Dennis Hammer is a writer and finance nerd with six years of investing experience. He writes about personal finance for Wealthsimple. Dennis also manages his own investment portfolio and has funded several businesses in the past. Dennis holds a Bachelor's degree from the University of Connecticut.
In order to trade Bitcoin or other cryptocurrencies, you’ll need to use the services of a crypto exchange. Finding the right exchange for your needs is a key part of making good trades.
CoinSmart is a user-friendly platform for Canadians to buy and sell some of the most popular cryptocurrencies. Let’s take a look at what CoinSmart has to offer, how it works, and what you can expect to pay in trading fees.You work hard so you can retire. Your money should work hard too. In about five minutes we’ll build you a smart investment portfolio for your retirement - get started.
What is CoinSmart?
CoinSmart’s goal is to make cryptocurrency accessible to everyone by providing a reliable and secure experience on a user-friendly platform. While the platform is designed for beginners, it offers plenty of advanced options for experienced users and high volume traders.
Is CoinSmart safe to use?
CoinSmart is a FINTRAC registered Money Service Business, which means it’s compliant with the appropriate Candian regulatory standards. It’s backed by Luminus Financial, a registered Canadian bank. User funds stay in Canada and within Canadian regulation.
Furthermore, CoinSmart offers two features to keep data and account access secure:
A cold digital wallet for each cryptocurrency offered on the exchange. Cold storage is an offline digital wallet stored on a platform that isn’t connected to a network. This protects it from hackers, cyber attacks, and unauthorized access.
A two-factor authorization system that equires users to access their account using a code generated on their phone. You need your password and the code to log in. Hackers are unlikely to get both.
Pros and cons of CoinSmart
CoinSmart is a favorite cryptocurrency trading platform because of its fast sign-up process, intuitive interface, quick account funding, and 24/7 client support and tax assistance.
Unfortunately, CoinSmart is only available to Canadian citizens and permanent residents of Canada over the age of 18. Furthermore, it only offers a small selection of cryptocurrencies: Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS, NEO, XLM, Cardano, and Tether.
How does CoinSmart work?
Using CoinSmart is similar to using most other cryptocurrency trading platforms. Your first step is to create an account on its registration page. After registering, CoinSmart will send a link to your email. Click that link to verify your email address.
That link will take you to a page with CoinSmart’s identity verification process. You’ll need to provide the usual details, like your phone number, date of birth, and address. That platform will verify you instantly using Equifax’s databases.
If CoinSmart is unable to verify your identity, you can send documents to prove who you are, including:
Copy of your government issued ID (front and back)
A picture of yourself holding the same ID and a piece of paper with the word “CoinSmart” and the day’s date
A copy of a recent utility bill with your name and address
After verifying your identity, you’ll gain access to the platform, but you can’t trade anything because there won’t be any money in your account. Your next step is to fund it via Interac e-Transfer, bank wire, and bank draft, or with a debit or credit card.
Once your account is funded, you can start buying and selling cryptocurrencies. The process is simple:
Click the “Buy/Sell/Trade” menu option.
Choose the “Buy” or “Sell” option.
Choose the currency you want to buy or sell.
Enter your desired quantity in crypto or Canadian dollars.
Click the “Buy Now” or “Sell Now” button.
Premium traders gain access to a customized over-the-counter (OTC) trading service. This is for large traders that intend to buy or sell orders larger than $25,000. This service offers discounted fees, a dedicated account representative, and special pricing based on order size/volume.
What are the CoinSmart fees? (as of February 2021)
CoinSmart fees are competitive for the industry, but not remarkable. Its fees are reasonable for flat deposits and withdrawals. Its cryptocurrency withdrawal fees are fairly standard.
It’s important to note that as a Canadian exchange, all money in and out of an account must be in Canadian dollars. If you aren’t from Canada, you’ll have to consider exchange rates in your funding calculations.
Canadian dollar funding options
|Funding Source||Lower Limit||Upper Limit||Fees|
|Interac e-Transfer||$100 minimum||$3,000 maximum||1.5% on $100-$1,999 0% on $2,000+|
|Bank wire||$10,000 minimum||$5,000,000 maximum||0% fee|
|Bank draft||$500 minimum||$5,000 maximum||0% fee|
|Credit/debit cards||$100 minimum||$5,000 maximum||Up to 6%|
Canadian dollar withdrawal options
|Method||Lower Limit||Upper Limit||Fees|
|Electronic Funds Transfer||$50 minimum||$10,000 maximum||1% ($15 Minimum)|
|Bank Wire||$10,000 minimum||$1,000,000 maximum||1% ($15 Minimum)|
Cryptocurrency withdrawal options
Fees to withdraw cryptocurrency (to another exchange or your private wallet) vary based on the type of asset you want to remove. For example, the Bitcoin withdrawal fee is 0.0005 BTC. The Ethereum withdrawal fee is 0.01 ETH.
Trading fees occur whenever you perform a trade on the platform. CoinSmart charges 0.20% for single trades and 0.40% for double trades.
A single trade is when you trade between Canadian dollars and any cryptocurrency, or when you trade between two cryptocurrencies where one of them is Bitcoin (BTC). For example, if you purchased $2,000 worth of Bitcoin, you would pay a $4 fee ($2,000 x 0.20%). A double trade is when you trade between two cryptocurrencies where neither is Bitcoin (e.g. Litecoin to Ethereum).
If CoinSmart isn’t the right crypto exchange for you, consider Wealthsimple Crypto, a simple platform to buy and sell Bitcoin and Ethereum instantly. There are no account minimums, simple pricing, and no fees to deposit or withdraw your funds.
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