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Cyber Expert Reviewer:
Reviewed on Nov 25, 2022
CoinSpot is an online cryptocurrency (crypto) exchange that enables users to buy, sell or swap over 290 different cryptocurrencies, including the better-known Bitcoin and Ethereum. CoinSpot users can choose to buy crypto from the exchange for its current value in Australian dollars or directly swap one crypto for another. The platform is used by both inexperienced and advanced traders and offers online support and educational instruction for those who are new to crypto-trading. There's no minimum deposit, and users can withdraw funds from their accounts at any time; however, some withdrawals may incur a transaction fee.
Cryptocurrency is a virtual currency that is traded from person to person around the world without an intermediary facilitator such as a bank. The transactions are untraceable and the value of the currency is determined by trader supply and demand. Cryptocurrency is not widely used for everyday purchases; however, it is slowly becoming a more acceptable method of payment for general use. Setting up a CoinSpot account is relatively simple. The user will need to provide a complete set of personal details, including their Australian street address and phone number, and provide photo identification. Once this is done, they will need to set up a two-factor identity verification before their account can be authorized, and provide a payment method. Unlike a traditional exchange, crypto trades can be made 24 hours a day, seven days a week.
CoinSpot is free to join, and the app is free to download. The platform charges the user a percentage of the total trade value for every exchange made, and the rate varies between 0.1% and 1% depending on the type. Account withdrawals may incur a fee, depending on the method used. Due to the extreme volatility of cryptocurrency, there is also the potential for significant financial loss.
As far as online crypto trading platforms go, CoinSpot appears to be relatively secure. It is the only Australian-based exchange to have ISO 27001 certification, it virtually stores the majority of assets in highly secure offline locations, and it enables users to customize their own account security settings, including two-factor authentication. Crypto trading is a growing trend amongst teens, mainly due to the influence of celebrities, influencers and gamers who often post with crypto recommendations, boasting about their luxury lifestyles and the large amount of money they have made that they attribute to their crypto trades. Many of these influencers share financial advice about crypto with their followers, often inflating the price (an AFS licence is required to give any financial advice, which has put these influencers under the microscope of ASIC). As a result, many young people are drawn to trading crypto with the expectation of making fast, easy money. In reality, crypto trading is highly volatile, and although there is the potential for great financial gain, there is also the potential for significant financial loss. The consequence of financial loss is obvious; however, sudden large financial gain in the hands of teenagers ill-equipped to handle it comes with its own set of unique risks. Most teenagers are inherent risk-takers and may be tempted to use CoinSpot to make risky trades without a solid plan. Parents should ensure their child understands the volatility of trading crypto and see that they have a good trading and financial plan in place to help minimize risk. Cryptocurrency is often used by those who prefer their transactions remain untraceable, including scammers and people buying and selling illicit goods and services.
If your child has set up a CoinSpot account and is under the platform's minimum age requirement of 16 years, you should ask them to close their account and delete the app from their device. For detailed instructions on how to do this, please visit the 'How to' section. If your child has a keen interest in crypto trading, consider setting up a CoinSpot account in your name and trade with your child. Despite being under 18, teens can still trade some types of cryptocurrency. If your child is using CoinSpot to trade, we recommend that you thoroughly familiarise yourself with the platform and ensure that your child has a fundamental knowledge of finance and trading. They should have a solid plan in place for managing gains and losses.
Cryptocurrency can be highly volatile. There is the potential for you to make great gains but also significant losses. It is important you don't get caught up in the influencer and celebrity hype of using crypto trading to make fast, easy money. If you are interested in crypto trading, learn the basics before you start and ensure you have a solid financial and trading plan in place to help minimize risk. If your friends are trading crypto, be sure to look out for them as well. If you ever feel overwhelmed and need some help, please speak to your parents or contact a support service such as kidshelpline.
The minimum age to apply for a CoinSpot account is 16. If you don’t yet fit this requirement, consider asking your parents to set up an account so that you can trade together. If you are under 16 years of age, you should close your account and delete the CoinSpot app from your device. For detailed instructions on how to do this, please visit the ‘How to’ section.
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The Gold Standard: COPPA [Implemented globally, legally enforced only in the U.S.]
California: CCPA
U.K and Europe: GDPR-K
Australia: Online Safety Act 2021