Are you looking to start trading cryptocurrency but don’t know where to begin? Look no further than Webull Wallet. As one of the most popular investment platforms, Webull has recently expanded its offerings to include the ability to trade cryptocurrency commission-free.
The Webull Crypto Wallet provides a powerful and user-friendly platform for trading a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Whether a beginner or an experienced trader, the Webull Wallet has everything you need to trade confidently.
In this guide, we will walk you through the process of setting up a Webull Wallet account, understanding the basics of cryptocurrency trading, and developing strategies for successful trading. So, don’t wait any longer. Start your journey to mastering the Webull Wallet and cryptocurrency trading today!
Understanding the Basics of Cryptocurrency Trading
Cryptocurrency trading is speculating on cryptocurrency price movements via a CFD trading account or buying and selling the underlying coins via an exchange.
When purchasing cryptocurrencies through an exchange, the coins themselves are acquired. To do so, an exchange account must be created, the full value of the asset must be provided to open a position, and the cryptocurrency tokens must be stored in a personal wallet until they are ready to be sold.
Exchanges require a significant learning curve as one must become familiar with the technology and understand the data. Additionally, many exchanges have deposit limits, and maintaining an account can be costly.
Blockchain
A blockchain is a digital ledger shared among users, which records data. For cryptocurrencies, it is used to track the transaction history of each unit of the cryptocurrency, displaying how ownership has been transferred over time.
The technology functions by adding new transactions to existing “blocks” in a chronological chain.
Webull Crypto Wallet: Part of Cryptocurrency World
The growing interest and demand for cryptocurrency have led to the development of various trading platforms dedicated to crypto investments. One such platform, Webull, has recently expanded its offerings to include cryptocurrency trading.
When considering a crypto trading platform, it is important to consider whether it offers a built-in cryptocurrency wallet. A crypto wallet is a digital or physical storage device that holds and secures cryptocurrency and is necessary for sending and receiving digital assets.
Previously, Webull did not offer a built-in wallet for its users. However, the company is now introducing a cryptocurrency wallet feature to make it easier for its members to transfer and receive crypto. Let’s take a closer look at Webull’s new crypto wallet and what it has to offer.
Webull Crypto Wallet
Webull, established in 2017, is a mobile-based brokerage platform catering to investors seeking to trade in stocks and ETFs. The company has diversified its offerings to include options trading and cryptocurrency trading.
Webull is excited to announce the launch of its new crypto wallet, currently in beta testing. Soon, all Webull members will have access to this innovative feature, which will function like other crypto wallets on platforms like Robinhood and Coinbase.
Webull is known for providing a wealth of market data and research tools, yet it prioritizes user-friendliness and simplicity in its platform design. This approach ensures that investors of all skill levels can easily navigate the platform, access the necessary data, and make informed investment decisions without feeling overwhelmed by complexity.
To transfer coins into the crypto Webull wallet, simply copy the wallet address within Webull and paste it into the platform from where you are sending. This process is quick and easy, and once the transfer is complete, you can view all of your crypto investments in one convenient platform.
Is Webull Wallet for You?
If you are just starting out with little experience in investing and have not yet created a well-diversified and long-term portfolio, you may want to consider other brokerage options.
However, if you have an intermediate level of experience, are interested in active trading, or want to enhance your trading skills through the use of advanced orders and technical analysis, Webull may be a suitable option for you, particularly given its competitive pricing compared to other brokers with similar features.
Features of Webull Wallet
If you’re a fan of using Webull, you’ll be thrilled to know that you can now trade and invest in cryptocurrencies on the platform.
Having everything housed in the same place provides both convenience and accessibility for our members. Here are just a few of the top features that our members have come to love about cryptocurrency on Webull:
- Webull Crypto Interface: Webull’s Crypto Interface offers a wealth of research tools and real-time data for its members, allowing them to stay well-informed on their cryptocurrency investments. All crypto holdings are conveniently located alongside other investments in one central location.
- Instant Settlement: Webull’s buying and selling process for cryptocurrency features instant market order execution and immediate settlement of buying power.
- Fractional Coins: Webull’s fractional coin feature allows users to purchase a specific dollar amount of a coin rather than having to buy the entire coin.
How to Trade in Webull Wallet?
In 2020, Webull expanded its offerings to include cryptocurrency investment options, giving investors access to a diverse range of coins, including popular ones like Bitcoin, Ethereum, Litecoin, and Dogecoin. The platform continues to add new coins to its selection over time.
To begin trading cryptocurrency on Webull, you must complete an application process within the Webull app. This can be done by following the instructions provided within the app.
- Click the Webull logo in the middle bottom of the screen
- Tap the icon in the top right corner
- Tap “Crypto Trading” among the options listed
Once your application has been submitted, you will be able to start trading cryptocurrencies on the Webull platform.
Advantages of Webull Wallet
Low Cost
Webull is among the top options when it comes to costs, offering not only free stock and options trades but also no additional charge for per-contract options.
Advanced Tools
Webull’s platform is designed to be user-friendly and accessible for a mobile-first generation without sacrificing advanced charting and screening tools.
Access to Cryptocurrency
While many brokerages do not offer direct access to cryptocurrencies, Webull currently has 44 available for trading.
Appeals to a Broad Audience
Webull’s platform takes inspiration from popular platforms like Robinhood, appealing to new and casual investors with a great mobile experience and a simple desktop interface.
However, it also caters to more advanced active traders, with features such as in-depth charting, technical indicators, advanced orders, market data from multiple sources, customization, and more, all in an easily navigable and modern platform.
Disadvantages of Webull Wallet
Thin Educational Support
Although Webull is working to provide more educational content than other established brokerages, its educational resources are still limited.
Cash Management
Webull does not offer interest on uninvested cash, has no default fund for uninvested cash, and has no additional banking or cash management products to make up for this, as other brokers like Ally Invest and Robinhood do. This means that any uninvested cash will not generate interest or returns.
No Mutual Funds
Webull does not currently offer mutual funds as a diversification option.
Things to Know About Webull Wallet Crypto Trading
Account
Webull does not charge for opening or maintaining a cryptocurrency account, which can be accessed through your existing account login. Only individual brokerage accounts, not IRAs, are allowed to trade cryptocurrencies.
Supported Currencies
A wide range of cryptocurrencies is available for trading on Webull, including Bitcoin, Ethereum, Litecoin, and more. A full list of cryptos can be viewed on the Market page of the mobile app under the Cryptos tab.
Trading Hours
Cryptocurrency trading on Webull is available 23 hours a day, 7 days a week, with a one-hour maintenance and account reconciliation break each day.
Charges
No minimum equity is required for trading cryptocurrencies and no additional fees, with a 100bps markup built into the price of the crypto being bought or sold.
Data
Real-time data on available cryptocurrencies are provided free of charge.
Order Types
Market Orders
A market order is a type of order to purchase or sell cryptocurrencies at the current market price. However, due to market volatility, the total cost may vary from the original price.
To mitigate this, market orders have a time-in-force of Immediate Or Cancel (IOC), which means if they are not executed within 5 seconds, they will be automatically canceled.
Limit Orders
A limit order is to buy or sell cryptocurrencies at a specific price or better. For buying, the limit price is the maximum price you are willing to pay per coin.
For selling, the limit price is the minimum price you are willing to sell per coin. Limit orders help to secure profits and losses, but they do not guarantee execution.
Stop Limit Orders
Stop limit orders allow buying or selling a cryptocurrency at a specific price point only when the cryptocurrency reaches a predetermined trigger price. Two things to know about stop limit orders:
- Orders will not be executed if the trigger price is not met.
- If the trigger price is met, but the cryptocurrency is not trading at the specified limit price or higher, the order will not be filled.
Order Quantity
You have the option to place orders using either USD or a fractional amount of a specific cryptocurrency.
- Orders in USD: You can place buy orders using USD, which means you will not pay more than the entered USD amount to purchase a specified amount of cryptocurrency. The total amount of cryptocurrency purchased may vary due to market volatility. It is not possible to place orders in dollar amounts to close crypto positions.
- Orders in Cryptocurrency amount: You can place orders to buy or sell fractional amounts of cryptocurrencies. When you place orders in a cryptocurrency amount, you are purchasing or selling a specific amount of a cryptocurrency, while the total cost or the dollar amount you will receive may vary due to market volatility.
Order Limitations
- The maximum amount for any individual trade is $100,000.
- The total value of all open buy orders cannot exceed $200,000.
- The smallest possible order for buying is $1.00. Selling less than $1.00 is only allowed when closing the entire position. The minimum quantity of a cryptocurrency that can be traded at once is 0.00000001.
- You are not able to use dollar amounts to close crypto positions.
- It is not possible to short-sell cryptocurrencies.
Time-in-Force
Webull offers different types of orders for crypto trading, including day orders, immediate or cancel (IOC) orders, and good til cancel (GTC) orders.
- Day Order: A day order is a type of order that is only valid for the day it is placed, and it will expire automatically if it is not executed on that day. Any pending orders at 5:30 pm ET will be canceled for crypto day orders.
- IOC Order: An immediate or cancel order is a type of order that is executed immediately (within 5 seconds after it is sent to the exchange) and any unfilled portion is canceled.
- GTC Order: A good til cancel order is a type of order that remains active until it is completed or canceled. Typically, all open GTC orders expire 60 calendar days after they are placed.
Buying Power
Both cash and margin accounts can trade cryptocurrencies, but it should be noted that they are non-marginal assets. Additionally, the rules for Pattern Day Trader (PDT) and Good Faith Violations (GFV) do not apply to cryptocurrency trades.
However, for margin accounts with an active PDT flag and a balance over $25,000, there may be limitations on buying power for cryptocurrencies.
This is because FINRA and SEC regulations require that PDT accounts maintain a minimum balance of $25,000 of cash or marginal assets. Since cryptocurrencies are not considered marginal, they do not count towards this requirement.
As a result, margin accounts with an active PDT flag and a balance over $25,000 may be subject to limitations on buying power for cryptocurrencies.
Final Thoughts on Webull Wallet
The Webull Wallet is a powerful platform that allows investors to trade cryptocurrency commission-free. By following the guidance provided in this guide, you should now have a solid understanding of how to trade cryptocurrency with confidence using the Webull Wallet.
As you continue to use the Webull Wallet and refine your cryptocurrency trading strategies, remember to stay up-to-date on market news and events, monitor your trades, and adjust your strategies as necessary.
By educating yourself and utilizing the tools and resources provided by the Webull Wallet, you will be well on your way to unlocking the potential for incredible gains in the cryptocurrency market.
