Assets, Bitcoin

Do You Actually Own Bitcoin on Wealthsimple?

Wealthsimple, an online investing platform, recently announced that it would be adding Bitcoin to its list of supported assets. For many potential investors, this raises the question: do you actually own Bitcoin on Wealthsimple?

The answer, unfortunately, is not as straightforward as one might hope. While Wealthsimple does allow you to buy and sell Bitcoin, it does not actually hold any of the coins itself.

Instead, Wealthsimple uses the services of a company called BitGo to custody the coins on your behalf.

This arrangement has a few potential downsides. First, it means that you don’t have true ownership of your Bitcoin.

NOTE: WARNING: Investing in Bitcoin through Wealthsimple involves a high degree of risk and may not be suitable for all investors. Before investing, it is important to understand the risks associated with this product, including the potential loss of capital. This investment product is not insured or guaranteed by any government agency. It is your responsibility to understand and assess the risks associated with this product and make an informed decision about whether it is appropriate for you.

If something happens to BitGo or Wealthsimple, your coins could be lost or stolen. Second, it introduces another layer of fees, as both Wealthsimple and BitGo charge for their services.

All things considered, then, you should carefully weigh the pros and cons of investing in Bitcoin through Wealthsimple before making a decision. While it is certainly convenient, you should be aware of the risks involved.

The bottom line is that you should do your own research before investing in Bitcoin through any platform, including Wealthsimple. Only invest what you’re willing to lose, and remember that the cryptocurrency markets are highly volatile.

With that said, Wealthsimple does offer a convenient way to access the Bitcoin market for those who are interested.

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