How to Buy Crypto with SoFi

Summary: As of December 2023, SoFi no longer offers cryptocurrency trading services directly. Instead, it encourages customers to engage with digital currencies through FinCEN-registered cryptocurrency exchanges in the United States, such as Kraken, ensuring a secure and regulatory-compliant investment process.

This shift allows SoFi users to continue exploring and investing in cryptocurrencies safely, leveraging platforms that offer robust security measures, regulatory adherence, and a diverse range of digital assets.

Can I Buy Crypto with SoFi?

As of December 2023, SoFi has ceased its cryptocurrency trading services. Investors looking to delve into digital currencies are encouraged to utilize cryptocurrency exchanges in the USA that are registered with the Financial Crimes Enforcement Network (FinCEN). These platforms adhere to strict regulatory standards, ensuring a safer and more secure investment environment. Opting for FinCEN-registered exchanges provides investors with the confidence that they are engaging with services committed to upholding high compliance and security protocols within the cryptocurrency market.

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How to Buy Bitcoin and Crypto with SoFi

Given the December  discontinuation of SoFi's cryptocurrency services, for individuals aiming to invest in Bitcoin or other digital currencies, a practical approach involves moving funds to a reputable, regulated cryptocurrency exchange. Kraken is a commendable choice for this purpose. It is known for its swift transactions, a broad selection of over 200 digital currencies, diverse staking opportunities, and rigorous compliance with Financial Crimes Enforcement Network (FinCEN) regulations among other regulatory standards.

To embark on your cryptocurrency investment journey through Kraken, follow this straightforward guide:

1. Registration and Verification: Sign up on Kraken and complete the necessary identity verification steps.
2. Adding Funds: Navigate to your dashboard and click the 'Add Funds' button at the top.
3. Select Currency and Transfer: Choose U.S. dollars (USD) as your currency option and proceed to transfer from your SoFi account.
4. Purchase Digital Assets: Once your account reflects the updated balance, search for the cryptocurrency you wish to buy and finalize your transaction.

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What are the Fees?

When transferring funds from a SoFi account to invest in cryptocurrencies, it's crucial to consider the various fees that might apply. These fees often encompass charges for deposits, trading, and withdrawals across different platforms. Trading fees, in particular, can vary, typically falling between 0.1% and 0.5% depending on the exchange.

For those seeking a cost-effective route, Kraken emerges as a compelling option. Kraken's trading fees begin at a competitive rate of 0.16%, standing out against other exchanges such as Coinbase, which may impose fees exceeding 2%. Furthermore, Kraken provides the advantage of free USD deposits, including those made through ACH transfer. This feature makes it an appealing platform for U.S.-based investors aiming to access the cryptocurrency market efficiently and economically.

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Is SoFi Crypto-Friendly?

Despite discontinuing its cryptocurrency services, SoFi supports its customers in engaging with digital assets by allowing the transfer of funds to regulated brokers. This move underscores SoFi's commitment to providing its clients with access to a broad spectrum of investment opportunities while ensuring compliance with regulatory standards.

By facilitating the seamless transfer of funds to platforms like Kraken, which is known for its adherence to regulations set forth by the Financial Crimes Enforcement Network (FinCEN) and other governing bodies, SoFi ensures that its users can safely participate in the cryptocurrency market. This approach reflects a balanced strategy, allowing customers to explore the dynamic field of digital assets within a framework that prioritizes security and regulatory compliance, aligning with the broader financial ecosystem's evolving landscape.

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Bottom Line

In conclusion, while SoFi has transitioned away from directly offering cryptocurrency trading services, it facilitates a secure pathway for its clients to explore and invest in digital assets through reputable, FinCEN-registered cryptocurrency exchanges like Kraken. This strategic approach ensures that SoFi customers can safely engage with the cryptocurrency market, benefiting from regulated platforms that prioritize security, compliance, and a wide array of investment options.