Before using a cryptocurrency exchange its always important to do some digging around to make sure its a legit place and that you can trust them with your money. I’ve seen many complaints and scam accusations about Coinsquare.io online so in this review I’m going to be addressing this. I’ll be going over what exactly this place is, what it provides, fees, complaints and more.
Is Coinsquare a scam? I’ll get straight to the point and tell you that No its not. However, like I said, there are a lot of people saying it is and I’ll be going over why.
I have heard Coinsquare called the Coinbase of Canada before and this is an ok comparison but they are still pretty different. The reason people call it this is because Coinsquare is a fairly well-trusted cryptocurrency exchange that allows people to purchase cryptocurrencies with fiat money, Canadian dollars in particular (its a Canadian based exchange). Additionally they allow you to cash out various cryptocurrencies back into fiat money.
However, they actually have more to offer than Coinbase does. Not only do they have more cryptocurrencies available for purchase and trading, they also have gold bars, silver bars, silver coins and more available for virtual purchase.
Its nice to see that they have other assets like precious metals available. However, most people using this exchange or looking into it are probably most interested in purchasing with fiat or withdrawing into fiat. The fact that they deal with fiat money is a big deal. Many cryptocurrency exchanges don’t want to deal with the extra hassle that comes along with all of this so they only deal with cryptos.
A Look at The Platform
The first thing you are going to have to do before you can do anything is create an account and fund your account. However, I’m going to be going over this part next. First I want to cover what the platform has to offer and how works.
After your account is funded, which you can do by depositing fiat money or cryptocurrency, you will be able to actively trade on the platform. This is set up in a very simple and easy to follow way.
In order to execute a quick trade, which is the simplest type of trade (and the quickest) you will select what asset you want to trade, how much of it you want to trade, and what you want to trade it for. It will show you a basic overview of the price chart and if you want to go through with the trade you can click on “Get A Quote”. This will show you the best price it can trade the asset for you at and you can confirm it or cancel. You will have a limited amount of time to confirm the trade at that specific price (10 minutes or so).
You can trade between any of the assets that they have available on the platform. These include things like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), DogeCoin (DOGE), Dash (DASH), Gold Bars (XAU.I), Silver Bars (XAG.X), USD, EUR, GBP, and more.
With a quick trade everything is executed instantly and you will have the new funds in your account right away.
You can also do advanced trading where you will be able to set limit orders and check out the order book to try to make good trades. This is more advanced than the quick trades but still is relatively un-advanced when compared to crypto exchanges like Binance, GDAX, Bittrex, COSS and others.
Overall the platform is definitely more geared towards beginners in the crypto space or those that are just looking for things to be as simple as possible. Its all very well laid out, easy to navigate and easy to use.
As you can imagine, you are going to have to fund your account with something before you can trade or anything. You could fund it with fiat money (CAD) or cryptocurrencies and since many people are looking to buy crypto with fiat money I’ll be going over how to do this first.
Since the exchange is Canadian your funds will be converted into CAD (Canadian dollar) during the process. Some of the more popular ways to pay include…
- Interac Online (probably the easiest way to fund with CAD)
- $100 min
- Instant processing
- 2.5% fee
- Bank Draft
- $1,000 min
- 1 – 3+ days processing
- 2.5% fee
- Wire Transfer
- $10,000 min
- 0 – 3 days processing
- 0.5% fee
There is more information that can be found on these payment methods on their site here. Most of the payment methods will require you to verify your account before you can move forward. To do this you will need a phone number, a utility bill or bank statement showing proof of address, and a government ID.
Funding with cryptocurrency
Funding with cryptocurrencies, like Bitcoin for example, is much easier. They will provide you with a bitcoin wallet address for your account and you can send your bitcoin to it. The same goes for other cryptocurrencies.
Getting a Direct Bank Deposit and a Bank Wire Transfer are the only several options for withdrawing fiat money (CAD). Luckily here the fees are much lower than they are putting money into the exchange. You will be charged 1% for a deposit, 0.5% for a wire transfer, and a 0% fee if you use Interac e-Transfer.
The minimum you can withdrawal is $100 and in order to use the wire transfer you need to be taking out over $10,000.
For withdrawing cryptocurrency its just like every other exchange. You will be able to enter the address you want to send it to and its as simple as that.
*I am going to address some common withdrawal complaints below.
The Fees… How Bad Are They
I know I’ve read online and even saw on the official site that they claim to have the lowest trading and transaction fees out of any other platform, however this is simply not true.
The fees can be separated into two different categories: trading fees and account funding/withdrawal fees.
The fees can range from 0.1 – 0.4%. This depends on what type of trade you are executing, whether you are a maker/taker, or it depends on how many conversions have to be made to make the trade happen. There is more information available on their site about how all of this works if you want to look into it more.
As I already went over, these range quite a bit. When it comes to funding your account these can be pretty hefty and up to 2.5%. Withdrawing isn’t too bad but its still not great.
GDAX might be a good alternative for you if you are buying/selling crypto in and out of fiat if you want to avoid the fees.
How Is The Support?
When it comes to exchanges finding one that offers good support can be quite a challenge. In fact, I would say that there is no exchange currently out there that actually offers “good” support. You will find exchanges that give support at a mediocre level at best.
The last thing that you want to happen is have some freak occurrence like your account being frozen with funds stuck inside and not being able to get prompt help from the support desk to get matters situated.
When it comes to the support offered at Coinsquare there is no doubt it is lacking. There are plenty of complaints that you can read through on sites like CoinForum from people who have troubles and panic because they have trouble getting help. From what I have read you need to be really patient if you do have any problems. You should first try reaching out to them via email. After that you can try contacting them on Facebook and within a week or so hopefully you will have an answer.
What I Like
Overall what I see isn’t too bad. Its not that great of a place if you are a daytrader or any sort of professional trader but it does offer a nice and easy way for people to enter the cryptocurrency market. This is what its best for and what I like about it. Also if you want to exit the market you can easily sell your crypto back into fiat money and withdrawal.. so it goes both ways.
I also like how they offer gold and silver backed tokens. This is something you don’t see on crypto exchanges and it gives you the ability to really diversify your portfolio.
One of the most popular complaints I’ve come across is how Coinsquare withholds funds. This is part of their procedure if you fund your account with fiat money (CAD) and depends on how you fund your account.
For example, if you fund your account with Interac Online your funds will be available in your account immediately. However there is a 3 day withholding period and this means you will not be able to withdrawal anything for 3 days. So you can trade and everything but you just will not be able to withdrawal.
So if you find that you cannot withdrawal your funds be sure to check to see if there is a reason for this. There probably is. There are a ton of complaints about this but it is not Coinsquares fault. They are just being on the safe side by doing this. So don’t panic and be sure to read everything over before doing something like this again.
Lack of Support
This is a legitimate complaint. Many of those complaining about their funds being withheld or other more legitimate problems have a hard time getting the support they need. This often leads to panic, chaos, and many scam accusations being thrown around, posted all over the place online.
Unfortunately lack of support is pretty much what you will get anywhere you go.
The fees can get pretty darn high here and if you are moving big money around this is going to take quite a big cut of money from you. You will likely run into a fair number of complaints about this if you look around online.
Is Coinsquare Safe to Use?
Safety is always an important concern that you should look into beforehand. Asking yourself is Coinsquare safe and should you trust them is something that everyone should be doing. The last thing that you want to happens is for the plaform to be hacked and/or your account and you lose all your funds.
Exchanges like Coinsquare hold onto your funds. For cryptocurrency funds that you have on the exchange they hold the private keys for you, which basically means that they control everything…so trust is a must.
Its always difficult to tell how safe an exchange really is. All you can do is go off of what you see and what they tell you. Its not like I can see what is going on behind the scenes.
However, as far as I can see the exchange appears to be safe. They claim that they have never lost a coin since 2015 and that the platform is built upon the same technology as the New York Stock Exchange.
As far as personal account security goes everything is pretty standard. They allow you to enable 2-factor authentication which is basically an added layer of security to keep your account from getting hacked. This is something I would definitely enable if you do decide to create an account here.
Final Thoughts – Is The Exchange Worth Using?
Coinsquare is definitely not a scam. I just want to reiterate that. Most people posting scam comments online seem to have the problem with complaining too early and not giving things time to be resolved. However, just because its not a scam doesn’t mean its a great choice.
This exchanges “claim to fame” is that it allows people to buy into crypto with fiat money and sell crypto back into fiat money. However, Coinbase and GDAX also do this. Coinbase also allows users to easily purchase with credit/debit cards and although there is a 2.5% fee associated with this that is generally high, it is comparable to that of Coinsquare.
GDAX is what I personally use when I buy with fiat or sell into fiat. They charge minimal fees (much lower than Coinsquare) and are well trusted. However, they don’t give the ability to make instant deposits with services like Interac Online.
The only real “leg up” that Coinsquare offers in my opinion is that they have markets for gold, silver, and various fiat currencies. So if this is what you like about it then by all means sign up. But if you are just looking to buy into crypto or sell out of it I would read my post on GDAX vs Coinbase here.
And as always, leave any questions or comments below. I’ll get back to you soon 🙂