SoFi vs Coinbase • Which is better for crypto? • Benzinga


Want to jump straight to the answer? Coinbase is better for new crypto investors. SoFi is preferable for those looking for a wider range of investments.

Social Finance, Inc. (NASDAQ: SOFI) was founded in 2011 by 4 students from the Stanford Graduate School of Business. Over the years, SoFi has grown into a modern finance company. SoFi is a one-stop-shop financial, crypto service, securities broker, and financial services company. SoFi supports 28 cryptocurrencies with both a web platform and a mobile app. The SoFi trading platform is straightforward and allows users to buy a dollar amount or choose to buy a certain number of coins. All transactions are in USD with no crypto to crypto transactions. SoFi has partnered with Coinbase (NASDAQ: COIN) to transact on behalf of its users. SoFi has over 2 million users.

Coinbase was founded in 2012 by Brian Armstrong. In October 2012, it launched Bitcoin buying and selling services by wire transfer. Coinbase added Ethereum in January 2017, then Litecoin in March of the same year. Coinbase now supports 100 cryptocurrencies and is regularly added to this list. Coinbase has an online trading platform as well as a mobile application. The trading platform is quite basic and allows users to buy, sell or convert from one cryptocurrency to another. Coinbase is available in over 100 countries and now has over 56 million users.

Benzinga compares SoFi and Coinbase as each shares a similar trading platform and working partnership.

What is a cryptocurrency exchange?

A cryptocurrency exchange is a platform that makes it easy to buy and sell digital assets. It works much like a brokerage firm; you fund it by depositing fiat currency through a linked bank account after setting up your account. If you have multiple accounts, you can also fund the new account by transferring cryptos to it from another account. The crypto exchange acts as a middleman between buyers and sellers and serves as a custodian for the crypto you buy.

When using a cryptocurrency exchange, there are 2 ways you can interact. You can buy crypto using fiat (USD) and then resell it in fiat (fiat to crypto to fiat) or direct the crypto exchange to crypto. If you prefer to trade crypto to crypto, the exchange will have a variety of trading pairs for you to choose from.

Anyone with previous stock trading experience will feel quite comfortable trading in the crypto markets, but there are some differences. One difference is that cryptocurrencies are divisible by 100 million, so you can buy tiny fractions of a coin or token. In contrast, when you buy stocks, they are almost always sold per whole share. There are, however, a few stock brokers who do split stock transactions.

In addition, shares only trade in the fiat currency of the country where the exchange is located. On crypto exchanges, you can trade not only using fiat (USD) but also other cryptocurrencies, most commonly Bitcoin, Ethereum, and stablecoins.

Important Cryptocurrency Exchange Features

When choosing a crypto exchange, it is crucial to pay attention to the features that it offers. Feature number 1 is the security features implemented by the exchange. Strong security is essential everywhere, but it is even more important in the crypto space because it seems like there is no shortage of bad players targeting exchanges.

Pay attention to the security features it offers to protect your account. Always use 2-factor authentication on every account where it is available. If possible, whitelist any addresses you use to transfer crypto out of your account. And as always, use unique and strong passwords.

Another important feature is the number of coins and tokens supported by the exchange. Depending on the type of investor you are, this characteristic can be of great importance. Some investors prefer to invest only in Bitcoin or in a few large-cap cryptos. Others wish to invest in many different altcoins to gain exposure to a wide range of the crypto market.

Another essential part of an exchange is trading functionality. If you are an experienced trader, you will probably want more sophisticated trading options. These could include basics such as market and limit orders as well as market limit and stop-loss orders. You can also find more complex order options to set a take-profit price and a stop-loss price as part of your buy order. On the other end of the spectrum, you may want basic trading options, like just market orders, if you are new to investing and trading.


Features on SoFi

The following is a list of account features.

  • Payment methods: bank account
  • Order types: market orders, by dollar amount or number of coins or tokens
  • Recurring purchases: weekly, every two weeks or monthly
  • Mobile application: Android or IOS
  • Credit card: redeem your points directly into crypto
  • Cryptographic transfers: not allowed


Features on Coinbase

The following is a list of account features.

  • Payment methods: bank account, debit card, PayPal, wire transfer
  • Types of orders: market orders
  • Convert from one crypto to another
  • Recurring purchases: daily, weekly or monthly
  • Mobile application: Android or IOS
  • Learn to win: discover and answer cryptocurrency quizzes
  • Crypto wallet: mobile or Chrome desktop extension; no Coinbase account required
  • Crypto transfers: transfer cryptos to and from your Coinbase account
  • Coinbase card: coming soon.
  • FDIC insurance (via third-party bank) for funds held in fiat

Coinbase Fees vs SoFi Fees

Coinbase has a somewhat complex pricing structure. The fee for transactions under $ 10 is $ 0.99, and from $ 10 to $ 200, the cost of the transaction is $ 2.99. For transactions over $ 200, the fee becomes a percentage of the transaction total. The fee is 1.49% for standard payment methods and 3.99% for debit and credit cards. Paypal fees are 2.5% and bank transfers cost $ 10 for entry and $ 25 for exit.

SoFi has a much simpler fee structure. SoFi charges a 1.25% markup for all crypto transactions. Regardless of the market price for the crypto you buy, they veer at 1.25%.

Transaction fees add up for large purchases, but SoFi is still a bit cheaper than Coinbase. Bank transfers on SoFi cost $ 15 for an inbound transfer and $ 25 for an outbound transfer.

Security features on Coinbase vs SoFi

Security is one of the most important aspects of choosing an exchange. Here’s a quick comparison between Coinbase and SoFi.

Coinbase security features.

AES-256 encryption protects electronic data. SSL encryption protects its website against data breaches, phishing attacks, and other threats. You have the choice of using Google Authenticator or Duo Authenticator for 2-Factor Authentication (2FA) to add an extra layer of security to your password. The other 2 authentication options offered by Coinbase are a code sent by SMS and the use of a security key device. You can also enable 2FA for crypto transfers.

Coinbase stores 98% or more of customer funds in an offline cold store.

SoFi security features.

SoFi offers two-factor authentication (2FA). After entering your email and password, SoFi sends a code by SMS, email or voice call. SoFi also uses SSL encryption to protect its website against data breaches, phishing attacks, and other threats. SoFi does not offer or facilitate cold storage of cryptocurrencies.

Altcoins supported on Coinbase vs SoFi

When choosing an exchange, it is essential to take note of how many and which altcoins the exchange supports. A wide choice of altcoins is important because it allows investors to gain exposure to a wide range of sectors of the crypto market. Even though Coinbase has a much wider selection, SoFi does a great job supporting altcoins that can give you that exposure.

Here is a partial list of altcoins supported by both exchanges.

  • Smart contract platform: Ethereum, Solana, Cardano, Chainlink, Algorand, Polygon, Stellar, Tezos
  • Decentralized financing (Challenge): Aave, Uniswap, The Graph, Maker, Compound, Synthetix Network Token, Yearn Finance, Bancor Network Token
  • Game : Enjin Coin
  • Metaverse: Decentraland
  • Storage room: piece of money

Altcoins on Coinbase

Here is a partial list of altcoins available on Coinbase but not on SoFi:

Avalanche, Axie Infinity, Band Protocol, Amp, BarnBridge, Cartesi, Civic, Curve DAO Token, Dash, District0x, EOS, Horizen, Internet Computer, Kyber Network, Loopring, Mirror Protocol, OMG Network, Orion Protocol, Polymath, QuickSwap, Rai Reflex Index, Ren, Shiba Inu, STORJ, Tellor, Wrapped Bitcoin and Zcash.

Altcoins on SoFi

On the other hand, only Cosmos is not available on Coinbase.

So, Coinbase or SoFi?

So which exchange wins? Well, both. They each have characteristics that will be attractive to certain types of investors. Choosing the most suitable exchange depends on the type of investor you are.

SoFi is suitable for passive crypto investors who prefer not to transfer crypto, so they will not mind that SoFi does not allow transfers. The SoFi platform is ideal for investors who are either inexperienced investors or investors who don’t mind limited trading features. SoFi will also be attractive to investors who wish to invest in other asset classes besides crypto.

Coinbase is a great exchange for new investors, and the platform is user-friendly, so even the most inexperienced investor can navigate it easily. Coinbase is also a good choice for security-conscious investors who want the best account security available.

Either of these exchanges would make a great first crypto exchange or an alternative exchange to give you more options. Weigh the pros and cons of each and decide which one is right for you.

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!


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