Webull crypto trading is an important feature of this US-based broker-dealer. It lets users buy and sell popular digital currencies directly on the same platform where they trade stocks(both U.S. exchange-listed stocks and over-the-counter stocks). Besides crypto and stocks, indices, ETFs, bonds, futures, and money market funds can also be traded on the platform. This makes Webull a multifunctional brokerage even though it does not support forex.
However, unlike dedicated crypto exchanges, such as Binance, Coinbase, and Kraken, Webull offers limited cryptocurrency trading, just like eToro and Interactive Brokers. That is why it does not support some digital currencies e.g., Tether(USDT) and Avalanche(AVAX). Webull’s primary focus is stock trading. It is also slightly dedicated to traditional investment services such as options trading, ETFs trading, and shares trading.
How Does Webull Crypto Trading Work?
Webull offers crypto trading, but with some limitations, unlike dedicated exchanges, such as Binance, Coinbase, and Kraken. One limitation is that you cannot trade digital currencies directly on the main investment platform—Webull. Another limitation is that Webull does not support all major cryptocurrencies, with Tether being one of the unsupported cryptos.
So, how does Webull crypto trading really work?
Answer: You can trade cryptocurrencies directly on its app–Webull Pay. This mobile-only access app supports Android and iOS devices, and it does not exist for desktop or web applications.
Even through the trading app, the trading process works differently compared to dedicated crypto exchanges in that:
#1. Only Custodial Trading Is Allowed – This means that when you buy crypto through the app, you don’t actually hold the coins in your own wallet. Instead, the coins are held through Webull’s custodian partners for you.
As such, you can trade your coins, but you can’t freely transfer them to an external wallet. Webull has partnered with Coinbase and Bakkt Crypto Solutions, LLC as crypto custodian partners.
In my opinion, custodial-only crypto trading is a good thing because it’s convenient for beginners. After all, you don’t need to fret about setting up, securing, or backing up a crypto wallet. Neither do you need to manage private keys since the custodian handles all the technical heavy lifting for you.
Other benefits include increased security safeguards, reduced risk of user error, and integrated trading experience.
#2. No Direct Withdrawals – Unlike dedicated crypto exchanges, Webull Pay does not offer direct withdrawals. Your coins are held in a custodial wallet and you can only convert them into cash as opposed to transferring them to your own wallet.
This is perhaps one of the biggest disadvantages when it comes to Webull crypto trading.
Is Webull Good for Crypto Trading?
The answer depends on the trader’s priorities beyond just making profits.
If keeping your coins safe is important to you, Webull Pay can be a good option for trading cryptocurrencies. That’s because it holds your coins securely in a custodial wallet provided by Coinbase or Bakkt, instead of leaving you to store them in a third-party wallet service. Many such wallets are either outright scams or vulnerable to hacking. For beginners, it can be difficult to know which wallets are safe and which ones should be avoided.
Traders have fallen victim to many questionable and fraudulent wallets in the past, including but not limited to the following:
- BitConnect Wallet—the BitConnect Wallet scam.
- Minewallet.
- PlusToken Wallet—the PlusToken Wallet scam.
- Centra Tech Wallet.
- OneCoin Wallet—Linked to the OneCoin scam.
- MTI (Mirror Trading International) Wallet.
On the other hand, if having full control over your coins(being able to hold them, transfer them, pay with them, or convert them into cash) is important to you, Webull Pay may not be the best option. Because of its custodial arrangement with Coinbase and Bakkt, traders can only convert their coins into cash.
How to Buy Crypto on Webull
- Download and set up the Webull Pay app on your mobile device.
- Sign up or log in with your Webull account.
- Fund your Webull App account directly through your card or bank account.
- Search for your preferred cryptocurrency using the search bar feature located on the top-right corner of the screen.
- Place a “Buy Order”, enter the amount of money you want to spend, and confirm the trade.
N/B: You can see your coins in the app under the “Assets / Portfolio / Balances” section.
Webull Crypto Trading Fees
Webull Pay does not charge traditional commission fees for cryptocurrency trades. Instead, a 1% spread applies on every buy transaction and another 1% applies on every sell transaction.
This means:
If Bitcoin is priced at $100,000, buying one BTC may cost you around $101,000 due to the spread. On the other hand, selling it could yield around $99,000, again due to the spread.
In other words, Webull Pay essentially charges approximately 2% for each transaction, combining the buy and sell spreads.
What Is The Company Behind Webull?
The Webull ecosystem(Webull and Webull Pay) belongs to Webull Corporation. This company is based in the United States and headquartered in St. Petersburg, Florida.
According to credible sources, its owners are Wang Anquan and several private equity firms, namely:
- J. Rothschild Capital Management
- Lightspeed Venture Partners
- General Atlantic
- Coatue Management
- Gopher Asset Management.
The company operates in several other countries besides the USA, including the UK, Canada, Australia, Japan, Singapore, Hong Kong, Malaysia, Brazil, and South Africa.
When it comes to compliance, it’s overseen by the SEC.GOV, FINRA, CFTC, and NFA, ensuring broad oversight and rigorous compliance with strict financial standards.
Final Thoughts
Webull is an all-in-one investment platform that allows investors to make money trading stocks, indices, ETFs, bonds, futures, and money market funds.
When it comes to Webull crypto trading through the company’s proprietary trading app, Webull Pay, a lot needs to be understood before you dive in.
One thing you need to know is that the Webull Pay app does not function like similar apps offered by traditional crypto trading platforms such as Binance and Coinbase. For example, on Webull Pay, digital currencies are held by custodial third-party services provided by Coinbase and Bakkt.
What’s more, the app allows only limited interactions with your coins. You can buy, sell, hold, or convert your coins to cash, but transferring them to another wallet or using them for payments is not supported. If you’re okay with these limitations, Webull’s crypto trading solutions may be a good fit for you.