Coinjar Review – Unveiling Its Pros and Cons

Coinjar Review 2022

Trading cryptocurrency with peace of mind involves selecting the right crypto exchange. Coinjar’s outstanding security framework, together with its sleek user interface, makes it one of the best choices for Aussies.

Continue reading this Coinjar review to learn more about the exchange, its commissions, pros, and cons. You’ll also get additional information about the exchange, including its security and regulatory qualifications. Let’s get on it right away!

At a Quick Glance

Pug Score4.0/5
Fees (Maker/Taker)0%/0.1%
Cryptocurrencies Traded30+ digital assets
Most Suitable ForNew traders

Key Findings

Coinjar’s design is well-suited for beginners and professional traders. Its web and mobile applications ease fiat conversions to cryptocurrency, likewise crypto-to-crypto conversions.

Bitcoin, Litecoin, Ethereum, Zcash, and Ripple are some of the popular cryptocurrencies listed, alongside over 20 other altcoins on the platform. Despite the limited virtual currencies available on Coinjar, its unique features often attract investors.

The cryptocurrency exchange allows AUD deposits for its local traders without additional charges. Individual traders and financial institutions can use Coinjar’s trading platform. 

The exchange has licenses from AUSTRAC and UK’s FCA. The two top-tier regulatory bodies ensure that investors’ funds are safe. Coinjar’s KYC verification process is in line with jurisdictional AML policies.

Coinjar also employs stringent security measures such as cold wallet storage and two-factor verification that safeguards user information and funds on its platform. Its customer support comprises professional staff available 24 hours on working days.

ProsCons
Regulated exchangeLimited trading options
Suitable for BeginnersHigh credit/debit card commissions on instant buy/sell
Low trading fee structureFiat deposit and withdrawals are available to only select regions
Mobile app availableMargin trades are unavailable
Good customer support

What is Coinjar?

Coinjar is a cryptocurrency trading platform based in Australia that supports buying and selling digital currencies using credit/debit cards. Asher Tan and Ryan Zhou launched the exchange in Melbourne in 2013.

Coinjar is more popular in Australia, the UK, and some EU regions, thanks to its direct fiat withdrawal and deposit offering exclusively for local traders. Despite its limited support for non-select regions, Coinjar boasts a user-base of over 400,000, with over $1.5B worth of assets traded on its platform periodically.

Range of Offering

Coinjar offers a variety of tools and services to assist clients in getting the most out of their operations.

Coinjar Swipe Card

Coinjar Swipe Card is a unique product that lets Australian investors spend cryptocurrency at retail locations that accept EFTPOS. Dealers can also receive funds from any ATM or retail vendor that offers cash-out services.

Keep in mind that this service is available in Australia only. The swipe card does not work online or offline for traders outside Australia. Coinjar is working to extend the card service to UK investors soon. 

Image Source: Coinjar

The card functions similarly to other ATM cards, except that it is a cryptocurrency debit card. Traders prefer Coinjar’s debit card since it has no processing fees, service charges, or activating costs. 

Additionally, there are no charges for AUD transfers, EFTPOS payments, or transfers. Coinjar charges the loading cost for cryptocurrencies the same way it charges standard Coinjar transaction fees.

Coinjar allows 25 free payments per day and has specific payment limits cardholders must hold. Other transactions may incur additional fees.

The maximum top-up for cardholders is $999 per day. Also, cardholders should not have less than $999 on Coinjar swipe cards.

Coinjar Bundles

Coinjar Bundles are a new feature that lets customers purchase many cryptocurrency bundles in one transaction. Interestingly, you can find out how the bundle is performing by tracking its movement at once.

Image Source: Coinjar

Coinjar’s popular ‘Trio Bundle’ offers you balanced allocation (according to market capitalization) of Ether, Bitcoin, or Litecoin. You can find this package and its features in Coinjar’s smartphone application.

Coinjar Instant Exchange

The instant exchange is Coinjar’s earliest offerings, allowing customers to purchase and sell bitcoin with fiat. Note that the transaction cost of instant exchange is different from that of Coinjar Exchange.

Coinjar OTC Trading

Coinjar’s Over-The-Counter (OTC) service is available to financial institutions and professional traders. Using the OTC platform, investors can carry out off-exchange trades above 50,000 British Pounds or Australian Dollars. 

Top investors choose Coinjar’s OTC because of its one-on-one support, low prices, and customizable settlement periods.

Image Source: Coinjar

Coinjar Rewards

Coinjar Reward is an initiative for the company’s genuine customers. The reward system gives clients points, which help them pay the expenses of their payments, buy at the reward shop, and order with the swipe debit card.

Coinjar awards point to traders who:

  • Introduce new users or traders to the platform.
  • Purchase services or exchange currencies that necessitate the use of money.
  • Use Coinjar swipe card to place orders.
  • Send transfer funds from a Coinjar wallet to BPAY Biller.

Commission and Fee Structure

Coinjar’s fee structure is well-defined. The exchange charges a fixed fee of 1% each time you purchase or sell a virtual currency. For instance, if you want to purchase or sell $1000 worth of bitcoin, the company charges will be $10 (1%) for each transaction.

Many investors believe the fixed rate is too expensive compared to other popular crypto exchanges like Coinbase and Binance that charge between 0.10% and 0.50%. Notwithstanding, this fixed charge is suitable for retail traders who wish to make long-term investments. 

Apart from the spot fee, Coinjar’s maker-taker fees are also transparent. The charge for takers trading fiat-to-crypto pairs varies from 0.1% to 0.5% per order depending on transaction frequency. The maker fee for a similar transaction as the taker is 0%. 

Takers pay a fixed cost of 0.1% for crypto-to-crypto transactions, while makers pay 0%. For trades above $10 million, investors will pay a transaction fee of as little as 0.1%.

Image Source: Coinjar

Ease of Account Opening

Coinjar sign-up procedure is straightforward. You can set up an account easily by completing the instructions outlined below:

  • Go to Coinjar.com, which is the official website.
  • Select the “Sign Up” option located at the page’s upper right corner.
  • A registration form will show up, which you must complete using details like your first name, last name, and email.
  • Next, create a strong password according to the suggestion provided.
  • Accept Coinjar exchange terms & conditions.
  • Finally, select “Create Account.”
  • Coinjar sends a confirmation email to the address you provided. Open the email and click on the email to verify your email address.

After the email verification, use your new Coinjar login details to log in for the first time. 

Coinjar requires first-time users to complete their registration by uploading an image, providing a mobile number, and setting up a unique username. 

KYC Verification

KYC verification is the next stage of setting up user accounts on Coinjar to help it maintain compliance with Australia, the UK, and the EU regulatory bodies. KYC (Know Your Customer) verification helps you to benefit from all Coinjar services and features fully.

To authenticate your identity, you must satisfy certain requirements. Follow the steps below to complete Coinjar KYC verification.

  • Download the Coinjar mobile app on your device from Playstore or Apple Store.
  • Click on the ‘More‘ option at the bottom right corner. 
  • Then, select ‘ID verification.’
  • Review your initial sign-up details by entering your names, date of birth, and home address. 
  • Afterward, click ‘Next.’ 
  • Select the appropriate document you want to use for ID verification and follow the prompts to take a picture of it. 
  • Finally, take a selfie to complete the verification process. 

Note that at every stage, selfies or pictures that do not meet the standards are invalid. As such, you should read the tips for taking a good selfie or picture.

Deposit and Withdrawal

Image Source: Coinjar

Coinjar only offers deposits and withdrawals to registered users. After successful registration, you can deposit fiat into your Coinjar crypto wallet through the following methods:

  • PayID
  • Blueshyft
  • Debit/Credit Card

PayID is a free payment system that works 24/7. With PayID, Australian traders can send funds from local bank accounts into their digital wallets. 

Australian investors that want to use cash to buy bitcoin and other Coinjar-supported digital currency can do so with Blueshyft. Simply locate any of the 1200 Blueshyft shops in Australia and make the cash deposit. Coinjar only supports Mastercards and VISA for direct deposits. 

Coinjar customers may deposit cryptocurrencies directly to external wallets, much like most other exchange companies. The payment appears in their wallets after 15-30 mins, depending on the network speed.

For direct withdrawals in Australian Dollars, there is no handling cost. However, for foreign or non-AUD transfers, traders pay a fixed amount of $20. Users also pay additional network fees determined by blockchain network traffic.

Platform User Interface and Trading Experience

Image Source: Coinjar

Coinjar follows a similar functionary structure as other popular Australian crypto exchanges like Swyftx and Coinspot. Users must complete registration and verification to access and fund their wallets and begin trading.

After purchasing cryptocurrencies, investors can put them in their Coinjar wallets. Each time a user performs transactions on the exchange, Coinjar earns relative commissions. Traders can also use external crypto wallets to receive the funds.

Coinjar facilitates crypto-to-crypto transactions by allowing users access to real-time crypto charts, technical tools, and indicators.

Additionally, the exchange provides a crypto index portfolio to its conventional exchange-based offerings. With this feature, traders can bid on four different cryptocurrencies in one transaction.

Buying and selling assets on Coinjar’s marketplace is easy. You just have to input the GBP/AUD/USD value once you select the cryptocurrency you want to purchase. You can find your balance in the trading window.

Coinjar Exchange is an exclusive crypto trading platform that allows users to study real-time cryptocurrency graphs and make intelligent choices about which coins to purchase or sell. The exchange is of Coinjar’s most comprehensive services, with a simple and elegant user interface. 

Mobile Application

Image Source: Coinjar

Investors can alternatively use Coinjar’s mobile app as wallets. The app works on both Android and Apple smartphones.

A client can sell, purchase, exchange, view their trading histories, and analyze market dynamics using the smartphone application. Coinjar adopts two-factor authentication as well as fingerprint and facial recognition to protect its mobile app.

Supported Cryptocurrency

Image Source: Coinjar

Coinjar currently provides support for seven digital currencies and additional tokens, particularly ERC-20 tokens. Coinjar’s assets include Bitcoin, Ethereum, Litecoin, Algorand, Ripple, Lumens, and EOS.

Coinjar crypto tokens include:

  • USD Coin
  • Basic Attention Token
  • 0x Token
  • Chainlink
  • Maker
  • OMG Network
  • Compound 
  • Uniswap protocol token
  • Yearn.finance governance token, etc.

Coinjar is constantly launching innovative Ethereum-based currencies to the system since most crypto development presently takes place on the blockchain. There are more than 90 tradable crypto pairs available on Coinjar Exchange.

Educational Tools

In addition to the platform’s visible assistance, there is a comprehensive tutorials page. Coinjar’s knowledge base tackles most commonly asked topics, such as charges, creating an account, and transfer time frames.

Customer Support

The customer service area of Coinjar is rather extensive. You can find answers to FAQs or file a support ticket if you need help on the support page. Coinjar support can help you resolve issues relating to ID verification, deposits, or withdrawals, etc.

However, the support team is only available on business days from 8 am to 6 pm (GMT+11). Non-Australian traders may find this displeasing as they have to wait to make contact at odd timing. 

Investors who join the Coinjar trader program have easy access to customer service phone lines. In most situations, however, users may only reach the staff through the support ticket system.

Blockpug observed that Coinjar took too long to respond to customer complaints but urges users to regularly access its FAQs and help center for details on their possible problems or queries.

Regulation and Security

Image Source: Coinjar

Coinjar is an AUSTRAC-registered crypto exchange that is completely safe. Just recently, the company announced its regulation with the UK’s Financial Conduct Authority (FCA). 

To detect fraudulent behavior and secure clients’ investments, Coinjar employs strong anti-money laundering protocols, including machine learning systems and 2FA (two-factor authentication).

The company’s website security framework comprises sophisticated MLTs (machine learning techniques), TSL (Transport Layer Security), and data encryption. 

Coinjar uses these strategies to perform vulnerability scans regularly. Thanks to these checks, the exchange can detect fraudulent logins, money scams, and account takeovers.

Coinjar wallet stores 90% of its clients’ money in offline cold storage “hard wallets,” particularly in geo-redundant areas.

There are two types of Coinjar 2FA:

  • Authenticator app
  • SMS authentication

The Authenticator application is available for smartphones. After installation, the app works by creating a unique authentication key once every 30 secs.

Traders can link the authenticator app to their accounts and use the unique codes to complete their logins. Everyone with strong internet service can use the app because it is fully secured.

Phone companies do not encode SMS authentication, making it vulnerable to security risks such as monitoring and port redirection. When Coinjar needs verification, the customer receives an SMS on their mobile phone. They only need to input the code sent through SMS.

Is Coinjar Safe?

Yes, Coinjar is safe, thanks to its licenses from the UK and Australia. The company is also subject to numerous government audits that validate its existence. 

Furthermore, Coinjar has a thorough identification and verification procedure in place to safeguard dealers from financial fraud. Coinjar hasn’t been the victim of any significant attacks, but that doesn’t imply it’s safe from malicious outsiders.

Conclusion

From this Coinjar review, it is evident that the platform is a suitable alternative for traders in the United Kingdom and Australia. It appeals to investors because it is intuitively simple to use and access. Its spot fee is also great for retail traders seeking to make long-term investments.

The Coinjar Exchange provides traders with superior investing tools to help them optimize their earnings. In the cryptocurrency market, investors may generate more revenue than losses with more than 25 combinations. 

Investors may also use the Coinjar service to explore crypto-to-fiat currency pairings. Coinjar Exchange has a comparative benefit in the cryptocurrency industry, with minimal trading costs and a modern look.

FAQs

Is Coinjar Regulated in the UK?

Yes, Coinjar is an FCA-regulated cryptocurrency exchange. With this regulation, Coinjar operates a strict Know Your Customer (KYC) policy. FCA is the UK’s primary financial regulator, so it bounds Coinjar to have the same rules as every other top FCA-regulated company. Traders in the UK can safely store and use their funds with Coinjar.

Can I Withdraw Funds to My Debit or Credit Card?

Yes. However, this service is only available to Australians and select regions. Alternatively, traders from other regions can withdraw and deposit funds via external crypto wallets.

How Long Does it Take to Withdraw Funds on Coinjar?

Coinjar sends withdrawals of less than $10 to users through standard bank transfers, but this might take about three working days to complete. 
Traders whose bank does not accept NPP transactions will get their funds via regular bank transfers. This service may also take between one to three working days to complete processing.

Does Coinjar Offer Leverage?

No, you can’t get leverage using Coinjar exchange. This limitation is because Coinjar doesn’t allow margin trades on its platform. However, other top cryptocurrency exchanges offer this service.

How Does Coinjar Store Customers’ Crypto Assets?

Coinjar uses the cold storage system to store all virtual currencies on its platform. This system keeps digital assets offline, which makes them virtually impossible to be lost. It also makes the assets less vulnerable to hack attacks.

Is Coinjar a Wallet?

Yes, Coinjar is a custodian for crypto assets, which means that you can store your digital currency on the platform without any risks of losing it. If you create a wallet within Coinjar, your coins are stored offline under the custody of a third-party custodian. Custody keeps the coins safe from potential hacks and owners’ losses.

Coinjar Review 2022: Is It the Number 1 Crypto Exchange in Australia?

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