Currency exchange services have been around for quite a long time. When choosing the best currency exchange service, people often use one criterion – exchange rates. Cryptocurrency exchange services operate similarly, but finding the best service for you has become more problematic. That is where this CoinSmart review comes into play. But before that, what makes cryptocurrency exchange services different?
Part of the problem is due to how many cryptocurrencies are currently in use. Many of those currencies vary drastically in terms of value. As a result, not all cryptocurrencies are in demand, and even fewer are worth the exchange. Another unwanted byproduct of exchange services is additional fees. The same applies all the more to cryptocurrency exchange services. Breaking even and being in the red are unfavorable outcomes of a cryptocurrency exchange service.
This CoinSmart review aims to give you a detailed look into one of the best crypto exchanges and allow you to analyze whether it suits your needs. We will cover everything from CoinSmart fees to running a CoinSmart account. We will also touch upon the topic of CoinSmart security and how CoinSmart compares to other renowned cryptocurrency exchange services. So, what is going on with CoinSmart?
Pros – Cons
Before moving on to the rest of our CoinSmart review, along with specific fees, customer support, and the verification process, here is a general overview of what makes CoinSmart one of the best crypto exchanges in Canada and globally.
Firstly, CoinSmart generally allows for same-day deposits, which helps users to maximize crypto-related profits. On the topic of profits, CoinSmart has a selection of crypto articles to help new users choose which coin to trade. Moreover, users can deposit CAD, USD, and EUR. CoinSmart also accepts purchases from debit and credit cards and offers altcoin to altcoin trading. Lastly, there is 24/7 customer support and same-day account verification – two crucial features for new users.
On the other hand, to this day, there are not that many altcoins available. There is also a 1% withdrawal fee and various crypto withdrawal fees. Furthermore, all cryptocurrency trades encompass 0.2% trading fees, and Interac deposits less than $2000 include a 1.5% fee.
CoinSmart is often compared to Coinbase and Bitbuy. Although this is not a Coinbase or Bitbuy review, here is an overview of how it fares when compared to the two:
CoinSmart vs Coinbase – in terms of fees, Coinbase users’ fees often range from 0.5% to 4.5%, which is more than what Coinsmart users should expect. However, it offers access to nearly 100 cryptocurrencies – more than Coinsmart users should expect.
CoinSmart vs Bitbuy – Bitbuy offers some of the lowest trading fees in Canada (0.1% – 0.2%), but they are comparable to those of CoinSmart. Most features (like account verification and customer support) are similar between the two platforms.
We already mentioned an Interac deposit fee of 1.5% for deposits less than $2000, which excludes those below $100. It should go without saying that a deposit of $2000 and above is free of Interac fees. Withdrawal fees are at 1% and should be the same regardless of which of the supported countries you withdraw from.
CoinSmart was once considered the best crypto exchange in Canada, and not globally, due to exclusivity. Recently, however, CoinSmart went global and now offers similar fees to all supported countries. Part of why CoinSmart managed to globalize successfully was because of an increase in daily active users. During the third quarter of 2021, Coinsmart’s daily active users jumped 651% YoY.
Interestingly, CoinSmart offers free wire and bank draft deposits, but up to 6% debit and credit card purchase fees. Lastly, single trade fees are 0.20%, and double trade fees are 0.40%. That about covers all CoinSmart fees related to cryptocurrency exchanges that may be of interest to potential users.
CoinSmart currently offers a large selection of currencies. Other platforms have even more extensive lists but often compensate with higher fees. Regardless, here are some of the more noteworthy cryptocurrencies that CoinSmart has to offer:
- Bitcoin Cash
- Shiba Inu
The list is not the be-all and end-all of supported currencies. Sometimes, the currencies a platform accepts change, and the most reliable source of information when it comes to supported currencies is the official source – the platform itself. Most cryptocurrency exchange platforms try to add as many new cryptocurrencies as possible without having to implement more fees, and the same should hold true for CoinSmart. After all, it is a contender for the title of best crypto exchange service. As for the CoinSmart vs Coinbase and CoinSmart vs Bitbuy discussion, the lists of cryptocurrencies supported by the three are almost identical.
The wallet feature is similar to an e-Banking platform. Essentially, it is a way to store and access your cryptocurrencies. There are no significant differences between this and other wallets. When you create your CoinSmart account, you get access to a wallet. The platform is easily accessible and has a modern look to it. It uses a combination of vivid colors and large icons, which make all of its features, including the wallet, easily accessible.
The feature is not unique to CoinSmart. Many Bitbuy reviews, for example, note the wallet feature, as each platform has a wallet feature.
All of the best cryptocurrency exchange services offer cold digital wallets that users need to purchase currencies. Buying a separate wallet for each cryptocurrency you own would make no sense. Although the wallet itself might not be different than any other wallet, what usually determines its worth are the security policies behind it. So, how does CoinSmart secure your wallet?
According to Finance Magnates’ Bilal Jafar, in 2021, the number of registered users CoinSmart had reached 150,353. Since then, it has been speculated that CoinSmart’s registered user count has doubled. Any platform with such a large user count should have excellent security, and CoinSmart security appears to be up to par.
The first step CoinSmart took to prevent fraud was implementing an identity verification process. The process uses databases from data collection agencies, used to set up similar security measures and the databases cross-reference addresses and dates of birth. As an additional measure, CoinSmart occasionally asks users to take a selfie along with a reference note when making their first flat deposit.
Lastly, CoinSmart security uses a two-factor authentication system, which provides the client with a unique code on every login attempt. This, coupled with the fact that CoinSmart is backed by trustworthy institutions, such as Luminus Financial, makes a solid case for trustworthiness.
The verification process is an initial security step that is worth discussing separately from the application’s other security measures. To verify and open an account, the user must have a government-issued ID and be at least over 18. The second part of the verification process requires the user to send a selfie and answer two simple questions, and lastly, they must select a security question. While researching for the CoinSmart review, we found out that the process looks something like this:
- The user uploads their identity document through cloud software which requires the picture to be clear, legible, and reasonably authentic.
- A prompt pops up, asking the user to enter their address.
- The user enters their job title and the industry to which it belongs.
- The user is asked to take a selfie and upload it quickly and easily.
- A set of security questions become available, and the user must choose one.
After the previously mentioned process, which is easy to follow through, thanks to the platform’s intuitive design, all features become immediately available.
As we mentioned at the beginning, CoinSmart offers 24/7 customer support to its clients. Their customer support mainly functions through a ticket system, but users can also use a live chat function on their website. They also include phone support, which becomes available once a user’s account has been set up.
Moreover, users who think their problem is common and can be solved easily have access to a “FAQ” page, which offers quick solutions to some of the most common issues other users have faced. And lastly, if a user is in a hurry, they can contact customer support by clicking a “Support” icon.
Generally, CoinSmart seems to have fleshed-out customer support that should be more than enough to solve any problems related to their platform.
Based on our research for this CoinSmart review, the claim of it being one of the best crypto exchange services in Canada and beyond is justified. Most of the standard features, like having a linked CoinSmart account and wallet, are there. Furthermore, CoinSmart security is not state-of-the-art technology but does get the job done. Most CoinSmart fees appear to be warranted and ensure that the platform is operational and does not differ significantly from similar platforms. In a CoinSmart vs Coinbase or CoinSmart vs Bitbuy debate, it would probably come down to personal preference and maximizing on minuscule differences between the fees. Nevertheless, CoinSmart is a solid choice for anyone looking to get into cryptocurrencies.