Security Compliance
Coinbase uses its own digital wallet for storing your cryptocurrency.
Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.
In terms of security, both Coinsmart and Coinbase are considered to be safe and reliable exchanges.
Coinsmart uses cold storage for its digital assets, which means that the majority of its users' crypto holdings are kept offline, away from the internet, and in secure storage facilities. Coinsmart also requires all accounts to have two-factor authentication and employs a verification process that utilizes a database provided by data collection agencies to detect fraudulent information. Additionally, all deposits and withdrawals must be confirmed through Google Authenticator and email, respectively.
On the other hand, Coinbase also uses cold storage for the majority of its users' digital assets, and it holds 98% of its bitcoin and other assets in cold storage. Coinbase ensures the security of wallets and private keys by encrypting them, and requires employees to pass a criminal background check. However, they use SMS 2FA, which is not considered the safest method for two-factor authentication. Alternatively, users can choose to use Google Authenticator or a security key for two-factor authentication.
Both Coinsmart and Coinbase have implemented robust security measures to safeguard the funds and accounts of their users.
However, it is important to note that no exchange is completely immune to security risks, so it is essential for users to take their own precautions as well, such as enabling two-factor authentication and keeping their login credentials secure.
Regulatory Compliance
Coinsmart is fully compliant in Canada. Not only the exchange is registered with FINTRAC but they are also granted status by Ontario Securities Commission (OSC).
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
In Canada, both Coinsmart and Coinbase must comply with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which is a federal agency responsible for ensuring compliance with anti-money laundering and counter-terrorism financing laws.
According to Canadian legislation, crypto exchanges are classified as money services businesses (MSBs) and are required to register with FINTRAC. Both Coinsmart and Coinbase are registered as MSBs with FINTRAC, which means they have to follow strict anti-money laundering (AML) and know-your-customer (KYC) policies to prevent any illegal activities from occurring on their platforms.
Customer support
CoinSmart states that it has a 97% customer satisfaction rate and this claim is backed up by the 70% excellent customer reviews on Trustpilot. CoinSmart offers 24/7 support via email and online ticketing.
Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.
Coinsmart offers 24/7 customer support via live chat and support tickets on their website. A section with frequently asked questions and a knowledge base are also available to users, providing answers to common inquiries. Coinsmart claims to have a 97% customer satisfaction rate and our personal experience with their customer support was positive, with a problem being resolved within a few hours.
Coinbase has been criticized for its customer support in the past, with many users reporting long wait times for support and difficulty getting their issues resolved. However, Coinbase has recently implemented 24/7 phone support to address these concerns. On their website, they provide email and live chat support as well. However, their support team has a reputation for being unresponsive or slow to address issues, and they have a low rating of 1.5 stars on Trustpilot.
Overall, Coinsmart seems to have a better customer support experience, with quicker response times and higher customer satisfaction ratings. Coinbase has made efforts to improve their support, but still has a ways to go to catch up with Coinsmart in this area.
Conclusion
In conclusion, both Coinsmart and Coinbase are reputable and popular crypto exchanges. However, when comparing their features, fees, and customer support, Coinsmart emerges as the clear winner for Canadians.
Coinsmart offers lower fees, faster verification times, a wider selection of cryptocurrencies, and superior customer support that is available 24/7. Coinsmart ensures that they are following all the necessary Canadian laws and regulations, which guarantees their users that their funds and personal information are secure.
While Coinbase is a great exchange for beginners, it falls short for Canadians due to its high fees, limited deposit options, low account limits, and poor customer support.
Overall, if you are a Canadian looking for a trustworthy and user-friendly crypto exchange, we highly recommend Coinsmart as the better choice.
We recommend choosing Coinsmart over Coinbase for your cryptocurrency trading needs. By opting for Coinsmart through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
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 to 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. Sign up using our referral link and get free $50 when depositing $250 on your account!
If you find that neither Coinsmart nor Coinbase meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.
