Wealthsimple Crypto is a Canadian cryptocurrency app that works well for beginners.
If you are one of those folks looking to jump into the cryptocurrency craze, the Wealthsimple Crypto platform is one option for getting started.
Others include Bitbuy, Coinsmart, Shakepay, NDAX, and Binance.
Cryptocurrency is a volatile ‘investment’ and I consider it too risky for most portfolios. That said, if you are well aware of the risks and are looking to bet some funds anyway, this Wealthsimple Crypto review covers what you need to know.
You also learn about how to get a $50 cash bonus through our exclusive offer.
Table of Contents
What is Wealthsimple?
Wealthsimple is Canada’s most popular robo-advisor with hundreds of thousands of clients and over $10 billion in assets under management.
The financial technology company offers online wealth management services to everyday Canadians at a low cost.
In addition to managed investment portfolios, Wealthsimple offers a brokerage platform, Wealthsimple Trade, which offers no-fee trading in stocks and ETFs.
You can also open a savings account on Wealthsimple through its Cash offering.
What is Wealthsimple Crypto?
Last year, Wealthsimple introduced its cryptocurrency trading platform through Wealthsimple Crypto. This service is managed by Wealthsimple Digital Assets Inc.
Using the platform, you can instantly buy and sell 16 cryptocurrencies using fiat currency (Canadian dollars).
The coins and tokens available for trading on the platform are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Basic Attention Token (BAT)
- Aave (AAVE)
- Balancer (BAL)
- Chainlink (LINK)
- Compound (COMP)
- Curve (CRV)
- Kyber Network (KNC)
- Maker (MKR)
- Synthetix (SNX)
- Uniswap (UNI)
- Yearn.Finance (YFI)
The Wealthsimple Crypto and Trade apps work together and you can also access both on desktop devices.
How Wealthsimple Crypto Works
The Wealthsimple Crypto platform can be accessed on all devices. To get started:
- Open a Wealthsimple Crypto account here ($50 cash bonus link*).
- Complete the sign-up form and accept the terms and conditions.
- Fund your account using electronic fund transfer.
- Buy and sell Bitcoin, Ethereum, and 14 other coins and tokens.
* Our readers get a $50 sign-up bonus after they open a Wealthsimple Crypto account and trade at least $100 in Bitcoin and/or Ethereum.
Wealthsimple Crypto Fees
A spread is applied to the price when you enter a buy or sell order. This spread varies between 1.5% and 2%.
Wealthsimple Crypto does not charge fees to deposit or withdraw funds, open or close your account, or for electronic statements and trade confirmations.
Pros of Wealthsimple Crypto
- The parent company, Wealthismple, has been around since 2014 and is a legitimate financial company.
- Wealthsimple Crypto is offered under “time-limited registrations and regulatory approach” via the Canadian Securities Administrators’ Regulatory Sandbox.
- It has no account minimums and no fees to deposit or withdraw funds.
- Coins are held in cold storage with Gemini, a regulated crypto custodian with $200M in cold storage insurance coverage.
- The platform is very user-friendly, even for beginners.
- It offers a wide variety of coins and one of the largest selections in Canada.
Cons of Wealthsimple Crypto
- It is a broker and does not offer its own cryptocurrency exchange.
- You cannot transfer or move your coins to a personal digital wallet.
- It only accepts CAD.
- Price spread is not the most competitive
Is Wealthsimple Crypto Safe?
Coins on this platform are held by Gemini Custody. This cryptocurrency exchange and custodian is regulated by the New York State Department of Financial Services and it was founded by the Winklevoss brothers (Facebook co-founders).
Gemini has $200 million in cold storage insurance.
In addition, Wealthsimple Crypto is offered under a time-limited regulatory approach through the CSA’s Regulatory Sandbox.
That said, it is worth noting that your money is not protected by the Canadian Investor Protection Fund (CIPF) or Canada Deposit Insurance Corporation (CIDC).
Wealthsimple Crypto Vs. Wealthsimple Trade
Wealthsimple Crypto and Wealthsimpe Trade are available through the same app.
Unlike the former which allows you to buy and sell Bitcoin, the Trade App is for trading stocks and Exchange-Traded Funds (ETFs).
Wealthsimple Trade is unique in that it is the only Canadian brokerage platform to offer $0 trades in thousands of stocks and ETFs. You can use it to invest in a self-directed TFSA, RRSP, or non-registered personal account.
Both platforms are also accessible using a web interface on your computer.
Wealthsimple Crypto vs. Bitbuy vs. Coinsmart
How does Wealthsimple Crypto compare to other cryptocurrency trading platforms in Canada?
We compare it with Bitbuy and Coinsmart below:
| Features | Wealthsimple Crypto | Coinsmart | Bitbuy |
| Coins Offered | 16 coins incl. BTC and ETH | BTC, LTC, ETH, XRP, EOS, BCH, XLM, ADA, QCAD | BTC, ETH, XRP, XLM, EOS, LTC, BCH, AAVE, LINK |
| Funding | CAD (electronic fund transfer) | CAD (Interac e-Transfer, credit card, debit card, ETF, bank wire) | CAD (Interac e-Transfer and bank wire) |
| Fees | 1.5%-2% for trades, no fees on deposits or withdrawals | 0.20% for CAD-crypto trades; 1.50% on Interac e-Transfer deposits (free if $200+); 1% on ETF withdrawals and bank wire | 0.10% – 0.20% for trades; 1.5% on Interac e-Transfer deposits and withdrawals; 0.50% CAD bank wire deposits and 1% on bank wire withdrawals |
| Mobile App | iOS and Android | iOS | iOS and Android |
| Desktop Interface | Yes | Yes | Yes |
| Security | Coins kept with Gemini – a regulated custodian | 95% of coins in cold storage | 95% of coins in cold storage; 1:1 insurance for Bitcoin via Knox Custody |
| CIPF/CDIC Protection | No | No | No |
| Other Offerrings | Investment portfolios, savings account, and a stock brokerage | n/a | n/a |
| Promotion | $50 bonus when you trade at least $100 | $20 bonus when you deposit $100 | $20 bonus when you make an initial deposit of at least $250 |
| Learn More | Learn More | Learn More | Learn More |
Is Wealthsimple Crypto for You?
Wealthsimple Crypto is one of the top platforms for trading Bitcoin and Ethereum in Canada right now.
Buying and selling cryptocurrencies as an investment asset is a risky business and you could lose 100% of your money.
Personally, I wouldn’t commit any funds that I cannot afford to lose!
Related reading:
- How to Buy Bitcoin
- Types of Investment Accounts
- Is Betterment Available in Canada?
- Best Stock Trading Apps
- Wealthsimple Crypto Trading in Canada
Frequently Asked Questions
You are not able to transfer coins to the platform or move them from it to a digital wallet. To trade on Wealthsimple Crypto, you need to deposit Canadian dollars.
When you buy or sell crypto on the platform, you pay a spread which varies from 1.5-2%.
There are lucky Crypto traders who have made millions of dollars betting on Bitcoin. There are also numerous traders who have lost money due to crashes, lost or stolen coins, and more.
It remains to be seen. While major coins like Bitcoin are now accepted as a means of payment by some merchants, its long-term elevation to “legal tender” status is anyone’s guess.
Digital currency are not on the Canadian Revenue Agency’s list of permitted investments. That said, it may be possible to gain exposure to Bitcoin using an Exchange-Traded Fund (ETF).
When you earn a capital gain on Crypto trades, you are required to give the taxman his cut. In Canada, that means paying taxes on 50% of the gains at your marginal tax rate.
Have you tried a cryptocurrency app? Tell us about your experience in the comments.
Wealthsimple Crypto Review
Summary
Canadians can use Wealthsimple Crypto to trade Bitcoin, Ethereum, Dogecoin, Litecoin, and several other cryptocurrencies in Canada. This Wealthsimple Crypto review covers its fees, safety, and competitors.
Pros
- User-friendly interface
- No minimum balance required
- No fees for deposits and withdrawals
- Operated by a reputable company
- Uses a regulated crypto custodian – Gemini
- $50 welcome bonus
- Supports multiple coins
Cons
- Spread is 1.5% – 2%
- CAD-only funding
- Can’t move holdings to a personal wallet
