InvestHH Archives | Page 22 of 44

Q: Do you need to have a crypto wallet to trade cryptocurrencies?

The short answer is 'Yes.' Crypto wallets are not flat, physical objects with storage slots that can be made of fine leather or synthetics. But, as with your fiat cash, cryptocurrency is an asset that needs to be stored somewhere safe when you’re not using it. So, in that sense, you do need to have a place to keep your crypto holdings — whether we call it a 'wallet,' or something else.

Sep

2022

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

What Is a Cryptocurrency Wallet?

By Carla Tardi | Growing Wealth, invest, Investing | No Comments

A crypto wallet is a place to store your cryptocurrencies when you’re not using them. Knowing how to properly secure your assets with a crypto wallet will go a long way toward helping to keep your crypto safe from hackers. Cryptocurrency wallets come in different forms. By learning about the types of cryptocurrencies and wallets, deciding how much money you want to put into cryptocurrencies, and knowing how you plan to use them, you can decide which type of wallet is best for you.

Table of Contents

Cryptocurrency Wallet Definition
The Importance of Crypto Wallets
Types of Cryptocurrency Wallets
Pros and Cons of Crypto Wallets
Storing and Securing Your Crypto Wallet
FAQ

Cryptocurrency Wallet Definition

As cited above, a crypto wallet is a place to store your cryptocurrencies. You may think of a crypto wallet as being similar to how a tangible leather wallet holds fiat currency — your $1s, $5s, and $20s. When secured properly in wallets, cryptocurrencies are difficult to counterfeit or steal.

To understand what a crypto wallet is, it’s important to know how cryptocurrencies are created and used. So, we review cryptocurrency briefly below.

The Importance of Crypto Wallets

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

Some wallets are convenient for buying and selling crypto quickly, but other kinds of wallets may be more secure.

Public and Private Wallets

Your public wallet address is what you give to someone when you want them to send you cryptocurrency. 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.

Crypto holders do not publish their private wallet address, nor do they give it to anyone. That would be like giving someone the password to your email account or a password-protected document containing personal information. The private key is what’s used to sign off on transactions. So, if someone has access to both your public and private keys, they now have control over your holdings. However, the chances of a hacker matching up potential public and private keys are highly improbable because of the way they’re encrypted.

The two main categories of crypto wallets are hardware (“cold”) and software (“hot storage”) wallets.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Types of Cryptocurrency Wallets

1. Hot Wallets (Software)

When you choose to have a crypto exchange store your holdings, the exchange uses what’s called a “hot wallet.” The reason it’s hot is that it’s connected to the internet at all times — so, always online, hot with electricity.

Web-based wallets:

You can access hot storage wallets on the internet by logging into exchanges or wallet-service providers. Some popular hot storage exchanges include Coinbase and Gemini. These exchanges hold your private keys. Although they implement the best, multi-layered, and most current security tech possible, exchanges are still vulnerable to hacks. Also, if you use a wallet through an exchange or third-party provider, there may be a risk of losing your holdings if the company goes bankrupt.

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

Desktop wallets:

Desktop wallets are types of software that you can download onto your PC or Mac desktop computer. They store and manage your private keys, just like any other wallet would, but they frequently have a few more features than you’ll find in other types of wallets. These are somewhat more secure, as 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 crypto holdings could 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 likely would 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.

Mobile wallets:

A mobile wallet is software that you can install on your mobile smartphone if you intend to manage your finances from your hone. As with an old-fashioned physical wallet (with all the slots), mobile wallets can store the important cards you use frequently — your credit, debit, ID, gift, and transit cards. In this way, you can conduct transactions using a mobile device instead of a physical card.

Hot Wallet Advantages and Disadvantages

Advantages	Disadvantages
Don’t need to worry about losing your private keys; exchange keeps them	If your computer or mobile device is lost or stolen, you could lose all your funds
Reputable exchanges have state-of-the-art security	Even with top-notch security, exchanges are still vulnerable to hacks because always online
Immediate access to your funds; convenience; always online	Third-party dependent; most exchanges don’t give access to your private keys; you never have full control of your account
Ease of use; good for beginners to store small amounts of crypto	Centralized servers sometimes cannot handle unlimited number of transactions: possibility of periodic delays

2. Cold Wallets (Hardware)

Cold storage hardware wallets are offline, usually in the form of a physical hardware device.

Popular hardware wallets include the Trezor and Ledger devices. These are physical devices that plug into your computer, and store your private keys. This way, your private keys are never online, but you can still conveniently buy and sell digital assets without needing to upload an address from a piece of paper. Both Trezor and Ledger support multiple types of cryptocurrencies.

You can also purchase physical coins, such as physical Bitcoin (BTC) that come preloaded with a certain amount of the cryptocurrency. These can be useful for offline trading, may be a fun collector’s item, and generally are created with a tamperproof seal to hide the private key. A further delineation of hardware wallets are hardware security modules (HSMs). These devices handle only the keys and signing of data, but not the signing of complete transactions.

Cold Wallet Advantages and Disadvantages

Advantages	Disadvantages
Very secure; don’t connect to any device, software, or network that could become compromised	Vulnerable to loss, fire, or flood, or other kind of destruction
Highly portable; can carry with you, attached to any computer	Might need technical knowledge to set up
Come with option to set up recovery phrase	Longer transaction times; can be expensive

3. Paper Wallets

Typically, a paper wallet contains both a public and a private key, which is what you need to trade on your crypto account. These keys are just two strings of characters and two quick response (QR) codes that you may print out on a piece of paper — thus, a paper wallet. They are considered noncustodial cold-storage wallets, which means that you control the keys yourself (some are controlled by crypto exchanges), and they are not connected to the internet.

The cryptocurrency industry no longer recommends using paper wallets, as today there are safer methods of storing and trading crypto. Some still like them, however, and you can still create a paper wallet if you wish.

Pros and Cons of Crypto Wallets

Many crypto enthusiasts prefer using their own non-custodial wallets due to the added security and personal independence. The ability to hold one’s own private keys is the main difference between a crypto wallet and exchange.

At any rate, there are pros and cons to such a thing. Let’s start with the pros.

Some of the pros of using crypto wallets include:

• Ability to take full control of your funds

• No risk of a third-party like an exchange being compromised

• Anyone can use a crypto wallet anywhere in the world to transact with others

While these benefits make using a personal wallet worth it to some, others may find the drawbacks to be too much to handle. This is part of the reason some people prefer to keep their funds on a crypto exchange vs. a wallet.

Some of the cons of using crypto wallets include:

• Additional user responsibility and risk of making errors

• If something happens to the wallet or you lose your backup and password, all funds will be lost

• Most wallets are less beginner-friendly than exchanges

Pros and Cons of Crypto Wallets
Pros	Cons
Ability to take full control of your funds.	Additional user responsibility and risk of making errors.
No risk of a third-party being compromised.	If something happens to the wallet or you lose your backup and password, all funds will be lost.
Anyone can use a crypto wallet anywhere in the world to transact with others.	Most wallets are less beginner-friendly than exchanges.

Storing and Securing Your Crypto Wallet

The most important part of selecting your wallet type is making sure that your stored crypto and your crypto transactions are secure. Many of the most popular exchanges store your private keys for you, but don’t give you access to them. Though it can be convenient to hold crypto in exchanges, not having access to your private keys could make you vulnerable to hackers and even scams. So, you may decide to use cold storage for your crypto holdings, moving only as much into hot storage as you plan to send or sell at any given time.

Part of trying to keep your information secure might include being wary of any emails you receive that come from exchanges or wallet apps. Check the email address to make sure it’s legitimate, and never send your private keys over email; even better, don’t send them at all. It’s always wise to double-check all of your transactions before hitting the send button, And check the website address when you visit an exchange or online wallet. Fake email and website addresses can look convincingly similar to the real ones.

Crypto Wallets: A Quick Review

Although cryptocurrency wallets are used mainly to store and transact cryptocurrencies, there are other uses for this technology. Tokens or digital information stored on a blockchain could represent anything from goods in a supply chain, or a plane ticket, to a set of dental records. Blockchains can also store personal information such as your identity, tax history, 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 crypto and hold it for the long term, a secure cold storage wallet is probably your best option. If you want to access cryptocurrency 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 might help keep you from getting scammed. Despite that some exchanges have been hacked, there are plenty of reputable options to choose from.

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 build a strong, diversified portfolio.

FAQ

Do you need to have a crypto wallet to trade cryptocurrencies?

The short answer is “Yes.” Crypto wallets are not flat, physical objects with storage slots that can be made of fine leather or synthetics. But, as with your fiat cash, cryptocurrency is an asset that needs to be stored somewhere safe when you’re not using it. So, in that sense, you do need to have a place to keep your crypto holdings — whether we call it a “wallet,” or something else.

You do have choices, however, as there are various types of wallets. Among the first things to decide is whether you want to keep your own wallet or have a crypto exchange store your holdings for you. Some believe that a good goal might be to work toward keeping your crypto holdings yourself, in a cold storage wallet. But, if you’re just getting started in crypto, or if you lose or misplace things easily, then it might be wise to keep the crypto in hot storage with a regulated, reputable exchange.

What kind of crypto wallet is safest?

One way of answering this question would be to search the internet for “safer, safest, secure, and most secure,” crypto wallets. You’ll find that more than 150 makes and models of hardware wallets return — some with pictures of the small electronic devices and some with just descriptions. You also may choose to limit your search to your favorite news feeds, crypto portals, and so on — whatever’s most comfortable. Just make sure that they are professional and reputable sites.

You could start with say the first 10 hits that come up. Check to see if any makers’ names recur repeatedly. Then, note how many times those repeat names are cited as being the “best for security,” or something like that.

Once you’ve determined that XYZ model has the best security features, then you may consider other qualities that are important for you, personally. After safety, the sites rank the wallets’ features in terms of “the best for…” android users, advanced users, digital storage, beginners, mobile users, Bitcoin-only investors, desktop, simplicity, durability, coins supported, accessibility, software, and — well you get the picture.

In this way, you can be assured that you’ve found a highly rated safe wallet, with the extra features and conveniences you want and need.

How easy is setting up a cryptocurrency wallet?

In this instance, the word “easy” is highly relative. While setting up a crypto wallet might be relatively easy for a developer or engineer, it might be confusing, frustrating, or downright painful for those who are not technically minded.

As a newcomer to crypto, can you even imagine reading through a set of small-print instructions that are long, dense with new terminology that you may not know, and which might even have been (poorly) translated from another language!

For some, the concept of a crypto wallet may indeed be easier to grasp than its setup instructions. But here’s where technology might come to our rescue — in the form of online videos! It could be a good place to start. And written instructions don’t usually come with devices any more anyway. So, browse the internet for videos about how to set up XYZ crypto wallet in a style that appeals to you, and enjoy!

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®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit 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.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Photo credit: iStock/Elena Perova
SOIN19149

Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount		Bonus Payout
Low	High	Bonus Payout
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

Sep

2022

Comparing Crypto Mining vs Staking

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

Crypto mining and staking are two different ways for a blockchain network to achieve consensus. They use different means to achieve a similar end. While mining uses an algorithm called proof-of-work (PoW), staking uses an algorithm called proof-of-stake (PoS).

Crypto mining and crypto staking are also ways for individuals to participate in a crypto network’s consensus. Staking involves locking up tokens for a fixed period, while mining requires running specialized hardware.

Here, we’ll define mining vs. staking, discuss the basics of each consensus method, and look at some of staking and mining’s positive and negative attributes.

Crypto Staking vs Mining: Similarities and Differences

There are both similarities and differences between crypto staking and mining. Let’s take a deeper look at both.

Similarities

Both staking and mining provide a way for a network’s nodes to agree on which transactions are valid. In both cases, miners or validators have a chance to win the next block reward of newly minted coins. Users can also participate in a network’s consensus through either mining or staking.

Differences

While mining uses special hardware to solve complex computational problems, staking locks up crypto for a fixed period. PoW is energy intensive, whereas PoS requires less energy. PoW relies on a high hash rate to secure a network, whereas PoS relies on a large amount of tokens (money) — a high level of market capitalization.

Crypto Mining vs Staking Similarities	Crypto Mining vs Staking Differences
Achieves consensus for a blockchain	PoW requires hardware; PoS requires crypto
Gives participants a chance to earn newly minted coins	PoW uses a lot of energy; PoS uses much less energy
Allows users to participate in the consensus process	PoW relies on hash rate for security; PoS on market cap

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Minable Coin Examples

Proof-of-work coins offer miners newly minted tokens as a reward for helping to solve the computational problems involved in processing a block of transactions. Some popular PoW cryptocurrencies include:

• Bitcoin (BTC)

• Bitcoin Cash (BCH)

• Litecoin (LTC)

• Dogecoin (DOGE)

• Monero (XMR)

• Zcash (ZEC)

Note that different PoW coins can use different mining algorithms. While Bitcoin uses SHA-256, Litecoin and Dogecoin use Scrypt, for example. Moreover, to mine a specific coin, the hardware — be it ASICs or GPUs — must be compatible with the type of algorithm used to mine that coin.

Stakeable Coin Examples

The native tokens of PoS blockchains let users lock up their tokens on the platform in exchange for a reward of newly minted tokens. Some popular PoS cryptocurrencies include:

• Cronos (CRO)

• Avalanche (AVAX)

• Polkadot (DOT)

Becoming a validator often requires a large sum of tokens, along with keeping a computer up and running constantly. Validators can receive a penalty for not having 24/7 uptime, and starting your own validator node can come with a hefty price tag.

Deciding Which Mining Method Is Best for You

Making a decision about crypto staking vs. mining comes down to a few important things. Those interested in participating in the mining or staking process might want to ask themselves questions like:

• How much time and money do I want to devote?

• What is my level of technical expertise with crypto and computers?

• Which network do I want to support?

• Do I want to become my own miner/validator, or have someone else do the heavy lifting?

Those with technical knowledge who want to handle things themselves could consider mining an appealing option. Or, those looking to invest less time and money might simply choose to stake some tokens on an exchange. The potential profit you can fetch from staking vs. mining varies according to how much an individual is willing to invest upfront, as well as the market price of the token involved.

FAQ

Is crypto staking more profitable than crypto mining?

The potential profit of crypto staking vs. mining profit depends on a few things. Staking could be more profitable for the average user because the only thing required is money. Mining requires special hardware, access to cheap electricity, and some technical knowledge.

The value of the coin in question is also important. Users could mine a lot of coins or have a lot of coins staked, but if the coin’s value falls against their local fiat currency, they could still realize losses.

Then there are the barriers to entry. Many exchanges allow users to stake any amount of proof-of-stake (PoS) tokens and earn a small yield. Mining, on the other hand, requires buying the necessary hardware and learning how to use it.

Is staking the same thing as cloud mining?

No. Staking involves locking up tokens on a PoS platform in exchange for a share of the network’s next block reward. Cloud mining involves purchasing a contract from a company that handles the proof-of-work (PoW) mining on behalf of a user and pays them a share of the mining rewards. These two things might look similar based on the fact that in both cases, users simply put up a certain sum of money and earn income over time. But, on the backend, they are two entirely different processes.

What are the advantages of mining vs buying cryptocurrency?

Mining cryptocurrency helps support a given cryptocurrency’s platform, provides miners with more anonymous coins, and could be profitable if the coin’s price rises in the future. Because mined coins aren’t purchased on an exchange, they could be held more anonymously than usual.

Every PoW network needs miners to survive, so being involved in mining aids the network of a miner’s choice. And if done at the correct time, mining coins while they are cheap and the difficulty is low could be profitable if miners hold onto their coins and prices rise. Electricity and hardware costs still must be taken into account, however.

Photo credit: iStock/nortonrsx

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.

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.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit 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.

Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.
SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

²Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount		Bonus Payout
Low	High	Bonus Payout
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

SOIN0422048

Sep

2022

Dogecoin Price History: 2013 to 2023

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

Dogecoin (DOGE) — the infamous meme coin that launched in 2013 — has had a wild history of price fluctuations. At one point, it was worth a fraction of a penny, but then saw a “to the moon” moment where it peaked at an all-time high of about 74 cents in May of 2021.

Based on a viral internet meme of a Japanese Shiba Inu dog, Dogecoin (pronounced “dohj”) was created by two software engineers, Billy Marcus and Jackson Palmer, in 2013. The coin has never been worth even one dollar.

Doge was originally designed to be a simple blockchain-based payment system. However, it quickly attracted a large number of supporters who developed new use cases for it, including a third-party tipping service bot called “DogeTipBot” that interfaced with Reddit, where users could send tips for content posted on the site.

Table of Contents

Dogecoin Price History: Overview
Dogecoin Price in 2013
Dogecoin Price 2014 to 2019
Dogecoin Price in 2020
Dogecoin Price in 2021
Dogecoin Price in 2022
Considerations When Investing in Dogecoin

Dogecoin Price History

The code for Dogecoin is based on Litecoin, and uses scrypt technology. That scrypt technology set it apart from other kinds of cryptocurrency, including Bitcoin, which uses a different proof-of-work algorithm called SHA-256.

Essentially, Dogecoin’s code allows for an unlimited supply of dogecoins, which has contributed to its historically low price.

This makes Dogecoin a so-called “inflationary coin,” whereas Bitcoin and similar cryptocurrencies are considered deflationary, because there’s a fixed limit to the number of coins miners can create. Dogecoin launched with a total supply limit, similar to Bitcoin’s total coin limit, but the Doge supply is no longer capped. Plus, anyone can begin mining Doge immediately.

The price of Doge picked up in popularity over the years, with prices rising and dipping in 2017, and then hitting a peak in 2018 from bullish investors’ support. The cryptocurrency reached another level, however, when Tesla CEO Elon Musk and some other celebrities began tweeting about Doge at the start of 2021.

Between January and May 2021, Doge rose by 9,884%, from about 3 cents to 74 cents.

Dogecoin Price in 2013: The Start

Dogecoin Price in 2013: $0.00 to $0.0004

On December 15, 2013, Doge was first traded on cryptocurrency exchanges at a price of $0.00. The currency became popular among crypto users, and two weeks after its launch, the r/Dogecoin Reddit channel started attracting thousands of users and contributors.

Within the first two weeks of its launch, the Doge’s price soared from $0.0002 to $0.0023, which amounted to a 1,061% increase, although the ultimate value at the end of 2013 was still miniscule.

Dogecoin Price 2014 to 2019: Catching the Public Eye

Dogecoin Price 2014 to 2019: $0.0003 to $0.0020

The 2014 launch of DogeTipBot, a crypto tipping service, was a watershed moment for the cryptocurrency because it attracted users who normally would not have used Doge. It also attracted users who would not have had exposure to other types of cryptocurrency or digital tokens.

In 2014, the Doge community also used the currency to donate more than $170,000 in Doge to charitable organizations, including the Dogecoin community’s 2014 donation of 27 million Dogecoins (roughly $30,000 at the time) to help the Jamaican bobsled team compete at the Sochi Winter Olympic games.

The token did not see major price hikes until March 2017, when Doge’s price rose by 1,494%. Then, bullish investors began taking interest in Doge in November of 2017 when the price rose again.

That January 2018, Doge prices rose again and reached another peak, at $0.018. Dogecoin’s market capitalization broke $1 billion around that time. For the following two years, however, Doge had low trading activity.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Dogecoin Price in 2020

Dogecoin Price in 2020: $0.0023 to $0.0046

In January of 2020, Doge was $0.0023. That year, the price hit a new peak in July at $0.0032 and then dipped over the next couple of months, until the price surged again in November and reached $0.0035. The year wrapped with Doge at $0.0046.

Dogecoin Price in 2021: All-Time Highs

Dogecoin Price in 2021: $0.0368 to $0.1702

In 2021, Doge began to gain traction again with renewed public support and interest. Between January and May of 2021, Doge rose by 9,884%. By May 2021, Dogecoin rose to its all-time high of $0.74, which is remarkable considering it started the year at $0.0368.

Dogecoin Price in 2022: Settling Down

Dogecoin Price in 2022: $0.1416 to $0.0858

Doge started at $0.1416 in January 2022, which saw a 16.8% price decrease from December 2021. The price surged in March to $0.1380 and then decreased again in May to $0.0858. As of July 20, 2022, Doge was worth $0.074, with a total circulating supply of about 132 billion coins.

Considerations When Investing in Dogecoin

There are a few considerations to keep in mind when investing in Dogecoin. While the coin has seen some incredible peaks and troughs, Doge has never been worth more than a dollar. There’s an unlimited supply of Dogecoin, which means that the value relies on buyers constantly buying new Doge that enters circulation.

There may be higher security risks with Doge because it hasn’t had the same level of code security or scrutiny that many other currencies have had. That goes back to the fact that it initially wasn’t treated as a serious cryptocurrency.

Another consideration is that holdings are becoming increasingly concentrated (much like with other crypto assets) — in fact, nine wallets hold more than 40% of all Dogecoin, one of which holds close to 30%. That means that those investors have a heavy hand on how the price could potentially change — they could cash out and the price of Doge would fall, or they could use their large position to manipulate the price of Doge.

The entities with large holdings that could potentially move the markets are often called “whales.”

The Takeaway

For a currency that started at $0.00, its lowest price, Doge has had a remarkable journey. Its most exciting phases include the tipping service DogeTipBot and Musk’s public support of the currency, which caused its peak price of $0.74 and a 9,884% increase within five months in 2021.

Photo credit: iStock/beavera

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit 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.

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.

²Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount		Bonus Payout
Low	High	Bonus Payout
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

SOIN0622003

Sep

2022

Guide to Crypto Staking: What It Is, How It Works, and How to Get Started

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

Generally, when investors contemplate investing in cryptocurrencies, they think about either mining crypto or purchasing it outright on a crypto exchange. But crypto staking—or staking coins, as it’s often called—is another viable alternative for the crypto-curious to get assets in their crypto wallets.

While “staking” may be a relatively new addition to the financial lexicon, it’s important for those interested in crypto investing to understand what it is, how it works, and what cryptocurrencies it can be used to obtain.

Crypto staking may feel like it’s a step beyond simply learning how to buy Bitcoin or how a crypto exchange works, but learning about cryptocurrency staking can broaden your knowledge, making you a more informed investor.

This article will run through it all, from staking basics to the platforms investors can use for staking coins.

Table of Contents

What Is Staking in Crypto?
How Crypto Staking Works
How to Stake Crypto
Pros & Cons of Staking Coins
Popular Crypto Staking Coins
Where to Stake Crypto
Is Crypto Staking Profitable?

What Is Staking in Crypto?

Crypto staking is the process of locking up crypto holdings in order to obtain rewards or earn interest. Cryptocurrencies are built with blockchain technology, in which crypto transactions are verified, and the resulting data is stored on the blockchain. Staking is another way to describe validating those transactions on a blockchain.

Depending on the types of cryptocurrency you’re working with and its supporting technologies, these validation processes are called “proof-of-stake” or “proof-of-work.” Each of these processes help crypto networks achieve consensus, or confirmation that all of the transaction data adds up to what it should.

But achieving that consensus requires participants. That’s what staking is—investors who actively hold onto, or lock up their crypto holdings in their crypto wallet are participating in these networks’ consensus-taking processes. Stakers are, in essence, approving and verifying transactions on the blockchain.

For doing so, the networks reward those investors. The specific rewards will depend on the network.

It may be helpful to think of crypto staking as similar to depositing cash in a savings account. The depositor earns interest on their money while it’s in the bank, as a reward from the bank, who uses the money for other purposes (lending, etc.). Staking coins is, then, similar to earning interest.

Recommended: Proof of Stake, Explained

How Crypto Staking Works

For the investor, crypto staking is a passive activity. When a crypto investor stakes their holdings (in other words, leaves them in their crypto wallet), the network can use those holdings to forge new blocks on the blockchain. The more crypto you’re staking, the better the odds are that your holdings will be selected.

Information is “written” into the new block, and the investor’s holdings are used to validate it. Since coins already have “baked in” data from the blockchain, they can be used as validators. Then, for allowing those holdings to be used as validators, the network rewards the staker.

How Crypto Staking Works

How to Stake Crypto

To start crypto staking, an investor needs to decide where and what they want to stake. Here are five simple steps to get started.

Step 1: Choose a crypto or coin to stake

To begin staking cryptocurrency independently, a user would have to decide which coin they want to stake and buy their cryptocurrency of choice.

Step 2: Learn the minimum staking requirements

ETH, for example, requires a minimum of 32 ETH (worth about $47,000 at the time of writing) for users to begin staking.

Step 3: Download the software wallet for the desired coin

Choose and download a crypto wallet in which to store your coins for staking. That may mean going directly to the specific crypto’s main website and downloading its corresponding wallet.

Step 4: Figure out what hardware to use

To stake crypto, users need a constant, uninterrupted internet connection. A standard desktop computer will likely do the job, although a Raspberry Pi might save on electrical costs.

Step 5: Begin staking

Once the hardware has been chosen and the software wallet downloaded, a user can get started staking cryptocurrency.

Tip:The native tokens of the Tezos network can be staked automatically when a user holds those coins in a wallet hosted by Coinbase, for example.

For those holding the appropriate crypto in an exchange-hosted crypto wallet, the exchange handles all the staking on the backend, and users simply have to hold the crypto in their wallets.

Crypto Staking: Advantages and Disadvantages

Here are some pros and cons of staking crypto.

Advantages

• Less energy-intensive. PoS networks use much less energy than PoW platforms. Each mining machine requires a constant supply of electricity and consumes much more power than a regular computer. But you can also run validator nodes on an average computer.

• Easier to earn rewards. Crypto staking and mining rewards can be much different. Almost anyone can stake a small amount of crypto on a crypto exchange and earn some kind of yield. To become a miner, however, often requires a much bigger commitment. First, you’d need to acquire the proper computer, which can be costly; then you’d need to learn to use it, which can be time-consuming.

• No special equipment required. Anyone can become a validator using a regular computer, assuming they have enough money and can keep the node running constantly. By contrast, mining requires specialized hardware.

Disadvantages

• Questionable security. PoS is relatively new compared to PoW. Developers and users have had less time to test it, and its security capabilities are not totally proven. While a high hash rate provides a wall of encrypted energy to protect PoW networks, it’s not clear exactly how PoS networks are similarly secured. In theory, an adversary with the right amount of resources could take control of a PoS network rather easily.

• Potential for takeover. PoS networks can be controlled by those who hold the most tokens. While attacking a PoW network would involve acquiring large amounts of computing power, attacking a PoS network requires only one thing: money. Moreover, PoS coins are pre-mined, meaning that the entire supply is created at once by a few people. Users need to trust that the core developers didn’t keep many coins for themselves, or that an outside third-party won’t acquire enough coins to take control of the network. Further, it is common knowledge in the industry that founders of crypto projects regularly give many pre-mined coins to insiders.

• Increased centralization. The creator(s) of blockchain technology intended for blockchains to be decentralized. But in some cases, PoS networks can wind up becoming more centralized because becoming a validator can be more expensive than becoming a miner. Ethereum (ETH), for example, plans to change from PoW to PoS. To become an ETH validator would require 32 ETH, or about $51,000 as of July 2022. Many centralized exchanges have chosen to become validators of PoS coins to share staking rewards with their customers.

Crypto Staking Advantages	Crypto Staking Disadvantages
Low energy usage	Uncertain security
Easier to earn rewards	Potential for takeover
No special hardware needed	Increased centralization

Popular Crypto Staking Coins

Just a few years ago, the entire concept of proof-of-stake consensus was still relatively new, and options for staking coins were few and far between.

A growing number of projects are utilizing PoS and some exchanges are making it easier than ever for users to earn crypto by staking their coins.

Here is a list of common proof-of-stake coins, along with annual average yield, expressed as a percentage of the amount of cryptocurrency staked.

1. Ethereum (ETH)

Ethereum (ETH) has become one of the most popular cryptocurrencies on the market—although it is not exactly a cryptocurrency itself. Staking Ethereum on your own will require a minimum of 32 ETH. Rewards vary, but it’s expected that the rate of return on Ethereum staking is 5-17% per year.

2. EOS

EOS is similar to Ethereum in that it’s used to support decentralized programs. EOS tokens are native to the EOS blockchain, and like other cryptos, can be staked to earn rewards. The expected rate of return for EOS staking is about 3%.

3. Tezos (XTZ)

Like EOS and Ethereum, Tezos (XTZ) is an open-source blockchain network with its own native currency, with a symbol of XTZ. And it, too, can be staked on certain platforms and networks. The current expected rate of return for Tezos staking is around 6%.

4. Polkadot (DOT)

Polkadot is a newer cryptocurrency, created in August 2020. Polkadot hopes to provide interoperability and is designed to support “parachains,” or different blockchains created by different developers.

The Kraken crypto exchange supports staking for DOT.

DOT staking yields about 15% annually.

Investors would do well to remember that while these above yields may sound high when compared to traditional financial markets, the risk is also quite high, as the coins could quickly lose value.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Where to Stake Crypto

There are numerous platforms that allow users to start staking coins, and quickly.

There are big-name platforms that most crypto investors are probably familiar with, including Coinbase and Kraken, which allow users to stake coins. On exchanges like these, investors must opt in to staking in order to benefit from rewards.

Enterprising stakers could also look at “staking-as-a-service” providers—which specialize in staking, rather than exchanging. Examples of those platforms include MyContainer, Stake Capital, and Staked.

It’s important to note that each of these platforms will have different offerings, rules, and fees. It’s worth the time spent researching a few to make sure your goals align with a certain platform before you jump in.

Is Crypto Staking Profitable?

Anyone can earn crypto by staking cryptocurrency. But unless someone is sitting on a huge stash of proof-of-stake coins, they’re not likely to get rich from staking.

Staking rewards are similar to stock dividend payouts, in that both are a form of passive income. They don’t require a user to do anything other than holding the right assets in the right place for a given length of time. The longer a user stakes their coins, the greater profit potential there will be in general, thanks to compound interest.

But unlike dividends, there are a few variables particular to proof-of-stake coins that influence how much of a staking reward users are likely to receive. Users would do well to research these factors and more when searching for the most profitable staking coins:

• How big the block reward is

• The size of the staking pool

• The amount of supply locked

Additionally, the fiat currency value of the coin being staked must also be taken into account. Assuming this value remains steady or rises, staking could potentially be profitable. But if the price of the coin falls, profits could diminish quickly.

The Takeaway

Staking is a way to use your crypto holdings or coins to earn additional rewards. It can be helpful to think of it as along the lines of generating interest on cash savings, or earning dividends on stock holdings.

Essentially, coin holders allow their crypto to be used as a part of the blockchain validation process, and are rewarded by the network for the use of their assets. For crypto investors, staking can open up another potential avenue to generating returns.

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit 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.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOIN21134

First Trade Amount		Bonus Payout
Low	High	Bonus Payout
$50	$99.99	$10
$100	$499.99	$15
$500	$4,999.99	$50
$5,000+		$100

Sep

2022

What Is a Bump-Up Certificate of Deposit?

What Are Bump-Up Certificates of Deposit? All You Need to Know

By Laurel Tincher | Growing Wealth, Investing, money | Comments Off

A bump up certificate of deposit (CD), also known as a step-up CD or raise-your-rate CD, is a type of savings account that allows the account owner to “bump up” or increase the interest rate they earn if rates increase during the investment term. Typically one bump up is allowed, and the other terms of the CD remain the same after that.

The initial interest rate of a bump up CD is lower than other types of CDs, but it comes with the opportunity to earn a higher rate.

In this article, we will go over how bump-up CDs work, their advantages and disadvantages, and how to get started earning with this type of savings account.

How a Bump-Up CD Works

Bump-up certificates of deposit are similar to ordinary CDs in most ways.

If an investor buys into a bump-up CD account, it will start out with a certain interest rate. The investor will be required to deposit a certain amount of money to open the account and agree to keep it there for a specified period.

If, during the term of the CD, the issuer’s interest rates increase, the investor can ask the issuing bank to raise the interest rate they earn on their CD. This is quite different from a standard savings account, where the investor has no control over the interest rate. So if the initial rate is 2.0%, and during the maturity term the rate increases to 3.0%, the account holder can request a bump up to 3.0%.

If the interest rate drops to 2.5% sometime after that, the investor is protected and keeps their bump up to 3%.

Step-up CDs are similar, but the difference is the bank will automatically raise the interest rate throughout the term of the CD with a step-up CD. With a bump-up CD the rate is not automatically increased.

Usually, interest rates can only be increased one time during a CD term, but some banks do offer multiple bump-ups if the term of the CD is long. Also important to note, is that some banks put a cap on how high the interest rate can be bumped on a CD. So if interest rates go up a lot, CD owners may not be able to fully take advantage. Generally, bump-up CDs have a two- to four-year term. Like a regular CD, these accounts are FDIC-insured.

Recommended: How to Invest in CDs

Bump-Up CDs: Real World Example

Let’s say an investor opens a bump-up CD with a two-year term and an interest rate of 1.25%. One year into the CD term, the issuing bank’s interest rates rise, and they now offer 1.60% on the same type of CD. The investor can request that the interest rate on their CD be increased to the new rate of 1.60% for the second year of its term.

In this example, let’s say the investor deposited $10,000 into the CD when they opened it. If they had earned 1.25% on their money for the full two-year term, by the end of the term they would have $10,251.56 at the maturity date. However, if they earn 1.25% for the first year and 1.6% for the second year, at the maturity date they would have $10,285.00.

Earning an additional $34 may not seem like a significant difference, but it’s one of the easier and safer ways to have your money earn money.

Advantages of Bump-Up CDs

There are advantages to buying bump-up CDs, including:

• Ability to raise the CD’s interest rate during its maturity term instead of having to wait or open a new CD

• Take advantage of new, higher rates without any early withdrawal penalties

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

Disadvantages of Bump-Up CDs

Although there are advantages to bump-up CDs, they come with some downsides as well:

• Since bump-up CDs typically only allow one bump up, they are recommended for investors who have a deep understanding of the interest-rate system and what might happen during their investment term.

• The initial interest rate on bump-up CDs tends to be lower than other types of CDs. So even though there is the ability to raise the rate later, a traditional certificate of deposit may still earn more interest since it likely starts at a higher rate.

• Interest rates may not go up during the CD term, locking the investor into the initial lower rate.

• If interest rates do start to increase, timing the bump-up on a CD can be challenging. By bumping up earlier you can take advantage of a higher interest rate for more time, but you could miss out on an even higher rate that might come later.

How to Open a Bump-Up CD

Banks and credit unions offer bump-up CDs. To open one, an investor deposits a certain amount, and the CD has a particular starting interest rate and term. Once it’s open the account owner can contact the issuing bank or credit union to increase the rate throughout the CD term.

The terms to consider when opening a CD include:

• Maturity term

• Bump up frequency

• nitial interest rate

• Minimum deposit to open the account

• Early withdrawal rules and penalties

• Fees

Alternatives to Bump-Up CDs

There are several other types of interest-bearing deposit accounts and CD investment strategies that investors may want to consider:

Traditional CD

A traditional CD has a fixed interest rate over the course of its maturity term. There are some advantages to traditional CDs and they often earn higher rates than bump-up CDs.

CD Laddering

Since it can be hard to predict what will happen with interest rates in the future, another investing strategy is to create a CD ladder.

A CD ladder is a portfolio of CDs that each have a different interest rate and maturity term. This strategy provides an investor with a range of interest rates, allowing them to take advantage of changes in the market, and each time one of their CDs matures they have some funds to put into a new one or cash out. Usually, a longer-term CD will have a higher rate, but by opening some shorter-term CDs as well investors can put their money into new ones if interest rates increase rather than opening a bump-up CD.

Here is an example of a CD ladder:

• 6-month CD at 0.40%

• 9-month CD at 0.50%

• 12-month CD at 0.80%

• 18-month CD at 0.90%

Step-Up CD

Similar to a bump-up CD, step-up CDs allow investors to take advantage of rising interest rates. The difference is with a step-up CD the issuer automatically raises the interest rates at certain intervals throughout the CD term.

The Takeaway

Bump-up CDs can be a good way to take advantage of rising interest rates. They are safe investments with more flexibility than a traditional CD, but they don’t necessarily earn more interest. Understanding interest rates is complicated, so bump-up CDs are generally only recommended for experienced investors.
If you want to bump up your savings, one smart option is to open a SoFi Checking and Savings. You can get started with just a few clicks online, or on your phone, and this all-in-one account has no account fees or overdraft fees. Even better, you can qualify to earn a competitive APY by using direct deposit – and you can set up automated goals to grow your savings steadily over time.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is a 12-month bump CD?

A 12 month bump CD is a certificate of deposit savings account that earns a certain amount of interest over the course of one year. If interest rates rise during that year the account owner can request that the interest rate their CD earns be increased to the new rate.

How do bump-rate CDs work?

Bump-rate CDs are similar to traditional CDs, but they allow the owner to request an interest rate increase one time during their maturity term if market interest rates go up.

Photo credit: iStock/sihuo0860371

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK0322027