Bitbuy vs. CoinSmart: Which One Should Canadians Pick?

By Arthur Dubois | Published on 08 Jul 2022

Crypto Exchanges Reviews , Cryptocurrency

Table of Contents

In the ultimate face-off between crypto platforms, Bitbuy vs. CoinSmart enter the ring in a battle for your business. Which one will emerge the Ultimate Crypto Champion? Investing in anything comes with risk, but calculated risks are necessary if you want to succeed. This is especially true when it comes to cryptocurrency.

We all know crypto is volatile. Before you start investing and trading digital tokens, it’s essential that you make some important choices about how and what you are going to trade. The first step is choosing a cryptocurrency platform you will use as the hub for all your transactions.

Your best bet as a Canadian is to choose a Canadian-based exchange. That’s because a Canadian crypto exchange can give you access to features and trading options that most international exchanges can’t. Among the heavyweights in Canada, two contenders emerge. Bitbuy vs. CoinSmart: which one should Canadians pick?

In this article, we compare cryptocurrency exchanges Bitbuy and CoinSmart*. Let’s explore the difference between the two platforms, what they offer and which one you should pick as a Canadian.

*Please Note: CoinSmart is now part of WonderFi and the platform is not accepting new signups. If you’re looking for the best crypto experience in Canada, we recommend signing up for Bitbuy, another licensed Canadian cryptocurrency trading platform operated by the same parent company, WonderFi. With Bitbuy, you will get access to an improved experience on web and mobile, staking rewards, Private Wealth services, and an advanced trading interface.

What is Bitbuy?

Bitbuy is a Canadian cryptocurrency exchange based in Toronto and one of the most popular platforms for Canadians. Why? Because it’s one of the few platforms that allows Canadians to buy and sell cryptocurrency by linking their Canadian bank account. You can both deposit and withdraw Canadian Dollars.

BitBuy was founded in 2013 under the name InstaBT but rebranded as Bitbuy in 2016. They also became the first cryptocurrency exchange to receive full approval from the Ontario Securities Commission. At the time of writing, there have been over four billion dollars traded on the platform, and they have over 400,000 Canadian users.

What is CoinSmart?

CoinSmart is another Canadian cryptocurrency exchange based in Toronto and frequently tops the list of best cryptocurrency platforms in Canada. It was founded in 2018, but although it hasn’t been around long, the platform has grown very quickly. At the end of 2021, CoinSmart went public and was listed on public markets.

CoinSmart did this to increase transparency, reliability, and to bridge the gap between crypto and traditional finance. Going public means they have access to financial backing so they can grow even faster. CoinSmart was designed for beginners yet built for experts, meaning that the platform is straightforward to use but also has various in-depth features for more advanced traders.

Trading options on BitBuy vs CoinSmart

Good news – since both Bitbuy and CoinSmart are Canadian companies, each platform offers some great ways for Canadians to buy and sell cryptocurrency. Let’s take a look at the trading options of each one.

Bitbuy

Bitbuy was built for Canadians and offers many different methods to buy and sell cryptocurrency. Once you’ve set up your Bitbuy account, you can fund your wallet with Canadian Dollars using either e-Transfer or Wire Transfer.

The minimum amount you can deposit using e-Transfer is $50, and the maximum is $10000. For amounts over $10000, you’ll need to use a Wire Transfer. Bitbuy does not allow you to fund your account using debit or credit cards.

Bitbuy currently supports 25 digital currencies, but they are continuing to add more. Some of the cryptocurrencies available include:

– BTC (Bitcoin)
– XLM (Stellar)
– LTC (Litecoin)
– SUSHI (Sushi Swap)
– MANA (Decentraland)
– APE (Apecoin)
– AXIS (Axie Infinity)
– And more!

Another perk of Bitbuy, when you compare it to many other cryptocurrency platforms, is that you can sell your digital tokens for Canadian Dollars and then withdraw them into your personal bank account via e-Transfer or Wire Transfer. Most international platforms don’t have this option. They also have a mobile app for easy trading on the go.

One last thing to consider about trading on Bitbuy is that it’s only available to Canadian users. You must be physically in Canada to even access your Bitbuy account, which can be an issue if you’re travelling. That said, you can use a VPN to connect to a Canadian server to continue using your account while abroad.

CoinSmart

It’s incredibly easy to get set up and ready to trade on CoinSmart. Most accounts are approved almost instantly, as long as you have the correct documents for verification. These include a piece of personal ID, proof of address and a photo you’ll have to take of your face using your mobile phone.

There are multiple options for depositing and withdrawing Canadian Dollars to your CoinSmart account. The easiest option is via e-Transfer, but there is a $100 minimum and $3000 maximum. You can also fund your account using a credit or debit card, with a $100 minimum but a $5000 maximum. You can use a bank wire or bank draft for more significant deposits.

Additionally, CoinSmart allows you to fund your account using USD or EURs, which sets them apart from many other Canadian exchanges.

CoinSmart currently supports 16 digital currencies, including:

– Bitcoin (BTC)
– Bitcoin Cash (BCH)
– Polkadot (DOT)
– Chainlink (LINK)
– Dogecoin (DOGE)
– Shiba Inu (SHIB)
– Ethereum (ETH)
– And more!

You can sell your digital tokens for Canadian Dollars, which will return to your fiat wallet on CoinSmart. You can then withdraw to your bank account using electronic funds transfer or bank wire. CoinSmart does not allow you to withdraw using e-Transfer.

Trading Fees on Bitbuy vs. CoinSmart

Next, let’s look at the fees involved with trading on each platform. If you plan to trade actively or make frequent transactions in or out of your account, fees are critical to consider in the battle between Bitbuy vs CoinSmart.

Bitbuy

Bitbuy has two primary interfaces that users can use, Express Trade and Pro Trade. The fees will vary based on which you choose to use. Express Trade is the easiest to use but comes with higher fees to trade. The Pro Trade interface can confuse new traders, but the fees are lower.

Deposits and withdrawals are the same across the whole Bitbuy platform. The fee for funding your account using Interac e-Transfer is 1.50% for up to $10,000. For $20,000 and over, the fee is 0.50%. To withdraw funds to your bank account using Interac e-Transfer, it’s 1.50% up to $10,000 and 1.00% for over $20,000.

To buy and sell cryptocurrency, you’ll pay a flat fee of 0.50% on the Express Trade interface. On Pro Trade, the maker fee is 0.10%, and the taker fee is 0.20%.

There is no fee for depositing digital currencies from external wallets or exchanges, and the fee to withdraw crypto from Bitbuy will vary based on the token you’re trying to send. You can see a complete list of the withdrawal mining fees here.

CoinSmart

The fees for trading on CoinSmart are fairly reasonable, with some incentives for you to fund your account with a higher volume of fiat currency. First, let’s look at the fees to fund your CoinSmart account with Canadian Dollars and how much you’ll pay to withdraw.

The fee for depositing Canadian Dollars using Interac e-Transfer is 1.5% for up to $1999 and free for over $2000. This is a great way to incentivize users to deposit larger sums at once because even with a $2000 deposit, you’ll save $30. Funding via bank wire is also free but has a $10,000 minimum. Lastly, funding your account with a credit or debit card will incur a fee of up to 6%. There are only two ways to withdraw Canadian Dollars from your CoinSmart account: via Electronic Funds Transfer or bank wire, both with a 1% fee.

To buy and sell cryptocurrency on CoinSmart, you’ll pay a flat fee of 0.20% for a single trade, which means purchasing digital tokens using Canadian Dollars or trading Bitcoin for another cryptocurrency. You can also make a double trade on CoinSmart, which means trading crypto for crypto (not including Bitcoin), which will cost you a fee of 0.40% per transaction.

If you want to withdraw your crypto tokens to an external wallet, the fees will vary based on the token. You can find a complete list of the fees here.

Read More: 20 Ways to Buy Bitcoin in Canada

Features on Bitbuy vs. CoinSmart

Each cryptocurrency exchange offers unique features that set them apart from the competition. Here are some of the features you’ll find from Bitbuy vs. CoinSmart.

Bitbuy

Bitbuy is a simple cryptocurrency exchange that focuses on being just that. You won’t find a lot of bells and whistles on the platform. But most cryptocurrency traders don’t want anything fancy anyway, just an easy way to trade.

One unique feature of Bitbuy is that they have both Express Trade and Pro Trade modes. The Express Trade interface is perfect for beginners or anyone who wants to buy and sell cryptocurrency easily. But for users wanting access to other technical analysis tools and charts, there is the Pro Trade mode.

Another feature of Bitbuy is its referral program. You will receive $40 for each person you refer, once they deposit $250. They will also receive $40 free. Bitbuy also has an OTC desk for traders or investors who deal in large volumes.

CoinSmart

CoinSmart is also very simple to use for cryptocurrency traders, no matter how much experience you have. There is also a mobile app to make trades from your phone regardless of where you are. What sets CoinSmart apart from other Canadian cryptocurrency platforms is that you can fund your account with EUR and USD. For USD, the only funding method is via wire transfer, which means there is a $10,000 minimum. But you can fund your account with as little as €50 using SEPA transfer.

Another feature of CoinSmart is the ability to make what they call ‘Smart Trades.” Smart Trades are when you can trade directly from one cryptocurrency to another without going through Bitcoin or Ethereum first. While many platforms may offer trading pairs involving the two primary coins, with CoinSmart, you can trade between altcoins.

CoinSmart also has an advanced trading interface that includes stop-loss, limit orders and real-time charting functionalities, so more experienced traders have these options. Or, you may want to learn more about crypto yourself, and you can do so via their GetSmart Hub, which has tons of resources like how-to guides and articles to help you level up!

Coinsmart offers a referral program, offering you and the person you refer $15.

Security Features on Bitbuy vs CoinSmart

Before choosing a cryptocurrency exchange you want to make sure your funds will be secure. Each platform has different security features in place to protect your assets.

Bitbuy

Bitbuy takes security very seriously, providing some of the most comprehensive security features of any cryptocurrency platform available to Canadians. They have monthly third-party security audits and financial audits four times a year to ensure the platform’s security is optimized.

They are also registered with FINTRAC as a Money Services Business and federally approved as a Restricted Dealer. A minimum of 95% of assets are stored offline in cold storage at any given time, so they are entirely safe, and you will need to set up two-factor authentication when you make your account.

CoinSmart

CoinSmart has some great security features so you can ensure your assets are protected within the platform. They are registered as a Money Services Business with FINTRAC, and to retain that status, they must comply with regulations. The platform also requires that all users set up two-factor authentication for extra protection. Users must connect their Google Authenticator app and enter a 6-digit code every time they want to log in. Like most cryptocurrency exchange platforms, Coinbase offers cold storage for your assets, meaning they are stored offline, so they are entirely protected from cybercriminals.

Pros and cons of Bitbuy for Canadians

Pros

95% of assets stored offline in cold storage
Pro Trade mode for in-depth technical analysis
Easy-to-use user interface in Express Trade mode
High level of security
Users can deposit and withdraw Canadian Dollars from and to their bank account
Quick verification process
Good referral program

Cons

Cannot fund your account or purchase cryptocurrency with a credit or debit card
Limited digital currencies supported
Minimum deposit is $50
The fees for trading on Express Trade mode are quite high
Can only use the platform in Canada

Pros and cons of CoinSmart for Canadians

Pros

Can fund your CoinSmart account using a credit or debit card
Can fund your account with CAD, USD or EUR
SmartHub learning centre with tons of valuable crypto resources
SmartTrade for trading altcoin to altcoin
0% fees for deposits when you deposit over $2000
Advanced trading features for more experienced cryptocurrency traders

Cons

High deposit fee of 1.5% for under $2000
Limited digital currencies to choose from
Can’t withdraw via Interac e-Transfer

Bitbuy vs. CoinSmart: which one should Canadians pick?

Bitbuy vs. CoinSmart, which one is better? Tough call. They both have a lot to offer Canadian traders, with many similarities in how the platforms work. Both have user-friendly interfaces and provide advanced options for those who want them.

When looking at the fee structure, CoinSmart comes out on top with lower deposit, withdrawal and trading fees. But Bitbuy can be more affordable if you plan to use the Pro Trade mode.

Bitbuy also offers a better referral program and has a wider variety of cryptocurrencies to choose from. If you plan to use more advanced functionalities and want more token options, then Bitbuy is an excellent choice. For those that want simple trading with low fees, then CoinSmart would be best.

Arthur Dubois

Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications