CoinTree is an Australian company, providing an entry to the world of cryptocurrencies. While other competitors, like Bitpanda or Bitstamp have a global focus, the majority of services offered by CoinTree are specific for their domestic market.
The company, security of funds
CoinTree is registered in Australia. While local regulators are planning to create a framework for the operation of companies in the crypto-space, it mostly focuses on preventing money laundering and preventing the funding of terrorist organisations.
The most interesting feature of CoinTree is that it isn’t what you would call a typical exchange. The company offers to purchase Bitcoin for customers, after they send a payment. This means trading is not done instantly (although an e-wallet option is available, which will make it as fast as possible).
A client will receive the appropriate balance in his wallet at the company, after the transfers has been received. This puts a lot of price uncertainty into the equation (when not using the supported instant payment method), especially with the recent volatility in the cryptocurrency space.
While you could technically send any currency to CoinTree, the Australian Dollar is the one in which they operate primarily. That being said, one does not have an AUD balance at the company, which he can use to trade on the spot (the same way you do at most most exchanges or even at forex brokers). When you want to sell your digital assets, you will have to wait for the execution, done by CoinTree and wait for a bank transfer within the next few business days.
Instant trading may not be provided by this company, but they can pay your common utility bills, directly from your Bitcoin wallet (presuming you live in Australia). This is a rare feature, but definitely nothing life-changing.
CoinTree has not been the victim of a major hack yet. This is always a good sign, but not a guarantee for the future. While the crypto-currency space is moving fast, so are the fringe elements, attempting to scam people.
When it comes to the user reviews on this exchange, we saw a lot of extremes. Some people absolutely love the ease of service, while others were furious with the speed of service. We believe the latter group may not be exactly aware of what they have signed-up for, as the company discloses the fact it doesn’t offer instant transfers on multiple sections of its website.
Trading instruments (cryptocurrencies)
The main functionality of CoinTree is buying Bitcoin with Australian dollars. That being said, there is the option for a later transfer to a less popular altcoin. In order to do this one must provide the address to which she wishes the coins to be transferred. As with the other services offered by CoinTree, the transfer will not be instant. The coins supported are currently over 30, including, but not limited to Ethereum, Litecoin, Dash, Ripple, Monero, Zcash and so on.
Minimum order value
CoinTree has set a minimum transaction size of $200. We are not certain if they truly mean US dollars, or AUD, given the company’s domestic focus. That being said, this make seem like a big investment for some of you. Most other beginner-friendly exchanges do not have such a limitation, while Bitcoin.de has a minimum transfer size of €60.
Obviously margin trading is not supported by CoinTree. This isn’t what one would exactly call an exchange, but more of a service provider. If you wish to speculate on the price of Bitcoin, you can try a different exchange, like Bitfinex.
Additionally, some forex brokers, like XM offer CFDs on cryptocurrencies. There you can trade a financial derivative which follows the price movement of Bitcoin. That being said, you will not own the actual coin. Be sure to check out our detailed explanation for more information.
The services offered by CoinTree come with clearly specified fees. They are as follows:
Buy bitcoin fee – 3 %
Buy altcoin fee – 0 %
Sell bitcoin fee – 0 %
Pay bill fee – 0 %
It’s nice that the company does not charge anything for most options. That being said, we must remind you these the activities do not happen instantly. As an example, if you send an order to sell Bitcoin, you will have to wait for confirmation and then wait several business days for a direct transfer of the sum to your account. We can imagine how this can cause an issue with paying utility bills, if a deadline is approaching.
The main 3% commission is in line with the current state of the industry, although the fact instant execution is not guaranteed is a major downside. As a comparison, buying Bitcoin at Coinbase, with a credit card comes at fees as high as 4%. That being said, you will receive your coins on the spot at a reasonably close price to the current market.
There isn’t much of a trading platform at CoinTree, but this is understandable given what the company’s service. That being the case they do provide a handy demo account, which isn’t that common in the crypto-verse.
The main dashboard, features the recent Bitcoin trading activity.
As you can see the pricing is against the AUD, which makes sense, given the company’s target consumers.
Additionally you can see that they display “micro Bitcoin” amounts by default. This is another way of quoting the most popular cryptocurrency, which may be helpful for newcomers who would otherwise be shocked at the amount of symbols after the decimal point.
Methods of payment
The payment options at CoinTree include Bank Transfer, paying cash in an Australian bank branch and POLi Payments. As mentioned above, the speed of transfers and their processing is not guaranteed (except for the e-wallet option), which in terms does not guarantee an execution price.
These options only reiterate the company’s domestic focus (which is by no means a negative). Foreigners would much rather have credit cards or Neteller available.
CoinTree is an Australian company, which allows clients to buy Bitcoin. They are very heavily oriented towards the domestic market, which isn’t necessarily a flaw, but a limiting factor for foreign residents. Trading through this company is not done instantly, which quite frankly feels outdated. Of course, this means you are not guaranteed any execution price. While CoinTree may be a good entry-level company for some users, others will surely find better alternatives.
CoinTree Review Conclusion
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