WealthSimple announced recently that it will be incorporating cryptocurrency trading service as an extension of its platform
Welathsimple, a Canadian based startup investment service for millennials, is reportedly launching an exchange called WealthSimple Crypto. The startup hopes to get it’s 200,000 existing customers to start using their new service — by offering zero commission crypto trading.
For its planned closed beta testing and upcoming release, the platform will only support Bitcoin and Ethereum, possibly why they are able to offer zero commission as their offering is so small.
New ways to buy tokens from WealthSimple
On its page, the service promises zero commission fee, no account minimum, and no deposit or withdrawal fees. This is in direct contrast to some of the crypto services currently available now that charge investors a crypto transfer fee and a blockchain fee.
The company did not disclose whether they will support other crypto assets in the future. If the crypto investing platform proves successful, the platform might be open to accepting more cryptos.
In the meantime, Ethereum and Bitcoin are good choices as they boast the two highest market caps in the crypto market.
Addressing security concerns
The new platform from WealthSimple will be a seemingly good choice for retail investors, but there are still some doubts about security and vulnerability in their system.
To address these concerns, WealthSimple has partnered with Gemini Custody in order to secure investors’ cryptos. Gemini Custody is a qualified digital asset custodian, which holds digital assets, in a secured offline facility. It is a heavily regulated and experienced firm in the industry, and offers up to $200 million in insurance coverage.
“Crypto is already super popular and growing in its popularity, and growing in its credibility. And the reality in Canada is that there aren’t that many options to buy and trade cryptocurrencies in a safe and secure platform,” said Michael Katchen, who is the CEO of WealthSimple in a recent interview.
One step at a time
Since 2017, crypto interest has arguably declined as potential investors lost their faith in cryptocurrency. There have also been efforts by the US Government to drive prices down.
With the new options that WealthSimple is providing, especially directed at millennials, there may be a new wave of young crypto investors entering the market. Unlike many of the Bitcoin futures contracts that are out there, this new platform appears to be directly connected to the crypto markets.