Uphold is a cloud-based financial service platform that empowers individuals to securely move, convert, hold, and transact in a variety of assets. These assets include fiat currencies, cryptocurrencies, equities, and precious metals. Users can fund their accounts through credit or debit cards, bank accounts, or cryptocurrency networks. One notable advantage is that Uphold significantly reduces the costs and fees associated with currency exchanges.
Key Takeaways
- Uphold is a cloud-based financial service platform.
- It allows users to securely move, convert, hold, and transact across various asset classes.
- It facilitates trading in both cryptocurrencies and traditional assets like fiat currencies, gold, and select equities.
- One of Uphold’s goals is to minimize transaction fees and maintains high transparency standards.
- Users must provide personal details, such as name, phone number, and birthdate, to create an account and additional information for trading.
How Uphold Works
Uphold is a digital money platform offering financial services globally. Founded in 2014 by Halsey Minor and rebranded from Bitreserve to Uphold, the company distinguishes itself not as a bank but as the world’s first real-time transparent and verifiable reserve.
Uphold offers users access to 40 equities, 27 fiat currencies, four types of precious metals, and over 130 cryptocurrencies. Users can send funds and trade in different assets from a single screen, and convert funds between two values in one simple step. For instance, users can switch from DASH to XRP easily without the dual separate transactions required on other platforms.
The company aims to reduce the transaction costs particularly for cryptocurrencies like Bitcoin. As the cryptocurrency space was initially burdened with a steep learning curve, Uphold works to simplify the process and infrastructure for these transactions.
Uphold is also moving towards commission-free pricing, where users see and pay the rate quoted before trading. Additionally, third-party developers can create software applications on the Uphold platform using the Uphold Connect API.
Uphold Exchange Fees
Uphold prioritizes transparency, offering a guaranteed price that includes a spread of typically 0.5% to 1.0% for cryptocurrencies. The spread can further reduce based on trading behavior and volume and occasionally drops to 0.4%. Users enjoy free debit and credit card deposits, with zero withdrawal fees except for standard network fees on crypto networks.
In March 2018, Uphold added Ripple (XRP), introducing zero transaction fees on initial XRP purchases. This step marked Wellyard Inc.’s entrance into the XRP market before other major platforms like Coinbase initiated support for the cryptocurrency.
Uphold follows fully reserved banking protocols where obligations are backed by asset reserves, contrasting the typical fractional reserve model of modern banks that often invest or loan deposits for higher returns.
Requirements for Uphold
Setting up an account with Uphold requires the following personal information:
- Legal name
- Date of birth
- Phone number
To withdraw or send funds, users must become verified members, providing their current residential address, a government-issued photo ID, and a live selfie.
Advantages and Disadvantages of Uphold
As with any platform, using Uphold presents its sets of pros and cons.
Advantages
Uphold offers significant ease in making trades, exchanges, and transfers across asset classes. Users can convert between most major fiat currencies, cryptocurrencies, precious metals, and select equities seamlessly.
The platform also maintains a transparent fee structure, meaning users face no surprises concerning service and transaction costs. It typically applies a minimal spread for transactions.
Disadvantages
While Uphold supports varied asset classes, it limits options within each category: only four types of precious metals and 40 equities including household names like Tesla and Apple. The platform also lacks advanced trading features like charts and research tools, often favored by skilled traders.
Pros:
- Buy and sell across multiple asset classes.
- Transparent fee structure.
Cons:
- Limited options in certain asset classes.
- Absence of advanced trading tools.
Uphold vs. Coinbase
Coinbase, another prominent financial platform, restricts services to cryptocurrencies, unlike Uphold’s multi-asset offerings. Launched in 2012, Coinbase allows trading of Bitcoin and other digital coins like Ethereum and Dogecoin.
Coinbase provides two options: Coinbase and Coinbase Pro, the latter offering enhanced features like various trade types and higher typing volumes. However, the transparency in fee structure is better handled by Uphold, which accommodates bank account free trades, unlike Coinbase with a 1.49% fee rate, scaling with trade size.
Where Is Uphold Located?
Uphold operates as a global digital platform based in New York, offering services to trade and transfer diverse assets effortlessly.
Is Uphold a Wallet or an Exchange?
Uphold is a multi-asset exchange platform that transacts fiat currencies, precious metals, cryptocurrencies, and certain stocks, hence not merely a digital wallet.
Is Uphold Safe?
Uphold is securely designed with industry-standard practices such as Know Your Client (KYC) verification and two-factor authentication. It also includes security checks like due diligence, a bug bounty program, staff background checks, and consistent monitoring.
Does Uphold Report to the IRS?
Yes, Uphold complies with regulatory requirements and reports taxable transactions to the IRS. Users need to provide Social Security numbers (SSNs), and relevant forms are made available through their app.
The Bottom Line
For individuals looking to trade and exchange across multiple assets, Uphold offers a promising platform. With access to a spectrum of fiat currencies, equities, precious metals, and over 130 cryptocurrencies, the prospects keep expanding. Uphold commits to transparent fee structures and the finesse to conduct trades, constantly enhancing security measures to keep users’ assets secure.
Related Terms: fiat currencies, cryptocurrencies, precious metals, equities, transaction costs.
References
- Uphold. “About Uphold”.
- Uphold. “Welcome to Uphold. The Internet of Money”.
- Uphold. “Equities”.
- Uphold. “Precious Metals”.
- Uphold. “Cryptocurrencies”.
- Uphold. “Personal Trading”.
- Uphold. “Service Fees: Personal Accounts”.
- Uphold. “What’s new and why”.
- Uphold. “Total Transparency. By Design”.
- Uphold. “Buy and Sell XRP Is Now Live on Uphold”.
- Uphold. “Top Frequently Asked Questions”.
- Coinbase. “What are the fees on Coinbase Pro?”
- Uphold. “Security”.
- Uphold. “What happens if you don’t report your crypto trades on your US tax return?”
