Security Compliance
As a public company Bitcoin Well has a duty to be transparent with its investors and adhere to all Canadian regulations. Additionally, since you always take full custody of your bitcoin, you do not need to worry too much about the security measures of the platform, since you hold your bitcoin yourself.
Coinbase keeps around 98% of customer crypto in cold storage with multi-signature wallets, making theft extremely difficult even if systems are compromised, and backs custodied assets with substantial crime insurance. It undergoes SOC 1 and SOC 2 audits and, as a public company, publishes quarterly audited financials, a level of transparency almost no competitor matches. Note that Coinbase also offers the separate, non-custodial Coinbase Wallet app for self-custody, which is distinct from holding coins on the exchange.
Both Bitcoin Well and Coinbase lay significant emphasis on security. Bitcoin Well protects its users with multi-factor authentication, cold storage solutions, and consistent monitoring. Coinbase, being a globally renowned platform, ensures 98% of its assets are held in cold storage. Additionally, its commitment to encryption and rigorous employee vetting assures users of its security protocols. Both platforms employ two-factor authentication, though Coinbase's initial SMS 2FA method has garnered some concerns.
Regulatory Compliance
Bitcoin Well is registered with FINTRAC (registration M19811620) and with Revenu Québec, and is fully legal in Canada. As a company listed on the TSX Venture Exchange, it also publishes audited financials, a level of transparency almost no other Canadian bitcoin platform offers.
Coinbase went from unregistered convenience to the most credentialed international platform in Canada: it signed an Enhanced Pre-Registration Undertaking in March 2023, formally launched with Interac rails in August 2023, and became a CSA-registered Restricted Dealer in April 2024, the first international exchange to achieve this. It's registered with FINTRAC as an MSB and authorized in Quebec by the AMF. Canadians can use the platform fully, with the standard restricted dealer caveats: certain altcoin purchase limits and no CIPF coverage on crypto.
Ensuring compliance with regulations is pivotal. Bitcoin Well positions itself as a strictly Canadian-compliant platform, emphasizing transparency and adherence to the country's legal standards. Coinbase, being a global entity, is heavily regulated in the U.S. and has registrations with significant U.S. financial bodies like FinCEN. This might bring about questions concerning its specific adherence to Canadian regulations.
Customer support
Bitcoin Well runs an in-house Canadian support team available around the clock, and you can browse their help centre, open a support ticket, or even call or text their team. Most crypto platforms do not offer a phone number, so this is a big plus. Their Trustpilot rating sits around 4 stars across a modest number of reviews.
Coinbase offers 24/7 support with live chat, a comprehensive help centre and an extensive learning hub. Support quality remains its weak spot: reaching a human who understands Canadian banking specifics can take patience, and our own test took four days to get a real person. For routine issues the automated help works fine, but complex account problems can drag.
Support is where there's a stark difference between the two. Bitcoin Well shines with its emphasis on top-tier customer support, available for various user queries and issues. Coinbase, despite being a global leader, has often been criticized for its customer support. With a 1.4-star rating on Trustpilot and numerous complaints concerning response times and unresolved issues, Coinbase may need to up its game, especially when catering to the Canadian demographic.
Conclusion
While both platforms offer valuable services to the Canadian crypto-trading community, Bitcoin Well emerges as the preferable choice, specifically for Canadians. Its tailored approach to the Canadian market, combined with robust security measures and superior customer support, make it a natural choice. Coinbase, though globally acclaimed for its user interface and educational tools, falls short in areas crucial for Canadians, particularly in support and specific regional services. If a Canadian user is seeking a localized, secure, and supportive platform, Bitcoin Well might just be the answer.
Bitcoin Well stands out from Coinbase with its Recurring Buy feature, allowing users to automate Bitcoin purchases at set intervals. This is especially helpful for those wanting to invest gradually over time without manually handling each transaction. In addition, Bitcoin Well has expanded its services to cater not only to Canadian customers but also to the USA, broadening its reach across North America. These developments set it apart, especially for users focused solely on Bitcoin and long-term investment strategies.
When comparing Coinbase to other exchanges, it's worth noting that Coinbase One introduces several new features that make it more competitive. These include zero trading fees, boosted rewards, and priority customer support. Additionally, the platform has increased its focus on staking, allowing users to earn rewards, such as 5.10% APY on USDC. While Coinbase’s fees remain high outside of Coinbase One, these added benefits can make the platform more attractive for users looking to maximize earnings while minimizing transaction costs, especially compared to exchanges with lower fees but fewer reward opportunities.
We recommend choosing Bitcoin Well over Coinbase for your cryptocurrency trading needs. By opting for Bitcoin Well through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Bitcoin Well nor Coinbase meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.
