What is Wealthsimple ?
As an online investment and trading platform, Wealthsimple is often compared to the popular U.S. platform Robinhood, offering low-cost and user-friendly access to globally diversified index funds. They have built a reputation as “the smarter way to invest” by removing financial barriers that have previously limited everyday Canadians from growing their wealth.
With over 1.5 million investors already using their platform, Wealthsimple stays on top of major market trends. Initially, their flagship feature was low-cost passive investing through an automated robo-advisor. Since then, they have expanded to include stock trading, cash deposit services, and tax filing services. Their commitment to innovation is evidenced by their recent launch of Canada’s first regulated crypto trading platform in 2020.
What is Wealthsimple Crypto ?
Wealthsimple Crypto is leading the way in making cryptocurrency more accessible to Canadians. This in-build Crypto feature is like “cherry on Cake” for Wealthsimple users. Because with the help of this users can buy, sell, trade or Stake their Crypto Assets.
How to Get Started with Wealthsimple Crypto?
To get started with Wealthsimple, simply create a login account and verify your identity, which is standard practice for all financial service providers. The process is straightforward and typically takes only 5 to 10 minutes. For those who are new to investing, Wealthsimple Trade offers a user-friendly and intuitive interface, with easy-to-follow steps and straightforward account features and functions.
Wealthsimple Crypto App Features:
Wealthsimple Crypto allows users to invest in most popular cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The app also allows users to set up recurring purchases, which is helpful for those who want to invest regularly but don’t want to constantly monitor the market.
The app is user-friendly and easy to navigate. It has a clean interface and provides users with helpful information about their investments, including current and historical prices.
I started my Investment journey with Wealthsimple Trade to invest in Stocks and ETFs and Currently I am Using their Crypto and Cash account as well.
Wealthsimple Crypto Benefits:
Low Fee – One of the main benefits of Wealthsimple Crypto is its low fees. The app charges a 1.5 – 2% fee on each trade, which is lower than many other cryptocurrency exchanges. Additionally, Wealthsimple Crypto does not charge any fees for deposits or withdrawals, which can save users money in the long run.
Another benefit of using Wealthsimple Crypto is that it is backed by a reputable company. Wealthsimple is a well-known and respected financial services company, which gives users peace of mind when investing their money.
No account minimums – To get started with Wealthsimple Crypto, you don’t need to worry about high minimum deposits. You can get started with as little as $1. Moreover, you can easy fund your account with your Bank Account, Debit Cards.
Insured and protected – Most of your coins are secured in offline cold storage with our trusted custodial partners, who are regulated entities and have each secured insurance coverage of over $200 million. The remaining coins are stored in hot wallets, which are also covered for additional protection in the unlikely event of a hack. To ensure this, they have partnered with Coincover.
Staking ( 4.15 % interest ) – Wealthsimple Crypto allow its users to Stake their crypto assets and earn passive income. Currently, you can Stake and earn up to 4.5% per year on Ethereum & Solana.
Wealthsimple Crypto Drawbacks:
Limited Offering – One drawback of Wealthsimple Crypto is that it has a limited selection of cryptocurrencies. Currently, you can Trade Bitcoin, Ethereum, Dogecoin and 50+ other coins.
Another potential drawback is that Wealthsimple Crypto is only available in Canada and the United States. This means that users in other countries will not be able to use the app to invest in cryptocurrency.
Operational Fee – Wealthsimple is considered to be one of the pricier options available, with inconsistent fees that range from 1.5% to 2% in addition to market spread. As a result, the operation fee’s dollar value can fluctuate significantly.
If you are a buy-and-hold investor, then Wealthsimple Crypto’s fees may not be a major concern for you. However, if you are more active in the cryptocurrency market, it would be wise to explore less expensive platforms such as Crypto.com, MyBTC, or Coinsmart. As you advance in your crypto knowledge and become a more confident trader, I would recommend considering Binance for more advanced trading activities between cryptocurrencies.
Tax implications – Wealthsimple states that crypto accounts are personal accounts that are not registered. And are subject to any capital gains or losses that occur from buying and selling cryptocurrencies. The Canadian government has made it clear that if you use cryptocurrencies as a commodity, you should expect to pay capital gains tax.
Furthermore, tax implications are likely to arise when you convert your cryptocurrency back into traditional currency, use it to make purchases or exchange it for other cryptocurrencies. Even gifting cryptocurrency to someone may have tax implications.
Conclusion:
Overall, Wealthsimple Crypto is a solid choice for those who want to invest in cryptocurrency. Its low fees and user-friendly interface make it an attractive option for both novice and experienced investors. While the app has a limited selection of cryptocurrencies, it is backed by a reputable company and offers helpful features like recurring purchases. If you are a resident of Canada or the United States and want to invest in Crypto, Wealthsimple Crypto is definitely worth considering.
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