The Australian cryptocurrency market is growing rapidly as are the number of exchanges available for investors to open an account with.
Choosing an exchange is not as simple as seeing what platform sells the cryptocurrency you are looking to buy. Factors such as fees, number of digital tokens, level of security and the features the exchanges offer are all important considerations before opening an account.
If you’ve narrowed down your options between Coinbase and CoinSpot, in this article we’ll discuss the similarities and differences between the two.
CoinSpot has been running in Australia since 2013 and at the time of writing, has close to 2 million people using their platform. On their website, they have an average review of 4.5 stars out of 5 (from 1,442 reviews captured by Trustpilot). The exchange is a member of Blockchain Australia and was specifically built with the Australian customer top of mind.
Coinbase is a global exchange platform that was established in 2021 and is supported in over 100 countries. Globally the platform has over 73 million verified users and in the last quarter, the platform traded a volume of US$327 billion.
CoinSpot VS Coinbase Features
CoinSpot has over 290 cryptocurrencies available on its platform. It has a user-friendly mobile app with a live chat feature to allow customers to ask real-time questions and receive direct account support. Coinspot also has an offering called CoinSpot Bundles which allows you to buy a bundle of coins in one transaction. This helps to diversify your portfolio and minimises the fees you’re paying to transact. Examples of bundles currently available include: DeFi bundle, Green Bundle, NFT Bundle, Social Bundle, AI Bundle and the Top Ten Market Cap Bundle, just to name a few.
Being a global platform, Coinbase supports over 18 fiat currencies and sells over 70 coins. Although the platform has a user-friendly mobile app, it does not have a live chat feature for timely customer support. Coinbase offers users a feature called Coinbase Earn. This offers users the chance to earn free crypto while watching educational videos on cryptocurrency. You receive a reward when you complete the video.
Coinbase also offers a very popular Wallet app that has over one million downloads worldwide. The app allows you to store crypto and access a number of decentralised technologies.
CoinSpot VS Coinbase Security
CoinSpot has two-factor authentication, biometric security measures (face ID and fingerprint) and an offline cold storage feature for users who choose to store their cryptocurrency on their platform. Being based in Australia, the exchange is also registered with AUSTRAC and is ISO 27001 certified meaning it has a registered Information Security Management system framework of policies and procedures as a form of legal risk management.
Coinbase also offers the same features as CoinSpot, but with data encryption, USB drives and paper backups kept in vaults around the world. Coinbase stores 98% of its digital assets offline in cold storage and the exchange holds crime insurance to cover against breaches and any losses from theft.
CoinSpot VS Coinbase Payment Options
CoinSpot accepts AUD as its only fiat currency and has a buy/sell fee of 1%. As a customer, you have a daily deposit limit of $100,000 and are able to deposit into your account using direct deposit, PayID, POLi, BPAY, Cryptocurrency and cash deposits via a newsagent. The platform charges $0 on AUD deposits using POLi, PayID or direct deposit via OSKO. Cash deposits incur a 2.5% fee, whereas BPAY users will be charged 0.9%. It’s important to consider your deposit method, especially if you are funding your account regularly as these fees can really add up over time. There are no withdrawal fees for customers who withdraw AUD into an Australian bank account at the time of writing.
Coinbase has limited deposit methods for Australian users only supporting direct debit or cryptocurrency deposits. This platform operates differently from most exchanges as you don’t need to add funds to your account to open one. When you’re ready to buy cryptocurrency, you pay using your debit card (as you would for any other online purchase). The platform does not accept credit cards and the fees for this feature are quite high – 3.99% per transaction. Coinbase also charges a 0.5% trading fee for each transaction.
If you are in Australia, it is worth noting that you cannot sell cryptocurrency on the Coinbase Australian platform. You can only purchase the crypto and send it to another exchange or an external wallet.
The Pros and Cons
Still deciding which crypto exchange to go with?
Deciding which exchange is best for you can be difficult from a first glance, but once you begin using the platform, you’ll likely get a feel for whether it is right for your needs or not. Before investing large amounts of money into one crypto asset on one exchange, it could be worthwhile investing a small amount into your desired platform to see if you’re happy with the usability and features.
Just like every investor is different and has unique personal circumstances, no one exchange is built the same. To find the best exchange for you, it’s important to consider your investment timeline, risk tolerance and reasons for investing. Perhaps you’re looking to trade altcoins, or maybe you’re looking to buy and hold Ether for the next 10 years. Both situations might call for a different exchange with varying features to suit the differing needs.
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