What is Uphold?
Uphold is a multifunctional investment platform that combines the features of exchange and brokerage. It offers access to more than 200 cryptocurrencies, fiat currencies, precious metals, and equities.
Launched back in 2015, Uphold has processed transactions worth more than $ 4 billion. The platform serves users from 184 countries.
The company is regulated by the U.S. Securities and Exchange Commission (SEC), which means that its clients are more protected. It also focuses on cybersecurity issues and uses encryption methods that fully comply with the standards of financial institutions.
One of the exchange’s critical features is trading without intermediate conversion, known as the Anything for Anything trading model. For example, Bitcoin can be exchanged directly for gold, and so with any asset. In addition, Uphold allows users to stake cryptocurrencies such as Ethereum, Tezos (XTZ), Solana (SOL), and others. The platform offers an annual percentage yield (APY) of up to 25%. However, high yields are available only for risky assets. For example, staking ETH 2.0 on the exchange can earn you up to 7% APY.
Uphold is known for high spread fees (the difference between the best bid and ask price), which, in addition, increase during volatility. This also applies to low-liquidity digital currencies.
U.S. clients pay the spread ranging from 0.8% to 1.2% on major cryptocurrencies (BTC, ETH). For other regions, the spread fee is about 1.8%. Uphold’s spread can reach 3% for precious metals, 0.2% for fiat pairs, and 1% for stocks. The platform’s fees are presented to users before the transaction. Uphold charges no additional fees above that. However, if you transfer tokens to an external crypto wallet, the platform may charge you the transaction fee.
Uphold offers limitless limit orders (at a predetermined buy or sell price) allowing users to place up to 50 limit orders at any given time using one pool of capital. That said, your funds are not withdrawn at the time of placing the order, but only after it is executed. The platform also has an AutoPilot feature, which automates transactions by setting up regular orders.
Uphold and Mastercard
In 2021, Mastercard joined Start Path, a program that supports blockchain and cryptocurrency projects. The goal of the initiative is to innovate, scale, and facilitate the development of new technology solutions. A total of 250 projects participated in the program with $3 billion of investments.
Uphold was among the Start Path projects.
Mastercard noted that each company was focused on critical industry challenges, so they would use expanded payment system services to support the growth of their business.
Uphold hack
In 2018, hackers broke into Uphold’s email account and sent out emails on behalf of the exchange promoting a Black Friday-themed Bitcoin giveaway. Four hours later, the platform’s representatives informed users about a phishing attack and called on their clients to delete the email. The company also confirmed that the scammer sent the letter from the official address, but assured that they had no official standing in this case.
In general, Uphold is one of the few reliable platforms that offer access to a comprehensive range of different assets all in one place. Its "Anything to Anything" feature makes the exchange very attractive to traders and investors who focus on more than just cryptocurrencies. While the spread can be quite high, the platform does not charge deposit, withdrawal, and trading fees.
