Summary: Plaid doesn't facilitate direct transactions for buying, selling, or staking cryptocurrencies. However, it acts as a secure intermediary that links your financial accounts to reputable U.S.-based crypto exchanges.
Based on our analysis, Uphold stands out as the go-to platform for U.S. users looking to engage in cryptocurrency transactions via Plaid. Uphold offers multiple advantages, including zero fees for instant deposits, the capacity to trade and stake a diverse range of over 250 cryptocurrencies, and robust regulatory compliance within the United States
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Can I Buy Crypto with Plaid?
Yes, buying Bitcoin and other digital assets is possible when you use U.S. based cryptocurrency exchanges that have partnered with Plaid for payment processing. It's important to note that Plaid is not a direct gateway for buying or selling cryptocurrencies. Rather, it is the financial infrastructure that facilitates secure payments on exchanges that have integrated Plaid. These platforms often provide multiple avenues for funding your account, including ACH transfers and credit or debit card transactions.
How to Buy Crypto with Plaid
If you're keen on using Plaid to acquire Bitcoin or other cryptocurrencies, a regulated and reliable platform that has embedded Plaid into its payment system is your best bet. We recommend Uphold for this purpose, given its strong track record of regulatory compliance, competitive fee structure, and support for over 250 digital assets. With Uphold, you can buy, stake, and trade a wide range of cryptocurrencies without paying any commissions and with favorable spreads.
Here's a step-by-step guide to help you make your purchase via Uphold using Plaid:
- Sign up for an Uphold account and fulfil all verification protocols.
- Navigate to 'My Banks' and opt to link your USD-denominated bank account via Plaid.
- Use the Plaid interface to locate and connect your specific banking institution.
- Once connected, transfer your USD funds via Plaid, and you can immediately use these funds to execute trades on Uphold.
What are the fees?
When purchasing cryptocurrencies like Bitcoin, fees vary greatly depending on your chosen platform. Uphold emerges as a highly cost-effective platform, offering free USD deposits via Plaid, zero trading commissions and 1% spreads. This distinguishes it from many other platforms in the crypto space, such as Coinbase, which typically charges a 1.5% trading fee and another 1% in their spread.
Is Plaid Crypto-Friendly?
Plaid provides a secure bridge to the expanding universe of digital assets, featuring key cryptocurrencies like Bitcoin, Ethereum, and Solana. The platform achieves this by enabling transactions via U.S.-based exchanges that adhere to stringent regulatory measures. These include guidelines by U.S. Financial Crimes Enforcement Network (FinCEN) and other internationally acknowledged regulations.
This commitment to upholding globally accepted standards ensures that users utilizing Plaid for crypto activities can be confident that their investments are secure and fully compliant with international legal frameworks. The focus on conforming to reputable regulations makes Plaid a dependable choice for those looking to engage in the cryptocurrency market.
In conclusion, Plaid is a secure bridge for U.S. users interested in cryptocurrency transactions, although it doesn't handle them directly. Our analysis highlights Uphold as a highly recommended exchange for using Plaid, offering a range of benefits like zero fees on instant deposits, a wide selection of over 250 digital assets, and stringent regulatory compliance. Whether you're new to crypto or an experienced investor, using Plaid through Uphold provides a secure, cost-effective, and compliant way to dive into digital assets.