This article is about CoinJar in Australia. If you're looking for instructions for CoinJar in the United Kingdom, visit this article.
Reserved balances are an essential security feature that reduces the chance of fraudulent payments passing through CoinJar. This helps to keep CoinJar safe and secure for everyone.
During this temporary period, you won’t be able to:
- Send to external addresses
- Send to other CoinJar members
- Withdraw to your bank account
- Spend via CoinJar Card
- Unbundle a Bundle
- Liquidate/Sell Bundle
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.
Which deposit methods are subject to a balance reserve period?
Your first Instant Buy purchase with a linked debit or credit card will be held in the reserved balance for 7 days. After 7 days have elapsed, all future Instant Buy purchases made using the same card will not be reserved.
Apple / Google Pay Instant Buys will always have a reserved balance as we're unable to see that the same card has been used due to the security standards implemented by these payment methods.
Bundles and Recurring Buy (DCA):
Bundles that have been set up with Recurring Buy, or have been funded by credit card/debit card will be subject to the reserved balance period if it is the first time the card has been used, future scheduled payment will not be subject to reserved balance period.
All other deposit methods are not subject to the reserved balance.
Instant Buy Example
Gianni purchases Ethereum via Instant Buy for the first time using his debit card. His purchase is held in the reserved balance for 7 days. After 7 days have elapsed, Gianni's subsequent Instant Buy purchases using this debit card are not held in the reserved balance.
A year later, Gianni switches banks and gets a new debit card. He purchases some Ethereum using his new debit card. As this is his first Instant Buy purchase with the new debit card, it will be held in the reserved balance for 7 days.
How price fluctuation can affect reserved balances
The market value of a cryptocurrency can affect your ability to make new payments.
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.
Claire purchases $1,000 of bitcoin using Instant Buy. The bitcoin is immediately added to her Everyday Bitcoin account and she'll need to wait 7 days while the bitcoin is being held in the reserved balance. During this time, she won't be able to send or withdraw $1,000 from her CoinJar.
A few days later, the price of bitcoin increases by 50%, and Claire now holds the equivalent of $1,500 worth of bitcoin. In this case, she can immediately send or withdraw the equivalent of $500.
Pietro holds $500 worth of ethereum in his CoinJar, and purchases $2,000 of bitcoin using Instant Buy. The bitcoin is immediately added to his Everyday Bitcoin account and he'll need to wait 7 days while the bitcoin is being held in the reserved balance. During this time, he won't be able to send or withdraw $2,000 from his CoinJar. The approximate total value of his CoinJar account is now $2,500.
A few days later, the price of bitcoin decreases by 25%. Pietro now holds the equivalent of $1,500 worth of bitcoin; the value of his ethereum remains unchanged. As the value of his bitcoin purchase is now less than the amount required to be held in the reserved balance, his ethereum balance will now also count towards the reserved balance.