Wealthsimple Crypto Review (Jan 2023): Why We Don’t Like It

October 10, 2022
Reviews

Wealthsimple Crypto is the cryptocurrency exchange run by Wealthsimple. It uses a third party custodian for increased security, charges zero deposit or withdrawal fees, and has a user-friendly interface, but due to two main drawbacks—terrible customer support and high trading fees—I can't recommend using Wealthsimple Crypto in good faith.

VirgoCX is the favourite among knowledgeable Canadian crypto investors, both for its high level of security and for its ease of use. It also has extremely low trading fees, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada with a $20 signup bonus (available until January 30, 2023), I can't recommend VirgoCX highly enough.

What Is Wealthsimple Crypto?

Wealthsimple Crypto 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. This makes using Wealthsimple Crypto quite convenient for existing Wealthsimple Trade users, and vice versa.

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.

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

Why I Can't Recommend Wealthsimple Crypto

Despite its user-friendliness, I can't recommend Wealthsimple Crypto for two major reasons.

  1. Terrible customer support: Trust me when I say that trying to solve a problem with Wealthsimple is next to impossible. On multiple occasions, it's taken me months just to reach someone on their team who's capable of solving my issue, and in the end, that person just told me they're too busy to look into it. I've rarely experienced such poor customer support from any company, let alone a crypto exchange.
  2. Very expensive: Wealthsimple Crypto's fees and trading spreads are significantly higher than other exchanges like Bitbuy and CoinSmart, making it a poor choice for long-term or frequent investors.

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

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

#2 In Canada

Trading Fees: 0% up to $200
Security: Best in class
Customer Support: Excellent

Top-notch security + low fees.

★★★★★

Rated 4.5/5

ZenGo is free to use, which means you get the industry's best security for no cost. Sending and receiving crypto to and from ZenGo is also free, and their 24/7 support team answers most queries in 5 minutes or less.

ZenGo’s proprietary keyless technology means that your crypto is protected by two independently created mathematical secret shares: one that lives on your phone, and another that lives in the cloud. This unique setup means that your coins are always 100% secure, and that you’ll never have any trouble accessing them, even if your phone is lost, stolen, or broken, or if ZenGo (the company) were to go bankrupt, commit fraud, or cease operations for any other reason.

As a new ZenGo user, you won't pay any trading fees on trades up to $200. ZenGo supports more than 75 crypto assets, and it takes less than 30 seconds to open your free account.

Overall, ZenGo represents the next generation of crypto: with top-level security inside an easy to use app, ZenGo offers the best of both worlds.

Features

  • Supports 75+ crypto assets
  • 24/7 customer support
  • Extremely well-rated mobile app (4.7/5 on the App Store) 
  • Face scanning technology for even greater security
  • Up to 8% APY in crypto savings 
  • Cancel or speed up your sent transactions with one tap
  • Choose from the 3 network fees modes: economy, regular, and fast (applicable for BTC, ETH, and ERC20)

Cost

  • Account Opening: Free
  • Trading Fees: 0% on trades up to $200

Best For

Crypto investors looking for the most secure trading experience + low fees.

SECURE MY CRYPTO FOR FREE
Sign up by January 30, 2023.

In Summary

Wealthsimple Crypto is the cryptocurrency exchange run by Wealthsimple. It uses a third party custodian for increased security, charges zero deposit or withdrawal fees, and has a user-friendly interface, but due to two main drawbacks—terrible customer support and high trading fees—I can't recommend using Wealthsimple Crypto in good faith.

VirgoCX is the favourite among knowledgeable Canadian crypto investors, both for its high level of security and for its ease of use. It also has extremely low trading fees, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada with a $20 signup bonus (available until January 30, 2023), I can't recommend VirgoCX highly enough.

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

You don't need a Wealthsimple Crypto referral codes to get your $25 signup bonus: you just need to open your account using a referral link. Still, we recommend opening a CoinSmart account instead while its $50 signup bonus still lasts (offer ends January 30, 2023).

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.

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