Uphold Crypto: Everything You Need to Know

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Introduction: Uphold Isn’t Your Average Crypto App

Picture this: You want to trade Bitcoin for gold, send Euros to a friend abroad, or buy Tesla stock—all without leaving one app. 

That’s Uphold’s big promise. But before you jump in, let’s tackle the questions everyone’s asking:

  • Is Uphold actually safe after past security issues?
  • Why are the fees higher than Coinbase?
  • Can you trust it for daily trading?

We’ll break down the pros, cons, and quirks you need to know, so you can decide if Uphold’s versatility outweighs its flaws.

For more cryptocurrency information check out our Glossary Page.

Bitcoin cryptocurrency coins with a digital financial background, symbolizing the Uphold Crypto platform and crypto trading.

Key Takeaways (TL;DR)

  • ✅ Multi-Asset Superpower: Trade crypto, stocks, and gold in one place.
  • 🔒 Security Mixed Bag: 2FA and encryption are standard, but past 2FA flaws led to lawsuits (now fixed).
  • 💸 Fees Hide in the Spread: Expect 1.5%-2.95% per trade—higher than Coinbase but lower than PayPal.
  • ⏳ Withdrawal Delays: New deposits can be locked for 65 days (here’s how to avoid this).
  • 🌍 Not for New Yorkers: Restricted in NY and a few other states.

Is Uphold Safe? Let’s Get Real About Risks

Uphold isn’t a fly-by-night platform. It’s regulated by FinCEN (U.S.) and the FCA (U.K.), meaning it follows strict anti-money laundering rules. 


But let’s talk about the elephant in the room: security breaches.

What Uphold Does Right:

  • Mandatory 2FA: You can’t log in or withdraw without a second verification step.
  • Cold Storage: 90% of crypto funds are kept offline, per their 2023 transparency report.
  • Bug Bounty Program: Pays hackers to find vulnerabilities (a sign they take security seriously).

Past Red Flags:
In 2022, a class-action lawsuit claimed hackers exploited a 2FA flaw to drain accounts. Uphold settled and revamped its security, but it’s a reminder to double down on your own safeguards.

How to Fortify Your Uphold Account:

  1. Ditch SMS 2FA: Use Google Authenticator or Authy (SIM swaps are shockingly common).
  2. Withdrawal Whitelisting: Restrict crypto withdrawals to pre-approved wallets.
  3. Cold Wallet for Savings: Move long-term crypto holdings to a Ledger or Trezor.

Uphold Fees Explained: Why You’re Paying More

Uphold doesn’t charge “trading fees”—instead, it uses spreads (the difference between what you buy and sell an asset for). Here’s the breakdown:

Asset Type

Typical Spread

Bitcoin (BTC)

1.5%

Ethereum (ETH)

1.5%

Solana (SOL)

1.9%

Gold (XAU)

Up to 2.95%

Why It’s Pricier Than Competitors:

  • All-Inclusive Pricing: Spreads cover transaction costs (no extra fees).
  • Low Liquidity Costs: Trading gold or small altcoins? Spreads balloon.

Fee-Slashing Hacks:

  • Stick to High-Volume Trades: BTC/ETH spreads are lowest.
  • Avoid “Instant” Cashouts: Debit withdrawals cost 1.75%; ACH transfers are free.

Batch Trades: Convert multiple assets at once to minimize spread hits.

A diagram showing Uphold’s security features, potential risks, and compliance measures for user safety.

Uphold vs. Coinbase: Which Should You Choose?

Spoiler: It depends on your goals. Here’s the no-BS comparison:

 

Uphold

Coinbase

Best For

Multi-asset trading (crypto + gold)

Beginners & staking enthusiasts

Fees

1.5%-2.95% spread

0.5% spread + 1% transaction fee

Assets

250+ cryptos, stocks, metals

150+ cryptos

Security

2FA + cold storage

$256M insurance fund

Withdrawals

Slower compliance checks

Faster, but fewer currency options

When Uphold Wins:

  • You want to diversify beyond crypto (e.g., gold during inflation).
  • You need cheap EUR/USD conversions for international payments.

When Coinbase Wins:

  • You’re a staking fanatic (earn rewards on ETH, SOL, etc.).

You prioritize speed and lower fees for frequent trades.

A side-by-side comparison of Uphold and Coinbase, showing their strengths in asset trading, fiat integration, and staking rewards.

Withdrawing from Uphold: How to Dodge the Headaches

Uphold’s withdrawal process can feel like navigating a maze. Here’s how to smooth it out:

Common Issues (& Fixes):

  • “65-Day Hold on My Money!”
    • Why? Anti-fraud rule for ACH deposits.
    • Fix: Use Plaid for instant verification to skip the wait.
  • “My Crypto Withdrawal is Stuck!”
    • Why? Security reviews for new accounts.
    • Fix: Complete full ID verification before trading.
  • “Bank Transfer Taking Forever!”
    • Why? Compliance checks (common for sums over $1k).
    • Fix: Withdraw smaller amounts or use stablecoins (USDT transfers are faster).

Pro Tip: Withdraw crypto late at night (less network congestion = lower gas fees).

A step-by-step diagram illustrating the Uphold withdrawal process, from initiating a withdrawal to solving common issues.

FAQs: Your Top Uphold Questions, Answered

Q: Is my money FDIC-insured on Uphold?
A: Only USD cash balances (up to $250k) through partner banks. Crypto isn’t covered.

Q: Does Uphold report to the IRS?
A: Yes. You’ll get a 1099-B form if you have 200+ transactions or $20k+ in trades.

Q: Can I stake crypto on Uphold?
A: Not in the U.S. Regulatory red tape blocks it.

Q: Is Uphold a wallet or exchange?
A: Both. It’s a hot wallet (online storage), so don’t park large sums here long-term.

A comparison chart outlining the pros and cons of using Uphold, including benefits like multi-asset trading and drawbacks like higher fees.

Conclusion: Who Should (and Shouldn’t) Use Uphold

Uphold is perfect for:

  • Casual Investors who want crypto, stocks, and gold in one tab.
  • Global Users needing cheap EUR/GBP conversions.
  • Crypto Newbies who value simplicity over charts.

Skip Uphold if:

  • You’re a high-volume trader (spreads eat profits).
  • You’re in New York or Hawaii (not available there).
  • You want staking rewards or NFT trading.

Still unsure? Most users start with a small deposit to test the platform.