Cryptocurrency is a hot buzzword in the market today. Since the rise of Bitcoin, thousands of other coins have entered the scene. And with all those new coins, a multitude of crypto platforms have also come into conversation.
Coinbase, often considered a pioneer in the crypto space, got started in 2012. With a massive collection of coins and other cool features, Coinbase is a top choice for many.
For those that are interested in the most popular coins only, the huge collection of coins on Coinbase is not a major draw. Some investors may be looking for light exposure to cryptocurrency while taking advantage of a full-fledged investing platform, such as Sofi.
Whatever the case may be, if you are looking to move your cryptocurrency to Sofi, then this is the article for you. Here, we cover the steps required to transfer from Coinbase to Sofi. Let's dive in!
Be sure to read our full Sofi review to learn more!
Sofi states that security is a top concern as it relates to crypto storage. Because of this, the company holds crypto on behalf of the investor. While this may increase security, it does have a downside: no crypto transfers in or out of the platform. In response to the question whether or not you can transfer crypto in or out, Sofi made the following statement:
"No, but there’s a reason why. We take security seriously at SoFi Invest and by having a closed system we can better secure your crypto assets. In the future, we may consider adding the ability to transfer crypto into or out of your SoFi Invest account, but it isn’t a planned feature at this time."
Before making the switch, be sure to check and see if Sofi supports the particular crypto you want to switch over. For example, if you currently own Shiba Inu on Coinbase, you won't be able to move that coin to Sofi as they do not support it yet.
Sofi currently has 30 cryptos on their platform:
The steps to transfer from Coinbase to Sofi are the following:
You ought to be aware that selling your assets could result in capital gains taxes should you sell for a profit. You should also know that Sofi charges 1.25% per crypto trade.
Let's take a look at each of these steps in more detail.
In order to purchase crypto on Sofi, you will need a Sofi Invest account. Follow the steps below to create an account:
Selling your cryptocurrency on Coinbase is simple. Once you have sold a crypto, you will be ready to transfer those funds to your bank.
To fund your account, you will need to link a bank to your Sofi Invest account. To do so, you will need to navigate to the Sofi Invest section of the app. Then tap "Add Cash." Here, you will need to add a bank account, which will be done through Plaid.
Once you've linked your bank account, you are ready to deposit funds.
You will follow the previous step by clicking on "Add Cash." Follow the steps as prompted and choose an amount to deposit.
Now that you have a new Sofi account and have liquidated your Coinbase positions, you are ready to repurchase your crypto in Sofi.
Because Sofi holds your cryptocurrency on your behalf, you are not able to use an external wallet, which means you cannot transfer coins in or out. Instead, you must liquidate your crypto assets from another platform first and then repurchase them within Sofi.
While the process is not complicated and can be completed by following the steps outlined above, there are a few things to be aware of.
First, both Sofi and Coinbase charge a fee to trade crypto. Since you are selling in Coinbase and buying in Sofi, you will be charged twice. Please be aware of these charges before starting this process.
Second, you must check Sofi's list of cryptocurrencies before starting this process. Since Coinbase has more than triple the number of coins that Sofi offers, there's a good chance the cryptocurrency you want to transfer is not supported by Sofi.
Third, whenever you sell cryptocurrency, you may be subject to capital gains tax. Suppose you purchased $100 worth of Bitcoin and you sell later for $110 worth of Bitcoin. In this case, you would be responsible to pay capital gains taxes on the $10 of profit.
Sofi and Coinbase are both highly popular platforms. However, they serve different purposes. If you want to transfer from Coinbase to Sofi, then hopefully this article helped!