Our review today is going to focus on a trading platform known as CoinLoft. In this “What is CoinLoft?” review, we aim to compare the platform with others that we review and establish whether the platform is legit or a scam. So is CoinLoft a good platform? Can we really trust the broker to take care of our money after making an investment? Let’s find out.
Product: CoinLoft cryptocurrency exchange
Owner: Rhino Loft Pty. Ltd.
Price: The minimum exchange value accepted is $20
Who is it for: Cryptocurrency Traders
CoinLoft provides Australians with a quick and efficient way for purchasing Bitcoin. Incepted in 2013, CoinLoft operates in accordance with the Australian Digital Commerce Association as a one-stop exchange for all Australians over the age of 18. While most crypto exchanges are one dimensional and only offer investors the ability to purchase bitcoins, investors are granted the opportunity of purchasing Ethereum through CoinLoft.
CoinLoft is owned and operated by a private limited company known as Rhino Loft Pty. Ltd. Found under ABN# 74 155 153 530 through the Australian Business Register, it appears that this corporate entity has been authenticated for nearly half a decade. Furthermore, Rhino Loft Pty. Ltd. appears to be an ASIC regulated corporation, although that doesn’t verify that CoinLoft is operating under regulatory supervision.
Fees and payments
CoinLoft earns 5% commission (including GST) on purchases it makes on your behalf. Essentially, this just means you’re buying the bitcoin at 5% above market price. GST is only charged on the commission amount. The currency itself is GST-free. You’ll see the current prices you’re buying at on the CoinLoft we
bsite, and how much bitcoin or ETH your money will buy. If there are complications, such as if your payment doesn’t go through, or if the value of the cryptocurrency changes dramatically in the short time between placing an order and CoinLoft buying the coins, then there might be some interaction before proceeding.
For example, if the price goes up quickly, then the system might ask whether you want to buy a reduced amount of coin for the same amount, or if you want to transfer an additional amount to buy the amount you originally wanted.
- A member of ADCA – the Australian Digital Commerce Association is an NGO dedicated towards the popularisation of cryptocurrencies and blockchain technology in the country. This is by no means a regulatory agency, but at least tells you CoinLoft is a serious player in the local market.
- Easy access – there are multiple ways of purchasing Bitcoin and Ether with CoinLoft. The full list includes Newsagent (via Blueshift), Cash payment (at a bank branch, or via a Smart ATM), POLi payments, Flexpin and Credit Cards (which were not available at the time of writing of this review). We are not sure if support for the latter will be continued in the future.
- Has a solid track record – CoinLoft has not been the target of a major hack. They have been running smoothly since 2014.
- Positive user reviews – we were surprised to see the proportion of positive comments about CoinLoft – there were basically no criticisms. This is a huge rarity in the crypto-space. That being said, user reviews must always be taken with a grain of salt.
- Reasonable fees – the fees charged by CoinLoft are around 5%, which isn’t that much when compared to some other services. For instance, Bitstamp, charges 8% on credit card transfers, while Coinbase fees can go as high as 4%.
- Focus on Australia – as is quite often the case with such companies, with a local focus, they are not viable from other countries. That’s not a major problem, but a choice the team at CoinLoft has made.
- Purchases are not instant – the main flaw with such services is the fact, you don’t get direct access to any market. One simply sends money and later receives BTC (or ETH). Given the volatility in the crypto-space, you may easily be surprised at the number of coins you receive, after the 1-hour maximum delay, proclaimed by CoinLoft.
- No wallet offered – this company does not offer an in-house wallet or AUD balance for clients. Instead, one must provide the address to which he wishes to receive the coins. The more we think about this, the more we see it as a positive in a strange way – at least clients will have to educate themselves on the different wallet types and security features.
- No ways of selling – CoinLoft does not allow you to send your Bitcoin back to them, in exchange for a fiat currency payment. This is definitely a negative, but then again there are a lot of other exchanges where you can do that.
- No margin trading – this shouldn’t come as a surprise, especially since CoinLoft isn’t technically an exchange, but more of a service provider. Some of you are definitely only interested in the speculative nature of Bitcoin. We must mention these companies offer the so-called Contracts For Difference (CFDs). Means you will not get the actual coins, but rather trade a derivative, which only follows their price movements. For more details, read this comparison of the two styles of crypto-trading.
- No platform – The service offered by CoinLoft is a simple order box – there is no charting, no order book, nothing of that nature. Then again, this makes the service simple for newcomers.
What is CoinLoft? Is CoinLoft a scam or a great opportunity?
CoinLoft doesn’t hold a lot of money the way some other exchanges do, so it maintains that there’s relatively little risk of hacking attempts or other electronic theft on its end. It’s still secured against unauthorized entry with an extended validation SSL certificate. Many reputable sites use this kind of security. Generally, this means it’s as secure as a website gets. The main risks involved in using brokers like CoinLoft are scammers or disreputable providers.
- Scammers. You shouldn’t use CoinLoft to purchase bitcoin or Ethereum except for your own personal wallet, or that of someone you trust completely. If someone asks you to pay for something on CoinLoft by making a deposit on their behalf, it’s probably a scam.
- Disreputable providers. A disreputable broker might just take your money and run, and not send you the coins you paid for.
For me and all the research I have done on the broker, I can say that it is good but not serious about their clients. Traders need a platform which does not have loopholes what so ever. Immediately I see people complaining about CoinLoft binary option, am tempted to call it a SCAM!!! To spare the broker I will just say it is not much of a scam but at the same time, I will not recommend anyone to use the broker.
What is CoinLoft? CoinLoft is a well-established Australian cryptocurrency gateway company. They allow clients to buy Bitcoin and Ether via many accessible payment methods. That being said, they do not offer any form of selling, a trading venue or even a wallet. This both a pro and a con, as people, will have to read up on wallets and the risks involved with some of them.
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I wish you the best!
Crypto trader and blogger on: