How to Buy Crypto with SoFi

Summary: SoFi, a financial platform offering investment in 22 cryptocurrencies, might be considered a more expensive option for crypto trading due to its flat 1.25% trading fees. While it's regulated by agencies like the SEC and FINRA in the United States, the fees might deter frequent or large-volume traders.

We recommend Kraken as a more specialized and cost-effective alternative for cryptocurrency investment. This US-based and regulated digital asset exchange offers over 200 crypto assets with competitive fees starting at 0.16%. When choosing a crypto investment platform, it's vital to consider factors such as fees, regulation, and the variety of available assets.

Can I Buy Crypto with SoFi?

Yes, SoFi's investment platform allows users to trade 22 different cryptocurrencies, including popular options like Bitcoin (BTC) and Ethereum (ETH). The platform provides a user-friendly way to trade cryptocurrency, making it accessible even for those new to digital assets.

However, it's important to note that SoFi charges a flat 1.25% fee per trade, considerably higher than some traditional US cryptocurrency exchanges. While the platform is regulated by agencies like the SEC and FINRA, offering added security, the fees might be a significant consideration for users evaluating the overall cost of investing through SoFi.

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How to Buy Bitcoin and Crypto with SoFi

For the most efficient way to purchase Bitcoin or other cryptocurrencies using your SoFi account, it's advisable to transfer funds to a specialized and regulated digital asset exchange. Among the available options, Kraken stands out as an exemplary choice for transfers from SoFi, offering prompt transactions, access to over 200 cryptocurrencies, various staking options, and strict adherence to regulations from FinCEN and other governing bodies.

Here's an easy step-by-step guide to get you started:

1. Register on Kraken and complete the identity verification procedure.
2. Click on the 'Add Funds' button, found at the top of your dashboard.
3. Choose U.S. dollars (USD) as your currency and initiate your transfer from SoFi.
4. Once your account balance is refreshed, look for the digital asset you want to purchase and confirm your transaction.

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SoFi Invest Trading Fees

SoFi Invest’s fee structure for crypto trading is relatively straightforward but can be more expensive compared to specialized cryptocurrency exchanges. They charge a flat 1.25% fee per trade, regardless of the amount or the cryptocurrency being traded.

As a comparison, Kraken, a regulated digital asset exchange, offers a more competitive fee schedule. Kraken's trading fees are based on a maker-taker model and can be as low as 0.16% for makers and 0.26% for takers, depending on the trading volume. These rates are significantly lower than SoFi's flat fee

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Is SoFi Good for Buying Crypto? 

The suitability of SoFi for buying crypto depends on the investor's specific needs and priorities. While the platform offers 22 different cryptocurrencies and is regulated by agencies like the SEC and FINRA in the United States, the flat 1.25% fee charged per trade may be considered high, especially for frequent or large-volume traders.

For those prioritizing a user-friendly experience and the convenience of an all-in-one financial platform, SoFi might be an appealing option. However, those seeking lower transaction fees and a specialized crypto trading experience might find other exchanges like Kraken more suitable.

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Bottom Line

While SoFi offers a user-friendly platform for trading 22 cryptocurrencies and is regulated by the SEC and FINRA, its flat 1.25% trading fee might be steep for frequent traders. For a more specialized and cost-effective crypto trading experience, Kraken, with fees starting at 0.16% and over 200 crypto assets, emerges as a recommended alternative.