For many Canadians, Wealthsimple is the go-to platform for stock trading. So when they launched Wealthsimple Crypto, it quickly became one of the most popular ways for beginners to buy their first Bitcoin. But is it actually a good platform for crypto?
The answer is: it's excellent for beginners, but more advanced users might find it limiting. Let's break down the pros and cons to see if it's the right fit for you.
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The Verdict at a Glance: Pros and Cons
Pros (Why You'll Like It)
- Incredibly easy to use
- Trusted Canadian brand
- Regulated and publicly traded
- Allows crypto withdrawals
- Integrated with your stocks
Cons (Why You Might Not)
- High trading fees (spread)
- Limited coin selection
- No advanced trading features
- No staking services
The Good: Why Wealthsimple Shines for Beginners
1. Unmatched Simplicity
Wealthsimple's biggest strength is its user-friendly design. If you already use Wealthsimple Trade, you can start buying crypto in seconds. There's no complex interface—just a simple "buy" and "sell" button. It removes the intimidation factor that often comes with crypto.
2. A Brand You Can Trust
Wealthsimple is a well-established, regulated Canadian financial institution. Their parent company is publicly traded on the TSX. This provides a level of trust and security that you won't find on many offshore crypto exchanges.
3. You Can Withdraw Your Coins
This is a huge plus. Unlike some other simple platforms, Wealthsimple allows you to withdraw most major cryptocurrencies (like Bitcoin and Ethereum) to your own private wallet. This gives you true ownership of your assets.
The Bad: Where Wealthsimple Falls Short
1. The Fees are Hidden in the Spread
Wealthsimple doesn't charge a direct commission, but they make money on the "spread." This is the difference between the price they buy the crypto for and the price they sell it to you. This spread can be between 1.5% and 2%, which is significantly higher than dedicated crypto exchanges like Newton or NDAX, which often have spreads below 1%.
2. Limited Selection of Coins
While Wealthsimple has been adding more coins, its selection is still small compared to global exchanges like Binance or dedicated Canadian ones. If you want to invest in newer, smaller altcoins, you'll have to look elsewhere.
3. No Advanced Features
Wealthsimple Crypto is built for simplicity. You won't find advanced tools like limit orders, stop-loss orders, or detailed charting. It also doesn't offer "yield" products like staking, where you can earn rewards on your holdings.
How Does it Compare to Other Canadian Exchanges?
- vs. Shakepay: Shakepay is even simpler, focusing almost exclusively on buying Bitcoin and Ethereum. Its key feature is shaking your phone for free Bitcoin rewards. Wealthsimple has a better coin selection.
- vs. Newton: Newton is often called the best on-ramp for beginners in Canada due to its very low spreads (often under 0.7%) and wide coin selection. It's a stronger choice for cost-conscious buyers.
- vs. NDAX: NDAX is geared more towards active traders, offering advanced order types, lower fees, and a professional trading interface. It's less beginner-friendly than Wealthsimple.
Final Verdict: Who is Wealthsimple Crypto Best For?
Wealthsimple Crypto is the perfect platform for two types of people:
- The Absolute Beginner: If you're just starting and want the easiest, safest way to buy your first $100 of Bitcoin, Wealthsimple is a fantastic choice.
- The Passive Investor: If you already have your TFSA and other investments with Wealthsimple and just want to add a small crypto position to your portfolio without opening a new account, it's incredibly convenient.
If you plan to trade frequently, want the lowest possible fees, or want to explore a wide variety of altcoins, you will likely be better served by a dedicated crypto exchange like Newton or NDAX.