Wealthsimple Crypto Review

What is Wealthsimple Crypto?

Wealthsimple Crypto is a crypto trading platform managed through Wealthsimple Trade. It features completely self-directed trading with commission-free buying and selling (sort of, keep reading to learn more). Investors can begin with any amount, even if it’s only $1.

Wealthsimple Crypto’s list of available cryptocurrencies has expanded exponentially over its first year and keeps growing. As of January 2023, Wealthsimple Crypto has over 50 kinds of cryptocurrency available including Bitcoin, Dogecoin, Litecoin, and Ethereum.

How to Sign Up for Wealthsimple Crypto

Because Wealthsimple Crypto shares a platform with Wealthsimple Trade, the first step is to download the Wealthsimple Trade app and open an account if you don’t already have one. For details on how to do this, check out our Wealthsimple Trade review.

Once you’ve done this, you can open a Wealthsimple Crypto account via the Accounts menu.

You’ll be asked a series of questions to determine your level of investing and crypto investing experience, plus the amount of money you’re comfortable risking. Crypto is a volatile market and Wealthsimple goes out of their way to ensure that you know the risks of cryptocurrency investing.

According to their website, “crypto-asset trading can lead to large and immediate financial losses,” and they strongly recommend against using “funds drawn from retirement savings, borrowed assets, student loans, mortgages, emergency funds, or funds set aside for other purposes.”

If you’re still good to go at this point, they’ll have you fund your account. You can do this in a couple of ways:

• Electronic Fund Transfer from a bank account
• Fund transfer from another Wealthsimple account

The time this takes varies depending on the funding source and the amount you’re transferring. Once your account is funded, you can buy and sell cryptocurrencies almost immediately.

To make a purchase:

• Select the currency you’re interested in
• Tell the app how much money you want to spend
• Confirm your purchase

Prices are clearly marked in the app.

Is Wealthsimple Crypto Safe?

As the past year has shown us, all crypto investing carries some inherent risks. However, aside from that, your money is safe with Wealthsimple Crypto. They’re a federally regulated securities dealer, which requires that they adhere to strict guidelines and oversight. 

Your cryptocurrency is held by Gemini Trust Company, LLC, a US-regulated crypto custodian with $200M in insurance coverage. Gemini has state-of-the-art security, both digital and physical, to protect your assets. 

Wealthsimple Crypto only has access to your crypto account when it makes sales on your behalf. Wealthsimple’s hot wallets are offered in partnership with Coincover for extra security. 

Please note that, unlike all other Wealthsimple accounts, Wealthsimple Crypto assets are not protected by the CIPF, the CDIC, or any of the organizations that cover traditional investment accounts. 

Wealthsimple Crypto Cost and Fees

To understand how Wealthsimple Crypto makes money you need to take a close look at the industry structure in general and Wealthsimple Crypto’s fees in particular.

Wealthsimple charges no:

• Withdrawal fees
• Transfer fees
• Deposit fees
• Inactivity fees

That being said, there’s no free lunch in Crypto trading (or anywhere else, sadly).  Like other crypto companies, Wealthsimple Crypto fees revolve around charging a “spread” on converting cash to cryptocurrency.  Usually, it’s 1.5-2%.

This 1.5-2% pays for custodial fees, in addition to Wealthsimple’s bottom line.

Wealthsimple Crypto Features

As an offshoot of Wealthsimple Trade, Wealthsimple Crypto is a self-directed trading platform. Expect to do your own research and make your own decisions. Their features include:

Website and App: Wealthsimple Crypto is convenient and easy to access from either your computer or phone via their online platform or the Wealthsimple Trade app.

Security: Wealthsimple Crypto features state-of-the-art data encryption and two-factor authentication. The majority of users’ coins are held offline in cold storage, covered by over $200M insurance.

Set Price Purchasing: Limit Orders allow you to set the price you’re willing to buy or sell at, and Wealthsimple Crypto will execute the purchase or sale when it reaches that point.

Basic Customer Support: Users have access to a Help Centre (FAQ list), plus basic assistance via email, or phone.

Crypto Wallets: Wealthsimple Crypto wallets allow investors to move a growing number of cryptocurrencies in and out of their accounts. Wealthsimple’s wallets are custodial wallets offered in partnership with Coincover, which offers extra security.

Stake and Earn Coins: Users can easily stake their Solana or Ethereum coins (more coins coming soon), and rewards are automatically deposited into their account.

Wealthsimple Crypto Mobile App Review

Wealthsimple Crypto uses the Wealthsimple app. While this is convenient for Wealthsimple Trade customers, we see it as a downside. We’ve found the Wealthsimple app to be clunky and lacking in resources.

Buying and selling crypto on the app does appear to be straightforward, though, so as long as you know what currencies you’re interested in beforehand, you should be fine. Just make sure you do your research before you log in to the app. It won’t help you find the information you’re looking for. 

Wealthsimple Crypto vs Coinbase and Coinsmart Comparison

So how does Wealthsimple Trade’s Crypto offshoot stack up against dedicated crypto platforms like Coinbase or our top recommended crypto platform, Coinsmart? We’ve put them head-to-head so that you can see what each one has to offer.

Each of these platforms has its own unique features, but here are some fundamental differences:

• Wealthsimple Crypto has no transfer or withdrawal fees, but the operating fee spread is as much as ten times higher than the other platforms.
• Coinbase has far more kinds of cryptocurrency available, but they also have the worst customer service and an abysmal 1.5-star rating on Trustpilot.
• Coinsmart has the smallest selection of crypto coins but the best customer service by far. Their fees are competitive (apart from the 6% debit/credit card fee—definitely choose a different funding method). It also has a fantastic UI, which doesn’t hurt.

If you’re new to the cryptocurrency scene and want to get a better idea of what it all means, we recommend our Bitcoin in Canada guide.  We dig into what Bitcoin and other kinds of cryptocurrency are and compare other ways to invest in crypto, such as a High-Interest Savings Account (HISA) and bitcoin ETFs.

Wealthsimple Crypto Review – FAQ

Wealthsimple Crypto Review – Final Thoughts

Wealthsimple Crypto is a regulated cryptocurrency trading platform, which means it’s as legit and as safe as any crypto asset platform can be. Fans of Wealthsimple Trade are likely to appreciate the convenience of using a single app for all their DIY investing.

However, be aware that just because Wealthsimple says it’s commission-free, doesn’t mean it’s actually free. Wealthsimple Crypto users will end up paying up to 2% per trade, which is far more than Coinsmart, our preferred platform.

Coinsmart has a better user interface, incredible customer service, and fair pricing, all of which more than makes up for their smaller selection of cryptocurrency.

Under the circumstances, we can’t recommend Wealthsimple Crypto unless you’re already using Wealthsimple Trade and want to keep things simple (and even then, we suggest you check out our Qtrade review for an excellent alternative).

Remember: Investing in Crypto can be risky and the crypto market can be volatile. Both Wealthsimple and our editorial team recommend that you proceed with caution. 

This is not the place to keep your retirement savings!

That being said investing a small percentage of your assets in cryptocurrency can be fun, exciting, and possibly lucrative – kind of like horse racing or the casino.