Security Compliance
Wealthsimple Crypto requires new customers to go through the KYC process in order to trade and offer two-factor authentication.
In your Wealthsimple account, you can use Touch ID or Face ID instead of entering a username and password each time you log in. Currently, there is no Two-factor authentication available.
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.
When it comes to safety, both exchanges take significant precautions. Wealthsimple Crypto keeps 100% of its assets in cold storage, which aligns with the industry standard. Coinbase also maintains high security, with 98% of customer funds held in offline cold storage. It has additional security layers, such as encryption for wallets and private keys, two-factor authentication, and mandatory criminal background checks for employees.
Regulatory Compliance
Wealthsimple Crypto is insured by the Gemini Trust Company LLC™ which covers $200 million. Wealthsimple is fully regulated in Canada and has been a staple for Canadian investments since 2016. It's a fully-compliant crypto platform in Canada.
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
Wealthsimple Crypto is a registered Money Service Business in Canada and complies with FINTRAC regulations. Similarly, Coinbase, even though it's an American company, adheres to international laws and complies with Canadian regulations as a registered Money Services Business with FinCEN. Both exchanges are monitored by Canadian federal organizations, ensuring that they operate within the law.
Customer support
Wealthsimple has a comprehensive help centre on its website and within the app. It is full of articles about crypto in general as well as how to use their platform. They also have live chat support, email support and phone support, all available 24/7. Wealthsimple has good customer service and you will be able to find an answer to your question quickly.
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.
Wealthsimple Crypto offers 24/7 support via email, phone, and live chat, while Coinbase offers live chat, email support, and recently added 24/7 phone support due to customer complaints. Despite these additions, Coinbase has been noted for long response times and poor overall service, with a low 1.6-star rating on Trustpilot.
Conclusion
Both Wealthsimple Crypto and Coinbase provide commendable services. However, for Canadians, Wealthsimple Crypto stands out as the winner due to its local presence, ease of use, excellent customer service, and no-fee structure. In contrast, Coinbase's low weekly buying limit for Canadians, limited payment methods, high fees, and inconsistent customer service make it a less preferable option.
We recommend choosing Wealthsimple Crypto over Coinbase for your cryptocurrency trading needs. By opting for Wealthsimple Crypto through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Wealthsimple Crypto 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.
