Thought y’all might be interested in the below!
It’s official: we’re out of beta!
The concept behind Newton is simple: we were sick of high fees and the hoops Canadians needed to jump through to make crypto accessible, so we partnered with a professional trading firm (DV Trading) to get rid of them.
How does that work, exactly? We act as a market maker, buying and selling crypto from our customers rather than acting as an exchange. This allows us to capture part of the difference between the buy and the sell price (i.e. ‘the spread’).
Why can we do this when others can’t? Our partner, DV Trading (who invested in Newton), has over 15 years of experience in proprietary trading in Canada and the US. They’ve traded stocks, commodities, FX, crypto — you name it. They bring a level of maturity and discipline to cryptocurrency that we haven’t seen before in Canada.
Our partnership allows us to offer spreads similar to major cryptocurrency exchanges — but with no trading fees and no funding fees. We think it’s pretty compelling.
How does it work?
Getting started is easy. We’ve partnered with Plaid so you can securely connect your bank account to Newton. We’ll run a quick ID verification check (~30 seconds), and you’ll be able to add funds right away using pre-authorized debit.
While you’re waiting for the funds to clear (usually 3–4 business days), we’ll release up to $500 in Instant Funds so you can start trading immediately. Don’t miss the dip — even if it’s a long, long dip. :’(
Limits are sensible: you can add up to $5000 per day to your account when you join, and over time that limit will grow to $50,000 as we get to know you.
Once we receive your funds, you’ll be able to withdraw CAD or crypto after a 7-day holding period.
Right now you can trade BTC and ETH. LTC is coming in the next few weeks, and more coins will be added rapidly.
Oh, I suppose there is one catch: Newton is currently only available for iOS. Android is coming soon.
Some notes on security
At minimum, every Newton account has SMS 2FA enabled. We also monitor accounts for suspicious activity that might suggest an attempted takeover.
We make use of some nifty security features unique to the Apple ecosystem. In addition to our nice-to-have Apple Watch and Siri support, we use Apple’s device attestation service to ensure that users are connecting from real, non-jailbroken iOS devices. We’ll be using a similar service for Android at launch.
We store most of our cryptocurrency (or private keys, technically) in cold storage at facilities with 24/7 camera surveillance inside of literal vaults . We’re currently beta-testing Hardware Security Modules (HSMs) for our hot wallets, a high bar for private key protection that (as far as we know) only Gemini has met — we’ll be rolling this out before the end of the year.
We are absolutely paranoid about security because, well, we need to be.
Further questions we thought you might ask
Do you offer <insert funding method> or have plans to?
For a number of reasons we currently only offer pre-authorized debit. We may, however, add additional funding methods in the future.
Can I add crypto from an external wallet?
You sure can! If you’re depositing crypto and exchanging for CAD you’ll be able to withdraw funds after a minimum number of confirmations.
What about Android/web?
Android is coming very soon. As for web — we’ll have some interesting news about this in Q1 2019.
Isn’t the spread a de-facto fee?
No. Unlike companies that claim to have no fees but really hide them in super wide spreads, we aim to be pretty darn close to the spreads you see on Canadian crypto exchanges. We just don’t charge any fees on top of that.
Can you really make money that way?
It’s definitely harder than charging outrageous fees, but DV Trading has over 15 years of experience doing exactly this type of thing in other financial markets. We feel good about our business model!
Do you invest customer funds?
Absolutely not. Customer funds are completely segregated from funds used for other purposes.
How about a slice of quiche?
Who keeps asking this question??!