Netcoins Review : Don’t Waste Your Money

May 1, 2023
Reviews

Netcoins is a Canadian crypto exchange that offers one-click trading for crypto beginners. Netcoins was hacked by a user in early 2022, though, so I encourage you to avoid the extreme risks involved with using an unsecured exchange like Netcoins.

For a better overall trading experience with significantly lower fees, I recommend opening an account with Kraken, my #1-ranked Canadian crypto exchange. Kraken has 250,000+ satisfied users, charges very low trading fees, and is offering a $10 signup bonus (no referral code required) from now until May 25, 2024.

What Is Netcoins?

Netcoins is one of Canada's oldest cryptocurrency exchanges. Founded in 2014, as a virtual Bitcoin ATM solutions provider, Netcoins also provided private brokerage services for large-scale institutional crypto investors before evolving into the consumer-facing cryptocurrency trading platform it is today.

The Netcoins Hack

In April, 2022, the Netcoins platform was hacked by a user, who was able to steal $1.58 million from Netcoins before having their account shut down. The identity of the user is unknown, and none of the funds have been recovered to date. This has impacted the company's public image and trustworthiness, especially considering that many other Canadian crypto exchanges like Bitbuy have never been hacked.

With that out of the way, let's continue this Netcoins review with a look at Netcoins' top features.

Netcoins Features

1. User-Friendly Design

The Netcoins platform has a fairly user-friendly design. It's a beginner-focused exchange that caters to newcomers to cryptocurrency investing, which is why it has such a simplified, minimal trading front end.

Netcoins' platform allows users to set price alerts for their desired coins and receive real-time SMS notifications when the coins hit those price targets.

2. Netcoins Customer Support

Netcoins has an extensive FAQ section to answer customer queries, and offers customer support through these channels:

  • Email: [email protected]
  • Phone: +1-844-515-2646
  • Support Page on Netcoins' website
  • Help icon in the mobile app

You can also reach out to Netcoins via social media on Facebook, Google Plus, Instagram, LinkedIn, and Twitter.

3. Netcoins Referral Program

Netcoins users can earn $50 every time they refer a friend to Netcoins, and your referred friends will receive an additional $10 reward when they make their first crypto purchase or sale. There are no limits on how many users you can refer.

Netcoins' $10 signup bonus is one of the lowest in Canada, with our top-rated exchanges in the $30 – $50 range:

Cryptocurrency Signup Bonuses In Canada

  • Bitbuy: $50 bonus after depositing $250 or more
  • Newton: $25 bonus after depositing $100 or more
  • VirgoCX: $20 bonus after depositing $100 or more

Cryptocurrencies Supported By Netcoins

Netcoins currently supports 22 cryptocurrencies. This is lower than many of the more popular crypto exchanges in Canada, but it's enough amount for the casual crypto investor.

Netcoins Fees

Netcoins charges 0.5% in trading fees, which is reasonable for the industry, but when you add on its spreads, Netcoins becomes a very expensive trading platform. Netcoins' spreads tend to be around 1.5% – 2.5%, which means you're paying a total of 2% – 3% in fees on every trade. This is even more than what you pay with Shakepay and Newton, which are some of the most expensive in the country.

When you compare that with our top-rated exchange, Kraken, you quickly realize that you're vastly overpaying by using Netcoins.

Depositing fiat and crypto is free with Netcoins, and fiat withdrawals are free, too (same as with VirgoCX). Crypto withdrawals depend on the coin you're withdrawing, and they can get expensive. For example, withdrawing Bitcoin costs about $15 CAD per withdrawal at today's prices, while withdrawing USDC costs about $50 CAD per withdrawal.

My Recommendation

Despite a couple of nice features, I can't recommend Netcoins to any Canadian crypto investors, beginners or otherwise. Netcoins doesn't offer any advanced charting tools or limit orders, its fees are far too high, and it's not a secure exchange.

With that in mind, I recommend using Kraken instead. Here are a few reasons why.

Introducing Kraken: Our #1-Rated Crypto Exchange In Canada

Best In Canada
Kraken

Total Fees: ~0.16%
Security: Best in class
Customer Support: Excellent

By far the lowest fees in Canada.

★★★★★

Rated 4.9/5

Based in the U.S. and regulated by FINTRAC in Canada, Kraken is undoubtedly the best crypto exchange in Canada. Founded in San Francisco back in 2011, Kraken outperforms the smaller Canadian crypto exchanges due to its significantly lower fees, better customer support, and superior overall trading experience.

For starters, Kraken's fees are far lower than any Canadian exchange, with most users paying 0.16% per transaction (fees decrease down to 0% if you trade high volumes). Kraken's spreads are also absurdly low, typically around $0.10 per Bitcoin, which is 0.0003%. Compare that with the other Canadian exchanges—which routinely charge up to 2% in commissions plus an additional 2% or more in spreads—and it's easy to see why Kraken is such a popular exchange.

Kraken also has better customer support than any other Canadian exchange, and is the only exchange in Canada offering telephone support (available in English, French and Spanish). It supports 100+ cryptocurrencies and has a world-class trading platform and mobile app that's powerful yet easy to use.

If that wasn't enough, Kraken's trading platform is far more professional and robust than its Canadian peers, offering features like NFT trading, staking and support for a wide range of fiat currencies including CAD, USD, EUR, and more.

Overall, Kraken is the best fit for most Canadian crypto investors because it has lower fees, better support and a better trading platform overall. If you're looking to start trading crypto in Canada, we strongly recommend Kraken.

Features

  • Extremely low trading commissions (0.16%)
  • Extremely low spreads (0.0003%)
  • Trade 100+ cryptocurrencies
  • Stake 100+ cryptocurrencies
  • Simple, intuitive user interface
  • Kraken Crypto Watch allows you to keep track of the crypto market
  • NFT trading inside the Kraken app
  • 24/7 customer support via phone, email and live chat
  • Plenty of free educational resources available to users
  • 95% cold storage policy
  • Regulated by FINTRAC

Cost

  • Trading Fees: 0.16% (spot trades cost 0.26%)
  • Spreads: 0.0003%
  • Fiat Deposit Fee: 0%
  • Fiat Withdrawal Fee: $10 CAD

Best For

Canadian cryptocurrency investors looking to trade with the industry's lowest fees.

In Summary

Netcoins is a Canadian crypto exchange that offers one-click trading for crypto beginners. Netcoins was hacked by a user in early 2022, though, so I encourage you to avoid the extreme risks involved with using an unsecured exchange like Netcoins.

For a better overall trading experience with significantly lower fees, I recommend opening an account with Kraken, my #1-ranked Canadian crypto exchange. Kraken has 250,000+ satisfied users, charges very low trading fees, and is offering a $10 signup bonus (no referral code required) from now until May 25, 2024.

Netcoins FAQs

How to withdraw from Netcoins

To withdraw funds from your Netcoins account, follow these steps:

Fiat Withdrawals From Netcoins

  1. Log in to your Netcoins account.
  2. Click on Withdraw in the left nav bar, and then click Withdraw Dollars.
  3. Enter the amount you'd like to withdraw, or click Max to withdraw everything.
  4. Confirm that your withdrawal and banking information is accurate.
  5. Click 2FA & Withdraw.
  6. Enter your 2-factor authentication info and wait for the confirmation email.

Crypto Withdrawals From Netcoins

  1. Log in to your Netcoins account.
  2. Click on Withdraw in the left nav bar, and then click Send Crypto.
  3. Enter the amount you'd like to withdraw, or click Max to withdraw everything.
  4. Confirm that your withdrawal and external wallet information is accurate.
  5. Click 2FA & Withdraw.
  6. Enter your 2-factor authentication info and wait for the confirmation email.

Is Netcoins safe?

I believe that Netcoins is not a secure exchange to invest with, both because it was hacked for more than $1 million in early 2022, and because it's missing some of the security features that Canada's major exchanges treat as standard. I strongly suggest looking elsewhere if you want to buy and sell crypto in a safe, secure manner.

Is Netcoins legit?

I don't believe Netcoins is a legitimate Canadian crypto exchange. Its poor platform security makes using it a high risk, and I encourage all Canadians interested in investing in crypto to look to our recommended crypto exchanges instead.

Is Netcoins legal in Canada?

Yes, Netcoins is a registered Money Service Business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and its parent company (BIGG Digital Assets) is a publicly traded firm.

Does Netcoins have a referral code?

Netcoins has stopped offering its former $50 signup bonus, so to get a bonus upon signing up, I suggest opening an account with Kraken.

Does Netcoins report to the CRA?

Yes, as a Money Service Business with FINTRAC, Netcoins must report transactions above $10,000 to the Canada Revenue Agency at the end of every fiscal year. If you're a Netcoins user, you're also legally obligated to report any capital gains or losses you incur to the CRA so you can be taxed appropriately.

Does Netcoins lend crypto?

No, crypto lending isn't a part of Netcoins's business model. It only lets you buy and sell crypto.

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