment’. Coinspot conforms to ISO27001 Standards for Information Security, is AUSTRAC compliant and is one of Australia’s oldest crypto exchanges, making it one of the safest crypto exchanges.
I am interested to see the results of my purchase into the cryptocurrency pool, and will report back on the results using Coinspot.
Because I was getting bullied in online forums, I bought even MORE crypto (Bitcoin) which promptly went down in value. Lets HODL on for the ride?
Further reading and references
Financial Disclaimer: CaptainFI is NOT a financial advisor and does not hold an AFSL. This is not financial Advice!
I am not a financial adviser and I do not hold an Australian Financial Services Licence (AFSL). In this article, I am giving you factual, balanced information without judgment or bias, to the best of my ability. I am not giving you any general or personal financial advice about what you should do with your investments. Just because I do something with my money (or use a particular service or platform) doesn’t mean it is automatically appropriate for your personal circumstances. I do not recommend nor endorse any financial or investment product, and my usage or opinion of any product should not be interpreted as an endorsement, advertisement, or intent to influence.
I can only provide factual information based on my journey to Financial Independence, and that is provided for general informational and entertainment purposes only. I make no guarantee about the performance of any product, and although I strive to keep the information accurate and updated as it changes, I make no guarantee about the correctness of reviews or information posted.
Remember – you always need to do your own independent research and due diligence before making any transaction. This includes reading and analysing Product Disclosure Statements, Terms and Conditions, Service Arrangement and Fee Structures. It is always smart to compare products and discuss them, but ultimately you need to take responsibility for your use of any particular product and make sure it suits your personal circumstances. If you need help and would like to obtain personal financial advice about which investment options or platforms may be right for you, please talk to a licensed financial adviser or AFSL holder – you can take the first steps to find a financial advisor by reading this interview, or by visiting the ASIC financial adviser register and searching in your area.