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In the world of personal finance, SoFi is a well-known brand. The fintech startup began in 2011 with the goal of assisting millennials with student debt refinancing, but has now evolved to include a wide range of financial services.
SoFi now offers a wide range of services, including private school loans, personal loans, mortgages, and auto loan refinancing, as well as banking, credit cards, wealth management, insurance, and investing. In other words, it appears to be a one-stop shop for all of your financial needs.
This evaluation will focus on SoFi's investment arm, which offers a variety of ways to grow your money.
SoFi Invest® is an all-in-one investing platform that allows users to trade stocks, ETFs, and cryptocurrency, as well as buy fractional shares and participate in initial public offerings (IPOs) at IPO rates (before they trade on an exchange and the price increases).
To save for retirement, SoFi investors have access to a robo-advisor and tax-advantaged IRAs.
Select examines SoFi Invest's services below, providing information on investing alternatives, features, and fees so you can determine if it's right for your money.
What exactly is SoFi ?
The acronym SoFi stands for "Social Finance." It's a personal financial startup situated in San Francisco that was formed in 2011.
SoFi offers investing, banking, and personal loans, among other financial services. In 2014, PayPal co-founder and famed Silicon Valley investor Peter Thiel invested in the fintech business.
SoFi features
SoFi Invest offers its members a variety of distinctive features and benefits in addition to its unique investment alternatives. Here are some examples of perks available to new customers:
- Get up to $1,000 when you download the SoFi app and start an Active SoFi Invest® Brokerage Account (you'll need to make qualifying deposits).
- Earn $10 in bitcoin when you make your first crypto trade of $10 or more.
- When you transfer an account to SoFi, SoFi will reimburse up to $75 in transfer fees charged by your brokerage.
To stay up to date and receive the latest investment news, SoFi investors can build a personal watchlist that tracks their stocks.
Also, SoFi members get a 0.125 percent interest rate discount on other SoFi lending products, such as student loan refinancing and personal loans, if they need money.
As a member of SoFi, you'll get free access to unique events and experiences, as well as career services and financial advisors.
SoFi's app is free to download on both the App Store (for iOS) and Google Play (for Android), where it currently has a rating of 4.3/5 stars.
Pros and Cons of SoFi
Pros of SoFi
- The charge for exchanging bitcoins is 1.25 percent.
- There are no ATM fees.
- No deposit is required.
- When you begin trading crypto assets, you will receive a $10 bonus.
Cons of SoFi
- Only available in the United States.
- Custodial bitcoin wallet.
- No physical bank branches.
How Does the Crypto Feature on SoFi Work ?
You'll need to go to the SoFi Invest section of the app to start trading cryptocurrency with a SoFi account. Cryptocurrencies are featured as part of the SoFi Invest platform as a whole.
Users that trade at least $10 worth of bitcoin over the SoFi network are currently rewarded with $10 in their accounts.
While the $10 bonus may appear too nice to pass up, keep in mind that SoFi, like many other crypto-integrated digital banks, is a fully custodial platform.
This means you won't be able to deposit crypto into the SoFi platform from your personal wallet or withdraw your crypto holdings to gain control of the private keys connected with the coins.
From the standpoint of crypto purists, this is plainly a serious flaw in the platform.
SoFi has said that deposits and withdrawals are not currently allowed owing to security concerns, although they may do so in the future.
SoFi's support for altcoins is somewhat restricted.
Users may easily exchange bitcoin, but SoFi Invest only supports four other cryptocurrencies: ether, litecoin, bitcoin cash, and ether classic.
However, the SoFi app can also follow the prices of 40 other altcoins.
crypto available on sofi ?
SoFi allows users to trade bitcoin, Ether, Litecoin, Bitcoin Cash, and Ether Classic in the cryptocurrency market.
But keep in mind that you won't be able to move any of your crypto assets from your SoFi account to a non-custodial wallet.
SoFi Invest additionally includes 40 cryptocurrency price feeds in addition to the coins that are supported for trading.
Because SoFi is exclusively available in the United States, the platform's only supported currency is the US dollar.
Restrictions by Country on SoFi
SoFi is only available in the United States right now, which limits the app's potential as a bitcoin bank. It is, however, available in all 50 states.
sofi crypto trading fees
The cost on trading cryptocurrencies, which is 1.25 percent, is the most essential fee to consider for someone who wants to use SoFi as a bitcoin bank.
In terms of user-friendly ways to buy cryptocurrency, this is competitive, plus it's less expensive than Coinbase.
SoFi is focused on delivering a fee-free digital money experience outside of bitcoin.
There are no costs for keeping money in the app, having a minimum account balance, or having an overdraft.
SoFi even reimburses ATM fees incurred at Allpoint Network ATMs.
SoFi provides a wide range of financial services, and these additional components of the platform may be subject to fees.
sofi crypto wallet are supported
Because SoFi is a purely custodial solution, there is no cryptocurrency wallet support.
However, SoFi has stated that bitcoin withdrawals may be supported on its platform in the future.
How to Become a SoFi Member
SoFi accounts can be created via the mobile app or the official SoFi website.
The initial page of the sign-up procedure will ask for basic information like your name, state of residence, and email address.
After you've completed the initial form, you'll need to decide whether you want an individual or joint account. Individual accounts will be the best solution for the majority of people.
After all, you can always add a new account holder later.
After you've decided the account type you want, you'll need to give SoFi some additional personal information. This section's first page will ask for your complete address, and you can select to have your SoFi debit card sent to this address as well.
As a security step, you'll then add your phone number to your account.
To ensure that you are in control of the phone number you entered, you will be asked to input a verification number that will be delivered to that number.
Following the verification of your phone number, you will be asked to provide your citizenship status, date of birth, and social security number.
This is an exclusive platform available solely in the United States.
Finally, SoFi will inquire about financial restrictions that they must adhere to.
Your account will be created and you can make your first deposit once you've answered those questions and accepted to the SoFi terms of service.
Frequently Asked Questions about SoFi
Is there a bitcoin wallet on SoFi ?
Users of SoFi Invest can trade cryptocurrencies, but they do not control the coins they purchase directly on the underlying crypto network.
Additionally, users are unable to withdraw bitcoin to their own personal wallets.
SoFi should be considered a bitcoin bank rather than a bitcoin wallet.
What is the SoFi cryptocurrency spread ?
With SoFi crypto prices, there is no need to be concerned about dispersion.
Instead, you should be aware that every bitcoin transaction incurs a 1.25 percent fee.
To manage trades for their members, SoFi leverages partners like Coinbase in their backend.
Is SoFi able to provide bitcoin loans ?
SoFi does not presently offer bitcoin-denominated loans; however, this platform does offer a range of loan kinds that are denominated in US dollars.
You'll need to join up for a crypto lending platform that offers these capabilities if you want to access loans in bitcoin or other cryptocurrencies.
Bitcoin's financialization in this way is still uncommon in financial apps aimed primarily at broad audiences.
Is there a crypto bonus from SoFi ?
Yes. SoFi users who buy bitcoin using the app will receive a $10 incentive if they trade at least ten dollars worth of crypto assets through SoFi Invest.
When will I get my bonus ?
Once conditions are met and your account is opened, you will receive your Bitcoin (BTC) within 7 days.
How secure is SoFi Invest ?
SoFi takes security seriously across all of the brand’s products.
SoFi Invest uses a number of tools to secure crypto holdings against theft, including two-factor authentication, SSL encryption, partnering with trusted exchanges like Coinbase to complete transactions, and not sharing personal information about our members with crypto trading partners and custodians.
Before you purchase crypto through SoFi Invest, it is important to understand the volatility of its value, and therefore its inherent risk.
Is SoFi Invest planning to launch a new cryptocurrency ?
No. SoFi Invest is not a cryptocurrency or a wallet.
SoFi Invest is a cryptocurrency buying and selling platform available through SoFi.com and the SoFi app.
Up to 40 more coins will be accessible to monitor in real-time, in addition to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic.
What is the minimum investment in SoFi ?
With SoFi, you can invest as little as $10 in your first cryptocurrency.
Can I move my cryptocurrency holdings from SoFi Invest to an external wallet ?
No, but there's a good reason for it.
At SoFi Invest, we take security very seriously, and having a closed system allows us to better secure your crypto assets.
We may consider adding the option to transfer crypto into or out of your SoFi Invest account in the future, but it is not currently planned.
How much does SoFi charge for cryptocurrency trading ?
On crypto transactions, SoFi will levy a markup of up to 1.25 percent (rounded up to the nearest penny - $0.01).
On a purchase, the markup is applied to the exchange's market price, and SoFi executes a market order trade. For instance:
• Assume the Litecoin (LTC) market price is $100.
• You buy $100 worth of LTC • SoFi will mark up the price of LTC to $101.25, and you will receive somewhat less than 1 full LTC as a result of the markup.
Please note that SoFi reserves the right to adjust the crypto markup amount at any time and will make every effort to guarantee that the amount mentioned here is correct.
Is there a sofi crypto card ?
While the debit card that comes with a SoFi Money account isn't designed especially for bitcoin and other cryptocurrencies, it can be used as a crypto debit card in a roundabout way.
To use your SoFi Money debit card with bitcoin, go to the SoFi Invest section of the app and buy and sell bitcoin. You can keep a majority of your SoFi funds in bitcoin until you're ready to spend them if you like.
When you're ready to use your bitcoin with your SoFi debit card, all you have to do is sell it in SoFi Invest and then transfer the proceeds to your SoFi Money account, which is linked to your SoFi debit card.
Tag:
crypto-Invest
