SoFi Technologies Inc. (NASDAQ: SOFI) has been offering financial services to its clients since 2011. Having started as a lending service for Stanford Business School alumni, the company has expanded its operation exponentially over the last decade.
From student loans to retirement accounts, SoFi’s product line now includes a stunning array of financial services. But the most exciting thing SoFi offers may be its cryptocurrency exchange. With a growing selection of top-name protocols, this popular trading platform has seen increased interest in its crypto services throughout the 2020s.
When faced with this many altcoins, it can be difficult deciding which ones to buy first. Studying the fundamentals of each token offered on SoFi’s cryptocurrency exchange takes considerable time and effort. Lucky for you, the research has already been done. The following review shows you the best cryptocurrencies on SoFi.
Bitcoin vs. Altcoins
Before deciding which crypto protocols are right for you, it’s helpful to take note of some of the vernacular used to categorize them. Separating Bitcoin (BTC) from altcoins is a good place to start.
Making up nearly half the value of the total coin market cap, Bitcoin remains the world’s first and largest cryptocurrency. Bitcoin was initially billed as a peer-to-peer electronic cash system by its pseudonymous creator, Satoshi Nakamoto, in 2008. From these humble beginnings, Bitcoin has grown to become the face of today’s $2 trillion cryptocurrency market.
All other crypto protocols are referred to as altcoins. These smaller market cap protocols include everything from stablecoins to decentralized finance (DeFi) tokens. While generally constituting riskier investments, the diversity of the altcoin market allows investors to broaden their exposure to the industry.
Often, tokens launched on top of smart contract platforms, like Ethereum (ETH), correlate strongly with their parent protocols. And since investment risk is higher among these smaller companies, many savvy traders opt for the safer bet and invest in the native currency of the parent platform.
Best Cryptocurrencies on SoFi
A number of factors were considered before deciding on SoFi's top crypto offerings. From a token’s price potential to its industry use case, the fundamentals of each company were scrutinized in great detail. When investigating the myriad options available, 5 crypto projects stand out as the most solid investment choices. The following protocols represent the best cryptocurrencies on SoFi:
- Bitcoin (BTC): By far the most popular cryptocurrency, Bitcoin introduced the concept of decentralization to the finance community with its revolutionary blockchain protocol. Going forward, Bitcoin remains a solid investment choice with a great potential upside.
- Ethereum (ETH): Coming in 2nd place, the native currency of the Ethereum blockchain, Ether (ETH) represents an exciting opportunity for all levels of investors. As the world’s first smart contract platform, Ethereum has the largest number of decentralized applications (dApps) built on top of its decentralized network.
- Cardano (ADA): As the 4th largest cryptocurrency by market cap, Cardano (ADA) has incredible potential to challenge Ethereum for smart contract dominance. Building with incredible speed, the future for Cardano looks bright as more and more companies build on top of the first blockchain founded on peer-reviewed research.
- Tezos (XTZ): Tezos has long been a crowd favorite in the crypto market With self-amendment allowing the network to upgrade without a hard fork, this innovative altcoin offers a proof-of-stake smart contract platform with on-chain governance.
- Filecoin (FIL): Using storage miners to validate stored files, Filecoin’s disruptive solution to digital storage works for users and providers alike. While users can take advantage of low storage prices, providers are able to sell their available storage through an open market.
Cryptocurrencies You’re Missing out on
Despite the options currently available on SoFi, the exchange has yet to list a few great cryptocurrencies that deserve a spot in any well-rounded portfolio. If you’re looking for top altcoins like Shiba Inu (SHIB) or Avalanche (AVAX), you’ll need to look elsewhere.
While signing up for multiple exchanges can be frustrating at first, a diversified portfolio is often worth a little extra effort. With that in mind, Shiba Inu can be found on Coinbase Global Inc. (NASDAQ: COIN), while Avalanche is available at Crypto.com.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
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Store Your Crypto Safely
After you purchase your first cryptocurrencies, you’ll want to transfer them to a digital wallet for safe keeping. In order to make an informed choice, you’ll need a basic understanding of the varying types of wallets being offered.
Digital wallets come in both hardware and software varieties. While hardware wallets offer the best protection by separating your assets from the internet, software wallets offer connectivity for interacting with your favorite dApps.
With hacks and cyber attacks becoming more commonplace, hardware wallets like those offered by Ledger come highly recommended. Supporting more than a hundred tokens, Ledger offers the ultimate protection for all your digital assets.
Cryptocurrency Price Movements
The cryptocurrency market has picked up considerably as participation continues to increase. The total coin market cap stands very close to $2.4 trillion heading into the final months of 2021.
Bitcoin has led the market forward recently, surging nearly 10% in the second week of October 2021. With institutional interest increasing in the space, many traders are expecting a surge in Bitcoin’s price to lift the entire market higher in the short term.
Price movements in any market are notoriously hard to predict. The crypto market is especially difficult to read as it operates 24 hours per day. As participants in North America sleep, traders on the other side of the world begin influencing prices.
Other Cryptocurrency Exchanges Available in the U.S.
The options for trading cryptocurrency have expanded dramatically alongside the services offered. For U.S. consumers, a number of reputable exchanges now exist in the space. Crypto trading platforms like Coinbase, BlockFi, eToro and Crypto.com all represent solid alternatives to SoFi.
Many experienced traders now use decentralized exchanges (DEXs) to swap tokens and contribute to liquidity pools in exchange for rewards. Staking for interest has become a popular way for long-term investors to passively earn crypto on their holdings.
Choosing an exchange for your first cryptocurrency purchase can be a very personal decision. Often, the choice to sign up for an exchange will be determined by a participant's comfort with the perceived risks involved. SoFi and the options presented in this review represent secure platforms for U.S. consumers.
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About Micah C. Miracle
Before writing for Benzinga, Micah’s work was featured on a number of ranking news sites, including The Merkle, Global Coin Report and the Crypto Gazette.