What is a reserved balance?
Reserved balances are amounts that cannot be sent externally or withdrawn from CoinJar for a period of time.
It is an essential security feature that reduces the chance of unauthorized or dishonored transactions passing through CoinJar.
It protects amounts from being sent or withdrawn in certain circumstances. This system helps CoinJar to prevent fraud and fight financial crime.
Purchase cryptocurrency with ACH transfer
When you purchase cryptocurrency by ACH transfer, there are two time periods to be aware of:
ACH Processing
This is the time required for your bank to send cleared funds to CoinJar. When you make a purchase by ACH transfer:
- your purchase price is locked at the time of the purchase; however
- the cryptocurrencies purchased cannot be cancelled, sold, converted, or withdrawn until cleared funds are received by CoinJar (which may take up to 5 business days – and during which period, your account may show these funds as “pending”).
CoinJar reserves the right to cancel the trade at any time within this window if we reasonably suspect fraudulent activity.
CoinJar Reserved Balance
We may also impose a requirement that any cryptocurrencies purchased (or any proceeds from selling those digital currencies) must remain within your account for a further 7 days (depending on our risk assessment of your account activity) for ACH transfers from a new bank account (“Reserved Balance” – and during which period, your account may show these funds as “reserved”).
During this time, you can convert and sell the purchased cryptocurrencies, and withdraw any proceeds back to the same bank account used to make the ACH transfer.
However, you will not be able to send any cryptocurrencies externally if it would cause your account portfolio value to go below the ACH payment amount.
What restrictions are placed on my funds in the reserved balance?
During this temporary period, you won’t be able to:
- Send to external addresses
- Send to other CoinJar members
- Withdraw to your bank account
- Unbundle a bundle with a reserved balance
- Liquidate a bundle with a reserved balance
You can still buy and sell your cryptocurrencies as many times as you like during this time. As soon as the balance reserve period is over, you’ll be able to transfer your funds as usual.
Am I warned about the reserved balance before I buy?
Before you make a purchase, we provide clear warnings about the temporary holding period that may apply. A warning is shown on the transfer method screen, as well as a warning before you confirm the purchase. Information about the reserved balance is also included in our Terms of Service.
How price fluctuation can affect reserved balances
The market value of a cryptocurrency can affect your ability to make new transfers.
If the value of a cryptocurrency increases, you’ll be able to send more from your CoinJar. The value of your reserved balance will be the same but you will have over the original deposit amount to spend.
If the value of a cryptocurrency were to decline during this period, it could prevent you from sending out funds already stored in your CoinJar. This would ensure that the original deposit was still covered by the reserved balance.