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Wealthsimple Crypto Preview: Cryptocurrency Investing Made Easy

Wealthsimple Crypto Preview: Cryptocurrency Investing Made Easy

In July 2020, Wealthsimple unveiled the upcoming Wealthsimple Crypto, and with that, Canada’s leading robo-advisor officially entered the cryptocurrency trading game. While it’s not yet active, Wealthsimple did shed some light on how the new platform will work. In this article, I’ll give you a preview of what you can expect with Crypto, so you’ll be ready to go when it launches.

Introducing Wealthsimple Crypto

When it launches, Wealthsimple Crypto will allow Canadians to invest in Bitcoin and Ethereum without paying any commissions. The platform will be included as a separate section on the Wealthsimple Trade mobile stock trading app. Trade is available for download on both iOS and Android devices.

While there will be no commission fees to buy or sell Crypto, Wealthsimple will make money on the spread between the market price and the transaction price. This is similar to how banks make money on foreign exchange transactions.

Crypto will be available in non-registered accounts only, and while the beta version will have some limitations, Wealthsimple is promising the following features when the full version is rolled out:

Account Features:

  • Open an account in minutes
  • No account minimums
  • No commissions, simple pricing model
  • No fees to deposit or withdraw to and from your Crypto account
  • Trades executed instantly
  • Real time quotes

Opening a Wealthsimple Crypto Account

While we don’t have all the details just yet, Wealthsimple has said that customers will need to open a new Crypto account, even if they happen to be an existing Wealthsimple Trade customer. Given their track record of making things easy, however, the process will be very simple.

How Does the Crypto Waitlist Work?

By joining the Wealthsimple Crypto waitlist, you’ll have a chance to get in early when Crypto goes live. According to Wealthsimple, you won’t know where you are on the waitlist, but you can move closer to the top by referring your friends and family.

Is Wealthsimple Crypto Safe?

While cryptocurrency investing itself is a highly speculative and risky venture, Wealthsimple is doing everything they can to make sure that their crypto platform is safe for investors. For starters, they are using a company called Gemini Custody to be the custodian of all crypto funds that are held with Wealthsimple. According to the Wealthsimple website, Gemini has the highest U.S. government security rating, and funds are secured with $200 million of cold storage insurance.

It’s important to remember that there is a tangible risk to investing in cryptocurrency. Similar to mutual funds and stocks, their performance is not guaranteed, which means that you could lose all of your money. Unlike a safety investment, such as a savings account or GIC, funds invested are not insured by the Canada Deposit Insurance Corporation (CDIC).

Wealthsimple Invest and Wealthsimple Trade

If you’re interested in Wealthsimple Crypto, but are unfamiliar with other Wealthsimple investment options, here is a rundown of their main products: Wealthsimple Invest and Wealthsimple Trade. For more details, check out my full review of Wealthsimple.

Wealthsimple Invest

As Canada’s leading robo-advisor, Wealthsimple manages over $5 billion in assets. With Wealthsimple Invest, Canadians have access to low-fee investment funds that can be managed online, without having to meet in-person with an investment advisor. Wealthsimple ETFs offer portfolio diversification, and are built to match the investor’s objectives, taking into account their risk tolerance and time horizon. Both registered and non-registered accounts are available

Wealthsimple Trade

In March 2019, Wealthsimple launched their first ever stock trading platform, Wealthsimple Trade. This unique online brokerage features mobile only, commission-free trading on thousands of stocks, mutual funds and ETFs. While trade lacks some of the advanced features of other discount brokers, it’s perfect for anyone wanting to take advantage of simplified, low cost stock investing.

Who Is Wealthsimple Crypto Best Suited For?

Wealthsimple Crypto will appeal to anyone interested in trading cryptocurrencies. The beauty of this product is that it makes it easy for investors to trade crypto with the same app that they use to buy and sell stocks, mutual funds, and ETFs. I’m no crypto expert, but if there’s an easier way to buy and sell Bitcoin and Ethereum, I’d be very surprised. Whether you’re an experienced crypto investor, or looking to get started, consider joining the Wealthsimple Crypto waitlist to grab your place in line.

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