CoinTree Review: Scam, Legit or What?
In this CoinTree review, I’ll look at CoinTree as a corporation, it’s operation and how it has done so far since its launch back in 2013.
CoinTree tried establishing itself as the ”Coinbase of Australia”, then ruined its reputation and decided to go down the dreaded path of a moronic Bitcoin exchange where traders actually don’t get Bitcoin for its true prices.
The company under which CoinTree operates is known as CoinTree Pty. Ltd.
The site is registered to someone called Shane Stevenson.
You actually have to find that information on who.is because the site, Cointree.com.au, does not disclose ownership details at all.
As an Australian Bitcoin newbie and enthusiast looking to trade or exchange cash for Bitcoin, you may believe that Coin Tree is the best platform for people living in this part of the world.
The site is marketed to citizens of Australia, and that explains why it’s so popular there.
But the consequence of popularizing Coin Tree in the country is that it has resulted in a number of Cryptocurrency traders rushing to sign up and take advantage of the alleged ”cheap or free transactions” touted on the site.
I wonder why they’ve not been able to stick to what their tagline promises. It says ”Quick, Simple and Secure”.
Now, if you take a look at customer feedback and experience, you get a totally different thing altogether.
Why is that so?
Well, in this Cointree review, I will be looking to analyze the Bitcoin exchange, its operation and whether or not a large portion of their clients are unsatisfied.
While CoinTree started well, and even went to the extent of being crowned the most reliable Australian Bitcoin exchange, that is not the case anymore.
If you query Google for the term ”CoinTree Reddit”, you will be flabbergasted at the huge mountain of complaints from previous clients — which I believe is not normal for a corporation that has opened shop for the last 4 years or so.
Now that its name has been tainted with mud, thanks to an unresponsive PR team and customer support, it only makes sense for people to question their legitimacy before risking any cash here.
CoinTree Review: what exactly is Coin Tree and how do they operate?
It’s a platform that was initially designed to help Australians acquire Bitcoins with cash.
Users can buy Bitcoin with Electronic Funds Transfer, POLi payments or cash deposits through selected banking outlets in the country.
When you investigate to see whether CoinTree fees are applicable to various transactions within the platform, the site will disclose a charge of 3%, no more no less.
The site states very clearly that they don’t charge fees for selling BTC or converting it to any of the local currencies supported on the platform.
As a matter of fact, Coin Tree looks like the cheapest place to transact or trade Bitcoin at.
Unlike most controversial Bitcoin exchanges out there, (Cryptopia joining the league)Coin Tree does not say that they will charge exorbitant fees to help you transact your Bitcoin for cash or vice versa.
But there is a big problem when it comes to how they convert the price of Bitcoin for cash.
They slip undisclosed fees during the transaction process since CoinTree doesn’t always work with real Bitcoin prices as seen on major exchanges like Coinbase.
In the end, you always get a raw deal. They deduct a large chunk of your cash both when buying and selling Bitcoin.
More about CoinTree Fees
The site states very clearly that if you wish to convert BTC to other altcoins like Ethereum, Monero, Ripple, and Litecoin, you can always do it for free.
However, as we have already discussed, there are hidden fees for doing so. The site does not state it upfront.
Coin Tree has also adapted the concept of Proof of Solvency on their platform.
What is Proof of Solvency? It’s just a way of assuring investors that what they are holding on the platform as Bitcoin is real Bitcoin.
The maximum deposit at any given day is $10,000. The minimum is $200.
CoinTree also claims that you can only purchase other altcoins on their platform if you upgrade to a premium account.
I don’t understand why there should be a restriction for people who want to purchase CoinTree Ethereum.
CoinTree Review: The complaints and red flags
Customer feedback on this company is extremely negative.
It has reached a point where most Aussies wanting to buy Bitcoin cannot trust CoinTree whatsoever,
There are currently very ugly Reddit threads started by former Bitcoin buyers who lost a lot of money to this website.
If I look at these complaints, the common denominator is that CoinTree does not say their fees upfront.
In addition to that, they don’t work with real Bitcoin prices. This automatically puts their customers in a disadvantageous situation as far as transactions are concerned.
And thirdly, their customer support is the worst I have ever heard of.
One particular customer was fooled when he came across the site and saw that it was advertising nearly all services as ”free”.
He was sucked in. Later on, he made a deposit worth $400 to buy Bitcoin.
The transaction went through and he bought some Bitcoin.
The first problem is that this customer didn’t get Bitcoin worth the price he had paid for it.
Secondly, something happened with the price of Bitcoin during the process. The customer just wanted to get his Bitcoin out of this system because he was panicking that price would drop, and he would lose his money.
What did CoinTree support do?
Instead of facilitating the transaction so he could get his money out of CoinTree, they decided to ignore him even after 3 attempts to reach the arrogant staff.
This is not the only complaint I have heard about CoinTree.
What you will see is a mountain of complaints from people who are accusing Coin Tree of being a rip off/a scam.
My best advice for you
If you’re an Aussie and would like to buy some Bitcoin at real market prices, sign up with a Cryptocurrency exchange like Coinbase.
Don’t rush to download CoinTree app thinking that you’ll now have the opportunity to enjoy trading Bitcoin on the go.
If you’re not ready for pain and disappointments, just avoid this exchange at all cost.
Thanks for reading this CoinTree review.
If you’ve been scammed or have had a bad experience with them, leave your comments below.