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Written by Logan Robison on December 19, 2020
Category: 
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Webull Crypto Review 2020: Best Place to Buy Bitcoin?

Summary
  • Ease Of Use
  • Accessibility
  • Cost To Use
  • Crypto Options Available
3.8

Summary

Webull is a new entrant into the world of cryptocurrency. It currently offers this service on their mobile application after a user submits an application. The cryptocurrencies available are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).

Once your application to buy and sell cryptocurrency is accepted, you can trade at any time of the day and any day of the week. This is because cryptocurrency is not regulated by a commission that sets the regulations.

The cryptocurrency transacting platform on the Webull app is made just like the experience for trading equities. There is a lot of research available but it isn't overwhelming like many other advanced brokerage firms.

Pros

  • Commission free
  • Instant settlement
  • In-depth data and analysis
  • Fractional coins available
  • 24/7 customer service

Cons

  • Only 4 crypto options available
  • Unable to transfer cryptocurrencies without liquidating the assets
  • Requires an application

Cryptocurrency is taking the world by storm with the growing interest in coins such as Bitcoin, Litecoin, and Ethereum. So, it’s no wonder that the most common questions today are, what is cryptocurrency and how do I buy some?

This article seeks to answer both of these questions with a special look into how this is possible with Webull. Webull is a newer platform that launched in 2018 to provide investors greater insight into stocks and ETFs. This platform is informative without being exhausting. Brand new investors might find it a touch overwhelming, but intermediate investors find they can really hit their stride with Webull.

Webull is also known for offering its users completely free trades of stocks, ETFs, and investments in retirement accounts. With this platform, the user experience comes completely free of commissions for stock trading and short selling.

In addition, Webull offers a full suite of products like retirement accounts, margin investing, a stock simulator, and extended trading hours.

For more on Webull, see this article.

Trading Cryptocurrency on Webull

Webull’s Entry into Crypto

Just in mid-November of 2020, Webull announced that it would allow its users to purchase and sell cryptocurrency through the platform. This comes in response to the more than 100,000 users that requested to sign up for the service through Webull.

There is no cost to sign up for cryptocurrency investing with Webull nor are there any commissions associated with using the service. This allows investors everywhere to try Webull as their main platform for investing in currencies.

Crypto Options on Webull

In the world of digital coining, there are several forms of cryptocurrencies and each has its own advantages and disadvantages. Webull has initially chosen to support four options: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). It is unclear if more will be added in the future although that has not been ruled out.

Availability and Commissions

Webull offers 24/7, commission-free crypto trading. In layman's terms, investors can purchase and sell cryptocurrencies without cost, and whenever they please. Because cryptocurrencies are not regulated or brokered by an officially recognized exchange, trading can happen at all hours of the day and all days of the week. Even holidays!

However, the website does mention that “crypto trading will be unavailable from 5:30 pm–6:30 pm ET for routine maintenance and account reconciliation.” It is also important to note that currently, Webull does not allow free reign or access to cryptocurrencies. Users must fill out an application on their app to hopefully gain access.

To apply to gain access to cryptocurrency trading on Webull simply follow these instructions:

  1. Update your app to the latest version.
  2. Tap on the Webull Icon (Bottom row, middle icon).
  3. Click on the More button.
  4. Tap on Crypto Trading to apply.

Interface

Like its stock market investing approach, Webull offers a large amount of data and information without overwhelming its users. With Webull, users can even create their own customizable charts to track what is truly important to them. Crypto trading also comes with real-time data and specific indicators to keep you up to date.

Webull houses their cryptocurrency portfolios on the same app as other securities meaning that all your wealth can be available from the same platform. This is a huge benefit that allows users to view one source of truth without moving from one account to another.

Instant Settlement

Another benefit of using cryptocurrency is the instant settlement. Because no physical means are used when buying or selling cryptocurrency, your money will settle instantly. This means that when you put in an order to sell any amount of coins, that money will appear in your account instantly.

With equities such as stocks and ETFs, it can take up to several days before those funds will actually appear in your account.

Fractional Coins

Similar to investing in the stock market, Webull has activated fractional coins. This means that instead of purchasing the entire coin, you can type in a dollar amount and elect to purchase only that amount.

This is a great option for those that might be timid about starting a cryptocurrency portfolio. This is absolutely a risky asset and like all equities, it is very possible for you to lose more than you invested. Of course, nothing is lost until you actually sell the asset. But on paper and when you sell, losing it all is a real possibility.

This is one reason why fractional coins and stocks have become such mainstream instruments. Another reason is simply for accessibility. You no longer have to pay the full asking price for a specific investment.

Purchasing a fractional coin does not inherently mean you have less risk, but it does mean you will be less exposed depending on how diversified your portfolio is. You will be affected by price reductions and price increases equally no matter how much you own.

The more diversified your portfolio, the less impactful large swings become to your overall financial picture.

Protection

Webull crypto trading is completely separate from the Webull that trades stocks and ETFs. Webull Financial LLC is a broker-dealer that is registered with the Securities and Exchange Commission (SEC).

As such, it has certain regulations and protections. Securities such as stocks and ETFs are protected by the Securities Investor Protection Corporation (SIPC) which protects investors against the insolvency of the broker-dealer.

Cryptocurrency, however, is not under the same protection. Because there is no regulatory authority for cryptocurrency, there is also no protection. This is one reason it is held by a completely separate entity called Webull Crypto LLC.

It is also important to note that as cryptocurrency becomes increasingly popular, legislation may come into effect that could adversely affect the use, transfer, exchange, and value of cryptocurrency.

Because of the separate entities and the increased risks associated with cryptocurrencies, users will not be able to transfer their coins directly from Webull’s platform to another. Users must liquidate (sell) their assets first and then transfer the cash value of the coins.

Keep in mind that transferring cash from one platform to another could take several days to complete.

Webull Crypto Benefits

Customer Service

If you are still skeptical of investing in cryptocurrencies, know that Webull offers 24/7 support online and over the phone. If you have questions specific to Webull’s cryptocurrency policies, you can have all your concerns squashed by knowledgeable and trained staff.

Mobile and Web Access

Currently crypto trading is only available on Webull’s mobile app. However, the website has stated that this feature will soon be added to their desktop platform so trades can be made from practically any device.

By using Webull’s desktop platform, users can use nearly 50 different widgets to analyze trends, decipher market information and place trades more efficiently. Webull is truly focused on providing an optimal experience for its customers and is known for truly listening to their desires.

What is Cryptocurrency?

Crypto is a new subject for many investors so it’s no mystery why there is a lot of confusion around the subject. In its simplest form, cryptocurrency is a digital form of currency that is not issued by a central authority like a government.

As opposed to regulatory pressure from a government, cryptocurrencies are run off decentralized networks which utilize blockchain technologies. This makes cryptocurrencies unique because it is virtually impossible to counterfeit the coins.

If this has piqued your interest in learning more about cryptocurrencies, check out this article.

Summary: Webull Cryptocurrency

In summary, Webull has added another benefit to make being a part of such a unique platform truly amazing. Webull has added features to make even the sleekest platform envious. Webull has several in-depth and comprehensive tools and information, but it also places heavy emphasis on user simplicity and ease of use.

While the information may be overwhelming for newcomers, Webull is received best by intermediate investors who can use the data and tools to their full advantage.

As previously stated, cryptocurrency investing is not for every investor due to the inherent risk associated, Webull offers a compelling reason to try.

Where Webull falls short is currently its limiting application process that requires users to be qualified to begin investing in cryptocurrency. This creates another barrier for users by adding more steps and requiring more information before users can access the platform.

Another red flag, which is unfortunately common in today’s crypto experience is the inability to transfer cryptocurrencies from one holding account to another. As mentioned above, users will need to liquidate their assets and then transfer the cash.

Overall, Webull is a great platform for intermediate and advanced users alike. Give it a try today and start to build your cryptocurrency portfolio!

webull crypto review
Article written by Logan Robison
Logan graduated with a degree in finance from Brigham Young University and currently works as a financial analyst for a large retailer. His love for personal finance inspired him to start a YouTube channel, Finance for Normals, where he hopes to give everyday people the basic finance knowledge they need to succeed.

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