Is Uphold Safe for Crypto Beginners? Here’s What You Need to Know
Uphold is a digital money platform that was established in 2015 and is available in over 180 countries with more than 150 currencies, both fiat, and crypto. It is particularly convenient for beginners because of its simple and user-friendly platform. Apart from crypto trading, Uphold also allows you to stake cryptocurrencies which can potentially increase your future returns, with expected annual percentage yield varying depending on the asset’s volatility.
Uphold offers a daily newsletter that keeps you informed about the crypto market and new emerging trends. Uphold demonstrates transparency in its reserve status through several tiers, and this transparency is reflected in its service fees, as the price shown before trading is the final price paid. It’s important to note that Uphold’s services may vary depending on the version of the website you are accessing. For instance, there are no stocks or precious metals available in the “English EU” and “English UK” versions. But is Uphold safe? Read on to find out.
The Platform is Extensive
The Uphold trading platform is designed to be user-friendly and straightforward, making it ideal for beginners who can easily navigate it within a few minutes, whether on desktop or mobile devices. Users can create watchlists for cryptocurrencies and other assets, check trading histories, and monitor the prices of all available assets, such as equities, utility tokens, fiat, and metals.
The platform always displays your total balance and features an “Anything-to-Anything” trading feature, which lets you transact crypto-to-crypto and specify the value of a trade-in your local currency. Uphold also enables placing up to 50 limit orders simultaneously to mitigate price volatility. However, if you’re looking for more advanced order types or charting tools, Uphold might not be the best option for you.
Uphold Provides Various Services
Uphold provides trading services for three asset classes: stocks, cryptocurrencies, and metals. However, the availability of the full range of products depends on the client’s jurisdiction. Only clients in “English Global and US” and “Spanish Global” have access to automated trading and the ability to purchase stocks (45+) and precious metals (Gold, Palladium, Platinum, Silver, and Universal Gold). Nevertheless, cryptocurrencies are available to all clients.
With Uphold, you can hold over 120 digital currencies, including stablecoins, altcoins, and emerging tokens. To send and receive any cryptocurrency, you need a wallet (paper, hardware, web, mobile, or desktop), which Uphold provides as a secure and convenient way to store your funds. Uphold claims that around 90% of their crypto is held in cold storage, making it practically immune to cyberattacks. Additionally, the wallet has other functionalities, such as making payments to vendors, sending money to friends, and instantly converting your bitcoins into local currencies and other cryptocurrencies.
Uphold is Sustainable
Uphold believes that sustainable investing can generate reasonable returns. It has introduced Universal Carbon (UPCO2) and Bitcoin Zero, which are the world’s first tradable carbon credit tokens and the cleanest form of Bitcoin, respectively.
However, investors should be aware that UPCO2 tokens can only be sold on the Uphold platform, and as of now, there is limited liquidity. This may lead to unfavorable spreads and unexpected price movements until it expands to other exchanges.
Uphold Gives Utmost Importance to Security
Cryptocurrencies are still in a legal grey area because they are not considered financial assets, which creates uncertainty regarding regulatory oversight and investor protection. Uphold provides crypto services in Lithuania for EEA residents but is not regulated as a bank or financial institution. Uphold tries to minimize regulatory insecurity by holding crypto assets in a custodial or segregated account controlled and secured by the company. The user is always the beneficial owner of their crypto assets.
In terms of listed securities like stocks or metals, Uphold‘s International Equities User Agreement states that the user is not the direct owner and does not have any voting rights. Uphold has no investor compensation scheme for these securities. Uphold is registered as a FinCEN Registered Money Services Business in the US, a “crypto-asset firm” with the FCA for AML purposes, and complies with money laundering, terrorist financing, and transfer for funds regulations. Uphold also acts as an EMD Agent of Optimus Cards UK Limited, a regulated firm by the FCA. Uphold is safe from hackers, and it does not give any room for scammers to roam in its ecosystem.
Uphold operates in a highly competitive market, with a significant increase in the number of crypto exchanges. However, Uphold has managed to capture a portion of the growing market. Uphold is safe and conducts its operations securely.
The Uphold platform functions effectively, displaying the market prices of various assets, and depositing and withdrawing funds only takes a few days with no extra charges. As with any financial decision, it’s essential to research and compares various crypto exchanges before signing up.