If you’re a cryptocurrency trader or investor, you may find yourself utilizing various crypto platforms. As a result of industry exposure, SoFi and Coinbase come to mind as popular crypto platforms today, and if you’re a user of either, you may find yourself in a position where you want/need to transfer funds between the two. This article serves as a guideline for transferring your crypto funds from SoFi to Coinbase quickly and safely.
In SoFi, cryptocurrency is for investing only. To clarify, users cannot link their cryptocurrency to a wallet. Although SoFi has Coinbase as a trading partner, it doesn’t allow users to transfer cryptocurrency directly. There is a process to follow to transfer funds from SoFi to Coinbase.
To clarify, users need to sell their stocks and transfer them to their SoFi Money account once funds are available. Secondly, they must open an account with Coinbase if they don’t already have one and buy cryptocurrency there. Above all, it is important to note that it seems tricky at first, but it gets easier with step-by-step guidance and a bit of practice.
Why SoFi Doesn’t Allow Direct Transfers
Cryptocurrency is growing exponentially since the dawn of the Bitcoin era. Moreover, crypto investments are soaring from double-digits to the millions. Therefore, one might wonder why SoFi doesn’t make it easier for clients to transfer funds. On the other hand, perhaps SoFi has a good reason for it.
It seems many people wanted to know and as a result, SoFi claims it doesn’t offer the fund transfer feature as a result of taking its security very seriously. That is to say that they have a closed system to secure users’ crypto assets. In addition, they never share personal information about their members with their crypto trading partners and custodians.
Step by Step Instructions for Transferring Funds from SoFi to Coinbase
If you choose to transfer crypto from SoFi to Coinbase, see the step-by-step below.
First Things First – Selling Your Crypto on SoFi
- Sell your Crypto on Sofi
- Secondly, you need to rebuy it on Coinbase
The problem with this is that you can stand to lose some money along the way. In short, it's best to be mindful of your options and make sure you know when it’s the right time to sell and buy.
All cryptocurrency you sell on SoFi will be returned to your SoFi Invest account in USD as buying Power.
Above all, if you're in a hurry, it's important to note that it can take 24-48 hours for the funds to become available for withdrawal.
Important: SoFi requires a minimum sale amount for specific cryptocurrencies:
|Cryptocurrency||Minimum sale amount|
|Bitcoin Cash||0.01 BCH|
|Ethereum Classic||0.1 ETC|
NOW: Transfer the money to SoFi Money
Once you see the amount you have sold in Buying Power, you can transfer it to your SoFi Money account.
Above all is the convenience of being able to do this from your phone or on SoFi’s website.
- App: Access the invest account you want to withdraw from, click “Manage,” and then “Withdraw.”
- Website: Access the invest account you to withdraw from, then click “More” and then “Withdraw.”
Further, select the option to transfer money from your SoFi Invest account to your SoFi Money account. Keep in mind that the sale needs to be settled one business day after the trade has been executed before withdrawing the funds – it is, therefore, important to plan ahead.
Opening a Coinbase Account – If You Don’t Already Have One
You can open a Coinbase account in a matter of minutes. In addition to this, you will certainly need to enter your first and last name, an email address and create a password.
Moreover, you must have a photo ID to prove your identity. U.S. users must enter their Social Security number, while those living in other countries must provide alternative identification. When you’re done, you’ll certainly be able to add your credit card, debit card, or bank account.
Transfer Crypto from SoFi to Coinbase – Adding Your Funds to Coinbase
SoFi gives you access to your money through a debit card, bill pay service, a checkbook, and money transfers via ACH. In this case, you will be using your SoFi Money Debit Card so that you can transfer funds from your SoFi to your Coinbase account.
- Log into your Coinbase account and click on your profile picture.
- Select “Settings” and then go to the Payment Methods tab.
- Click on “Add a Payment Method”
- Select “Debit Card” and as a result, you can then fill out your billing address and your debit card information.
- Click on “Add a Payment Method”
When you finish these steps, your new payment option should appear in your list of payment methods.
Another way is to click on the “Buy/Sell” button on your dashboard, then click the payment method drop-down menu and select “Add a New Account.” Then, click “Debit Card” and fill out the required information.
For Coinbase Pro:
- Log into your account and click on the “Deposit” button located on your dashboard.
- Select your desired currency and select from where your money is coming from (bank account or Coinbase.com).
- Enter the amount and click “Continue.”
Why Transfer SoFi to Coinbase?
Aside from its leading financing solutions, SoFi does however offer many of the same bank services for free and other products built to meet its customers’ goal to take control over their money. SoFi Active Investing is an account aimed only at young and beginner investors. Consequently, it comes with free trades of stocks and ETFs, cryptocurrencies, and fractional shares of blue-chip companies.
On the other hand, Coinbase wanted to create a new financial system that will serve the whole world. As a result, Coinbase is an exchange platform that assists users in converting digital currency into and out of their home currency. Most importantly, transferring funds from SoFi to Coinbase is certainly used as a means of gaining access to profits and funds when they’re needed.
Similarly, both platforms offer pros and cons. There are pros and cons of buying cryptocurrency on both platforms to consider as follows:
SoFi Active Investing
|Minimum purchase of $10||Limited features and tools|
|Low fees to own funds||1.25% charge based on the amount of each trade|
|Free access to Certified Financial Planners||Limited track record|
|Easy app interface||No digital wallet|
|20 types of cryptocurrency||No cryptocurrency trading|
|Regulated by Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC)|
You can find more information about the pros and cons of SoFi Active Investing here.
|$2 account minimum||Fees 0.5% – 4.5% based on type of transaction|
|Cryptocurrency is insured||User doesn’t control wallet keys|
|Digital wallet||It doesn’t have many altcoins|
|56 types of cryptocurrency – 59 on Coinbase Pro|
|60-plus crypto-to-crypto pairs|
|Regulated by Financial Conduct Authority (FCA)|
To clarify, you can find more information on the pros and cons of Coinbase here.
Aside from offering low starting deposits, SoFi and Coinbase similarly provide various educational resources for beginners.
Now that you are aware of their pros and cons, you can decide if you want to keep all of your funds in only one platform or split between SoFi and Coinbase.
So, with the process in mind and know-how to transfer funds from SoFi to Coinbase, a word of warning, in conclusion, is certainly to be extended. This is to say that it's important to clarify that you may not have the same amount of coin when transferring your funds. In other words, the amount of coin varies depending on the price fluctuation between when you sell and buy.