CoinJar is a digital currency exchange that allows you to buy and sell cryptocurrencies quickly and easily. But is this crypto exchange really a safe and effective platform, or is there more than meets the eye? What you need is an honest CoinJar review that uncovers the truth about the platform.
In this CoinJar review, I’ll tell you everything you need to know about CoinJar, including how it works, which cryptocurrencies are supported and how much you can expect to pay in fees. After all, you need to know the facts before deciding whether this is an exchange that you can trust with your crypto investments.
What Is CoinJar?
CoinJar is a digital currency exchanged which was founded in May 2013 by CEO Asher Tan and COO Ryan Zhou. The company was originally founded in Australia and became a registered UK limited company in February 2014.
This currency exchange has a reputation for being easy to use, making it a popular choice for beginners to trading. In fact, CoinJar has over 400,000 users and currently actively manages around £50 million worth of assets.
The platform is financed by some of the world’s leading investors, including Blackbird Ventures, Digital Currency Group and Boost VC. This gives a good insight into the profile of the platform, as well as its standing in the industry.
CoinJar At A Glance
Through CoinJar, UK and Australian residents are able to buy, sell and store a broad range of different cryptocurrencies including Bitcoin, Ethereum and Litecoin. Let’s take a look at an overview of CoinJar.
|Founded Date||May 2013|
|Fiat Currency||GBP, AUD|
|Trading Fee||0% – 1%|
|Deposit Fee||1.5% (cash deposit) – 2% (credit / debit card)|
|Payment Types||PayID, BPAY, credit / debit card, cash deposit|
|Mobile Apps||iOS and Android|
Pros And Cons Of CoinJar
When weighing up whether CoinJar is the right digital currency exchange for you, it’s important to look at the advantages and disadvantages of the platform. This will allow you to weigh up the pros and cons and make an informed decision based on your own requirements.
Here are the pros and cons of CoinJar.
|✅ Over 8 years in business (established in 2013)||❌ Fees higher than some competitors|
|✅ Quick verification process (under 10 minutes)||❌ No phone support or live chat available|
|✅ Simple to purchase and sell cryptocurrencies|
|✅ Deposits credited quickly|
|✅ Reliable iOS and Android mobile app|
|✅ Supports 30 cryptocurrencies including Bitcoin|
CoinJar Funding Methods
A key benefit of CoinJar is the number of different funding methods that are available. However the payment methods which are available to you will depend on which country you are a resident of.
UK residents are able to deposit GBP through bank transfer using the Faster Payments Service (FPS). This is completed in an impressive five minutes, although your first transaction may take slightly longer. The minimum deposit through FPS is £5, with the maximum currently standing at £10,000 per day.
Alternatively, UK residents are also able to purchase cryptocurrency with a credit or debit card. Up to three VISA cards or Mastercards can be linked to your account, with a maximum daily transaction limit of £10,000.
For Australian users, AUD can be deposited into CoinJar through PayID, BPAY and Blueshyft. PayID uses the New Payments Platform (NPP) to transfer money almost instantly from your bank account. However, not all banks support PayID so you’ll need to check whether yours supports the platform before testing it out. An alternative to this is BPAY which acts as a normal bank transfer. The disadvantage of using BPAY is that it can take several days for the funds to clear into CoinJar.
Australian residents can also make cash deposits into CoinJar through Blueshyft. There are over 1,200 retail locations across Australia where funds can be deposited instantly into your account. However, it’s important to note that the minimum deposit is $50 and the maximum daily limit is $5,000.
As of July 2021, CoinJar currently supports 30 different cryptocurrencies. This includes Bitcoin, Ethereum, Ripple, Litecoin, XRP, Compound, Polygon, Ox Token, Chainlink, ZCash, Tether and many more.
Although the number of currencies supported by CoinJar is not the highest of any digital currency exchange, this number is continually increasing. It’s likely that the list of supported currencies will continue to grow over the coming months and years as the platform expands.
A key consideration with any cryptocurrency platform is the fees that are charged. After all, you need to know what you’ll be expected to pay before you can make an informed decision about whether this is the right platform for you. So, let’s take a look at the fees associated with using CoinJar.
Deposit And Withdrawal Fees
How much you’ll pay to deposit fiat currency into your CoinJar or withdraw your funds will depend on the method that you choose.
If you choose to deposit funds with a cryptocurrency, there won’t be any fees. Likewise, if you use the UK Faster Payments Service to perform a bank transfer, or the Australian equivalent of PayId, there are no fees.
However, you will be charged a 2% fee if you choose to deposit funds into CoinJar using a credit or debit card. You’ll also be charged a 1.5% fee if you decide to deposit funds through the Australian Blueshyft cash deposit system.
Withdrawals are subject to a network fee which is variable and is determined by the blockchain load. This is charged when you withdraw from the exchange, whichever withdrawal method you choose.
Once you’ve deposited your fiat currency into CoinJar, you’ll then need to purchase your chosen cryptocurrency to begin trading. So, if you deposit £1,000 into CoinJar through a fee-free bank transfer, you will then be charged a £10 spot fee to convert this into your chosen cryptocurrencies.
This fee also applies when you convert cryptocurrency back into GBP or AUD. So, if you’ve doubled your original £1,000 and your account now stands at £2,000, you’ll be charged £20 in commission to convert this back to real-world cash.
Finally, you’ll also be subject to trading fees, should you decide to start trading your cryptocurrencies. Like many cryptocurrency exchanges, CoinJar uses a maker and taker system and the fee you’ll be charged will depend on the amount of capital that you traded in the previous month.
These transaction fees are dynamic and are recalculated by the platform every 15 minutes depending on the congestion of the blockchain. These fees are deducted automatically from your account.
Is CoinJar Safe?
As it stands, (and to the best of our knowledge) CoinJar has never been hacked or compromised. For an exchange which is 8 years old, this is extremely positive and says a lot about the levels of security that are in place.
Let’s take a look at some of the security features that CoinJar has put in place to protect its users.
The CoinJar website has several different security features in place to protect its customers’ assets and personal information. These features include Transport Layer Security, regular security audits, and data encryption. More impressively, the website also utilises advanced machine learning techniques to keep a watch out for suspicious log in attempts, account takeovers and fraudulent transactions.
You need to know that your funds are safe in your crypto wallet. Luckily, CoinJar gives you the peace of mind that you need. Over 90% of digital assets are placed into cold storage – that means they’re stored offline in a secure location to protect them from hacking. If that isn’t enough, CoinJar also has a multisig withdrawal process in place, meaning that the approval of several staff members is needed to process withdrawals, helping to keep your funds as safe as possible.
What Is The Customer Support Like?
One of the disadvantages of CoinJar is that there is no phone support or live chat option. However, there is plenty of customer support for this platform, even without these options being available.
First of all, there is a comprehensive knowledge base available on the CoinJar website which provides step-by-step guides to talk users through every aspect of the platform, from how to verify your identity to how to send your first digital currency payment. Not only that, but there is also a list of frequency asked questions, helping you to find out what you need to know quickly and easily.
If you can’t find what you need in the how-to guides or within the FAQs, there’s also the option to raise a support ticket with the customer support team using the ticket system. The team are quick to respond, offering you the support you need, whenever you need it.
Is CoinJar Good For Beginners?
CoinJar is a great option for those who are just starting out with trading, thanks to its simple design and comprehensive how-to guides. If you want to jump straight into trading and begin trading Bitcoin or other popular coins within a few days, CoinJar could be a great place to start.
However, there is another option for beginners which allows you to get started with trading straight away, whilst reducing your risks: copy trading.
Copy trading enables you to mimic the trading actions of a more established trader, learning the ropes whilst beginning to make your own profits. Whether you’re looking to build your skills in trading or just to create a passive income stream, copy trading is a great place to start.
Can I Use CoinJar In UK?
CoinJar was originally founded in Australia and has since been registered as a limited company in the UK. This means that CoinJar is available to residents of both the UK and Australia.
How Long Does CoinJar Take To Withdraw?
To withdraw money from CoinJar, you’ll need to first set up your withdrawal method, for example by linking your bank account to your CoinJar wallet. If your withdrawal request by 3:30pm on a working day, your request will be processed the same day. After 3:30pm, it will be processed on the next business day. After your withdrawal request has been processed, it will then take 1 – 3 working days to reach your bank account.
CoinJar: Our Verdict
CoinJar is a safe and trustworthy digital cryptocurrency exchange for residents of the UK and Australia. Whilst it isn’t the cheapest platform and doesn’t offer the widest range of services, it doesn’t appear to have ever been hacked in its eight years of trading, proving itself to be a safe and secure platform.
It’s important not to rush into a decision when it comes to finding the right trading platform. After all, it’s your hard earned cash that could be at risk. If you’re unsure of which trading platform is right for you, check out our guide to the top rated services of 2021 to help you to make an informed decision for your next investment.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.