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Wealthsimple Crypto vs. Coinsmart: Which Is the Better Cryptocurrency Exchange for Canadians

coinsmart

Canadian investors have a buffet of cryptocurrency exchanges to choose from in 2021. However, the nature of digital currency demands that whether you are a beginner or an expert trader, you know your trading platform well.

Therefore, this Wealthsimple Crypto vs. Coinsmart comprehensive review gives you everything you need to know about the two.

While we can’t answer this question for you, please contact us if you need further consultation after reading the review.

Wealthsimple Crypto vs. Coinsmart history

Wealthsimple Crypto is a part of the Wealthsimple online stock brokerage family. The broker is popular among Canadian investors for its Robo-advisors. So, now it boasts of controlling assets worth $8.4 billion. Wealthsimple Digital Assets Inc is the company that manages the two platforms.

Wealthsimple Crypto began its operations in 2020 to help Canadians trade cryptocurrency. Although it’s been here for only a year, it is among the top crypto exchanges in Canada.

Coinsmart is also a Canadian cryptocurrency exchange based in Toronto. Justin Hartzman and Jeremy Koven created the company in 2018 for traders who wanted a platform that supports the Canadian Dollar (CAD).

Since 2018, Coinsmart has grown to offer more than the two famous cryptos; Bitcoin and Ethereum. FINTRAC registers it as a money service business.

How they work

Account opening

To open an account with Wealthsimple Crypto;

  • Sign-up by providing your email and a password
  • Next, you will download the Wealthsimple trading app to your device.
  • Then you open a crypto account and accept the terms and conditions.
  • Lastly, make a deposit and start trading.
  • If you have a Wealthsimple account, you still need to open a crypto one, but the process will take a few minutes.

To join Coinsmart;

  • Sign-up by providing your email address
  • Then you will receive a link to verify your account instantly through Equifax.
  • If that fails, then you have to provide some documents for manual verification. These are a copy of your government ID, a utility bill, and a photo of you holding a paper with the word ‘Coinsmart’ written on it.
  • Finally, fund your account and start trading.

Wealthsimple Crypto vs. Coinsmart features

  • Both serve Canadian investors only, which means the base currency is CAD.
  • Wealthsimple offers two cryptos (Bitcoin and Ether), while Coinsmart has more than ten. That means advanced traders may prefer Coinsmart to get a chance to experience trading several assets.
  • Wealthsimple supports Android and iOS, but Coinsmart supports iOS only.
  • Coinsmart offers you several ways of funding your account compared to Wealthimple.
  • You will not pay any fees on deposits and withdrawals on Wealthsimple. The company will make money from your spreads. However, Coinsmart charges for deposits, withdrawals, and spreads.
  • The simplicity of the two platforms is perfect for new traders (beginners). If you’re an expert, you can go for the advanced tools to create a more satisfying trading experience.
  • Both companies offer educational resources.
  • Coinsmart has an advantage over Wealthsimple in terms of features, but Wealthsimple will give you other trading options like stocks.

Wealthsimple Crypto vs. Coinsmart crypto assets

Wealthsimple

  • Bitcoin (BTC)
  • Ethereum (ETH)

Coinsmart

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Ripple (XRP)
  • Tether (USDT)
  • Bitcoin Cash (BCH)
  • EOS
  • NEO
  • Cardano (ADA)
  • QCAD
  • Stellar (XLM)

Referral program

Another way of making money on trading platforms is through the referral program. Of course, once you discover an excellent brokerage, you will share that the news with friends and family. So, why not get a commission for bringing new business to the company?

Hence, Coinsmart will give you $15 for every person who joins using your link or code and deposits $100 (fiat) and above. Your referral will also get $15. Expect to get these bonuses within 5 working days.

Nevertheless, if your people fund their accounts with cryptos instead of CAD or EUR, you will not receive a commission. So, when you log in, head over to your account settings and click on ‘referral’ and get your link and code.

Weathsimple, too, has such a program. When you invite someone, you earn $25 when he trades at least $100, and the person will earn $10.  However, if this person is already a Wealthsimple Trade client, you will not get a bonus.

To get your link, log in to your Wealthsimple account and click the gift icon at the top right-hand side. Then go to ‘invite friend.’ Kindly note that your referral has to make his first trade within 30 days after joining the platform for you to qualify for the commission.

Funding Methods

Wealthsimple Crypto

  • Electronic Funds Transfer (EFT) only.

Coinsmart

Method  MinmaxfeesReceived
Interac e-transfer$100$10,0000% for $2,000 and above 1.5% for $100-1999Same day
Bank wire$10,000$5,000,0000%Same day
Bank draft$500$5,0000%Same day
Credit and debit cards$100$5,000Up to 6%Instant
SEPA€50€5,000,0000%0-3 business days

Coinsmart vs. Wealthsimple fees

Wealthsimple

  • No fees for deposits, withdrawal, opening and closing account, e-statements and trade confirmations
  • 1.5% and 2% trading fee

Coinsmart

MethodMinMaxFeesProcessing period
Electronic Funds Transfer$50$10,0001% (minimum $15)1-5 days
Bank wire$10,000$5,000,0001% (minimum $15)1-5 days
SEPA€50€5,000,000Free1-5 days

Crypto withdrawal fees

There is no processing period as the withdrawal is instant. When you withdraw your earnings for the first time, you will have to send a selfie to verify its you.

  • Bitcoin (BTC) 0.0005
  • Ethereum (ETH)0.015
  • Litecoin (LTC)0.001
  • Ripple (XRP)0.002
  • Tether (USDT)10.00
  • Bitcoin Cash (BCH)0.0001
  • EOS 0.0005
  • NEO 0.00
  • Cardano (ADA) 0.30
  • Stellar (XLM ) 0.00003

If you make a trade that does not have Bitcoin, like Ethereum for Tether, the fee is 0.40%. However, if your asset involves Bitcoin, you pay 0.20%. You will also pay 0.20% for any transaction involving the Canadian Dollar (CAD) and crypto.

Security, legitimacy, and customer service

Both companies have invested in securing your assets. They store most of their coins in cold storage—Wealthsimple banks with Gemini with over $200 in cold storage insurance coverage. Coinsmart uses BitGo, a renowned custodian for top cryptocurrency brokerage firms.

The two companies are registered and regulated by Canadian government agencies; thus, they’re legit. Moreover, they have excellent customer service round the clock.

Verdict

Coinsmart and Wealthsimple have the same objective for Canadian investors: to provide a simple, low-cost way of trading cryptocurrency. If your interest is in Bitcoin and Ethereum only, you might prefer Wealthsimple, but if you want more adventure, Coinsmart is the better choice.


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