It is standard practice to hold most digital assets in third-party cold storage and Bitvo is no exception. It holds 95% of assets in cold storage and 5% in hot storage.
Customers’ fiat funds are held in segregated bank accounts and they also have multi-layered firewall infrastructure to protect the exchange. They also have a third-party that screens any cryptocurrencies looking to be listed on Bitvo. They analyze the coin’s history as well as other factors and don’t list anything that doesn’t align with their policies. This scrutiny helps to protect their customers from investing in scam coins.
Coinbase uses its own digital wallet for storing your cryptocurrency.
Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.
Both exchanges prioritize user security. Bitvo keeps 95%-100% of digital assets in third-party cold storage, uses multi-layered firewall infrastructure, and scrutinizes any cryptocurrency it lists. Coinbase, too, safeguards 98% of assets in cold storage, encrypts wallets and private keys, and mandates two-factor authentication. Though both platforms are secure, Coinbase's larger scale and public company status necessitate a higher degree of regulatory compliance and transparency.
Bitvo is registered with FINTRAC and is compliant with Canadian regulations.
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
Bitvo is registered as a Money Service Business in Canada, abiding by FINTRAC regulations. Coinbase, a U.S. company, is also registered as a Money Services Business, but with FinCEN. Both are therefore compliant with federal regulations. However, Bitvo, being a Canadian platform, may align better with local rules and banking systems.
Bitvo has 24/7 support including live chat, email, and phone support. Bitvo is the first cryptocurrency exchange we’ve reviewed that has a phone support option, so this is a big plus when you need urgent help.
Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.
Bitvo offers 24/7 customer support, including phone support, which is quite unique in the crypto space. On the other hand, Coinbase has received numerous complaints regarding customer service, even though it has recently implemented 24/7 phone support. Bitvo's customer-first approach is evident in its promises for same-day processing and customer satisfaction guarantees.
While both Bitvo and Coinbase are credible exchanges, Bitvo stands out as the preferred choice for Canadians in 2023. It aligns well with local banking systems, offers exceptional customer support, and guarantees user satisfaction. Moreover, its competitive fee structure and user-friendly platform make it an excellent choice for beginners and seasoned traders alike.
We recommend choosing Bitvo over Coinbase for your cryptocurrency trading needs. By opting for Bitvo through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Bitvo 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.