litecoin on blue background

What is Litecoin & How Does it Work?

Cryptocurrencies have been a hot topic of conversation over the last few years. Sometimes it seems like everyone has an opinion—your uncle, the guy in line at Starbucks, and of course, every person on the entire internet.

Perhaps it should come as no surprise. Cryptocurrencies are built using exciting technology that could potentially change the way our economies work. Certainly, the wild swings in the prices of cryptocurrencies draw a lot of attention (and criticism).

Volatility can generate curiosity from investors, speculators, and those with a general interest in seeing how the future of the cryptocurrency market will unfold.

The first and largest cryptocurrency is Bitcoin. But, that’s not the only cryptocurrency out there. Ethereum, Ripple, and Litecoin are also familiar.

What is Litecoin? Litecoin is a peer-to-peer internet currency that is sometimes referred to as “Bitcoin’s little brother” or as a “lite version of Bitcoin.” In November of 2013, Litecoin had its first major price surge . Unsurprisingly, this period of rapid increase got people talking about the hottest new cryptocurrency of the hour.

Since then, Litecoin has become one of the most recognizable names in cryptocurrency. Currently, it ranks as the sixth largest cryptocurrency by market cap in a sea of thousands. So far, Litecoin has survived and remained relevant in an environment where many cryptocurrencies have failed and are now defunct.

Potential cryptocurrency purchasers will likely want to do their due diligence before taking the plunge into this volatile holding. Here’s more for those wondering how Litecoin works and what Litecoin is used for.

What is Litecoin?

Litecoin is a peer-to-peer cryptocurrency that aims to enable instant, near-zero cost payments that can be done between people or institutions anywhere across the world. Litecoin is probably most well-known for using a similar mathematical code to Bitcoin, but with four times as much supply and four times the processing speed.

But to fully understand “what is a Litecoin” and what makes it different, it helps to first have a general understanding of cryptocurrencies, so let’s start there.

A cryptocurrency is an online-only digital currency that acts as a direct financial exchange between users without the involvement of a bank or other third parties. Many cryptocurrencies, including Litecoin, are decentralized.

This is opposed to what we are more commonly used to, which is a currency system that uses a central bank. These currencies are generally controlled by the government of the country or bloc of countries that issue that currency (like the dollar or euro).

The decentralization of the banking system is a goal of cryptocurrency. Many of us who have ever tried to send or receive money across financial institutions or to another country have likely dealt with inconveniences. Frankly, it’s not that easy to understand how money is sent between banks, what the costs are, and why transactions take as long as they do. To technology buffs (and institutions moving large sums of money), these inconveniences are even more pronounced in the digital age.

Charlie Lee, a former Google employee and engineering director at Coinbase, released Litecoin in 2011 . To compare, Bitcoin was created in 2009 by an unknown person or group of individuals called Satoshi Nakamoto.

Lee designed Litecoins be a compliment to the original cryptocurrency, not to be a replacement or even a competitor. That’s why it is sometimes referred to as “Bitcoin’s little brother.” Lee has said that he wanted to create the “silver” to Bitcoin’s “gold.”

Because Litecoin can create blocks in 2.5 minutes (as opposed to Bitcoin’s 10), the transaction time is also faster. Thus, Litecoin is often considered a “lighter,” faster version of Bitcoin.

What is Litecoin Used For?

Litecoin advertises itself as a “cryptocurrency for payments—based on blockchain technology.” Its primary focus is to act as a medium for transacting payments without a bank or other third-party intermediary.

Litecoin uses a very similar technology to Bitcoin, but with the ability to conduct transactions faster than Bitcoin. How much faster?

According to Litecoin, it takes two-and-a-half minutes to “process a block” compared to Bitcoin’s ten, making the currency four times faster than bitcoin. The tradeoff is that a transaction done in litecoins may not be as secure as a transaction done in bitcoins.

But of course, many people are interested in Litecoin as a potential long-term holding, not just as a means to process transactions. Similar to making a purchase of any type of currency, the hope is that the new currency will increase in value relative to base currency.

Therefore, many speculators looking into a cryptocurrency like litecoin are generally speculating that the currency will build relative wealth over time. However, there are always risks with speculative plays like currency.

How Does Litecoin Work?

In order to understand how litecoin works, it is good to first have a base knowledge of the underlying technology of blockchain. With blockchain, information is coded and stored in a block, and each block strung together creates a chain. The chain of information acts as litecoin’s transaction ledger.

Blockchain is an open, distributed ledger that, as described by the Harvard Business Review, “can record transactions between two parties efficiently and in a verifiable and permanent way.” The ledger itself can also be programmed to trigger transactions automatically.

The information used within a blockchain system is kept safe through the use of encryption techniques. Transactions using blockchain technology are generally assumed to be anonymous (although in fact they are pseudonymous—because each user has a public address, someone could do lots of legwork to trace it back to an actual IP address, and thus the actual person).

As with many cryptocurrencies, Litecoins are mined by users, hopefully in exchange for the currency. Miners verify transaction and create new blocks by solving complex mathematical equations—making Litecoin part of the math-based currency cohort.

With litecoin, miners are awarded with 25 new Litecoins per block they mine, an amount that gets halved roughly every four years (every 840,000 blocks).

Litecoin has a cap of 84 million Litecoins in total—four times as many units as Bitcoin. Similar to Bitcoin, Lee designed Litecoin to have the majority of coins mined in the first two decades. As of this writing, there are over 63 million Litecoins.

Speculatinging in Litecoin

Anyone feeling ready to take the plunge and purchase Litecoin may want to learn about the unique way that cryptocurrencies are bought and held.

It is not possible to buy Litecoin or other cryptocurrencies through many traditional brokers. Instead, Litecoin must be purchased in a digital wallet, via one of the cryptocurrency exchanges, or through an online brokerage firm that offers crypto trading. Consider fees, security, and accessibility before making a decision about where to buy and hold cryptocurrencies.

No matter where Litecoins are purchased, they must be stored in a cryptocurrency wallet. A wallet—which is either a software program or actual hardware—allows you to send and receive digital currencies and keep an eye on your speculative play.

It might be helpful to understand that cryptocurrency isn’t “stored” in the traditional sense, as in dollars that are stored in a bank account. Instead, records of transactions are stored on the blockchain.

Most wallet options are either considered offline or online, with online wallets generally considered to be riskier and more open to hacking than offline wallets. An offline wallet, such as a wallet stored on a hard drive, may be safer, but buyers run the risk of losing the hard drive.

What is the Price of Litecoin?

You can view the current price of Litecoin here .

As with many of the most popular cryptocurrencies, Litecoin has experienced significant volatility over its short history on this planet. This volatility has happened on both the upside and the downside.

At its highest point, in December of 2017, Litecoin was trading at over $375, its most precipitous rise to date. In December of 2018, the price was as low as $24, before another uptick during early 2019.

What Are the Risks of Litecoin?

The risks of litecoin are similar to the risks of most cryptocurrencies. First, potential buyers are wise to be mindful of scammers. Unfortunately, there are always people out there who are willing to take advantage of others.

Cryptocurrency, which is a new, exciting, and sometimes misunderstood frontier, is an environment that is ripe for such activity.

Also, cryptocurrency wallets and exchanges are not impervious to hacking. Hacking could be a major concern of anyone making a decision about where to buy and store their cryptocurrencies. If cryptocurrencies are hacked and stolen, there may not be a way to recover them.

Here’s another perspective: For an idea of the Securities and Exchange Commission’s stance on cryptocurrencies , the agency recently again denied a crypto-ETF, stating that “its disapproval does not rest on whether bitcoin or blockchain more generally, has utility or value as an innovation or investment,” but was because it is not meeting the requirement to “prevent fraudulent and manipulative acts or practices”—a standard requirement for the SEC.

There are plenty of what-ifs when it comes to cryptocurrency. For example, what is the fate of cryptocurrencies if they are not widely adopted? Cryptocurrency, along with blockchain, are technologies that are still in their infancy.

As with the invention of the internet and ensuing internet-related companies, it is extremely difficult to predict which cryptocurrencies could be successful, or whether any of them will be successful.

It’s hard to tell how blockchain technology ultimately will be used. Here’s one opinion on the predicted adoption of blockchain technology from the Harvard Business Review : “While the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure.

“The process of adoption will be gradual and steady, not sudden, as waves of technological and institutional change gain momentum.”

The authors go on to say, “Our experience studying technological innovation tells us that if there’s to be a blockchain revolution, many barriers—technological, governance, organizational, and even societal—will have to fall.” Blockchain, and cryptocurrency, currently face major regulatory challenges from the very systems that they are aiming to disrupt—and may continue to.

The Takeaway

Risk is a natural part of purchasing volatile assets. But it’s important to know that crypto, due to its volatility, carries a higher degree of risk. When purchasing cryptocurrency, a buyer should know how much they can afford to lose.

When buying cryptocurrency, it may be helpful to be saving and investing in other more established ways, as well. And there’s always the option to purchase a small amount of crypto, which somewhat alleviates the risk.

For example, investors and speculators may want to consider building out a portfolio of stocks and bonds using diversified funds. Although these investment types will also experience volatility, they have long track records of providing value to investors over time. Always keep in mind investing comes with risk, including the risk of loss.


On SoFi Invest®, investors can trade their first cryptocurrency with as little as $10. Doing so will get them a bonus of $10 in Bitcoin. Unlike the stock market, investors can also trade cryptocurrencies like Bitcoin, Litecoin and Ethereum 24/7. Plus, SoFi takes security seriously and uses a number of tools to keep investors' crypto holdings secure.
Get started trading crypto on SoFi Invest today.


✝SoFi takes security seriously across all of the brand’s products. SoFi Invest uses a number of tools to secure crypto holdings against theft, including two-factor authentication, SSL encryption, partnering with trusted exchanges like Coinbase to complete transactions, and not sharing personal information about our members with crypto trading partners and custodians. Before you purchase crypto through SoFi Invest, it is important to understand the volatility of its value, and therefore its inherent risk.
SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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bitcoins in a wallet

What is a Crypto Wallet? A Guide to Safely Storing Crypto

If you’re just getting started with cryptocurrency, there are a few key technical terms you may want to understand to make sure your storage and transactions are secure. As always, cryptocurrencies have their risks.

You may have heard about cryptocurrencies being stolen or lost in recent years, such as the $450 million theft of 850,000 bitcoins from Japanese crypto exchange Mt. Gox in 2014. These vulnerabilities are part of the cryptocurrency ecosystem, more on that below, but you can avoid losing your cryptos if you know how to properly secure them using a wallet.

Cryptocurrency wallets come in a few different forms. By learning about the different types of cryptocurrencies and wallets, deciding how much you want to put into cryptocurrencies and how you plan to use them, you can decide which type of wallet is best for you.

A Recap of Cryptocurrency

Cryptocurrencies, such as Bitcoin and Litecoin, are digital currencies that are created and secured using cryptography. When secured properly in wallets they are difficult to counterfeit or steal.

Many of the most popular cryptocurrencies are built using blockchain technology. A blockchain is an unchangeable ledger of transactions. One challenge of using blockchain technology is making sure the ledger is accurate and up to date. Various methods have been invented to solve this problem.

The Bitcoin blockchain, for example, utilizes miners who solve complex mathematical algorithms to prove the validity of the blockchain.

As a reward for keeping the Bitcoin network running, the miners receive newly released Bitcoins as well as transactional fees.

One of the biggest draws to using cryptocurrencies is their decentralized nature. No single person, company, or government controls the Bitcoin supply or network. Bitcoins are released to the network over time, and there will only ever be 21 million of them in circulation.

Recommended: What Is Cryptocurrency? What You Should Know

Buying and Selling Cryptocurrencies

In order to understand what a cryptocurrency wallet is, it’s crucial to know a bit about how cryptocurrencies are created and used.

One common argument against cryptocurrencies is that they aren’t backed by anything or don’t have intrinsic value. The reality is, the money you transact with when you use your credit card or hand someone a $5 bill is only backed by people’s faith in the solvency of the US government.

All money is simply a representation of value which can be exchanged between people for goods and services, and it only has value if everyone using it agrees that it does. Metal coins and gold bricks have intrinsic value because they can be used for industrial purposes.

Until 1971 , the U.S. dollar was backed by Gold, meaning that in theory the Federal Reserve held an equal amount of Gold in storage to the amount of paper money and coins in circulation. Since that time, paper money has been printed in response to supply and demand needs, and the amount in circulation isn’t backed by a physical asset such as Gold.

Like any digital money, Bitcoin and other cryptocurrencies aren’t actually physical objects or even images or digital files. A crypto network is simply a ledger of amounts and transactions, similar to what you see when you log into your online bank account. Public and private addresses are used to view your holdings, send, and receive cryptos.

Your public wallet address is what you give to someone when you want them to send you cryptocurrency, and anyone can look up that address and see how much you hold and your past transactions.

However, the address is simply a string of numbers and letters, so unless someone knows it belongs to you, your holdings and transactions are anonymous. This transparency combined with anonymity is part of what appeals to many people about cryptocurrencies.

Your private address should never be published or given out to anyone – like your email password. The private key is what’s used to sign off on transactions, and if someone has access to both your public and private keys they now have control over your holdings.

It may seem as though a hacker could start matching up possible public and private keys and hack into people’s wallets, but the chances of doing this successfully are the same as your chances of winning the Powerball , 9 times in a row. Needless to say, this is extremely unlikely.

There are dozens of online exchanges where you can purchase and sell cryptocurrencies. Many of these allow you to directly link your bank account so you can easily transfer between U.S. dollars and crypto.

You can also directly transact with individuals using wallet applications or paper wallets. QR codes are commonly used as a quick way to sell or send cryptos, or you can send out your full public address.

Note: Depending on which cryptocurrency you are using, it can take up to an hour for your transaction to complete. Don’t panic if your funds don’t transfer immediately.

What is a Cryptocurrency Wallet?

Cryptocurrency wallets are used to store your private keys. These hexadecimal keys must be matched with your public keys in order to move crypto from one wallet to another. Some wallets can be used to store multiple types of cryptocurrency, while others can only store one type.

There are a few different types of wallets. Some wallets are convenient to use to quickly buy and sell cryptos, but other types may be more secure.

Types of Wallets

The two main categories of crypto wallets are hardware and software wallets, otherwise known as cold and hot storage.

Hot Storage and Software Wallets

Hot storage wallets can be accessed on the internet or your computer device by logging into exchanges or wallet service providers.

Some popular hot storage exchanges include Coinbase and Gemini. These exchanges hold your private keys, so even though they implement the best security they can, they are still vulnerable to hacks.

In general, it’s best to not store large amounts of crypto in online exchanges. You can move it into the exchange when you want to send or sell it, but otherwise keep it in cold storage.

There are also software wallets which you download onto your computer, such as Electrum and Exodus, as well as phone apps like Mycelium. These are somewhat more secure, since they often give you access to your private keys, and are stored directly on your computer.

However, if your computer or phone breaks or gets lost, your cryptos may be lost along with it. In the unfortunate event that this does happen, if you have written down both your public and private keys, you will likely be able to recover your funds. If given the option, it’s always a good idea to keep a second copy of your address written down in a safe place.

Cold Storage and Hardware Wallets

Cold storage hardware wallets are offline, and may be in the form of a physical hardware device or a piece of paper. Yes, you can simply write down your public and private address on a piece of paper and use that to recover your funds.

Although vulnerable to loss, fire, or flood, a paper wallet is arguably the most secure type of wallet, since it doesn’t connect to any device, software, or network which could be broken or compromised. You can even create a print out of a QR code for your wallet to make it easier to use.

Paper wallets can be generated from reputable sources such as Bitcoinpaperwallet and BitAddress. If you do use one of these services, make sure you go through the steps to disconnect from the internet as you create the wallet. Once your wallet has been created, you may want to laminate it or seal it in a plastic bag in a safe.

Popular hardware wallets include the Trezor and Ledger devices. These are physical devices which plug into your computer, and keep your private keys stored in them.

This way, your private keys are never online, but you can still conveniently buy and sell cryptos without having to upload an address from a piece of paper. Both Trezor and Ledger support multiple cryptos.

You can also purchase physical coins, such as physical Bitcoins, which come preloaded with a certain amount of the cryptocurrency. These are generally created with a tamper proof seal to hide the private key. These can be useful for offline trading and are a fun collector’s item as well.

A further delineation of hardware wallets are hardware security modules, or HSMs. These devices only handle the keys and signing of data, but not the signing of complete transactions.

Other Uses for Wallets

Although the main way that cryptocurrency wallets get used is to store and transact with cryptocurrencies, there are also other uses for this technology. Tokens or digital information stored in a blockchain could represent anything from goods in a supply chain to a plane ticket.

Blockchains can also store personal information such as your identity, tax history, medical information, voting information, and more. In the future we may find ourselves using blockchain based wallets in many facets of our lives.

Before you purchase cryptocurrencies, think about how you plan to use and access them. If you’re planning to purchase cryptos and hold them long term, a secure cold storage wallet is probably your best option.

If you want to access them from your phone, you may want to download an app from a particular exchange or wallet provider.

Also, think about which cryptocurrencies you want to hold and look into the options available for each coin. Doing your due diligence on both the coin and the wallet may keep you from getting scammed. In the past, some exchanges have been hacked, stolen people’s money, or shut down completely. That being said, there are plenty of reputable options to choose from.

Note that some countries have banned Bitcoin and other cryptocurrencies, so you could get into trouble for having a wallet if you are from them or live in them. These countries include Bolivia, Cambodia, Pakistan, Nepal, Algeria, and Ecuador.

Storing and Securing Your Wallet

The most important part of choosing your wallet type and using your wallet is making sure your storage and transactions are secure. Many of the most popular exchanges store your private keys for you and don’t give you access to them.

Although it can be convenient to hold cryptos in exchanges, not having access to your private keys makes you vulnerable to hackers and even scams. You may decide to store your cryptos in cold storage and only move as much as you plan to send or sell into hot storage at any given time.

Making sure you’re keeping your information secure might include being wary of any emails coming from exchanges or wallet apps, checking the email address to make sure it’s legitimate, and never sending your private keys over email (or at all).

You may want to consider double checking your transactions before sending checking the website address when you visit an exchange or online wallet. Fake emails and websites can look very similar to the real ones.

Getting Professional Insights and a New Cryptocurrency Wallet

Cryptocurrencies are still new, volatile, and risky. For this reason, you may not be ready to start trading them.

Or, you may be excited about jumping in early while the industry is young. Either way, gaining professional insights into your investment strategy and using state-of-the-art tools can help you to build a strong and diversified portfolio.

Figuring out what your goals are and starting early is a great way to start creating a long-term portfolio growth strategy. One excellent resource and toolset is the SoFi app. SoFi offers free consultations with financial planners, and a wealth of knowledge about online investing and financial planning at your fingertips.


On SoFi Invest®, investors can trade their first cryptocurrency with as little as $10. Doing so will get them a bonus of $10 in Bitcoin. Unlike the stock market, investors can also trade cryptocurrencies like Bitcoin, Litecoin and Ethereum 24/7. Plus, SoFi takes security seriously and uses a number of tools to keep investors' crypto holdings secure.
Get started trading crypto on SoFi Invest today.


Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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How Does a Crypto Exchange Work?

In the old days, if someone needed their cash, they would head down to the bank, fill out a form, stand in a long line, hand the form over, wait while someone counted the money, then counted it again, before they tucked the crisp bills into a neat white envelope and handed it over.

And if someone wanted to buy stock back then, the process likely involved paper forms and maybe even a phone call. While these processes took plenty of time, they were pretty straightforward and standardized.

The new world of cryptocurrency is a different story.

Want to buy some Bitcoin? How about some Ethereum? What if you want to convert your Bitcoin into a fun new altcoin you just heard about that’s based on a forum you spend way too much time on?

It can be a little more complicated and confusing than writing your account number, the date, and a dollar amount on a form down at the community bank or calling your broker.

In some cases, you’ll have to engage with a cryptocurrency exchange platform, you may need a digital wallet, and want a basic grounding in the cryptocurrency landscape—because you won’t have access to a charming bitcoin teller with a green visor to answer your questions.

That said, there are opportunities, such as with SoFi Crypto, where the company or firm handling the purchase will provide a secure platform, digital wallet, and a learn-as-you-go education in cryptocurrency. However, it’s important to note that cryptocurrency is volatile and comes with risk.

What’s the Deal with Cryptocurrency Wallets?

Investing.com lists more than 2,800 cryptocurrencies as of October 2019. There’s a good chance that number has increased by the time you read this since new cryptocurrencies seem to pop up by the day. Bitcoin and Ethereum are still two of the most popular cryptocurrencies—Bitcoin being the first and still holding the highest market cap and value.

But there are coins and crypto projects built out for myriad weird and interesting niches, like the DogeCoin that started on Reddit, multiple coins themed around cats, and one for buying Burger King Whoppers in Russia.

What most of these currencies have in common is that they have a piece of software—some are online—called a wallet where you can store your cryptocurrency.

Buyers can set up a wallet before buying their first coin. That way, they can move their crisp new cryptocurrency off of the exchange when it’s purchased.

The official Bitcoin site lists no fewer than 22 wallets that you could use to store Bitcoin. This is likely a product of Bitcoin’s place as the first cryptocurrency and still one of the most popular. More people have been using Bitcoin longer, so it makes sense that there are more options for wallets.

Many smaller cryptos, like Litecoin , will have their own wallet and additional wallets you can use from other developers. There are even hardware wallets if you want to be really secure. (And you can buy Litecoin through SoFi Crypto, which provides the wallet.)

The hardware wallets usually look like a USB stick and can be more secure because once you remove them from your computer they’re not on the internet, and they can be built around secure chips and can have encryption. You can also get mobile apps on most iOS and Android devices as well.

Your options for choosing a wallet that works for you are basically those made by the coin developers themselves or those made by a third-party developer. In some cases, wallets made by the original developers might need a little more technical know-how and may require more computer processing power than the third-party applications that seem to be aimed toward a general audience.

For instance, Bitcoin Core, the wallet application from the developers of Bitcoin, needs a ton of hard-drive space. If you want to use this application you’ll need a minimum of 200GB free on your hard drive. Bitcoin will take up this space because it’s going to download the entire blockchain.

Basically, your computer will end up having a record of every Bitcoin transaction that has run across the blockchain. Pretty cool, but may not be necessary if you’re just looking to purchase some cryptocurrency.

A third-party application, like SoFi’s app, might make it a little easier for most end users who want to buy and trade cryptocurrencies without taking such a deep dive into the technology under the hood.

These applications often require fewer resources from your computer, might be a little easier to use, and some of them are mobile apps so you can take your crypto portfolio on the go.

Crypto Exchanges: Like Wall Street on Code

Once you’ve found the wallet that could work for you, it might be time to head to an exchange to get some crypto you can store in it. After all, what’s the point of having the wallet if you’re not going to use it? But you might be wondering what an exchange actually is.

An easy way to think about cryptocurrency exchanges is to imagine the stock market. Instead of trading and selling small bits of companies in the form of stocks, futures, or bonds, crypto exchanges do the same thing, but with cryptocurrencies.

Many of these exchanges will show prices of a single coin/token, usually against the U.S. dollar, and they may have charts that show the performance of a particular cryptocurrency over time.

If you’ve ever looked at a stock ticker tape or a finance site with stock prices, you can probably already imagine what a crypto exchange looks like, except with cryptocurrencies like Bitcoin and Ethereum listed instead of blue chip, Fortune 500 companies.

There are three kinds of digital currency exchanges: centralized exchanges, decentralized exchanges, and hybrids. Here’s how they shake out:

Centralized Cryptocurrency Exchanges

A centralized cryptocurrency exchange is a lot like what it sounds like: a central platform where cryptos are bought and exchanged. These exchanges have a third party that helps conduct transactions to make sure they go through as intended—sort of like a bank.

This might seem counterintuitive since one of the founding tenets of Bitcoin was a decentralized network, but exchanging fiat currencies for cryptocurrencies can require a third party to help make everything go as smoothly as possible. (“Fiat currency” is just a fancy term for traditional, established currencies like U.S. dollars.)

A centralized cryptocurrency exchange can make it easier to buy your intended crypto with real money and might give you some security that the transaction will go as intended. Also, they can make it easy to link your bank account or debit card in order to buy crypto.

Once you own cryptocurrency, you can usually trade it on centralized exchanges, too. So, if you have some Bitcoin and you want to buy some Litecoin, you can make that happen on a centralized exchange. Centralized exchanges are more common than their decentralized cousins.

Decentralized Cryptocurrency Exchanges

A decentralized cryptocurrency exchange, or DEX, lacks the third party found in centralized exchanges. You could say decentralized exchanges are closer to the spirit of the blockchain that started the cryptocurrency world, because they are open source and depend on users to trade peer to peer.

In theory, a decentralized cryptocurrency exchange could be more secure than a centralized exchange. Because there’s no central entity or server to hack, it might make it harder to steal cryptocurrency. Fees might be lower and your transactions might also process faster in a DEX.

DEX have some drawbacks compared to their centralized counterparts. You might have to be a little more skilled with tech because DEX don’t often offer the easy transfers from bank accounts or debit cards to buy crypto.

Some DEX don’t offer fiat currency changes at all and your only option might be to trade one cryptocurrency for another. Your funds aren’t insured and there’s nobody to call if you run into a customer service issue, as there’s no central authority.

Hybrid Cryptocurrency Exchanges

Hybrid cryptocurrency exchanges are exactly what they sound like: an attempt to blend the best of both worlds from centralized and decentralized into one exchange. Their aim is to give end users the convenience of a centralized exchange while also giving them the security and freedom of a decentralized exchange.

Hybrid exchanges have yet to see the adoption that centralized exchanges have realized, but they may be laying a roadmap for a middle ground that might keep consumers and crypto enthusiasts happy in the future.

Now What?

Remember that wallet you learned about? Well, now that you’ve got a handle on how exchanges work, and what they do, you can combine the two and move your fancy new cryptocurrency from the exchange to your personal wallet.

Here’s how a transaction like this might go down. Let’s say you want to buy one Bitcoin:

•   First, you can find a Bitcoin-compatible wallet you like.
•   Then, you might find a centralized exchange (because they can be easier).
•   You could then create an account at the exchange and add some funds, usually from a bank account or debit card.
•   Then you could buy your one Bitcoin.

You could keep your Bitcoin on the exchange, but some crypto folks might suggest you move it to a personal wallet if you’re going to hang on to it for a while. That’s because the exchange could get hacked and you could lose your shiny new Bitcoin.

Or the exchange might suddenly close up shop and your Bitcoin might go right along with it—such as what happened with Polish cryptocurrency exchange, Coinroom.

Moving your Bitcoin from the exchange to your wallet is almost like taking cash from the bank and putting it in your safe at home. It might be a good idea to help keep your cryptocurrencies secure.

Get Ready to Trade

Finding the cryptocurrency, exchange, and wallet that works for you and your goals is a personal choice. It may also depend on something like your operating system and if the wallet and exchange are available on mobile. It might even depend on the cryptocurrency you’re trying to buy.


On SoFi Invest®, investors can trade their first cryptocurrency with as little as $10. Doing so will get them a bonus of $10 in Bitcoin. Unlike the stock market, investors can also trade cryptocurrencies like Bitcoin, Litecoin and Ethereum 24/7. Plus, SoFi takes security seriously and uses a number of tools to keep investors' crypto holdings secure.
Get started trading crypto on SoFi Invest today.



SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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What Is a Stock Split & When Does It Happen?

In theory, the skyrocketing of a company’s stock price should be nothing but a good thing, right? Not for everyone. A stock with a huge price tag per share could frighten away smaller investors, who may perceive the stock as too rich for their blood. That means that many investors might pass over the company’s stock for more affordable stock choices, sometimes even the stock of competitors.

Despite the company’s healthy (and increasing) stock price, the investors may stay away in droves, and that is not good news for a company trying to grow its number of stockholders.

So what’s a company to do? One idea that seems to be time-tested: split the stock (generally called a standard stock split). That means artificially bringing down the price of the stock shares, so that they look more attractive to more investors, even though the value of the company remains the same. The investors get in the game, and the company gets more marketability and liquidity.

In effect, therefore, stock splits are a signal from management that they have confidence in the continued appreciation of their companies’ shares, says Marketwatch .

When Do Stocks Split?

Corrections and perceptions can sometimes influence prices on a stock exchange even more than reality. Wielding this market insight, a company will split its stock if they see that its share price is rising to amounts much higher than other companies in its sector.

The idea is to give the perception that its shares are as affordable—or even more affordable—to investors. In reality, the value of the company has not changed, but the stocks now look more affordable, especially to smaller investors, to whom this matters.

How a Stock Split Affects Stock Price

After the stock splits, the stock’s price usually goes down proportionately. That’s because the number of outstanding shares has gone up. 10 shares at $10 is worth the same as 20 shares at $5. Both are $100.

The stock price may change after a split but the market capitalization stays the same. A cooler way to say this is “market cap.” (try it!). Market cap is the total dollar value of a company’s outstanding shares.

Investors look to the market cap when they want to know the size of a company. Company size is different than its sales numbers or total assets owned. The market cap helps investors figure out the aggregate value of a company’s worth.

Here’s the math (and it’s easy): if a company has 20 million shares priced at $100 a share, the company would have a market cap of $2 billion. Simply multiply the number of shares by the price of each share: 20 million x $100 = $2 billion.

Can a Stock Price Rise After a Stock Split?

Yep. It’s a supply-and-demand thing. Small investors may get hip to this stock when it splits and becomes more affordable. The mad rush boosts demand of the stock and makes its price rise. Usually this affect is moderate since most investors realize that a stock split does not actually change the value of the company.

Another way the split-stock price could rise is the perception that, because the company split the stock, the company’s share price has been steadily rising, and will keep going. This will increase demand and also the stock price.

An Example of a Well-Known Stock Split

Apple Inc. split its shares 7-for-1 in June 2014.

Why use the 7? According to Apple Insider, it’s a less familiar transformation, which may have been chosen on purpose, in order to reset the market’s expectations of where Apple “should” be trading.

It’s a mind trick. Apple Insider says, “After a two-year period of irrational stock moves, Apple may likely want to erase the mental barriers investors may have about where Apple trades, as well as breaking any psychological links between Apple’s share price and that of other companies one might compare it against.”

“Dividing the stock price by 7 results in an entirely new set of numbers that aren’t easy to mentally translate in comparisons with past expectations. This is similar to how a tourist—in a country where the local currency is an unfamiliar fraction of the value of the currency his expectations are set in—now looks at prices in a new way.”

The mind trick worked, and well. The stock became more affordable to smaller investors. Before the split, each share traded at $645.57 (wow!). After the split, the price per share was $92.70.

The math: 645.57 divided by 7. The $92.70 is approximate.

For the lucky shareholders who already held Apple stock, each was given six additional shares for each share they owned. If a stockholder held 1,000 shares of Apple, they would have 7,000 shares after the split.
As a result, Apples’ outstanding shares increased from 861 million to 6 billion shares. The market cap, of course, remained unchanged: $556 billion.

The first day after the stock split, the share price immediately increased to a high of $95.05. This was likely a result of the demand spurred by the lower stock price.

While we’re focusing on numbers, here’s a good rule of thumb to understand how it works: if you own a 2-for-1 stock split, that means you now own twice as many shares, but each share’s worth is half as much as the original price.

What Is A Reverse Stock Split?

This tactic is used by companies who have the opposite problem: their share prices are too low, and they want to increase their prices. If a stock price descends down too far, the stock exchange can “delist” it, meaning removing it from the exchange.

For example, in a reverse 1-for-5 split, 10 million outstanding shares at 50 cents each would now become 2 million shares outstanding at $2.50 per share. In both cases, the company is still worth $5 million.

In May 2011, Citigroup reverse split its shares 1-for-10 in an effort to reduce its share volatility and discourage speculator trading. The reverse split increased its share price from $4.52 pre-split to $45.12 post-split and every 10 shares held by an investor was replaced with one share.

While the split reduced the number of its shares outstanding from 29 billion to 2.9 billion shares, the market cap of the company stayed the same at approximately $131 billion.

Hoping to leverage some price movements around a stock split? Some stock exchanges like NASDAQ , offer a chart featuring upcoming stock splits. The information given includes the split ratio and when the split is payable.

Investing with SoFi

You can’t experience the benefit of a stock split if you’re not investing in the market. You can build your investing strategy with a SoFi Invest plan. You can consider active or passive investing (or a mixture of both).

Our SoFi Financial Planners can listen to your financial goals and work with you to plan a financial strategy for your goals. They can also help you sort out other financial matters, from school loan consolidation to buying your first home.

Getting started with SoFi Invest is so easy; it takes just minutes to get started, online. You can also set up an appointment with a SoFi advisor with no obligation.


External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

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What is Index Investing?

As you begin to build your portfolio of investments, you will find that there are many ways to approach investing. Some require a significant amount of time and involvement, while others are more passive.

Before putting a significant amount of money into a portfolio, it’s important to figure out what your investment goals are and to learn about the many possible investment options.

One popular type of investment is called index investing, and as with any investing, there can be benefits, but there also may be risks. In this article we will go over what index investing is and how best to use this investing strategy.

An index fund is a mutual fund or exchange-traded fund which aims to mimic the overall performance of a particular market. The fund includes multiple stocks or bonds from the market and can be bought and sold like it’s a single investment.

There are index funds for the U.S. bond market, the U.S. stock market, international markets, and others. Index investing is the process of investing in these index funds.

Active investing typically involves in-depth research into each stock purchase, as well as regularly watching the market in order to time buys and sells. Passive investing strategies either aim to bring in passive income or to grow a portfolio over time without as much day-to-day involvement. Index investing is a passive strategy which looks to match the returns of the market it seeks to track.

Index investing started in the 1970s, when economist Paul Samuelson claimed that stockpilers should go out of business. Samuelson claimed that even the best money managers could not usually outperform the market average.

Instead of working with money managers, Samuelson suggested that someone should create a fund that simply tracked the stocks in the S&P 500.

Two years later, struggling firm Vanguard did just that. The fund was not widely accepted, and neither was the concept of index funds. Index investing has only become widely popular in the past two decades as data continues to reaffirm its merits.

Index investing has been gaining in popularity in recent years. Out of investments in mutual fund assets, the percentage allocated to index funds grew from 11 percent to 25 percent between 2006 and 2016. In 2017 investors withdrew $191 billion from U.S. stock funds and invested $198 billion into U.S. stock fund indexes.

Popular Indexes Include:

•  S&P 500 Index

•  Dow Jones Industrial Average

•  Russell 2000 Index

•  Wilshire 5000 Total Market Index

•  Bloomberg Barclays Aggregate Bond Index

Popular Index Funds Include:

•  Vanguard S&P 500

•  T. Rowe Price Equity Index 500

•  Fidelity ZERO Large Cap Index

•  SPDR S&P 500 ETF Trust

•  iShares Core S&P 500 ETF

•  Schwab S&P 500 Index Fund

The Pros of Index Investing

Can Be Easier to Manage

Although it may seem as though active investors have a better chance at seeing significant portfolio growth than index investors, this isn’t necessarily the case. Day trading and timing the market can be extremely difficult, and may result in huge losses or underperformance.

The average investor typically underperforms the stock market by 4-5%. Active investors may have one very successful year, but the same strategy may not work for them over time. A 2013 study showed that index investing outperformed other strategies up to 80-90% of the time. SoFi users can take advantage of index investing by setting up an auto investing strategy that will automatically rebalance and diversify portfolios.

Lower Cost of Entry for Multiple Stocks

If you only have a small amount of money to start investing and you choose to invest in individual stocks, you may only be able to invest in a few companies. With index investing, you gain access to a wide portfolio of stocks with the same amount of money.

Also, index investing doesn’t necessarily require a wealth manager or advisor—you can do it on your own. The taxes and fees tend to be lower for index investing since you make fewer trades, but this is not always the case. Always be sure to look into additional fees and costs before you make an investment.

Portfolio Diversification

One of the key facets of smart investing is diversifying your portfolio. This means that rather than putting all of your money into a single investment, you divide it up into different investments.

By diversifying, you may lower your risk because if one of your investments loses value, you still have others. At the same time, if an investment significantly goes up in value, you still typically benefit.

Index funds give you access to a large number of stocks all within a single investment. For example, one share of an index fund based on the S&P 500 can give you exposure to up to 500 different companies for a relatively small amount of money.

Index Investing is Fairly Passive

Once you decide which index fund you plan to invest in and how much you will invest, there isn’t much more you need to do. Most index funds are also fairly liquid, meaning you can more easily buy and sell them when you choose to.

The Cons of Index Investing

Although there can be upsides to investing in index funds, there can also be downsides and risks to be aware of.

Index Funds Follow the Market

Studies have shown that investors don’t always understand what they’re investing in when it comes to index funds. 66 percent of investors think that index funds are less risky than other investments, and 61 percent believe that index funds help to minimize portfolio losses. However, index funds track with the market they follow, whether that’s the U.S. stock market or another market. If the market drops, so does the index fund.

Index Funds Don’t Directly Follow Indexes

Although index funds generally follow the trends of the market they track, the way they’re structured means that they don’t always directly track with the index. Since index funds don’t always contain every company that’s in a particular index, this means that when an index goes up or down in value, the index fund doesn’t necessarily act in exactly the same way. This is why it’s important to understand how specific index funds seek to track their underlying index.

Index Investing Is Best as a Long-Term Strategy

Since index funds generally track the market, they do tend to grow in value over time, but they are certainly not get-rich-quick schemes. Returns can be inconsistent and typically go through upward and downward cycles.

Some investors make the mistake of trying to time the market, meaning they try to buy high and sell low. Investing in index funds tends to work the best when you hold your money in the funds for a longer period of time or dollar-cost-average (e.g. invest consistently over time to take advantage of both high and low points).

Choosing an Index to Invest In

The name of a particular index fund may catch your eye, but it’s important to look at what’s inside an index fund before investing in it. Determine what your short and long term goals are and what markets you are interested in being a part of before you begin investing.

There are both traditional funds and niche funds to choose from. Traditional funds follow a larger market such as the S&P 500 or Russell 3000. Niche markets are more focused and may contain fewer stocks.

They may focus on a particular industry. Typically, a good way to start investing in index funds is to add one or more of the traditional funds first, then add niche funds if you feel strongly about their growth potential.

Index Funds Are Weighted

Depending on which index fund you invest in, it may be weighted. For example, the S&P 500 index is weighted based on market capitalization, meaning larger companies like Amazon and Facebook hold more weight than smaller ones.

If Facebook’s stock suddenly goes down, it may be enough to affect the entire index. Other indexes are price weighted, which means companies with a higher price per share will be weighted more heavily in the index. Another form of index weighing could be equal-weight or weights determined by other factors, such as a company’s earnings growth.

Less Flexibility

If you actively invest in individual stocks, you can usually choose exactly how many shares you want to buy in each company. But when you invest in index funds, you have less flexibility. If you’re interested in investing in a particular industry, there may not be an index fund focused solely on that.

How to Get Started With Index Investing

In order to invest in an index, investors typically purchase exchange-traded funds (ETFs) which seek to track the index. Some funds include all the assets in an index, while others only include particular assets.

Prior to investing in any particular index fund, be sure to look into the details of how the fund works. You can find information about what is contained in the fund, how it is weighted, its fees and quarterly earnings, and other details on the fund’s website, through your financial advisor, or EDGAR , the Electronic Data Gathering, Analysis, and Retrieval system that is overseen by the U.S. Securities and Exchange Commission.

Alternatives to Index Investing

Despite the fact that index investing has grown in popularity over the past two decades, some analysts are now bringing up additional downsides and alternatives which investors may want to consider.

The stock market includes companies from many different industries, some of which investors are moving away from investing in. Oil and gas companies, pesticide companies, and others which some people may consider harmful to the environment or human populations may be included in an index fund.

As the economy moves away from these industries, these types of companies may not perform as well, and as an investor you may not want to financially support them.

Some new index funds are being formed around the principles of sustainability and positive impact. You may also be interested in impact investing and other types of ETFs and mutual funds which focus on specific, positive industries.

Active stock portfolio management has been showing stronger performance over the past two years. This shift is partly due to the fact that certain industries are performing much stronger than others, and stock pickers can account for that as they build portfolios.

Investors in index funds may also see a downturn in coming years if the U.S. experiences a bear market.

Building Your Portfolio

Whether you’re interested in investing in index funds or in hand-selecting each stock, it’s important to keep track of your portfolio and current market trends.

Once you know what your investment goals are, SoFi Invest® can be a great tool to build your portfolio and track your finances. With SoFi Automated investing, you can easily add index fund ETFs to your portfolio, all on your phone.

The automated investments are pre-selected for you, so you simply need to decide which funds to invest in, and how much you want to invest. Or, if you prefer to hand-select each stock in your portfolio, you can use the SoFi Active Investing platform.

SoFi has a team of credentialed financial advisors available to answer your questions and help you reach your goals. The SoFi platform has no transaction fees, and you only need a $1 to get started.

Find out more about how you can use SoFi Invest to meet your financial goals.


External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

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