Coinsmart Review 2024 | Pros, Cons and Feature Breakdown
Key Takeaways
1. Perfect for Beginners
With an intuitive and user-friendly interface, Coinsmart is a great way for beginners to start investing in cryptocurrencies in Canada.2. Excellent Mobile App
There are few crypto exchanges whose app is as intuitive as the desktop platform. Coinsmart’s mobile app is among the best I have used!3. Regulated in Canada
Coinsmart is a regulated MSB with FINTRAC and operates in compliance with the Ontario Securities Commission as well.4. 24/7 Customer Support
Crypto markets are open 24/7 and so is Coinsmart’s customer support team. Contact them via email, live chat, phone, or social media.5. Instant Deposits with Interac eTransfer
Add funds to your account immediately with credit cards, Interac eTransfers, or crypto deposits.
- User-friendly platform for beginners
- Coinsmart Advanced Trade for experienced traders
- Plenty of deposit methods
- Highly-rated mobile app
- Staking rewards are on the way
- Licensed and regulated in Canada
- Fast sign-up and verification process
- 24/7 customer support is available
- Coinsmart provides documents for Canadian incomes tax
- Limited coin selection
- 0.3% commission trading fees for non-BTC, ETH, and LTC trades
- 1.5% fee for Interac eTransfer deposits below $2,000
- 1% fee for all fiat withdrawals
What is Coinsmart?
Coinsmart is a Canadian crypto exchange that was founded in 2018 and is based out of Toronto, Ontario. This crypto platform is not just for Canadians though as it is available in 38 different countries around the world including Japan, India, the United Kingdom, and Germany. This allows users to deposit funds in Canadian dollars, US Dollars, and Euros.
The Canadian crypto market has seen some increased regulations from the Canadian Securities Administrators or the CSA. These regulations have forced global exchanges like Binance, OKX, and Bybit to exit the market. With a rapidly diminishing list of crypto exchanges in Canada, Coinsmart has emerged as a reliable and user-friendly option for Canadian crypto enthusiasts.
Coinsmart was one of the first Canadian exchanges that I used when I first started investing in cryptos. It continues to be one of my preferred crypto trading accounts, especially as some of the bigger names exit Canada.
In this Coinsmart review article, I will provide an in-depth analysis of the platform from the point of view of a user with firsthand experience. This review will cover Coinsmart’s fees, coin selection, advantages, and shortcomings.
So read on, and let me guide you through what it’s like to be a crypto investor using Coinsmart in Canada.
Coinsmart Review: A Comprehensive Analysis
After using Coinsmart for a couple of years now, I am well averse to where the platform excels and where it falls short. My overall rating for Coinsmart is a solid four out of five stars.
To explain my rating I have broken down my analysis into seven factors, which I believe are the most important when it comes to choosing a crypto exchange in Canada.
Ease of Use (4/5)
Fees (3/5)
Cool Features (4/5)
Coin Selection (3/5)
Mobile App (4/5)
Safety Features (4/5)
Customer Support (5/5)
Where Coinsmart Shines
1. User-Friendly Platform
For Canadian investors who are just starting to dip their toes into the crypto world, Coinsmart is a great way to start. The platform is one of the easiest I’ve used, and that applies to both desktop and mobile apps.
Unlike other apps, Coinsmart seems to have designed its platform with beginners in mind. One of the best parts is that it separates the Advanced Trade option for advanced traders.
Not only is Coinsmart easy and intuitive to use, but it also has a sleek, modern design. Every step of the process feels smooth, and Coinsmart does a great job of guiding beginners through a crypto trade.
My takeaway from using Coinsmart? It is an ideal crypto platform for new crypto investors in Canada!
2. Coinsmart Advanced Trade for Experienced Crypto Traders
As I mentioned, one of my favourite parts about Coinsmart is that it separates the trading process for beginners and experienced traders. The main part of the platform is easy to use, with a simple and streamlined trading interface.
In Advanced Trade, experienced crypto traders can use advanced options like setting limit orders, with access to the order books and real-time charts thanks to TradingView.
3. Multiple Deposit Methods
What’s the most important thing about a crypto platform?
Depositing funds and fiat currency to the platform so you can begin trading. Coinsmart provides some of the more popular ways to deposit fiat funds, like bank wire transfers, credit cards, and Interac eTransfers.
You can also deposit cryptos directly to your Coinsmart account from other crypto wallets and vice versa. Remember that Coinsmart is available in a long list of countries, so you can directly deposit Canadian dollars, US dollars, and even Euros to your account.
Interact eTransfer is a popular money transfer service in Canada. For any transfers over $2,000, there are no fees involved. For eTransfers that are less than $2,000, there is a 1.5% fee.
Note that Coinsmart will allow Canadian crypto traders to deposit funds with a credit card. The fees for credit card deposits are higher, starting at 6.75%. There is also a minimum fee of $10.00 USD and deposit amounts range from $50 USD to $10,000 USD.
4. Highly Rated Mobile App
These days, the mobile app for a platform is everything, especially if you want to attract younger users. Luckily, Coinsmart’s mobile app does not disappoint.
I’ve used many of the crypto apps in Canada and I can say with certainty that Coinsmart is up there as one of the most intuitive and user-friendly mobile apps in the market.
Everything in the Coinsmart mobile app is clearly marked and easy to follow. Whether you want to check on your portfolio’s performance, add funds, or make a trade, almost every Coinsmart feature is available in the palm of your hand.
Coinsmart’s mobile app is available for both iOS and Android operating systems and uses Two-Factor Authentication or 2FA to ensure your account is kept safe and secure.
5. Staking Rewards Are Coming Soon
Staking is a way to earn additional rewards while holding these cryptos in a staking pool on a crypto platform. This process helps to validate network transactions and improves the security of Proof-of-Stake networks. While it sounds like a lot of work, you don’t have to do anything once you have staked your crypto assets.
For Coinsmart users, staking is coming at a future date in 2023. The platform will allow you to stake Ethereum, MATIC, Solana, and Polkadot for varying APY returns. Staking is one of the only ways that you can earn rewards on your crypto investments.
Will your staked cryptos be safe while in the Coinsmart staking pool? Absolutely! Coinsmart will hold all stake crypto assets with its custodian which is the global crypto exchange, Coinbase.
6. Licensed and Regulated in Canada
Lately, Canada has been making headlines in the crypto industry for the wrong reasons. Much stricter industry regulations have caused major exchanges like Binance and Bybit to head for the exit. This also means that crypto exchanges that stay in Canada will command more of the market share.
Users will be happy to know that Coinsmart is fully licensed and regulated by FINTRAC[2] Canada. Coinsmart also holds multiple different regional licenses across Europe and Asia.
What is the significance of this? It just means that users can be confident in using the platform and that Coinsmart is a legitimate company. There is always an inherent risk with investing in cryptos, but at least Coinsmart can say it is a crypto platform that operates within the rules in Canada.
7. Fast Sign-Up and Verification Process
Another positive about Coinsmart’s desktop and mobile platforms is how easy it is to sign up for an account. The entire process only takes a few moments even if you include the Know Your Customer (KYC) verification.
The personal verification process consists of a few steps where you will need to confirm information like your phone number, address, and occupation. From there, Coinsmart will need to confirm your identity by verifying a piece of identification. For this step, you can use a Canadian passport, a driver’s license, or a residency card.
The final step is to take a couple of selfies within the app to verify that your face matches your ID. Once you have verified your identity, you can freely begin depositing funds and trading cryptos on Coinsmart.
8. 24/7 Industry-Leading Customer Support
Coinsmart’s customer support is miles ahead of its competition from other crypto exchanges in Canada. It is one of the only crypto platforms to provide 24/7 customer support via a number of different methods.
You can email, chat with a chatbot, or call Coinsmart’s toll-free number to speak to a customer service representative at any time of day. Coinsmart’s chatbot is available to users on both the desktop and mobile apps.
Coinsmart customer support is also available through its many social media accounts. The site has accounts with all of the major social media platforms but the most helpful in terms of real-time assistance are its Twitter and Discord channels.
9. Coinsmart Provides Tax Documents for Canadians
Another helpful thing that Coinsmart will do for users? If you make a request, Coinsmart will send you a record of your account activity. This makes it much easier to calculate your capital gains or losses for the year when income tax season rolls around.
If you want your Coinsmart activity history, simply email support@Coinsmart.com or chat with the chatbot Smartie to request it. You will be sent a .CSV file within a few business days.
Where Coinsmart Falls Short
1. Limited Coin Selection
In my opinion, Coinsmart’s number one shortcoming is its limited selection of cryptos to trade. While other crypto exchanges in Canada offer dozens, if not hundreds, of different cryptos, Coinsmart only offers 16 as of the time of this writing.
Granted, Coinsmart does offer some of the largest cryptos by market cap. But even with these popular options, there is a lot to be desired from Coinsmart’s limited selection.
Here are the cryptocurrencies that Coinsmart offers:
- Bitcoin (BTC)
- Ethereum (ETH)
- Avalanche (AVAX)
- Polygon (MATIC)
- Solana (SOL)
- Shiba Inu Token (SHIB)
- Chainlink (LINK)
- UniSwap (UNI)
- DogeCoin (DOGE)
- Cardano (ADA)
- USD Coin (USDC)
- Polkadot (DOT)
- Stellar Lumens (XLM)
- EOS (EOS)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
In comparison, sites like Wealthsimple Crypto offer more than 50 different crypto assets. Sites like Binance and Bitbuy offered hundreds of different cryptos for Canadians to trade. No matter how you slice it, Coinsmart’s coin selection is definitely disappointing.
2. High Trading Fees for Non-BTC Trades
Like many crypto exchanges, Coinsmart splits its trades into two different categories: single and double trades. Single trades are crypto trades that use a common trading pair like Bitcoin or fiat currencies as the base. Double trades are crypto trades that take place between two non-Bitcoin coins.
A single trade on Coinsmart will cost you 0.20% while a double trade will run you 0.30%. What does this mean? On a trade of $10,000 in Bitcoin, you will pay a trading fee of $20.00.
3. High Deposit Fees for Interac eTransfer
Many Canadians know Interac eTransfers as being free for sending money. Unfortunately, if you opt to use Interact eTransfers with Coinsmart, you will incur a 1.5% fee for any deposit that is less than $2,000.
To put this into context, on a $1,999 deposit via Interac eTransfer, you would be charged a fee of nearly $30! But for deposits of $2,000 and more by Interac eTransfer, there are no fees.
In my opinion, this is a fee that impacts smaller retail traders who are only depositing small amounts at a time.
4. 1% Withdrawal Fee for Fiat Currencies
Yes, another downfall for Coinsmart that revolves around its fee structure. When you withdraw fiat currencies via Interac eTransfer, wire transfer, or credit cards, you can expect to pay a 1% fee.
For every $10,000 in fiat currencies that you withdraw, you will be charged $100. Keep in mind that there is typically no fee for using Interac eTransfers or wire transfers in everyday life. This just seems like another unnecessarily high transaction fee on Coinsmart.
Who Should Use Coinsmart
If you’re still uncertain whether Coinsmart is the right cryptocurrency exchange for you, refer to my section below on who I believe Coinsmart is most and least appropriate for.
You Should Use Coinsmart if…
Coinsmart Might Not be for you if…
My Experience with Coinsmart
As I already mentioned, I personally use Coinsmart and have for a couple of years.
While it isn’t my main crypto wallet, I keep my account active as it is one of my favourite platforms to use. Since it was the first crypto platform in Canada that I opened an account with, you could say I will always have a soft spot for Coinsmart.
How do I know Coinsmart is the ideal Canadian crypto platform for new crypto investors? Because I myself was a newbie in the crypto space when I signed up to use Coinsmart. The process is really tailored for those who have never traded cryptos before.
At the same time, as I developed a better feel for crypto trading, I was able to take the next step with Coinsmart’s Advanced Trade. Having both platforms within the same app is a great way to keep investors using Coinsmart. I know that it worked for me!
But it’s not just Coinsmart’s easy-to-use app that I love. The site provides incredibly fast transactions, especially if you use Interac eTransfer. Customer support on Coinsmart is truly the best I’ve dealt with in Canada and should be considered industry-leading.
This is not to say that Coinsmart doesn’t come with its downsides. The fees for both trading and transactions are higher than the norm in the crypto world. These fees can really add up over time and can really have an impact on your bottom line. On top of that, the selection of coins really leaves a lot to be desired. With only 16 different cryptos to choose from Coinsmart really lags behind its peers.
Overall, the pros far outweigh the cons regarding my personal experience with Coinsmart.
They say that most people who write reviews only do so because they have something negative to say. Well, in my case, I’m perfectly happy giving Coinsmart a rave review and is a definite recommendation to any Canadians looking to take that first step into the crypto world.
How to Sign Up for a Coinsmart Account
Time needed: 15 minutes
- Register For An Account With Coinsmart
Registering with Coinsmart is a breeze and will only take a few minutes of your time. You’ll need to choose an email address for your account, create a password, and specify your country.
- Fill Out Know Your Customer (KYC) Verification Forms
Once you have confirmed your account and signed into it, you will be taken to Coinsmart’s verification and Know Your Customer (KYC) [3] documents. Here you will enter things like your name, address, household income, and occupation.
- Upload A Government-Issued ID And Take A Selfie
After completing the forms you will be prompted to upload photos of a government-issued identification. You can use a driver’s license, a passport, or a permanent resident card. Following that is a video verification of your face, which will be scanned against the photo on your piece of ID. After a few moments, your identity will be verified you will be able to start trading cryptos.
- Fund Your Account
You can finally fund your account using a wire transfer, credit cards, Interac eTransfer, or a direct crypto transfer. If you haven’t already, I recommend downloading the Coinsmart mobile app once you have set up your account.
FAQs About Coinsmart
Yes, Coinsmart is a registered Money Services Business or MSB with FINTRAC and is also regulated in various other regions under Estonia’s FIU. Coinsmart abides by all of the Canadian financial services regulations, and in April 2023, it merged with WonderFi Technologies and Coinsquare to create Canada’s largest regulated crypto asset trading platform.
Coinsmart’s verification process is thorough yet streamlined. The entire process, as outlined in the article above, takes about 15 minutes. Much of that time is spent waiting for your application and identification to be verified by Coinsmart. As long as you have signed up correctly, it should only take a few moments for Coinsmart to verify your account.
This depends on the service you use. Interac eTransfers can often be received on the same date as the withdrawal. Coinsmart states that all withdrawals will be processed within five business days of the transaction.
As of June 2023, Coinsmart does not yet have staking available to customers. On its official website, Coinsmart says that staking is on its way and that customers can stake Ethereum, Solana, MATIC, and Polkadot. The staking service will likely be implemented by the end of the year.
In Canada, you have to report any capital gains that you made with crypto trading. Like other assets like stocks, crypto trades incur capital gains or losses. These gains or losses must be reported to the CRA come income tax season. Coinsmart will provide you with a trading summary for the year if you request it from them.
