Driven by increasing global acceptance, cryptocurrencies have witnessed unparalleled growth in recent time. Considering their gradual dominance in the global financial space, it's right to say that cryptocurrencies live up to the initial hype.
Currently, there are nearly 20,000 cryptocurrencies traded publicly around the world. Bitcoin, the first cryptocurrency—with a total market value of about $1.2 trillion—still retains its status as the best cryptocurrency in the world. For clarity, the total market value of all cryptocurrencies, including Bitcoin, is more than $2.2 trillion. But, how can you buy your preferred tokens on Webull and what does the platform do for consumers?
Due to the increasing proliferation of these digital currencies, which results from mainstream and global attention, more institutional investors and companies like Paypal, Square, Tesla, among others, have jumped in on the crypto wagon. However, many people who want to be part of this financial revolution still do not know how and where to buy or trade digital assets.
The good news is that buying or trading crypto is not rocket science; you must first create an account with an online exchange or broker. Webull, Coinbase and Binance are examples of popular exchanges.
Webull was originally designed for stock, ETFs and options trading. However, in 2020, Webull Crypto was launched. Webull Crypto allows you to buy, sell or trade crypto online. Users can only trade four crypto options: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Webull provides users with real-time crypto data and stats. It has a built-in two-factor authentication feature, which ensures safety and security.
Users enjoy commission-free 24-hour trading, 7 days a week, with a minimum deposit of just $1. However, transferring your cryptocurrencies to other platforms without selling or liquidating the crypto assets is impossible.
Webull also allows users to buy fractional coins. This means you can buy a part of a coin instead of buying the whole. For example, suppose Litecoin is trading for $35, and you have just $10 available. In that case, you can type in that amount and purchase a fraction of the coin. This is a simple way to enter the crypto market or access tokens that you cannot purchase outright. Moreover, fractional shares can grow in value, allowing you to recover more value over time, even though you could not purchase a token outright.
This is great for beginners and traders that want to diversify their portfolio and limit risk, considering how highly volatile crypto trading can be.
How to Buy Crypto on Webull
- Open an account on Webull.
If you are a new user, you must first create an account on Webull. Like most brokers, you will need to provide your details and, most times, add your KYC (know your customer/client) information in line with SEC regulation.
- Request for Permission
After opening an account, you must request permission to buy or trade crypto via the Webull app. To apply for approval, make sure your Webull app is updated to the latest version. Then do the following:
• Click on Webull Icon (the middle icon on the bottom row).
• Click on the 'More button'.
• Then click on 'Crypto Trading' to request permission.
Once your request to buy and sell crypto is accepted, you can trade at any time on the app. (This is because, unlike the stock market, there is no commission for crypto regulation). - Fund your account.
There are a lot of options available to enable you to fund your account. Webull supports electronic transfer from your bank, as well as a wire transfer. Electronic transfers are free on Webull, but they may take up to 5 days to settle and be available for use.
For electronic transfer, you must first link your checking or savings account to your Webull account. You can do this by entering your bank account number and your routing number. Wire transfer is faster, and funds can settle within 1 business day, but it comes with charges from both your bank and Webull. - Select the cryptos you want to buy.
After funding your account, tap on crypto under the 'market' tab. You can carry out purchases with either a market order or a limit order.
A market order- is an order to buy crypto immediately at the current market price at the transaction time. For example, if Bitcoin's price is $60,000 and you place a market order for 1 Bitcoin, you will get it at $60,000 as long as there is no change in price before the order is executed.
A limit order - Buying crypto using a limit order allows you to specify the price you intend to pay for your purchase. Your order is only executed when that price is reached.
Although a hardware wallet like Trezor is the safest way to store your coins because it is offline, Webull does not allow users to transfer crypto assets. This means you cannot transfer your coins on Webull to a hardware wallet.
It is generally not advisable to keep a considerable amount of your holdings on an exchange like Webull because there is a possibility for the exchange to be hacked. You might want to consider opting for a dedicated crypto exchange like Coinbase, which gives you more flexibility and control of your coins. - Monitor your cryptocurrencies.
Webull makes it easy for you to add a currency to a watchlist or set an alert for price changes. To try this, just tap on the star icon on the currency’s profile. You can also set an alert to notify you of price changes. Tap on 'alert' to start the process. You can check a currency profile to access key stats. These include information like trading volume, among others.
You can analyze the price action of cryptocurrencies using the drawing tools on the Webull app. The mobile app also displays two currencies simultaneously for analysis.
- Intermediate Traders and Investors
Commissions and Fees
Webull charges zero commission for crypto trading. You can purchase Enjin coin (ENJ) and some of the best cryptocurrency on Webull at zero commission charges. There is, however, a 100-point basis spread on either side of a crypto trade.
Webull History
Webull was founded in 2017 as part of China-based Fumi Technology. Fumi Technology is a fintech company offering real-time market analysis, analytical tools and other trading technologies. Webull is structured such that while the technology team is stationed in Hunan, China, the brokerage and customer-facing operations are carried out in New York City.
Like its rival Robinhood, Webull prides itself as an online commission-free mobile brokerage for stock, options and exchange-traded fund (ETF) trading. It only started offering support for crypto in 2020. Now users can trade stocks, ETFs, and options and crypto-assets like Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Webull has received notable acclaim from investment sites. Bezinga recently voted Webull as one of the best mobile investment apps for beginners in 2019 and the best investment app for 2020 and 2021.
Is Webull a Good Crypto Exchange?
Webull is an excellent option for beginners because of the platform's great interface, which enhances ease of usage compared to other online exchange or brokers. Its zero commission charge is also commendable and part of what makes it an excellent option for most traders.
However, expert crypto traders might not like that trading is limited to just four crypto options. Most significantly, the fact that currently, Webull does not allow you to transfer crypto away from the platform. This is because security is of high priority to an average trader and with an online platform that is not guaranteed.
Therefore, most of these traders prefer exchanges that allow them to transfer their digital currencies to an offline hardware wallet like Trezor, ensuring greater security. Nevertheless, Webull can boost many loyal customers.
Frequently Asked Questions
Can you transfer crypto from Webull?
Currently, Webull does not support transferring crypto assets to other platforms.
Is Webull really free?
Webull offers commission-free trading and free access to U.S market data.
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About Chika Uchendu
Chika Uchendu is an investing writer and investment platform analyst passionate about helping people learn more about managing their finances, making informed investment decisions, and navigating the complex landscape of investment platforms to find the best options for their financial goals and needs. He has over 8 years of experience writing compelling articles for various reputable publishers across diverse topics. When he’s not writing content, he’s wrangling and analyzing data to help businesses make informed decisions.