Wealthsimple Crypto Review: Is It Worth It?

September 8, 2021
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If you're new to cryptocurrencies, the Wealthsimple Crypto platform is one option you can consider using in order to get started.

After all, Wealthsimple Crypto is a Canadian cryptocurrency software that's perfect for newcomers.

Considering cryptocurrencies are a volatile investment, they may not be for everyone. But if you want to invest in crypto and are well aware of the risks associated with it, then this Wealthsimple Crypto review will cover everything you need to know about the app and whether or not I recommend its use.

What Is Wealthsimple?

Wealthsimple is Canada’s most popular no-fee robo advisor for wealth management.

Wealthsimple-Logo

They provide automated investment services as well as tax plans and portfolio rebalancing to help people reach their financial goals through building wealth with simple, low-cost investments.

Wealthsimple also offers a brokerage platform, Wealthsimple Trade, which allows customers to trade stocks and ETFs at no cost.

What Is Wealthsimple Crypto?

In 2020, Wealthsimple launched its crypto trading platform, Wealthsimple Crypto, which is managed by Wealthsimple Digital Assets Inc.

Wealthsimple-Crypto-Interface

You can buy and sell 16 cryptocurrencies using fiat currency (AKA Canadian dollars) on the platform, and these are:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Dogecoin (DOGE)
  • Aave (AAVE)
  • Basic Attention Token (BAT)
  • Balancer (BAL)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • Yearn.Finance (YFI)
  • Maker (MKR)
  • Compound (COMP)
  • Curve (CRV)
  • Kyber Network (KNC)
  • Synthetix (SNX)

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.

How Do I Start Using Wealthsimple Crypto?

Opening a Wealthsimple Crypto account is pretty simple and straightforward.

The first step you'll need to do is complete the sign-up form and accept the terms and conditions of the platform.

Once that's done, the next step will be funding your account through an electronic fund transfer, and after that, you can use the platform to buy and sell Bitcoin, Ethereum, Dogecoin, and many more cryptocurrencies.

What Are Wealthsimple Cryptos Fees?

When you place a buy or sell order, there's a spread that is added to the price. It can vary between 1.5% and 2%.

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.

Is Wealthsimple Crypto Safe?

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.

It was founded by the Winklevoss brothers (who also happen to be Facebook's co-founders), and the exchange has around $200 million in cold storage insurance.

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

However, your assets are not covered by the Canadian Investor Protection Fund (CIPF) or Canada Deposit Insurance Corporation (CIDC), so be aware that if the company ever becomes insolvent, you will not get any reimbursements.

The Pros Of Wealthsimple Crypto

Wealthsimple Crypto has plenty of pros going for it.

For starters, Wealthsimple is a legitimate financial company, having been established in 2014.

Even for beginner traders, the platform is simple to use and comes with one of the broadest cryptocurrency selections in Canada.

Another apparent advantage of the platform is that it has no account minimums or additional expenses for depositing or withdrawing funds.

Wealthsimple Crypto is also offered under time-limited registration and regulatory approach by the Canadian Securities Administrators' Regulatory Sandbox, as previously stated.

Lastly, the platform's digital assets are held through Gemini, a regulated crypto custodian and exchange that has around $200 million in cold storage insurance coverage.

The Cons Of Wealthsimple Crypto

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.

The platform also only accepts CAD, so you can't really fund your account with, say, USD.

Lastly, the price spread of the platform is also not the most competitive.

Alternatives to Wealthsimple Crypto

Here are our top 3 picks on alternatives to Wealthsimple Crypto.

If you'd like to read a more thorough list of the best crypto exchanges in Canada, you can take a look at our post here.

#1 CoinSmart

Coinsmart-Logo

CoinSmart is a Canadian crypto trading platform that offers trades between CAD and any of the 18 cryptocurrencies it currently supports, which includes Bitcoin, Ethereum, Litecoin and Ripple.

Fees for CoinSmart start at 0.25% to trade with basic features, then increase based on how many transactions you make. The exchange also has a mobile app. 

CoinSmart is a Toronto-based company with offices in Vancouver and Montreal, as well as London, England. It was founded by former bankers who wanted to simplify cryptocurrency investing for the masses.

If you'd like to read a more thorough review on CoinSmart, you can take a look at our article on the platform here.

#2 Netcoins 

Netcoins-Logo

Netcoins is an online Canadian cryptocurrency exchange that supports over 100 different cryptocurrencies and has offices worldwide. 

It offers trades between fiat currencies (CAD) and crypto-assets like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Netcoins' trading fees are 0.50%, and accounts are free to make for their users. 

If you'd like to read a more thorough review on Netcoins, you can take a look at our article on the platform here.

#3 NDAX

NDAX-Logo

The National Digital Asset Exchange (NDAX) is a digital asset exchange platform in Canada that offers support in over 14 cryptocurrencies as well as low fees. 

The advanced charting tools on the website allow for more seasoned traders to utilize their experience in order types while still providing support for beginners as well.

NDAX is available on all devices, has a low fee structure, and provides easy-to-use tools to allow you to trade in the digital currency market with confidence.

In Summary

Wealthsimple Crypto is a Canadian cryptocurrency software managed by Wealthsimple Digital Assets Inc. that's perfect for newcomers to the crypto world, but it has some limitations and drawbacks that may not be ideal for every user.

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 taking a look at our post on the best Canadian cryptocurrency exchanges instead.

Even if I can't fully recommend Wealthsimple Crypto, you still have a plethora of crypto exchange platforms that you can try out today — there simply isn't a better time to get into crypto trading than now.

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