Cryptocurrency is an expansive, new, and volatile world. It is often intimidating for investors to start trading cryptocurrency. Luckily, many mobile applications make investing ridiculously simple on platforms like SoFi Invest.
1. How to Open an Account
Opening an account with SoFi Invest is an easy and fluid process. The entire process is digital. As with any trading account, users will enter their information and should have documents like their social security card available. These documents help verify the user’s identity, which is the standard security process of any trading application.
Initially, SoFi Invest does their verification electronically and in a non-documentary method as part of their Customer Identity Program. However, if they have trouble identifying a user, they may request a copy of an ID, address documentation, or a social security card. Banking with SoFi comes with peace of mind because SoFi Invest is a secure platform. According to experts at SoFi Invest, “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.”
Most users should be able to set up their accounts in minutes. After that, it should take one to two business days for a user’s account and bank information to be confirmed.
One unique feature of banking with SoFi is they only require a minimum deposit of $10. This low barrier of entry means that this platform is very accessible to the average citizen. Users can make this minimum deposit as soon as their identity is verified. SoFi Invest also typically runs rewards for first-time users signing up and depositing an initial amount. These deals do vary, so users must do their research and make sure they meet the current requirements.
After a user has deposited money from the bank account, it will take a few business days to settle. When it has cleared, users can officially begin investing. One thing to be aware of is that SoFi Invest is a trading platform, not a wallet for bitcoin.
Once a user has an account with settled funds, they can begin trading cryptocurrency. SoFi Invest supports the trading of 30 different coins. Major cryptocurrencies include Bitcoin, Ethereum, Dogecoin, and Cardano. Users banking with SoFi can start trading at any time with no restrictions on the weekends or holidays. This unlimited ability to trade is another feature unique to cryptocurrency because stock investments shut down over certain holidays in the United States. Purchases occur in real-time. If an investor sells their cryptocurrency positions, they will immediately get their returns in USD.
Investing does come with a few restrictions on order size. SoFi Invest has a minimum order size per purchase of 10 dollars and a maximum purchase per day of 50,000 dollars. There are also minimum sale amounts of 0.001 BTC (Bitcoin), 0.01 ETH (Ethereum), 0.1 LTC (Litecoin), 0.01 BCH (Bitcoin Cash), and 0.1 ETC (Ethereum Classic).
Finally, traders face a markup of up to 1.25% on crypto transactions. This markup is subject to change, and it is the investor’s responsibility to have current information. When the user purchases a currency, SoFi Invest will add the markup to the market price from the exchange and then submit the market order trade. This markup is not uncommon for cryptocurrency investment platforms.
It only takes a few simple steps for users to begin their cryptocurrency investments on SoFi Invest. Trading cryptocurrency has become remarkably accessible over the past few years because platforms, such as SoFi Invest, make it easy for anyone to begin.