SoFi Technologies Inc. (NASDAQ: SOFI) has been providing financial services to its clients since 2011. After starting as a loan service for Stanford Business School alumni, the company has expanded its operations exponentially over the past decade.
From student loans to retirement accounts, SoFi’s product line now includes an astonishing array of financial services. But perhaps the most exciting thing SoFi has to offer is its cryptocurrency exchange. With a growing selection of top-tier protocols, this popular trading platform has seen increased interest in its crypto services throughout 2021.
When faced with so many altcoins, it can be difficult to decide which to buy first. Studying the fundamentals of each token offered on SoFi’s cryptocurrency exchange takes considerable time and effort. Lucky for you, the research has already been done. The following review shows you the best cryptocurrencies on SoFi.
Bitcoin vs. Altcoins
Before deciding which cryptographic protocols are right for you, it’s helpful to take note of some of the vernaculars used to categorize them. Separating Bitcoin (BTC) from altcoins is a good place to start.
Representing almost half of the value of the total market cap of coins, Bitcoin remains the first and largest cryptocurrency in the world. Bitcoin was originally introduced as a peer-to-peer electronic payment system by its pseudonymous creator, Satoshi Nakamoto, in 2008. From those humble beginnings, Bitcoin has become the face of today’s $ 2,000 billion cryptocurrency market. .
All other encryption protocols are called altcoins. These smaller market cap protocols include everything from stablecoins to decentralized finance (DeFi) tokens. Although generally constituting riskier investments, the diversity of the altcoin market allows investors to broaden their exposure to the sector.
Often, tokens launched on top of smart contract platforms, like Ethereum (ETH), correlate strongly with their parent protocols. And since the investment risk is higher among these smaller companies, many savvy traders go for the safest bet and invest in the native currency of the parent platform.
Best cryptocurrencies on SoFi
A number of factors were taken into account before deciding on the best crypto offerings from SoFi. From the price potential of a token to its use case in the industry, the fundamentals of each company have been examined in detail. When considering the myriad of options available, 5 crypto projects stand out as the strongest investment choices. The following protocols represent the best cryptocurrencies on SoFi:
- Bitcoin (BTC): By far the most popular cryptocurrency, Bitcoin introduced the concept of decentralization to the financial community with its revolutionary blockchain protocol. Going forward, Bitcoin remains a solid investment choice with great upside potential.
- Ethereum (ETH): Coming in 2nd place, the native currency of the Ethereum blockchain, Ether (ETH) represents an exciting opportunity for all levels of investors. As the world’s leading smart contract platform, Ethereum has the largest number of decentralized applications (dApps) built on top of its decentralized network.
- Cardano (ADA): As the 4th largest cryptocurrency by market cap, Cardano (ADA) has incredible potential to challenge Ethereum for smart contract dominance. Building at incredible speed, Cardano’s future looks bright as more companies rely on the first blockchain based on peer-reviewed research.
- Tezos (XTZ): Tezos has long been a crowd favorite in the crypto market.
- piece of money (FIL): By using storage miners to validate stored files, Filecoin’s disruptive solution for digital storage works for users as well as providers. While users can take advantage of low storage prices, vendors can sell their available storage on an open market.
The cryptocurrencies you are missing
Despite the options currently available on SoFi, the exchange has yet to list a few great cryptocurrencies that deserve a place in any well-balanced portfolio. If you are looking for the best altcoins like Shiba inu (SHIB), Chain link (LINK) and avalanche (AVAX) you will have to look elsewhere.
While signing up for multiple exchanges can be frustrating at first, a diverse portfolio is often worth a little extra effort. With that in mind, Shiba Inu can be found on Coinbase Global Inc. (NASDAQ: COIN), while Chainlink and Avalanche are both available on Crypto.com.
Crypto.com strives to make cryptocurrency a part of everyday life by offering a comprehensive suite of services to crypto users. The company offers a Crypto.com app, exchange, Visa card, DeFi exchange, DeFi wallet, DeFi Earn, Crypto.com price, staking, crypto loan and many other services. What really sets them apart, however, is the combination of very low fees and incredibly generous rewards programs for their users.
- Traders who want to access a secure and low cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without having to make frequent transactions
- Mobile investors who prefer to manage all their crypto needs through their phone or tablet
- Low fees
- High security
- One stop shop for all your crypto needs (wallet, trading, spending, etc.)
- Many ways to earn interest, rewards and discounts
- Low privacy
- Customer service response time could be improved
eToro, headquartered in Cyprus, England and Israel, has been providing currency products and other CFD derivatives to retail clients since 2007. A major strength of eToro is its social trading operations, including OpenBook, which allows new customers to copy the best performing transactions from the platform. Its social trading features are top notch, but eToro is losing points for its lack of tradable currency pairs and underwhelming research and customer service features.
- United States Based Cryptocurrency Traders
- Social traders and copiers
- Simple user interface
- Community engagement and follow-up of other traders
- 25 cryptocurrencies
- Extensive network of social trading features
- Large customer base for new traders to emulate
- U.S. traders can only buy cryptocurrency
Store your crypto safely
After you’ve purchased your first cryptocurrencies, you’ll want to transfer them to a digital wallet to keep them safe. In order to make an informed choice, you will need a basic understanding of the different types of portfolios on offer.
Digital wallets are available in hardware and software varieties. While hardware wallets offer the best protection by separating your assets from the internet, software wallets offer connectivity to interact with your favorite dApps.
With hacks and cyber attacks becoming more common, hardware wallets like those offered by Ledger come highly recommended. Supporting over a hundred tokens, Ledger offers the ultimate protection for all your digital assets.
Cryptocurrency Price Movements
The cryptocurrency market has recovered significantly as participation continues to rise. The total coin market cap is very close to $ 2.4 trillion as the final months of 2021 approach.
Bitcoin recently pushed the market forward, rising nearly 10% in the second week of October 2021. With the growing institutional interest in the space, many traders expect the price of Bitcoin to drive the entire market up in the short term.
Price movements in any market are notoriously difficult to predict. The crypto market is particularly difficult to read because it operates 24 hours a day. While participants in North America are sleeping, traders on the other side of the world are starting to influence prices.
Other cryptocurrency exchanges available in the United States
Cryptocurrency trading options have grown significantly alongside the services offered. For American consumers, a number of reputable exchanges now exist in the space. Crypto trading platforms like Coinbase, BlockFi, eToro, and Crypto.com all represent solid alternatives to SoFi.
Many seasoned traders are now using decentralized exchanges (DEX) to trade tokens and contribute to cash pools in exchange for rewards. Interest staking has become a popular way for long-term investors to passively earn crypto on their holdings.
Choosing an exchange for your first cryptocurrency purchase can be a very personal decision. Often, the choice to enroll in an exchange will be determined by a participant’s comfort with the perceived risks involved. SoFi and the options presented in this review represent secure platforms for US consumers.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
SoFi creates crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can instantly buy Bitcoin, Ethereum, Cardano, Solana, Chainlink, Uniswap, and other DeFi tokens. For a limited time, get a $ 10 BTC bonus when you make your first transaction of $ 10 or more!