Wealthsimple Crypto Review (May 2022): Why We Don’t Like It

March 14, 2022
Reviews

Wealthsimple Crypto is a cryptocurrency trading platform that belongs to Wealthsimple, Canada’s most popular no-fee Robo advisor for wealth management. It has plenty of interesting features like a third party custodian for increased safety, zero deposit or withdrawal fees, and a user-friendly interface, but considering its very high spread rates and the fact that you can’t transfer your coins to a personal digital wallet, I can’t fully recommend using Wealthsimple Crypto as your main exchange.

Instead, I recommend you take a look at CoinSmart, both for its security and its ease of use. It also has the lowest trading fees across all crypto exchanges in Canada, so if you’re looking for a secure, cost-effective way to buy and sell crypto, I can’t recommend CoinSmart highly enough.

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Offer ends May 19.

What Is Wealthsimple Crypto?

Wealthsimple Crypto is a cryptocurrency trading platform that belongs to Wealthsimple, Canada’s most popular no-fee Robo advisor for wealth management. Wealthsimple provides automated investment services as well as tax plans and portfolio rebalancing to help people reach their financial goals through simple, low-cost investments.

Wealthsimple also offers a brokerage platform, Wealthsimple Trade, which allows customers to trade stocks and ETFs at no cost. The Wealthsimple Crypto and Trade apps are linked and work in tandem, meaning that they can be used on a mobile app and in desktop format.

Wealthsimple Crypto Features

1. Third-Party Custodian

Gemini Custody, a third-party custodian, keeps your coins on this platform. The Winklevoss brothers (Facebook co-founders) founded it, and Gemini Custody is also regulated by the New York State Department of Financial Services (NYSDFS).

Gemini has $200 million in cold storage insurance. This increases safety because it means that even if the site were to be hacked, your coins would still be safe.

2. No Fees To Deposit Or Withdraw Funds

You won’t have to worry about high minimum deposits when creating a Wealthsimple Crypto account. In fact, you can start investing with little as a single dollar.

Wealthsimple Crypto also doesn’t charge any fees for depositing or withdrawing money. All you have to do is use an Electronic Funds Transfer (ETF) to move funds from a Canadian bank account to your Wealthsimple Trade app.

3. Beginner-Friendly Interface

Wealthsimple Crypto user interface is very friendly to beginners, which is perfect for those who are just starting out in the world of cryptocurrency.

An intuitive user interface is also helpful for experienced crypto investors because it makes it easier to navigate, and it also makes trading a lot faster.

Cryptocurrencies on Wealthsimple Crypto

You can buy and sell 44 cryptocurrencies using fiat currency (Canadian dollars) on Wealthsimple:

Bitcoin (BTC)Chainlink (LINK)
Ethereum (ETH)Uniswap (UNI)
Bitcoin Cash (BCH)Yearn.Finance (YFI)
Litecoin (LTC)Maker (MKR)
Dogecoin (DOGE)Compound (COMP)
Aave (AAVE)Curve (CRV)
Basic Attention Token (BAT)Kyber Network (KNC)
Balancer (BAL)Synthetix (SNX)
0x (ZRX)1inch (1INCH)
ApeCoin (APE)Avalanche (AVAX)
Axie Infinity (AXS)Cardano (ADA)
Cosmos (ATOM)Dai (DAI)
Decentraland (MANA)Enjin (Enjin)
Fantom (FTM)Filecoin (FIL)
Gala Games (GALA)Loopring (LRC)
Maker (MKR)Polkadot (DOT)
Polygon (MATIC)Ren (REN)
Shiba Inu (SHIB)Stellar (XLM)
Solana (SOL)SushiSwap (SUSHI)
Terra (LUNA)Tezos (XTZ)
The Graph (GRT)The Sandbox (SAND)
Uma (UMA)USD Coin (USDC)

Wealthsimple Crypto Fees

Wealthsimple Crypto does not charge any fees for deposits or withdrawals, nor do they charge any fees when creating or terminating an account. They also do not charge for electronic statements or trade confirmations.

However, be aware that there’s a spread that is added to the price that can vary between 1.5% and 2% whenever you place a buy or sell order.

Our Recommendation: CoinSmart

Despite its safety and user-friendliness, Wealthsimple has a few cons that don’t allow me to fully recommend it.

For example, Wealthsimple is a broker first and foremost, and Wealthsimple Crypto doesn’t serve the purpose of a cryptocurrency exchange.

You also cannot transfer or move your coins to a personal digital wallet, and the platform also only accepts CAD. This means that you can’t really fund your account with other fiat currencies like, say, USD.

Lastly, the price spread of the platform is also not the most competitive: Wealthsimple Crypto’s spreads are typically in the range of 2% on both buy and sell sides, meaning that buying and selling 1 Bitcoin would cost roughly $3,000 CAD in spread (at current rates).

Taking these cons into consideration, I instead recommend that you consider using CoinSmart. Here are a few reasons why I recommend it over Wealthsimple Crypto.

Introducing CoinSmart: Canada’s #1 Crypto Platform

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

$50 offer ends May 19.

★★★★★

Rated 4.9/5

I recently broke down 10+ of Canada’s most popular crypto platforms, and CoinSmart came out on top. It scored so well because it excels on what I believe are the three most important factors when choosing a crypto platform: fees, security, and customer support.

Here’s how CoinSmart performs in each of those areas, and why I believe it’s the best crypto trading platform in Canada. And to get your $50 signup bonus with CoinSmart, use this signup link and the special promo code YOREOYSTER.

#1 Lowest Fees In The Industry

CoinSmart’s trading fees are just 0.20%, the lowest of any crypto platform in Canada. And those savings add up quickly: if you trade $100,000 worth of Bitcoin in a given year (buying and selling $25,000 worth twice), you’ll save $800 in trading fees compared to a platform that charges 1% ($200 vs. $1,000).

Perhaps more important than trading fees, though, are spreads: the difference between the Buy price and the Sell price. CoinSmart has razor-thin spreads, which makes day trading possible and keeps more money in your pocket.

#2 Bank-Level Security

CoinSmart maintains a 95% cold storage policy, which means at least 95% of its users’ crypto is always held offline. This is a security measure that only the most advanced trading platforms employ, and CoinSmart is leading the charge.

CoinSmart is also the only publicly traded crypto platform in Canada, which means it’s subject to far more financial scrutiny than any other platform. It’s regulated by FINTRAC (the Financial Transactions and Report Analysis Centre of Canada) and the OSC (Ontario Securities Commission), and its financials are audited by external professionals at least once per year.

#3 Excellent Customer Support

CoinSmart offers 24/7 customer support via phone, live chat, and email, and their customer service reps are actually helpful rather than just following a script. I’ve never had to wait more than about 60 seconds on hold, and they’re very responsive via live chat and email, too. 

The only time I ran into an issue with CoinSmart, I called them and had it sorted out within 5 minutes. Keep in mind that telephone and live chat support is only available for registered users, so if you have a question for CoinSmart, the best way to get it answered is to open an account

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Offer ends May 19.

In Summary

Wealthsimple Crypto is a Canadian cryptocurrency software managed by Wealthsimple Digital Assets Inc. that’s great for newcomers to the crypto world, but it has some limitations and drawbacks that may not be ideal for every user, which is one of the main reasons why I can’t fully recommend its use.

If you’re looking for an alternative way to buy or sell cryptocurrencies in Canada without having all of your funds stored in a single exchange (which can increase risks), I suggest giving CoinSmart a try, mainly because of its security and its ease of use. It also has the lowest trading fees in Canada, so if you’re looking for the best crypto exchange in Canada, I can’t recommend CoinSmart enough.

CLAIM MY $50 BONUS
Offer ends May 19.

Wealthsimple Crypto FAQs

How To Withdraw From Wealthsimple Crypto

To withdraw funds from your Wealthsimple Trade & Crypto account, all you need to do is follow these steps:

1. Web Browser

  1. Sign in to your Trade & Crypto account.
  2. Select the “Move funds” option on the top menu bar.
  3. Click on the “Withdraw funds” option.
  4. Select the account that you want to withdraw funds from.
  5. Choose the bank account that you want to move your funds into.
  6. Choose a withdrawal amount.
  7. Click Continue.
  8. Review the withdrawal details and click Submit withdrawal.

2. Mobile App

  1. Sign in to your Trade & Crypto account using the Wealthsimple Trade app.
  2. Tap the Move tab at the bottom of the screen.
  3. Choose the “Withdraw funds” option.
  4. Select the account that you want to withdraw funds from.
  5. Choose a withdrawal amount.
  6. Choose the bank account in which you will receive the funds.
  7. Review the withdrawal details and click Submit withdrawal.

Is Wealthsimple Crypto Safe?

Yes. For starters, Gemini Custody, a cryptocurrency exchange and custodian that is licensed by the New York State Department of Financial Services, holds Wealthsimple Crypto’s digital assets.

Wealthsimple Crypto is also offered through the CSA’s Regulatory Sandbox under a time-limited regulatory approach, which makes it even safer.

However, considering your crypto funds are not covered by the Canadian Investor Protection Fund (CIPF) or Canada Deposit Insurance Corporation (CIDC), you will not get any reimbursements in case Wealthsimple Crypto were to become insolvent.

Is Wealthsimple Crypto Legal In Canada?

Yes. Wealthsimple Crypto is offered under a time-limited regulatory approach by the CSA’s Regulatory Sandbox, which means that it is legal to use in Canada.

Wealthsimple Crypto Referral Code

Unfortunately, there are no Wealthsimple Crypto referral codes available at this current time. However, you could still use our special link to create a Wealthsimple Crypto account.

Does Wealthsimple Crypto Report To The CRA?

Yes. Wealthsimple Crypto is offered under a time-limited regulatory approach by the CSA’s Regulatory Sandbox. As a result, it must disclose large transactions to the CRA at the end of the fiscal year.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5