For starters, it is great to see new Canadian exchanges where investors can buy Bitcoin in Canada using Interac and safe bank transfers. It is not that buying cryptocurrency in Canada is a particular challenge. Rather, Revenue Canada treats cryptocurrencies as fungible assets, which just means that Canada recognizes the value of cryptocurrency.
That also means that there are more regulations for companies dealing in cryptocurrencies, like exchanges, such as CoinSmart. So, it is important that exchanges are as transparent as possible to their customers.
What Do We Think of CoinSmart?
KYC and AML for Users
CoinSmart is a licensed exchange operating out of Toronto, Canada. That means that they must comply with FINTRAC, a centralized Canadian compliance standards agency. It also means that this is not a decentralized exchange where transactions are anonymous.
Users must signup for a verified account, which means users need to verify their identity and address. This is a super simple process, as CoinSmart is partnered with Canadian credit company Equifax.
The downside is that those who really guard their anonymity when it comes to cryptocurrency and the internet will not be rushing to signup. But it is 2021, and it is this author’s opinion that customers need to be smart with their data and security -not paranoid.
This is a managed exchange, which means that it must comply with Canadian regulatory bodies. On the upside, CoinSmart can be linked to a bank account, and you can easily buy Bitcoin with Canadian dollars.
Perks of the Smart Guarantee
CoinSmart has a pretty straightforward fee structure. The list of specifics are posted at the end of this article, but make sure you visit the site, so you are clear on the details. There is nothing worse than surprise fees.
One of the perks that they offer is that you can pay a fee to ensure that a deposit or transaction is completed by a certain date, which is called the “Smart Guarantee.” While transactions rarely take more than a few days, there is real value in having a guarantee for money matters.
There is also a referral program, which gives you a $25 credit for every new user you refer who opens an account and makes a deposit.
Security and Crypto-Storage
As I have mentioned, you will need to give CoinSmart personal information if you want to open an account with them. The exchange uses SSL encryption, which means that your information is very secure while browsing.
To show that your browsing is protected from phishing or hacking, a padlock icon will be visible in your browser.
Moreover, the majority of the cryptocurrency held by CoinSmart is kept in cold-storage. Cold-storage means your cryptocurrency is kept off-line so that it cannot be easily stolen. Only a small portion of the cryptocurrency they hold is held online in hot-storage.
Cryptocurrencies on the Exchange
- Bitcoin Cash
- Stellar (XLM)
- Cardano (ADA)
One major way that exchanges earn money is with transaction fees. They are a lot like traditional exchanges in that way. The fee structure is very transparent. But it is worth reading over carefully, so you know what to expect. CoinSmart has a very fair fee structure.
Commission fees for a single trade are 0.2%, which works out to $2 for a $1000 trade. There is a small fee of 1.5% on e-transfers under $2000, but there is are no fees for transfers above $2000. There are also small fees for withdrawals; it is 1% for every withdrawal.
All-in-all, CoinSmart is a quality exchange. The platform has a very usable interface and an easy account verification process and credit check. It is also super important that they have strong and legitimate security protocols.
And importantly, the fee structure is very fair and in line with other exchanges. The real advantage is for those who buy Bitcoin in Canada because CoinSmart has a well-organized project.
Finally, it will be better when the CoinSmart mobile app is up and running.
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This article is Originally posted on CoinCentral.com
Author: Guest Author