Bitaroo Review

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Bottom line:

Bitaroo is a good crypto exchange for Australians focused only on investing in Bitcoin. There are various deposit methods to fund an account with AUD, and there is an express feature to buy Bitcoin quickly. The Bitcoin withdrawal fees are one of the lowest in Australia. However, there are major limitations that will not suit the majority of crypto investors. These include an upfront fee to complete ID verification, a complicated user interface, and not supporting any altcoins.

How We Rated It

Category	Hedge With Crypto Rating
Features	3.5 / 5
Supported Fiat and Deposit Methods	4 / 5
Supported Crypto & Trading Pairs	2 / 5
Fees	4.5 / 5
Ease of Use	5 / 5
Customer support	4.8 / 5
Security Measures	4.1 / 5
Mobile App	2.5 / 5

Bitaroo At A Glance

Exchange Name	Bitaroo
Supported Fiat Currency	AUD only
Supported Cryptocurrency	Bitcoin (BTC)
AUD Deposit Fees	No fees using PayID
Withdrawal Fees	0.00005 BTC per transaction
Trading Fees	From 0.19%
Mobile App	No

Our Thoughts on Bitaroo

It's a Bitcoin-Only Community

Bitaroo is an Australian Bitcoin-only trading exchange that provides an easy-to-use online platform for individuals, businesses, and Self-Managed Super Fund (SMSF) investors to buy and sell Bitcoin. It does not offer altcoins to distract its users and is 100% exclusive to the BTC-AUD trading pair.

Has Low BTC Withdrawal Fees

Compared to other Australian exchanges, which charge a Bitcoin withdrawal fee of roughly 0.0005 BTC, Bitaroo offers multiple Bitcoin withdrawal speeds and fees as low as 0.00005 BTC per transaction. On other Australian exchanges, the cost to withdraw BTC using the standard Bitcoin network can be up to 0.0005 BTC.

Supports The Lightning Network

Bitaroo is the only crypto exchange in Australia that supports the Lightning Network. Its users can deposit and withdraw Bitcoin on-chain or via the Lightning Network. The BTC transactions are near-instant and processed immediately. For those who want an alternative Bitcoin lightning wallet, read this comparison article next.

Bitaroo Alternatives & Comparisons

EXCHANGE	CRYPTO ASSETS	TRADING FEES	RATING	PROMOTION	WEBSITE	REVIEW
Swyftx	320+	0.6%	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.9 / 5	$20 Bitcoin for creating a verified account	Visit Swyftx	Swyftx Review
Binance	385	0.1% (spot) and 0.02% / 0.04% (Futures)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.8 / 5	Up to $100 welcome bonus	Visit Binance	Binance Review
CoinSpot	380	1% (instant), 0.1% (spot)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.7 / 5	$20 Bitcoin for creating a verified account and depositing	Visit CoinSpot	CoinSpot Review

Creating An Account

To buy, sell, send, and receive Bitcoin using Bitaroo, users must create an account with the exchange. Bitaroo supports 4 account types to suit a wide variety of users, including individuals, payroll, corporate, and SMSF investors. There are no fees to create or maintain a Bitaroo account or wallet; however, there is a cost to complete the Know Your Customer (KYC) process.

ID Verification

Each Bitaroo account type must undergo an identity verification process using AUSTRAC requirements. Australian laws govern cryptocurrency exchanges and require entities to collect and report personal information and fight against Money Laundering (AML) and Counterterrorism Financing (CTF).

Bitaroo charges a $4.95 fee to complete the ID verification process. This is a one-off cost for each account created. While a small discount is available, this additional fee is not directly payable using other exchanges in Australia and will come as a surprise. However, it is a relatively minor cost that will quickly recover after using Bitaroo due to its competitive trading and withdrawal fees.

The verification process uses Digital ID, which only requires basic information such as name, residential address, DOB and Government ID numbers such as a national Passport or Driver's Licence. Uploading a selfie is unnecessary, which can frustrate other Bitcoin exchanges.

Depositing Funds

Bitaroo provides a fiat-to-crypto service that allows users to onboard and deposit fiat currency (e.g., Australian Dollars) to the exchange and convert it into Bitcoin. The supported deposit methods include using a bank transfer or PayID/OSKO, which are common payment methods at most Australian banks. For quick deposits, users should use PayID, which is a near-instant payment. Using a traditional bank transfer or direct deposit can take between 1 and 3 business days to clear.

For Bitcoin deposits, users can generate a BTC Address and transfer the asset from a hardware wallet or another cryptocurrency trading exchange to sell Bitcoin back to AUD. Bitaroo requires two network confirmations for the Bitcoin transaction to be confirmed on the blockchain network. Bitaroo also supports lightning networks for instant BTC deposits.

Deposit Method	Transfer Speed
BTC standard network	2 confirmations
BTC lightning network	Near instant
Bank transfer	1 – 3 business days
PayID/OSKO	Near instant

Supported Assets We Found

As the name implies, Bitaroo is a Bitcoin-only Australian exchange. Customers who want to buy, trade, and sell other cryptocurrencies such as Ethereum, XRP, Litecoin, or Cardano will need to use another cryptocurrency exchange that offers a wide selection of altcoins.

Buying Bitcoin Using Bitaroo

Bitaroo features a very basic user interface that is well laid out and simple. The website caters to beginners and experienced traders by offering an instant-buy function, recurring purchases, and a trading platform. 

Express Purchase

The Express Purchase feature is designed for beginners to quickly and easily acquire Bitcoin without complicated charts or distractions. The order box requires the users to enter the amount of AUD to spend. The quoted BTC-AUD price is locked in for 5 seconds and the conversion fee is displayed. The fees for this service are slightly higher for convenience. 

Recurring Purchase

Bitaroo offers the ability for automatic recurring crypto purchases or Dollar Cost Averaging (DCA) on the platform. This takes out the stress associated with ‘price' and swings in volatility. Customers can set up automatic payments and transfer funds to the exchange using PayID or a bank transfer. Deposited amounts of AUD are automatically converted to Bitcoin using Express.

The DCA Feature on the Trade Window will convert an amount of AUD on a periodic basis such as daily, weekly, fortnightly, or monthly to buy Bitcoin based on the available funds. While this is a great feature in itself, the user experience is a little outdated. Alternative platforms like Bamboo can be considered for DCA Bitcoin in Australia. Read our full review on Bamboo app for more information.

Exchange Trading

The charting window is an important consideration when selecting a cryptocurrency exchange as this is where traders will spend most of their time. Bitaroo's charts are powered by Tradingview, which is one of the best crypto charting packages for traders. The suite is packed with drawing tools, chart overlays and indicators to appease traders on the platform. The chart window can be minimized to bring forward the Bitaroo order book and recent trades window. 

Buying Bitcoin on the Bitaroo exchange is performed using the order entry form on the left of the screen. The wallet balances in BTC and AUD are displayed for quick reference. Like most cryptocurrency trading platforms, Bitaroo offers a variety of order types that can be used to execute trades. These include:

• Limit
• Market
• Stop Market
• Trailing Stop
• Recurring Buy (DCA)

Beginners that are not familiar with these order types should conduct their own research (or learn more in Bitaroo's FAQ section), as Bitaroo uses a maker and taker model to determine the trade fees. The availability of these order types provides experienced users with adequate trade risk management features to enter and/or exit a Bitcoin position at the current or future price.

Overall, trading on the Bitaroo exchange features all the tools required to buy and sell Bitcoin. However, the user interface is dated and the user experience could be improved to assist beginners to get started with Bitcoin.

Express Fees

There are no fees stated for using the Express function to buy Bitcoin. However, as the order is placed with Bitaroo directly, there appears to be a ‘management charge' for the service. Bitaroo determines the rate, which is slightly higher compared to the bid/ask price on the exchange. This is similar to the ‘instant buy' function on CoinSpot and CoinJar, which charge a 1% premium.

The exact markup is not disclosed; however, it can be estimated by comparing the price of 1 Bitcoin in AUD on the Exchange to the Express Fee rate. For example, at the time of writing, the most recent price of 1 BTC on the exchange is $73,563, and on the Express, it's $74,560. This represents roughly a 1.3% ‘spread' or ‘fee,' and the Express function should be avoided.

Trading Fees Explained

Bitaroo uses a tiered fee structure based on a maker-and-taker model that decreases with higher trading volumes. For investors with a monthly trading volume of less than $10,000, the trading fee is 0.15% and 0.19%. The maker and taker fees are reduced as the trading volume increases over a rolling 30-day period. Bitaroo also offers negative fees for high-volume users.

Tier	Trading Volume	Trading Fee
Investor	Up to $10,000	0.15% / 0.19%
Trader	$10K – $1M	0.10% / 0.15%
Market Maker	$1M – $5M	0.05% / 0.09%
Market Shaker	$5M – $10M	-0.01% / 0.07%
Whale	Over $10M	-0.03% / -0.05%

Deposit Fees

Bitaroo users can deposit Bitcoin (BTC) or AUD in the exchange. Transferring BTC using the standard network or the Lightning Network has no deposit fees. For fiat deposits using a bank transfer or PayID/OSKO payment, Bitaroo charges an AUD $1.95 fee, which is applicable for any fiat amount transferred to the exchange, including investors that use dollar-cost averaging.

Withdrawal Fees

Bitaroo offers flexibility in the transaction speed and costs for withdrawing Bitcoin from the exchange. Users have the option to select a withdrawal speed. The four main options are:

• Priority
• Standard
• Economy
• via Lightning Network

The withdrawal fee varies between 0.00005 BTC and 0.00025 BTC, depending on the withdrawal method selected. The priority BTC withdrawal has a fee of 0.00025 BTC, which is still cheaper than the standard cost of 0.0005 BTC using Swyftx, CoinJar, Coinspot, and the like. The Bitcoin withdrawal fee is often overlooked and can add up over time.

Withdrawal Type	Withdrawal Fee
Priority (BTC)	0.00025 BTC
Standard (BTC)	0.00015 BTC
Economy (BTC)	0.00005 BTC
Lightning Network	0.15% / 0.3%
Australian Dollars (AUD)	$1.95

For AUD withdrawals, Bitaroo charges a flat $1.95 fee. According to the website, this small fee covers the cost of using a payment processor. Other exchanges in Australia generally waive this cost and offer free AUD withdrawals to an Australian Bank account. It is a relatively small amount but can accumulate over time.

Security Might Be A Worry

Bitaroo does not have a security page on the website that states the safety mechanisms in place. Within the user's account profile, 2FA can be activated to implement an additional layer of security to secure the account by requiring more than just a password to log in using the Google Authenticator App. Several notifications can be activated to alert users of failed login attempts, password changes, and withdrawal requests. There is no other information on Bitaroo's security, which is a concern and should be addressed to alleviate any concerns.