Newton Crypto Review: Is It Any Good in Canada?

Published: 24th June, 2024 | Last Updated: 18th June, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this review, I will help you decide whether Newton is a good choice for you. Together, we’ll look at Newton’t features, pros and cons. I will compare Newton in terms of fees, funding options, and token ranges with other popular Canadian crypto exchanges. I will also evaluate the user interface and rate the overall user experience.

We’ll also look into the security features and determine whether your crypto is safe on Newton. Finally, we will look at the people behind the company and how it all started. 

This review is part of my series on the best Canadian crypto exchanges.

Ready? Let’s dive in.

Newton Crypto Review

Overall Rating: 3/5

Newton’s main benefit is that it’s an easy-to-use app with a clean interface tailored to the Canadian market. They offer a range of 70+ cryptocurrencies, which is decent but lower than what you can find on offshore exchanges such as Coinbase, Kraken, and Crypto.com. Newton does not charge fees for depositing or withdrawing fiat to your bank account, and they will even cover up to $5 in-network fees for crypto withdrawals. In terms of fees, it stands somewhere in the middle. It’s not the most expensive platform to trade crypto on, but neither is the cheapest. My overall sentiment for Newton is that it is safe and easy to use. However, I am not overwhelmed by the product. 

Pros and Cons at a glance

Pros

  • Strong security measures
  • Easy-to-use
  • Free deposits and withdrawals
  • Good customer support team

Cons

  • Hidden fees
  • Requires ID verification
  • They own your private keys
  • Limited range of crypto

Features

  • It has 70+ cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Solana, and more. 
  • Zero deposit and withdrawal fees
  • Available as a mobile app on iOS App Store and Google Play store and as a website
  • Recently, we just launched a staking feature. You can join the waiting list here.
  • It is registered as a restricted dealer with the Ontario Securities Commission and the security regulatory authorities in all other provinces and territories in Canada.
  • PIPEDA-compliant, FINTRAC ready, and offers an exportable T5 statement for your tax returns
  • Issues monthly statements and allows you to track your portfolio
  • Option to set recurring buys
  • Plans to launch a prepaid VISA card like their competitors do.
  • Instant verification
  • High liquidity 
Newton Homepage
Source: newton.co

Pros

#1. Security

Newton stores most of its funds in institutional-grade storage in partnership with Coinbase. This means that your crypto is in cold storage and cannot be accessed by hackers remotely.

They also back up their private keys distributedly, ensuring multiple redundancies in case of accidental loss.

The company conducts regular internal security audits and penetration testing.

Customers’ custodied assets are also insured against hacks and theft since assets on Newton are covered by Balance’s crypto crime insurance policy.

As a Newton customer, you can set up two-factor authentication to verify transactions, which reduces the chances of someone being able to authorize transactions on your behalf. 

#2. Easy-to-use interface

While scanning discussion forums, I found that most people are impressed by the sleek and snappy user interface.

Navigating the Newton app is easy and made to appeal to beginners.

For those who need it, Newton plans to allow you to toggle more advanced features, such as trading charts. The app also receives high ratings on Google Play and the Apple Store.

You can also place Newton widgets on your phone’s home screen to track the price of your favorite coins or the performance of your portfolio. 

#3. Free deposits and withdrawals

Newton does not charge you any fees for depositing or withdrawing fiat currencies.

When you transfer your crypto to another wallet, they cover up to $5 of the network fee.

For example, most Bitcoin transfers cost $2-4, so Newton covers the transfer cost. Ethereum transfers are more expensive, so they only cover up to $5, and you would need to pay the difference. 

#4. Good customer support team

Newton has set up a customer service team across all time zones in Canada, and overall, the feedback is positive.

Compared to the larger exchanges, you will get better customer support here since the pool of customers is smaller.

Users can troubleshoot issues by filing support tickets or via live chat.

Cons

Newton Crypto Review

#1. Hidden fees

Newton is not transparent about how much they are charging you.

They disclose that they charge a spread but do not disclose how much the spread is. Before confirming a transaction, most crypto exchanges show you what they charge you. 

#2. Requires KYC 

Setting up a Newton account requires verifying your ID and sharing personal information such as your name, phone number, and email address.

As a Canadian cryptocurrency exchange, Newton must comply with local regulations and collect customers’ data.

#3. They own your private keys

The Newton exchange offers a custodial solution for your assets. This means you don’t have access to the private keys of your funds.

If Newton were to abscond with your fund, as has happened with other Canadian exchanges such as Quadriga, you would not get your crypto back.

For this reason, you should send your crypto to a cold wallet.

See Which Is the Best Crypto Wallet in Canada? Check out more on this topic.

#4. Limited range of crypto

Once you get into crypto, you will want to buy coins with lower market caps and higher upsides.

Newton won’t suit you if this is you, as they only offer 70 crypto coins and tokens. 

#5. User complaints

I collected a bunch of user complaints and advice from Reddit below

  • Don’t withdraw more than $10k at a time because that requires a manual review and causes delays.
  • Some users wanted more trading pairs. For example, to buy SOL with USDT, you first need to convert to CAD and then to USDT, which raises fees. 

Funding Options

Newton offers the following ways to deposit and withdraw Canadian dollars. They do not charge any fees. 

  • Interac e-Transfer for up to $10,000
  • Wire transfer for more than $10,0000
  • Pre-authorized bank transfers via Plaid
  • Crypto transfers from external wallets

Fee Structure

Newton does not charge a fixed commission per trade. Instead, it charges a spread on the price at which you buy crypto assets.

For example, if Bitcoin is $65000, they might charge you $65,650.

The company used to disclose the spread per trading pair, but trading fees are no longer available at the time of writing.

While they claim to offer low fees, my calculations indicate that these fees will cost you about 1%, which is higher.

Most of the large crypto exchanges charge under 1% for a trade. The spread varies depending on the coin. 

Newton also offers a more advanced product targeting professional traders who trade large volumes. Known as Newton Pro, it provides low maker and taker fees, which are lower than 0.1%

Background

Newton Crypto Review
Source: newton.co

Newton launched on the heels of the Quadriga scandal when many Canadian customers lost a lot of money in 2018.

At the time, it raised $15 million from a Venture fund called DV Chain, and then in 2022, it raised another $25 million from the likes of Tiny Capital and Tobias Lütke’s Snowdevil Capital.

Tobias is a Canadian resident and the founder of Shopify.

Other investors include Singh Capital Partners and Anthony Pompliano.

The company’s CEO, Dustin Walper, previously launched a telehealth startup called Akira. Other cofounders are Erynn Saunders and Tyson Leslie.

Alternatives to Newton

There are better crypto trading platforms than Newton, with a broader variety of products to choose from and lower fees.

Some alternatives are

  1. Shakepay for BTC and ETH. It rewards you with daily Satoshis if you shake your phone. 
  2. Kraken for security. See Is Kraken Good in Canada?
  3. Coinbase for more than 250 crypto assets. See Is Coinbase Legit in Canada?
  4. Crypto.com for cheap fees

Check out the best Canadian crypto exchanges for a more comprehensive list. 

FAQs

Can I withdraw crypto from Newton?

Yes, you can easily withdraw crypto from Newton and transfer it to another exchange or wallet. To do this, you must first save the new wallet address in your address book. Newton will email you to confirm your address, which will make for secure transactions. 

How old is Newton Crypto?

Newton was founded in 2018. That’s a long time by crypto industry standards. 

Is my money safe in Newton?

Your money is safest when you store it in a wallet that is not connected to the internet. Such wallets are known as hardware wallets. Otherwise, if you want something idiot-proof, consider something like Ledger Recover or Coinbase Vaults.

Is Newton a cold wallet?

No, Newton is a crypto exchange that takes custody of your funds. If they were to abscond with your funds, you would have no recourse to them. However, Newton stores 95% of its users’ funds in cold storage. A cold wallet is a hardware device that looks like a card or USB device. 

Does Newton have withdrawal fees?

No, Newton does not charge for withdrawals and will even cover the first $5 in blockchain network fees when you move your crypto deposits to another address. 

Is Newton legal in Canada?

Yes, Newton is registered as a restricted dealer, which means it can solicit business from Canadian customers. 

Where is Newton Crypto located?

Newton is headquartered in Toronto and also has an office in Montreal. 

Is Newton a Bitcoin wallet?

No, Newton is a crypto exchange where you can buy Bitcoin and 70 other cryptocurrencies. 

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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