CoinJar Review: Should You Use This Exchange?

January 15, 2022
Reviews
coinjar review

CoinJar is a prominent cryptocurrency exchange based in Melbourne, Australia, which was founded in 2013 to serve individuals in the country only. Since then, however, it has expanded internationally to include the United Kingdom, Europe, and various other nations.

However, because CoinJar has a very high trading fee of 1%, we can’t recommend it as one of the best crypto exchanges to use in Australia. Instead, we suggest you consider using CoinSmart, which offers excellent security and fees that are lower than any other cryptocurrency exchange in Australia.

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What Is CoinJar?

CoinJar is a cryptocurrency exchange based in Australia that was founded in 2013 by Asher Tan and Ryan Zhou, with the main goal at the time being to service customers within the country. Since then, it has expanded internationally to include the United Kingdom, Europe, and various other countries.

CoinJar is a well-known cryptocurrency exchange based in Melbourne that is owned and run by CoinJar Australia Pty Ltd (ABN 75 648 570 807). Users with a credit or debit card may buy cryptocurrencies instantly through the exchange.

CoinJar Features

1. CoinJar Bundles

coinjar review

CoinJar will give you access to its CoinJar Bundles feature, which includes groupings of popular digital currencies that you may purchase as a whole.

It’s a one-of-a-kind feature that will be especially beneficial to beginner crypto investors or crypto traders interested in passive portfolio diversification, allowing you to acquire a whole collection of digital currencies at once.

2. CoinJar Card

CoinJar has a cryptocurrency debit card that can be used to pay for items and services from businesses that accept EFTPOS in Australia. You’ll earn 100 CoinJar points for each dollar in transaction fees, which you may spend on future trades.

It’s also possible to withdraw money from ATMs, as well as make purchases in-store and online.

3. OTC trades

OTC trades of AUD 50,000 and above are supported by CoinJar, allowing individuals and businesses to make off-exchange, over-the-counter (OTC) transactions.

This is a fantastic feature for individuals who want to purchase or sell large quantities of digital currencies without having to use the exchange since it can frequently be more difficult and time-consuming.

Cryptocurrencies on CoinJar

CoinJar supports over 40 different cryptocurrencies, which is a considerably wide array of supported coins. Here is the full list of cryptocurrencies currently supported by CoinJar:

Bitcoin (BTC)0x Token (ZRX)Kyber Network (KNC)Axie Infinity (AXS)Band Protocol (BAND)
Ethereum (ETH)Chainlink (LINK)Paxos Standard (PAX)Fantom (FTM)Mirror Protocol (MIR)
Litecoin (LTC)Maker (MKR)Synthetix Network Token (SNX)Terra USD (UST)Shiba Inu (SHIB)
XRP (XRP)OMG Network (OMG)Sushiswap (SUSHI)Amp (AMP)Fetch.ai (FET)
Stellar (XLM)Compound (COMP)Balancer (BAL)Chiliz (CHZ)Origin Protocol (OGN)
Algorand (ALGO)Uniswap (UNI)Enjin Coin (ENJ)Uma (UMA)Cartesi (CTSI)
EOS (EOS)Yearn.Finance (YFI)GraphToken (GRT)The Sandbox (SAND)Orchid (OXT)
USD Coin (USDC)Aave (AAVE)Tether (USDT)Loopring (LRC)Quant Network (QNT)
Dai (DAI)Bancor Network Token (BNT)Wrapped Bitcoin (WBTC)Injective Token (INJ)Audius (AUDIO)
Basic Attention Token (BAT)Curve DAO (CRV)Polygon (MATIC)Badger DAO (BADGER)

CoinJar Fees

CoinJar does not charge any deposit fees, except for Blueshyft cash deposits (1.5% fee) and Instant Buys made using Visa or Mastercard (2% fee).

CoinJar also charges a 1% conversion fee when purchasing and selling cryptocurrency in fiat currency.

There is a 0.5% fee for using BPAY Biller to withdraw funds to your bank account. When sending Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, you may be charged depending on the platform’s dynamic payment structure.

Our Recommendation: CoinSmart

While CoinJar has several interesting and convenient features, there is one drawback that doesn’t allow me to fully recommend it, and that would be its fees.

With crypto purchases and crypto sales incurring a 1% conversion fee, and Instant Buys incurring a 2% fee, your investment returns will be reduced considerably (especially in larger trades, where you could lose thousands of Australian dollars in fees alone).

For this reason, we instead recommend that you consider using CoinSmart. Here are a few additional reasons why recommend it over CoinJar:

#1 Lowest Fees In The Industry

CoinSmart’s trading fees are just 0.20%, the lowest of any crypto platform in Australia. And those savings add up quickly: if you trade $100,000 worth of Bitcoin in a given year (buying and selling $25,000 worth twice), you’ll save $800 in trading fees compared to an exchange charging 1% ($200 vs. $1,000).

Perhaps more important than trading fees, though, are spreads: the difference between the Buy price and the Sell price. CoinSmart has razor-thin spreads, which makes day trading possible and keeps more money in your pocket.

#2 Bank-Level Security

CoinSmart maintains a 95% cold storage policy, which means at least 95% of its users’ crypto is always held offline. This is a security measure that only the most advanced exchanges employ, and CoinSmart is leading the charge.

CoinSmart is also a publicly traded crypto exchange in Australia, which means it’s subject to far more financial scrutiny than any other platform. It’s regulated by AUSTRAC (the Australian Financial Transactions and Report Analysis Centre), and its financials are audited by external professionals at least once per year.

#3 Excellent Customer Support

CoinSmart offers 24/7 customer support via phone, live chat, and email, and their customer service reps are actually helpful rather than just following a script. I’ve never had to wait more than about 60 seconds on hold, and they’re very responsive via live chat and email, too. 

The only time I ran into an issue with CoinSmart, I called them and had it sorted out within 5 minutes. Keep in mind that telephone and live chat support is only available for registered users, so if you have a question for CoinSmart, the best way to get it answered is to open an account

However, considering its high trading fees of 1%, we simply can’t recommend CoinJar as one of the top crypto exchanges to use in Australia. Instead, we recommend that you consider using CoinSmart. With its ease of use, its top-notch security, and the lowest fees across crypto exchanges in Australia, we simply can’t recommend CoinSmart enough.

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In Summary

CoinJar is a well-known cryptocurrency exchange based in Melbourne, and it was originally designed in 2013 to service customers within Australia only. Since then, however, it has expanded internationally to include the United Kingdom, Europe, and various other countries.

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Offer ends May 19.

CoinJar FAQs

How To Withdraw From CoinJar

To withdraw funds from your CoinJar account, you only need to follow these simple steps:

  1. Sign in to your CoinJar account.
  2. Click on the three dots on the top right of your screen.
  3. Select the “Withdrawal” option.
  4. Select the account you want to withdraw funds from.
  5. Select the linked bank account you want to transfer funds to. 
  6. Enter the amount you want to transfer to said bank account.
  7. Click the “Next” option.
  8. Review the transaction details thoroughly before continuing.
  9. You’ll receive a payment receipt confirming the transaction.
  10. Select the “Done” option.

Is CoinJar Safe?

Yes, CoinJar is a safe and secure cryptocurrency exchange. The majority of user funds are kept in offline wallets located at several sites around the world. As of now, CoinJar’s servers have also not been hacked.

CoinJar also uses two-factor authentication (2FA), data encryption, Transport Layer Security (TLS), and third-party security evaluations, which are all industry-standard security measures.

Finally, the platform employs machine learning to identify suspicious behaviour (for example, fraud and account takeovers).

Is CoinJar Legal In Australia?

Yes, CoinJar is a legitimate cryptocurrency exchange that’s legal to use in Australia. It’s backed by some of the world’s top investors, and it’s registered in the Australian Transaction Reports and Analysis Centre (AUSTRAC) to combat money laundering and terrorism financing.

CoinJar Referral Code

Unfortunately, there are no CoinJar referral codes available at this time.

Does CoinJar report to the ATO?

Yes. Considering that CoinJar is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), it is legally required to report all large transactions to the ATO whenever a fiscal year ends.

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