Bitaroo Review 2022: Should You Use This Exchange?

Updated: Jun 21st, 2022
Kevin Groves
Kevin Groves
Bitaroo Review 2022: Should You Use This Exchange?

Bitaroo is a digital currency exchange based in Australia that allows customers to fund an account to obtain Bitcoin. The exchange features a simple user interface with local deposit methods, competitive trading fees and dollar-cost averaging tools. Bitaroo is one of the few exchanges in Australia that supports the Lightning Network for rapid deposits and withdrawals.

Moreover, Bitaroo is a premium crypto exchange in Australia that provides a safe place for individuals, corporations, SMSF's and trusts to buy Bitcoin with AUD. This review will take a deeper look at Bitaroo to assess and compare its features, deposit methods, fees and customer support with other platforms in Australia.

This post contains affiliate links with our partners who may compensate us. Read our disclaimer for further information.

What Is Bitaroo?

Bitaroo is a top exchange to buy Bitcoin in Australia due to its safe, stable and simple platform. The Brisbane-based Bitcoin exchange is registered under the company name Bitaroo Pty Ltd (ACN 629 701 953). Bitaroo was founded in 2018 by Ran Oren, Chief Technical Officer and Ethan Timor, Chief Executive Officer, who are both passionate Bitcoin investors with a background in trading, IT, finance and business.

The exchange is 100% self-funded and has seen widespread support from the Australian community and steady growth since its official launch in May 2020. The Bitaroo team are active in the community and donates 10% of their profits to worthy causes, Bitcoin developers and environmental organisations.

Bank transfer and PayID/OSKO is the accepted deposit method to transfer Australian Dollars (AUD) on Bitaroo. Other top features on Bitaroo include:

  • Rapid Bitcoin deposits using the lightning network
  • Accepts bank transfer and PayID/OSKO
  • 10% of fees allocated to an insurance fund
  • Negative trading fees for high-volume users
  • Dollar-cost averaging tools
  • Advanced TradingView charting
  • Responsive, local customer support
Exchange NameBitaroo
Supported Fiat CurrencyAUD
Supported CryptocurrencyBitcoin only
AUD Deposit FeesNo fees using PayID
Withdrawal Fees 0.00005 BTC per transaction
Trading FeesFrom 0.19%
Mobile AppNo

Features & Benefits

Bitcoin-Only Community

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

Low BTC Withdrawal Fees

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

Bitaroo FeaturesBitaroo Features

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.

Bitaroo Pros & Cons

Bitaroo Compared

Bank transfer and PayID/OSKO is the accepted deposit method to transfer Australian Dollars (AUD) on Bitaroo. The below table lists alternative exchanges like Bitaroo that offer rapid bank account transfers.

Is Bitaroo Safe?

Bitaroo appears to be a safe Bitcoin exchange in Australia to use. Based on our research, the exchange has not been hacked or comprised since its inception. User's account security can be increased using 2 Factor Authentication (2FA) to limit the risk of fraudulent usage. However, there is limited information available on security measures that are in place to ensure the safety of customer's personnel information and account funds. 

Creating An Account

To buy, sell, send and receive Bitcoin using Bitaroo, users will need to create an account with the exchange. Bitaroo supports 4 account types to suit a wide variety of users including individual, 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 in accordance with AUSTRAC Requirements. The laws govern cryptocurrency exchanges in Australia and require the entities to collect and report personal information and report to fight against Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF).

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

Bitaroo VerificationBitaroo Verification

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. There is no need to upload a selfie, which can be a frustration on 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 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 are near-instant payments. Using a traditional bank transfer or direct deposit can take between 1 and 3 business days to clear.

Bitaroo DepositBitaroo Deposit

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 2 network confirmations for the Bitcoin transaction to be confirmed on the blockchain network. For instant BTC deposits, Bitaroo also supports the lightning network.

Deposit MethodTransfer Speed
BTC standard network2 confirmations
BTC lightning networkNear instant
Bank transfer1 - 3 business days
PayID/OSKONear instant

Supported Assets

As the name implies, Bitaroo is a Bitcoin-only Australian exchange. Customers that 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 to use. The website caters to both 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. 

Bitaroo Express ExchangeBitaroo Express Exchange

Recurring Purchase

Bitaroo offers the ability for automatic recurring 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 the 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.

Bitaroo DCABitaroo DCA

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. 

Bitaroo ChartBitaroo Chart

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 executes 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, the trading on the Bitaroo trading 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.

Bitaroo User InterfaceBitaroo User Interface

Express Fees

There are no fees stated 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 mark-up is not disclosed, however 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

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%. As the trading volume increase over a rolling 30 day period, the maker and takers fees are reduced. Bitaroo also offers negative fees for high volume users.

TierTrading VolumeTrading Fee
InvestorUp to $10,0000.15% / 0.19%
Trader$10K - $1M0.10% / 0.15%
Market Maker$1M - $5M0.05% / 0.09%
Market Shaker$5M - $10M-0.01% / 0.07%
WhaleOver $10M-0.03% / -0.05%

Overall, the trading fees on Bitaroo are competitive in the market compared to other Australian exchanges. For example, the trading fee on Independent Reserve and Digital Surge starts from 0.5% and gradually reduces with volume. At the higher end, Bitcoin Australia fees can be up to 5% depending on the payment method compared to 0.19% offered on Bitaroo.

However, for beginners and small investors there cheaper alternatives such as Binance, Coinspot and Mine Digital which offer a flat trading fee of 0.1% and 0.2% per trade respectively.

Deposit Fees

Bitaroo users can deposit Bitcoin (BTC) or AUD deposits to the exchange. There are no deposit fees to transfer BTC using the standard network or the Lightning Network. 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 cost for withdrawing Bitcoin from the exchange. Users have the option to select a withdrawal speed. The 4 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 when compared to 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 TypeWithdrawal Fee
Priority (BTC)0.00025 BTC
Standard (BTC)0.00015 BTC
Economy (BTC)0.00005 BTC
Lightning Network0.15% / 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. Generally, other exchanges in Australia waiver this cost and offer free AUD withdrawals to an Australian Bank account. It is a relatively small amount, however, can accumulate over time.

Security

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 that 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.

Frequently Asked Questions

Bitaroo Pty Ltd is a registered Digital Currency Exchange that is regulated by AUSTRAC and mandates Know Your Customer (KYC) procedures before individuals can buy or sell Bitcoin.

There is no mobile trading app to buy and sell Bitcoin on Bitaroo. The website appears mobile friendly however should consider developing an app that supports iOS and Android devices.

Bitaroo does not offer an affiliate or referral program to reward existing users with a bonus for bringing new customers to the exchange.

Conclusion

To conclude our review on Bitaroo, the exchange has found a niche in the Australian market that offers Bitcoin trading only. The exchange provides a viable alternative to popular crypto exchanges in Australia using its simple and easy-to-use platform. Bitaroo goes against the grain of a trading exchange by passing on costs for KYC verification and negative trading fees. This will not appeal to majority of investors that want to get started with Bitcoin initially.

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Kevin GrovesKevin GrovesKevin Groves

Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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