Why is Coinspot So Expensive?

One of the biggest issues for Cryptocurrency investors is fees charged by their cryptocurrency exchange of choice. In this post we will look into the question, why is Coinspot so expensive? It is a very valid question for all crypto investors to ask when looking at using the Coinspot platform. So we dive into the Coinspot fees to try and figure it out.

Before looking at creating a Coinspot account, make sure you consider how the Coinspot fees on instant buy, sell or limit orders compare against crypto exchanges. Such as Swyftx or Digital Surge, who have the lowest fees for trading bitcoin, ethereum and other crypto on the market.

Coinspot

Coinspot is one of Australia’s oldest Cryptocurrency exchanges founded in 2013 and currently has over 1million users. It enables users to buy or sell cryptocurrency, as well as trade NFTs, it has OTC trading and the functionality for SMSF users to buy, sell and swap bitcoin and ethereum.

Coinspot Fees

Coinspot doesn’t charge any fees to fund your Coinspot wallet with a deposit from the following methods Poli, PayID and Direct Debit. However, if you want to deposit fiat currency into your Coinspot wallet via BPAy you will be charged 0.9%.

If you wish to make an instant buy or sell with Coinspot you will be charged a 1% fee. This 1% fee is in addition to the spread of around 1% that Coinspot charges its users to buy cryptocurrency. So if you wanted to buy bitcoin, ethereum or any other crypto with Coinspot, you are looking at fees over 2%. Coinspot fees for instant buy and sell trades are some of the highest among crypto exchanges. 

As you can see, the fees charged by Coinspot don’t fare well against their competitors. Exchanges like Swyftx and Digital Surge have low fees when trading crypto and are much better options than Coinspot.

Coinspot Trading Options

Coinspot does offer its users another alternative option for trading crypto on their exchange. You are also able to use Coinspot market orders. This gives users the choice of 10 different cryptocurrencies to choose from and the fee is much better at 0.1%.

Additionally you can trade with their Over The Counter trading option. This will also give users the ability to get fees of 0.1%. However, you will have to have very high trading volume to access this feature of the Coinspot exchange.

Why is Coinspot So expensive?

The short answer is, it shouldn’t be so expensive. There are competitors in the market like Swytfx and Digital Surge offering much lower fees and a better product. Not only does Coinspot charge higher fees, but they also have larger spreads too.

The spread is the difference between the price of the asset offered when selling, (often lower) and when buying, (often higher). With Coinspot exchange pocketing the difference for their troubles.

Maybe because they are a legacy Australian crypto exchange and have bloated staff numbers they can’t afford to drop their fees. Or they are choosing to keep them high for greater profits, either way it means they have some of the highest fees in Australia. This makes Coinspot an expensive cryptocurrency exchange and one you should probably avoid using. Instead look at these reviews on alternative options like Swyftx or Digital Surge.