Mogo Bitcoin and Rewards Review

(Editor Rating)

Ranking

9.7/10

Mogo is a digital-first Canadian financial services company that offers an easy way to trade Bitcoin. You open an account online, deposit money through e-transfer and then can buy and sell Bitcoin for a 1% fee. You cannot withdraw actual Bitcoins, as it doesn’t use a wallet system. Learn whether trading crypto through Mogo is right for you.

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Bitcoin trading

10/10

Fees

10/10

User-friendly platform

10/10

Online security

9/10



Best for:

 

  • Crypto-trading beginners
  • Bitcoin trading app
  • Easy online application

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Buying, investing, and speculating on Bitcoin has always been an involved and confusing process. You need something called a “wallet” and “keys,” and if you lose that information, you may never be able to access your Bitcoin again.

But in the last year or two, as Bitcoin has soared to record heights, FinTech companies started offering Canadians easier (and safer!) ways to get in on the crypto-action. One of these companies is Mogo— a Canadian FinTech company that offers a range of millennial-focused financial products and services. The company expanded their offerings to crypto in 2018, with the ability to invest in Bitcoin for a fairly low fee of 1%.   Keep reading to learn more about Mogo Bitcoin and Rewards.

What is Mogo Bitcoin and Rewards?

Mogo Bitcoin and Rewards is the newest addition to the Mogo family. Although Mogo has been criticized in the past for its high-interest personal loans, Mogo Bitcoin and Rewards offerings are legit and valuable.

Mogo Bitcoin and Rewards offers an incredibly easy way to purchase Bitcoin. The process takes minutes: just open an account online and verify your identity. Then, e-transfer the money, which can take between 30 minutes to one business day to be processed. Once it’s funded, click a few buttons to purchase Bitcoin, for a 1% trading fee. When you want to sell, go back onto the app or web platform. It’s just as easy (if not easier!) than trading stocks through your online discount brokerage.

The catch is that you won’t actually be able to use the Bitcoin. You can only trade it for cash. But it doesn’t really matter if your goal is to speculate and make money. However, if you’re looking for the actual coin (because you’re a crypto enthusiast or want to possess the digital currency), then you’re going to want to go with the traditional wallet system.

If you’re a crypto investor, it’s worth considering what Mogo has to offer. Very few other Canadian-based companies currently offer such an easy and low-cost way to make money off Bitcoin.

Key Features

Fees1% per trade amount
Minimum investmentNone
Account maximum$1 million
Minimum deposit$10
Maximum deposit$3,000 every 24 hours
Maximum withdrawal$9,000 per withdrawal and a maximum of $9,900 ever 24 hours
Cashback0.5% on >$10,000 monthly trades

  • Fees: At 1%, Mogo has an extremely competitive trading fee. For example, Wealthsimple Crypto charges 1.5% for an almost identical service. Mogo does not currently charge any other fees, including withdrawal or annual fees.

  • Bitcoin price: It’s possible that purchasing Bitcoin through Mogo is more expensive than purchasing Bitcoin directly. The Bitcoin price on offer includes fees or mark-ups applied by the exchange partner through which Mogo purchases Bitcoin (aka the middle-middle person). Usually, the exchange partner adds a 1 to 2% spread, on top of which Mogo adds 1%).

  • User experience: Excellent. Mogo has clearly invested a lot into making its sleek website and app user-friendly.

  • Depositing money: Excellent. You don’t have to link a bank account: simply Interac e-Transfer the funds, which means less paperwork and processing time. You cannot deposit Bitcoins.

  • Withdrawing money: You do have to link your bank account to access your cash, and this can take a few days to set up.  There is also a holding period of three days for withdrawing cash you recently deposited. You can only withdraw $9,000 per transaction and a maximum of $9,900 every 24 hours. You cannot withdraw Bitcoins.

  • Cashback: Earn 0.5% cashback on all of your trades each month you trade $10,000 or more.

  • Crypto-offerings: You can only trade Bitcoin right now. No other cryptocurrencies like Ethereum are offered.

Start trading with Mogo Bitcoin and Rewards!

Pros and Cons

Pros

  • Ease to use
  • Low fees
  • Easy to deposit funds
  • Cash back for active traders
  • Transparent fee structure

Cons

  • Can’t deposit or withdraw Bitcoins
  • Have to link a bank account to withdraw money
  • Only offer one cryptocurrency for now

How Does Mogo Bitcoin and Rewards Compare?

Mogo’s main competitor is Wealthsimple Crypto—a leading Canadian FinTech company.  In comparing the two, Mogo is the winner for trading Bitcoin because its fees are lower: 1% compared to Wealthsimple’s 1.5-2%.

That being said, Wealthsimple Crypto has some enticing additional offerings that may be more suitable for you depending on what you need. For instance, Wealthsimple Crypto offers trading of an additional cryptocurrency: Ethereum. Plus, if your online brokerage account is already with Wealthsimple Trade, it’s much simpler to open a new Wealthsimple Crypto account and have all your investments in one place.

FAQs

Yes, Mogo Bitcoin and Rewards is safe to use. Like any investment, your Bitcoin may depreciate in value, but you can be confident that it is stored with a reputable company. Be aware that federal and provincial deposit insurance plans like the CIDC don't cover digital currency at Mogo, or elsewhere.
Mogo takes reasonable precautions to keep your Bitcoins safe, but they cannot guarantee it. It keeps your coins offline in “cold” storage (kind of like a vault for cash). But it’s still possible hackers could steal your Bitcoins. This risk isn’t unique to Mogo, however. It could happen with any crypto exchange.
It depends. If you buy the Bitcoin ETF and hold it in a tax-sheltered TFSA or RRSP, you do not have to claim Bitcoin gains on your taxes. However, if you do not hold Bitcoin in your TFSA or RRSP, your crypto gains are taxable. Revenue Canada recognizes cryptocurrency gains as either business income or capital gains, depending on the circumstances. Read more about Should You Buy Bitcoin in Your TFSA and RRSP? And consult a qualified accountant to get all the info.

Final Call: Is Mogo Bitcoin and Rewards worth it?

Mogo Bitcoin and Rewards is definitely worth it if you’re looking for an easy way to begin investing and trading Bitcoin. Its low fees and user-friendly platform make it a no-brainer for Canadians interested in the crypto world. If you’re a first-timer, take a look at how to start trading cryptocurrency.

Still not sold? Take a look at the best crypto exchanges in Canada.

 

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