When it comes to digital asset trading platforms and investing in them, users residing outside of the United States often favor choosing platforms that cater to their local region. This preference stems from various benefits.
First and foremost, it enables users to easily deposit and withdraw funds from their accounts using their local currency. Additionally, it ensures that the exchange adheres to regulations and is trustworthy. However, such local exchanges are few and far between, making them challenging to find.
CoinSpot is an exception, tailoring its services specifically for users in Australia. In this review, we delve into the features and attributes of CoinSpot to determine the type of traders it best suits.
What is CoinSpot?
CoinSpot is a cryptocurrency trading platform based in Melbourne, Australia, founded in 2013 by Russell Wilson. It has since become one of the largest digital asset exchanges in Australia, providing a secure and reliable means for users to buy and sell a variety of cryptocurrencies.
CoinSpot is regulated by the Australian Digital Commerce Association (ADCA), which offers legal protection to clients who use regulated exchanges, ensuring that CoinSpot provides a secure platform for users to purchase cryptocurrencies without worrying about the security of their funds.
The platform caters to three main types of customers: individuals, companies, and Super Fund investors. CoinSpot enables them to instantly buy or sell cryptocurrencies such as Bitcoin and others, offering a streamlined trading experience.
CoinSpot Review – Pros
The CoinSpot trading platform has numerous advantages, including:
Extensive Selection of Digital Assets
CoinSpot, one of Australia’s leading and most well-known exchanges, boasts an impressive array of digital assets, a factor that contributes significantly to its popularity.
The platform offers users access to over 200 cryptocurrencies, encompassing prominent coins and some lesser-known ones. The number continues to increase as CoinSpot regularly adds new and popular coins, ensuring the platform stays up-to-date.
Competitive Pricing
Active traders are keenly aware of the impact that fees can have on their profitability, hence they seek platforms with competitive pricing. CoinSpot stands out as a platform with some of the lowest fees in the Australian blockchain space, as we will explore in the Fees section of this review. This makes it an attractive option for traders who want to minimize their costs and maximize their returns.
Robust Security Measures
In the security section of this review, we’ll delve deeper into CoinSpot’s security features, which are among the most robust in the cryptocurrency exchange market. The platform has faced several attempted cyberattacks, but its industry-grade security measures have proven to be effective in protecting users’ funds and data.
CoinSpot employs various security features to ensure the safety of its users’ assets. Given the high trading volume on the platform, it’s no surprise that it has been targeted by cybercriminals. However, CoinSpot’s security features are designed to thwart such attempts.
Automated Investment Scheduling
CoinSpot has recently introduced a new feature that allows users to schedule automatic recurring purchases of their preferred cryptocurrency. This feature enables investors to invest a fixed percentage of their paycheck into a particular cryptocurrency, such as Bitcoin, on a monthly basis.
Here’s how it works: Simply select a fixed investment amount and set the frequency to monthly. CoinSpot will then automatically deposit the specified amount into your account and invest it in the chosen cryptocurrency every month. This feature is ideal for long-term investors who want to dollar-cost average their investments over an extended period.
Instant Purchases
CoinSpot provides another advantage to its users – the ability to swiftly and easily purchase cryptocurrencies using credit or debit cards.
After verifying your account and starting to trade, you can quickly decide to buy any cryptocurrency you want almost instantaneously.
The process of buying a cryptocurrency instantly is straightforward. Simply head to the Marketplace, select the desired cryptocurrency, enter the quantity, choose your preferred credit or debit card, and click ‘buy.’ The transaction is processed rapidly, allowing you to start trading quickly.
Highly Regulated
As we mentioned earlier, one of the biggest advantages associated with using the CoinSpot platform is the fact that it is highly regulated by the Australian authorities.
For example, we have already discussed how CoinSpot is a member of the Australian Digital Commerce Association, which gives its customers an added degree of protection.
Additionally, the platform is also certified by the ISO for quality and is licensed by the AUSTRAC, giving investors confidence that their funds are being parked on a safe platform.
User-Friendly Interface
CoinSpot differentiates itself from other trading platforms and exchanges by prioritizing simplicity in its design. The platform is designed to be easy to navigate and intuitive, making it appealing to customers.
While the platform offers a fair number of features and options for advanced traders, the focus is on simplifying the process as much as possible. The default settings provide a straightforward interface, allowing users to customize it according to their preferences.
This approach ensures that new investors or traders won’t be overwhelmed by the number of features, allowing them to become experienced investors at their own pace.
Dedicated Customer Support
One of the common concerns among users who trade through cryptocurrency exchanges is the lack of good customer service. CoinSpot stands out in this regard, providing users with a 24/7 Live Chat support team that can resolve basic queries and create a more convenient trading experience for traders.
This dedication to customer support ensures that traders can get their queries resolved quickly and efficiently, making the trading experience more enjoyable and hassle-free.
CoinSpot Cons
Like with anything, there are two sides to every coin, and the CoinSpot trading platform is no exception. Some disadvantages of the platform include:
Accepts AUD Only
A drawback of the platform is that it only accepts Australian Dollars (AUD) for deposits and withdrawals.
Although this feature is suitable for most traders and investors located in Australia, it can be an issue for those located in Australia who receive their payments in other currencies. Additionally, those who wish to deposit funds into CoinSpot using a different currency will need to pay a currency conversion fee, which can be time-consuming and costly.
Trading Limitations for New Users
Another issue users have with the platform is the trading restrictions imposed on new users, making it difficult for them to trade freely after setting up their account.
For instance, there’s a trading volume limit for the first week after creating an account, which gradually increases over the next few weeks as the platform assesses the user’s trading behavior.
Although this is a necessary requirement to ensure advanced traders understand the risks, many investors and traders find the process to be a hassle.
CoinSpot does not Support Short Selling
There are two main types of transactions that traders normally make on cryptocurrency exchanges: going long and going short. The former is usually done when traders expect the prices of the asset to go up, while shorting is done when traders are bearish on an asset and expect the prices to fall.
Unlike other exchanges, CoinSpot does not allow users to short sell crypto assets via the platform. This is very inconvenient since many trading strategies involve short selling assets, and the absence of this feature reduces CoinSpot’s appeal as an advanced trading platform.
No Leveraged Trading
Another crucial feature missing from the platform is the ability to trade with leverage. This feature is essential for any platform, especially one that wishes to appeal to more experienced investors.
Leveraged trading allows traders to borrow funds from the exchange to open positions, enabling them to open positions for higher amounts than their capital investment. For instance, if a trader opens a position with AU$1,000 of their own capital on a 10% margin, they effectively borrow AU$9,000 from the exchange and open a combined position of AU$10,000.
As larger positions are being opened, this will magnify the profits (or losses) faced by the trader. Leveraged trading is popular among experienced traders, and the fact that it’s not present on CoinSpot is a major issue with the platform.
Cryptocurrencies Supported by CoinSpot
When CoinSpot first began as a cryptocurrency exchange, it only offered support for Bitcoin. However, the platform has since evolved to support over 200 cryptocurrencies, including all the major coins and a few exotic cryptocurrencies.
Some of the major coins supported by the platform include:
- Bitcoin
- Ethereum
- Litecoin
- Ripple
- EOS
- Stellar
- NEO
- Tron
- Bitcoin Cash
In addition to these cryptocurrencies, the CoinSpot app also accepts a variety of other DeFi tokens and coins, including the AAVE token, the Uniswap token, and the COMPOUND token.
CoinSpot Fees
Any trading platform charges two types of fees: trading fees and non-trading fees.
CoinSpot Trading Fee
Trading fees refer to the fees that users pay to place orders on the platform and have them executed. Most cryptocurrency exchanges charge trading fees in one of two ways: they either charge spreads or commissions.
Spreads
Spreads refer to the difference between the bid price and the ask price. This model is primarily adopted by market-maker trading platforms that assume the position of the counterparty in the trade. Therefore, you are effectively trading against the platform.
When this happens, there is usually a difference between the price at which you can buy the asset and the price at which the asset can be sold at any given moment. The buying price, also called the bid price, is almost always higher, and the difference between these two prices is called a spread.
What this effectively means is that if you were to buy and sell an asset at the same time, you would actually incur a loss.
Commissions
The other form of trading fee that might be charged by an exchange is a flat commission on every trade that you make. This is usually a very small percentage of the trading volume and is done in a decreasing manner, i.e. the higher your trading volume, the lower the fees that you will have to pay in this regard.
CoinSpot Fee Structure
The fee structure employed by CoinSpot is a flat commission-based structure.
All the trades that are placed on the platform for buying, selling, or exchanging cryptocurrencies are charged a flat fee of 1%.
Similarly, a flat fee of 1% per trade is also levied on special types of orders such as stop-loss orders, take-profit orders, as well as recurring buy orders.
Unlike most other exchanges, CoinSpot does not charge fees based on a maker-taker structure, and all kinds of trades are charged with a flat 1% trade.
On the other hand, if traders choose to use the platform’s OTC feature, then the fee that they are charged on this trade is just 0.1%.
CoinSpot Non-Trading Fee
In addition to the trading fee, cryptocurrency platforms often also charge a variety of other incidental fees and charges. These have been discussed in detail below.
Deposit Fees
Most cryptocurrency exchanges charge fees in order to allow users to deposit money into their accounts.
On CoinSpot, there are no charges associated with depositing funds to your CoinSpot account, whether you choose to do so in the form of fiat currency or cryptocurrencies. The only fees that you will end up paying are the network fees associated with the deposit.
If users choose to deposit funds through fiat currency or cash, there is a specific fee charged; the exchange charges a fee @2.5% (for cash deposits) or 0.9% (for BPAY deposits), which are actually the transaction processing fees and surcharge charged by traditional banks.
Withdrawal Fees
Just like deposits, most cryptocurrency exchanges come with a price for taking money out. With CoinSpot, you won’t have to worry about withdrawal fees if you transfer funds directly to your bank account. However, if you choose to move your funds to another crypto wallet, you may encounter a gas fee depending on the coin and network you select.
CoinSpot Platform Features
The CoinSpot ecosystem offers several features that contribute to its strength in the Australian cryptocurrency exchange industry. These features are discussed in detail below.
Instant Trading
CoinSpot enables users to purchase and sell cryptocurrencies instantly, without the need for a lengthy process. Once a user’s account is verified and a payment method is added, they can select any cryptocurrency to buy without negotiating the price through an order book. The platform’s advanced price charts, complete with charting and analysis tools, assist traders in making informed decisions.
Affiliate Program
CoinSpot’s fee structure is primarily commission-based, which means that the platform earns more money as the volume of transactions increases. To encourage users to bring in new users, CoinSpot has launched an affiliate program. Participants receive their own referral IDs and can earn money and fee rebates by referring new users to the platform. This means that users can earn commissions on their referrals’ trading fees while also benefiting from lower trading fees through the affiliate referral program.
CoinSpot bundles
CoinSpot provides users with the option to invest in pre-made bundles, allowing for instant diversification of their portfolios. These bundles are curated based on various criteria such as market capitalization, ESG score, and sector association (e.g., NFTs or DeFi).
Multi-Coin Wallet
CoinSpot’s platform features a multi-asset wallet that can store over 300 different cryptocurrencies. This wallet allows users to manage their assets and transfer them to third-party wallets like Metamask. Trades made through the CoinSpot platform are automatically stored in this wallet, providing users with a convenient and secure way to manage their investments.
Earning on CoinSpot
Cryptocurrency traders may choose to hold their assets during bearish market phases, and CoinSpot offers a staking feature that allows users to earn rewards on their idle cryptocurrencies. This feature is available for a limited number of coins, including DOT, AVAX, and MATIC.
NFT Marketplace
CoinSpot’s NFT marketplace is designed to facilitate the convenient buying and selling of NFTs for Australian-based users. Although the available NFT collections are limited, they include popular collections such as the Bored Ape Yacht Club. NFTs are typically priced in ETH tokens due to their development on the Ethereum blockchain. However, users can utilize any wallet or token of their choice to purchase and trade NFTs.
SMSF support
CoinSpot provides support for users who wish to add cryptocurrencies to their Self-Managed Super Funds (SMSFs). The team at CoinSpot includes SMSF experts who can advise users on the process of setting up and managing an SMSF, which can be complex. This support aims to make the process easier and more accessible for interested customers.
OTC Trading
CoinSpot also offers an Over-The-Counter (OTC) trading service for customers who wish to make large trades worth over $50,000. The OTC desk managed by CoinSpot provides traders with a direct channel to buy and sell cryptocurrencies without listing the order on an exchange. This service allows for more discreet and personalized trading experiences.
Safety Measures
Security is a paramount concern for users who are new to cryptocurrencies, as well as for experienced traders. CoinSpot addresses these concerns by offering a robust industry-grade security infrastructure that can alleviate worries about the safety of funds and data on the platform. Notably, CoinSpot has never been hacked, a testament to the effectiveness of its security systems.
CoinSpot holds memberships with reputable organizations, including Blockchain Australia and the Australian Digital Commerce Association. Additionally, it is registered with AUSTRAC, Australia’s anti-money laundering and counter-terrorism regulator, which adds an additional layer of safety to the platform. CoinSpot is also one of the few exchanges in Australia accredited for its security by ISO.
To protect user funds from potential breaches, CoinSpot utilizes two-factor authentication (2FA), requiring traders to enter a code generated on their registered mobile device to access the platform or withdraw funds. This adds an extra layer of security to ensure the safety of user assets.
Summary
CoinSpot is a well-established cryptocurrency exchange that enjoys immense popularity among Australian investors looking to delve into the world of digital currencies.
There are several benefits to trading through CoinSpot. For instance, it adheres to strict regulatory standards, provides users with multiple payment options, and enables instant purchases through its platform, all at highly competitive fees.
However, it’s important to note that CoinSpot has some limitations. For example, it does not offer short selling, and it doesn’t have a maker-taker fee structure in place. Therefore, investors should carefully weigh the pros and cons of using CoinSpot before making a decision to trade on the platform.
