Coinbase vs. Wealthsimple: Investor’s Guide 2024

Coinbase vs. Wealthsimple: What’s the better choice?

Coinbase and Wealthsimple are both great choices for Canadian crypto investors. Which platform is better for you depends on your specific needs.  

Why choose Coinbase: Coinbase is the best choice for investors looking for a beginner-friendly platform, a wide selection of cryptocurrency, and an easy way to earn free crypto rewards! 

Why choose Wealthsimple: Wealthsimple is the best choice for investors looking for an easy way to manage their cryptocurrencies and stocks in one place. 

What are the pros and cons of Coinbase?

Pros:

• User-Friendly Interface: Coinbase is known for its easy-to-use interface, making it ideal for beginners in the crypto ecosystem.
• Wide Range of Cryptocurrencies: Coinbase supports over 200 cryptocurrencies. 
• Educational Resources: Coinbase offers a Learn and Earn program where users can earn crypto by completing short educational modules! 
• Security: Coinbase is highly secure, with all cryptocurrency assets held 1:1 in reserves. 

Cons:

• High Fees: Coinbase has higher fees than other crypto exchanges. 
• Poor Customer Service: Coinbase has been criticized for slow and unresponsive customer support. 
• Account Limits: Due to Canadian regulations, you may only be able to invest $1,000 in crypto on Coinbase in a rolling 12 month period if you have limited experience with crypto. 
• Frequent Downtime: In the past, Coinbase has gone through downtimes during high traffic periods. 

Is Coinbase safe?

Coinbase is one of the safest and most trusted crypto exchanges in the world. 

Coinbase is a publicly traded company in the US, fully regulated, and maintains high security standards. Coinbase holds all customer assets 1:1, uses two-factor authentication, and leverages industry-leading encryption technology. 

What are the pros and cons of Wealthsimple?

Pros:

• Ease of Use: Simple and intuitive platform that integrates well with other Wealthsimple investment accounts.
• No deposit or withdrawals: There are no fees when you transfer funds between bank accounts and investment accounts.
• Regulated and secure: Wealthsimple is fully regulated in Canada. All customer funds are protected by claims from creditors and are held by regulated third-party custodians. 
• Less prohibitive limits: While Wealthsimple does have a limit of $30,000 a year in some provinces, the platform does not have restrictive limits for new investors. 

Cons:

• High Trading Fees: Wealthsimple trading fees on crypto are 2% for most users. If you have more than $100,000 of assets on Wealthsimple, fees drop to 1%. Users with more than $500,000 of assets have 0.5% fees. 
• Limited Features: Wealthsimple is not a crypto-first platform, so it doesn’t support advanced trading features and crypto staking. 
• Limited to Canadian Residents: Wealthsimple is only available for Canadian residents. 

Is Wealthsimple safe?

Yes, Wealthsimple is a secure platform for trading cryptocurrencies. 

All of Wealthsimple’s crypto is held by regulated third-party custodians in trust — which means that if anything goes wrong, your crypto is protected by claims from creditors. 

Coinbase vs. Wealthsimple: Key features

User Interface

Winner: Tie (both platforms are user-friendly, with different strengths)

Both Wealthsimple and Coinbase are considered user-friendly platforms! 

Wealthsimple is a better choice if you are looking to manage stocks and cryptocurrencies, while Coinbase is a better choice if you are only interested in cryptocurrencies. 

• Wealthsimple: Simple and beginner-friendly, stock investing available 
• Coinbase: Simple and beginner-friendly, advanced crypto trading features on Pro

Fees

Winner: Coinbase

Coinbase has lower fees than Wealthsimple. 

However, it’s important to note that Coinbase has higher fees than other crypto-only exchanges, and has been criticized for having higher fees than stated in some situations due to market conditions and other factors. 

• Wealthsimple: 2% for most investors (1% for investors who hold more than $100,000 on Wealthsimple, 0.5% for investors who hold more than $50,000) 
• Coinbase: 0-0.60% on Coinbase Advanced, though fees ‘can be influenced by factors such as your chosen payment method, order size, market conditions, jurisdictional location, asset, and other costs we incur to facilitate your transaction.’ 

Learn more about Coinbase fees here.

Supported Cryptocurrencies

Winner: Coinbase 

Coinbase is the best choice for users looking for a wide range of cryptocurrencies. 

• Wealthsimple: Offers 60+ cryptocurrencies.
• Coinbase: Supports over 200 cryptocurrencies.

Stocks and Equities

Winner: Wealthsimple

Wealthsimple is the best choice for investors looking to manage their stocks and cryptocurrencies in one place. 

Coinbase does not support stocks and has no plans to do so in the future. 

• Wealthsimple: Wealthsimple supports stocks and equities. 
• Coinbase: Does not support stocks.

Crypto Rewards

Winner: Coinbase 

Coinbase offers a Learn and Earn program, which is a great way for beginners to earn free crypto in exchange for completing short educational modules. In addition, Coinbase offers staking and interest rewards to users. 

At this time, Wealthsimple does not offer Learn and Earn, staking, or interest rewards (though you can earn a $25 reward by referring another user to the platform). 

• Wealthsimple: No opportunity for crypto rewards 
• Coinbase: Offers Learn and Earn, staking, and interest rewards

Customer Support

Winner: Wealthsimple 

Both Coinbase and Wealthsimple offer 24/7 customer support through a variety of different channels. 

Because Coinbase has been criticized for the quality of its support by customers, we gave the edge to Wealthsimple. 

• Wealthsimple: 24/7 live chat, email, phone support
• Coinbase: 24/7 live chat, email, phone support 

Security

Winner: Tie 

Both Coinbase and Wealthsimple are secure and trusted platforms. 

• Wealthsimple: All crypto held in trust by third-party custodians
• Coinbase: All assets held 1:1, state-of-the-art security

Conclusion

Both Coinbase and Wealthsimple have their strengths and cater to different types of investors. Before you choose a platform, you should consider your unique financial situation and investment goals.