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The Bitcoin and
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From the CEO

It's revolutionised finance, and we've had to adjust our preconceptions about what money actually is.

Adrian Przelozny
Chief Executive Officer

CEO shows how to get started

We have a number of sophisticated security options, for your peace of mind.

Adrian Przelozny
Chief Executive Officer

Scheduled Maintenance Complete – All systems operational

3 Dec 2016 15:08
Adrian Przelozny, CEO

Scheduled Maintenance Complete – All systems operational

Market expert on the growth of Bitcoin

Major global businesses have begun accepting and transacting in Bitcoin.

Lasanka Perera
Chief Business Development Officer
MD Global FX Partners

The People's Money - Bitcoin

Adam Tepper, founding partner of Independent Reserve, explains the concepts behind Bitcoin in an approachable and easy to understand way.

Adam's book leaves the reader with a solid understanding of this revolutionary new technology and the vast potential that it brings.

Get the Book

The People's Money - Bitcoin'

Independent Reserve is a Bitcoin and Digital Currency exchange where investors, traders and everyday people come to buy and sell Bitcoin and Ether

XBT XBT ETH ETH

XBT XBT ETH ETH

Independent Reserve is a registered Australian company, underpinned by Australia's highly regulated financial sector. We are audited annually by one of the world's most respected auditing firms - read more about our governance.

The technology behind Independent Reserve is our proprietary Airmarshal™ platform, which provides a secure, robust, scalable system for online trading. We also provide the secure Airbridge™ API for third parties integrating with Independent Reserve.

Buy and sell Bitcoin and Ether using any of our three supported currencies

USD USD AUD AUD NZD NZD

USD USD AUD AUD NZD NZD

Four Easy Steps

In four easy steps, you can be securely trading Bitcoin and Ether.

Create an Account

It doesn't cost anything, and it only takes a moment.

Verify your Identity

We are legally required to verify your identity before you can trade. We will ask for some personal information, and then send you a security code in the mail. Once you've entered the code mailed to you, your account will be immediately ready to trade.

Deposit Funds

To buy Bitcoin or Ether, you need to first deposit funds into your account. For Australian customers we accept Electronic Funds Transfer. International customers may make a SWIFT transfer into our bank account. To sell Bitcoin or Ether, you may deposit Bitcoin and Ether into your Independent Reserve account.

Buy and Sell Bitcoin and Ether

Once your account is funded, you may then follow the prompts to buy and sell Bitcoin or Ether. When you're finished, you may keep your money at Independent Reserve for safekeeping, or withdraw it to your own Bitcoin or Ether wallet or bank account.

Create an Account

It doesn't cost anything, and it only takes a moment.

Verify your Identity

We are legally required to verify your identity before you can trade. We will ask for some personal information, and then send you a security code in the mail. Once you've entered the code mailed to you, your account will be immediately ready to trade.

Deposit Funds

To buy Bitcoin or Ether, you need to first deposit funds into your account. For Australian customers we accept Electronic Funds Transfer. International customers may make a SWIFT transfer into our bank account. To sell Bitcoin or Ether, you may deposit Bitcoin and Ether into your Independent Reserve account.

Buy and Sell Bitcoin and Ether

Once your account is funded, you may then follow the prompts to buy and sell Bitcoin or Ether. When you're finished, you may keep your money at Independent Reserve for safekeeping, or withdraw it to your own Bitcoin or Ether wallet or bank account.

Multi-Currency Trading

Independent Reserve facilitates trading Bitcoin and Ether in three currencies: USD, AUD and NZD. When depositing funds into your Independent Reserve account, you can choose to credit any of your accounts.

Independent Reserve features a multi-currency order book which automatically converts all open orders into your currency of choice. This means that you can take advantage of the full pool of open orders to always get the best possible price when trading Bitcoin (Ether), as someone using AUD can transparently buy Bitcoin (Ether) from another user who trades in USD or NZD, and vice versa.

  Usd Aud Nzd
1 Usd = 1 1.3031 1.4046
1 Aud = 0.7401 1 1.0585
1 Nzd = 0.6852 0.9073 1

Fee Schedule

Independent Reserve does not collect GST on the value of Bitcoin or Ether bought or sold.

The ATO have recently released guidance on Bitcoin and Digital Currency treatment under GST, which may require Australian suppliers of Bitcoin and Digital Currency to charge GST on the supply of Bitcoin and Digital Currency in some circumstances.

Independent Reserve provides an open marketplace for buyers and sellers, and does not buy or sell Bitcoin or Ether in its own right. Therefore we are not required to collect GST on the value of Bitcoin or Ether traded.

Independent Reserve does include GST as part of the brokerage fee charged to Australian customers, however this GST is absorbed within the standard 0.5 % trading fee and ultimately paid out of our own profits.

Trade commission As low as 0.1 %, click here for full fee schedule
Electronic Funds Transfer deposits Electronic Funds Transfer deposits of AUD 100.00 and above are free
(smaller deposits incur a $0.99 processing fee)
POLi deposits POLi deposits incur a $3.30 processing fee
SWIFT deposits SWIFT deposits of $5,000.00 equivalent and above are free
(smaller deposits incur a $15.00 processing fee)
Crypto Captial deposits Crypto Captial deposits of $5,000.00 equivalent and above are free
(smaller deposits incur a $10.00 processing fee)
Bitcoin and Ether deposits Free
Australian AUD withdrawals Free
International or non AUD withdrawals $20.00
Bitcoin withdrawals XBT 0.0005
Ether withdrawals ETH 0.01
Airbridge™ API Free

In the Media

Our policy on a possible Bitcoin hard fork

20 Mar 2017 21:37
Adrian Przelozny, CEO

As many of you are no doubt aware, there has been heated debate in the Bitcoin community in recent months about the best way of scaling the Bitcoin protocol to support greater transaction throughput.

This debate has led to a situation where it is possible that a hard fork may occur at some time in the future, with the Bitcoin blockchain splitting into two. This may result in two different versions of Bitcoin going forward.

I would like to provide some clarity to our customers as to how Independent Reserve plans to handle the possible future hard fork between Bitcoin Unlimited and Bitcoin Core versions of the Bitcoin protocol. The hard fork, if it were to occur presents a major challenge for Bitcoin exchanges worldwide. At present there is no suitable solution proposed to the ‘Replay Attack’ problem, meaning that there is no reliable way to send Bitcoin on a single fork of the chain, immediately after a hard fork occurs.

Another source of concern is that there is no reliable timeline at present as to when the potential hard fork may occur. It is possible that the network could fork at an unexpected moment in the near future.

To address these concerns, we have decided on the following policy:

1. Starting today, we will be implementing stricter restrictions on automated Bitcoin withdrawals. Most withdrawals will still be processed automatically, but if you find that your withdrawal is delayed due to requiring manual approval, please understand that this is being done to protect all of our customers and is put in place to avoid a transaction being sent immediately after an unexpected hard fork had occured.

2. If a hard fork was to occur, we plan on suspending Bitcoin deposits and withdrawals for a period of time. We will restore this functionality only when we are confident that Bitcoin transactions can be processed safely. Although we cannot guarantee exact timings, we expect this to not take longer than three to four days.

3. We will wait for consensus to emerge in the Bitcoin community about which fork of the chain is to be considered the successor of the current Bitcoin. If appropriate, we will make existing balances available to our customers on both forked chains, at some point in the future. The exact timing will depend on the stability of the Bitcoin network and whether both forks of the chain continue to be active.

Customers who wish to access their Bitcoin on both chains at the time of the hard fork should withdraw their Bitcoin from Independent Reserve since we cannot guarantee what will happen during the hard fork or when this access will be made available.

Thank you for your support and understanding.

Adrian Przelozny CEO, Independent Reserve

Our policy on a possible Bitcoin hard fork


Christmas and New Year Operations

21 Dec 2016 14:36
Jan Przelozny

Please be advised that no fiat deposits or withdrawals will be processed on December 25-26 and also January 1st. All other aspects of Independent Reserve will continue to function as normal.

Best wishes for Christmas and the New Year from the whole Independent Reserve team.

Christmas and New Year Operations


Introducing SMSF Accounts

3 Dec 2016 15:21
Adrian Przelozny, CEO

We are pleased to announce today the introduction of Self-Managed Super Fund (SMSF) accounts on Independent Reserve.

We are very excited to be able to provide this service to our customers who wish to use Digital Currency as part of their retirement investment portfolio.

Introducing SMSF Accounts

Industry News

‘Billionaire’ Michael Novogratz Holds 10% of His Wealth in Bitcoin and Ether

24 Apr 2017 17:41
Jan Przelozny

Billionaire Michael Novogratz reportedly revealed that he has 10 percent of his money invested in Bitcoin and Ether. He also predicts that the price of bitcoin will go to $2,000.
 
On Wednesday, bitcoin investor Michael Novogratz spoke at a forum held at the Harvard Business School Club of New York. Referring to him as a “billionaire investor”, CNN Money reported him saying:
 
“Ten percent of my net worth is in this space. […] It’s the best investment of my life….
I think it’s real. […] There’s a lot of smart money going into it; I’ve never seen a small project with more human capital going into it, and so, I kinda want to bet just on that alone….
Put a little money in Bitcoin. […] Come back in a few years and it’s going to be worth a lot.”
 
Click here to read the full story on news.bitcoin.com

‘Billionaire’ Michael Novogratz Holds 10% of His Wealth in Bitcoin and Ether


Media Frenzy in Japan as Bic Camera Starts Accepting Bitcoin

11 Apr 2017 23:12
Jan Przelozny

Japan’s consumer electronic retail giant Bic Camera officially began accepting Bitcoin payments on Friday at two of its stores in Tokyo. 28 media crews reportedly gathered to cover the premier event.

Click here to read the full  story on news.bitcoin.com

Media Frenzy in Japan as Bic Camera Starts Accepting Bitcoin

Education

An Introduction to Bitcoin and Blockchain Technology

31 Jan 2017 16:10
Adrian Przelozny, CEO

Bitcoin and blockchain technologies have received a lot of press coverage in recent times, and it is important to understand the relationship and differences between the two.

In this article we aim to explain and demystify some of the key concepts underpinning these technologies.

Bitcoin is a Digital Currency and a peer-to-peer payment network. Transactions are verified by nodes on the network, and stored on a global, public ledger called the blockchain.

A bitcoin refers to a unit of account on the blockchain. It is a digital currency created and held electronically, that is produced by people running specialised computers all around the world. This creation process is referred to as ‘mining’ and consists of using computing power in the distributed network to solve mathematical problems. The mining process is very computationally intensive, and it is what provides security for all the transactions on the Bitcoin network.

Bitcoin is decentralized and completely transparent thanks to the Bitcoin blockchain, which stores details of every single transaction that has ever occurred on the network. There are many free websites available online where anyone can inspect and view any transaction which has ever taken place on the Bitcoin network.

Bitcoin was created in 2009, by a pseudonymous programmer (or group of programmers) known as Satoshi Nakamoto. Satoshi’s true identity has never been verified. However, as Bitcoin was released to the world as ‘open source’, it is possible for any skilled programmer to work and contribute to Bitcoin. Currently there are hundreds of programmers around the world collaborating with each other to further improve and enhance the capabilities of Bitcoin.

Let’s dive a little bit deeper into some of the key concepts behind Bitcoin.

How does a Bitcoin transaction work?

Bitcoin transactions rely on well-established computer science concepts such as peer-to-peer networking, cryptographic hashing and public key cryptography to securely and reliably broadcast private data across a public network. These technologies are very similar to those used in other familiar areas such as SSL, the scheme behind the https protocol, which secures the vast majority of electronic commerce that happens online.

A Bitcoin transaction is initiated by a person using a Bitcoin wallet, which is a piece of software that can run on a computer or a phone. There are many free wallets available to choose from. A wallet stores the private key which is used to verify that the person who created the transaction is the owner of the bitcoin that are stored at a specific address on the blockchain, and is therefore authorised to spend the bitcoin.

The diagram below illustrates an example Bitcoin transaction from Adam to Joe:

unnamed

It is important to note, that because Bitcoin is global and based on the internet, the physical locations of the participants in the transaction are irrelevant. Adam and Joe could be in the same room, or they could be on the opposite ends of the world and in either case the transaction would still occur almost instantly and settle on the blockchain within a matter of minutes.

 

How are bitcoin generated?

Most traditional payment systems rely on a central authority to provide security and settlement of transactions. Since Bitcoin has no central authority, it relies on a process called mining. Mining refers to the process of grouping newly incoming transactions into what is known as a ‘block’, and then repeatedly attempting to add a random piece of data to this block, known as a ‘nonce’ which then produces a cryptographic hash which meets certain pre-defined criteria. Although this process sounds complicated, the important take away is that anybody can freely participate in it, and due to its computationally intensive nature it provides security to transactions on the network without the need for a central authority to verify the authenticity of transactions.

Although the software used for Bitcoin mining is free, the process itself is expensive. It requires the miner to invest in computer hardware and pay for the electricity needed to run this hardware.

To entice people to mine bitcoin, the Bitcoin network provides an incentive for people to participate in mining. This incentive is in the form of a reward for the successful mining of a block, as well allowing the miner to collect all transaction fees which were specified in the transactions which were included in the mined block. Bitcoin transaction fees are optional, but they ensure that a transaction is included in a block in a timely manner.

The ‘block reward’ which the miners receive is the only way in which new Bitcoin can be generated and added into the Bitcoin economy. The reward amount is designed to halve approximately every four years, until the amount of Bitcoin in circulation reaches 21 million in approximately the year 2040.  At time of writing, around 16.2 million Bitcoin have been mined.

unnamed (1).png

What is the blockchain?

The blockchain is a distributed public ledger, which stores every transaction that has ever occurred on the Bitcoin network.

The blockchain is created by the miners. Every time a new block is mined, it is appended onto the blockchain, with a link onto the previous block and then broadcast across to everybody on the network. Thus, every node participating in Bitcoin can have their own full copy of the blockchain, enabling anybody the check the validity of any transaction. The structure of the blockchain ensures that all published transactions are immutable and cannot be tampered with or altered. It is essentially the ‘settlement layer’ of Bitcoin.

The immutability of the blockchain allows for many uses, completely separate to the Bitcoin Digital Currency. There are innovative companies right now attempting to use the blockchain for applications such as identity verification, asset trading and smart contracts.

There has also been great interest from banks and financial institutions looking to utilise blockchain technology to create more efficient settlement networks and potentially replace and improve upon existing systems such as SWIFT, which currently underpins the majority of international wire transfers.

In future articles we look forward to further discussing these concepts as well as the present uses of Bitcoin and how it can be used as an investment vehicle within a balanced portfolio.

An Introduction to Bitcoin and Blockchain Technology


Adam Tepper answers some common questions about Bitcoin

12 Oct 2014 10:41
Adrian Przelozny, CEO

Adam Tepper answers some common questions about Bitcoin


Market analysis with Lasanka Perera

1 Oct 2014 21:12
Adrian Przelozny, CEO

Market analysis with Lasanka Perera


Adrian Przelozny, CEO, talks Bitcoin security

1 Oct 2014 03:44
Adrian Przelozny, CEO

Adrian Przelozny, CEO, talks Bitcoin security

Xbt / Aud Trade History

What others are saying

Independent Reserve has been able to merge expertise in technology, with a strong foundation in finance.

Michael Go
Chairman, Advisory Board