What are cryptocurrencies?
Cryptocurrencies are digital money, an evolution from physical coins to a digital format. Through a system like credit cards, e-wallets, and online banking, value is transferred digitally.
Cryptocurrencies represent a new class of digital assets, a protocol or program that serves functions similar to money, but solely in digital format.
How did cryptocurrencies become a thing?
In 2008, the first crypto currency, Bitcoin, was invented by an unknown person using the name Satoshi Nakamoto who released a white paper about its protocol.
In 2009, Bitcoin went live and had its first transaction.
In 2011, “altcoins”, cryptocurrencies that are not Bitcoin, emerged trying to improve some of Bitcoins original capabilities.
In 2016, Ether was introduced, the most relevant alternative to Bitcoin.
Present day, there are over 14 thousands cryptocurrencies with over US$ 2 trillion combined market cap, over half of that represented by Bitcoin and Ethereum. Cryptocurrency have evolved from a relative underground movement to mainstream, with major companies like Tesla accepting cryptocurrencies payments, and an interesting investment opportunity for an increasing number of people.
How is investing in crypto different from investing in Stocks?
Stocks | Cryptocurrency |
You own a small portion of a company | You buy, sell, or hold a crypto asset |
Trading happens during market hours | Trading happens almost 24/7 |
Securities are issued by public companies | Cryptos are not issued by a central authority, they are backed by a (usually) decentralized blockchain |
Long established regulatory regime. Supervised and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Also regulated by state governments, and stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ. | Relatively new and evolving regulatory regime. Trading and custody of cryptocurrencies is primarily regulated by the Bank Secrecy Act and the US Patriot Act at the federal level, and by money transmitter laws at the state level. |
There is a wide range of types of securities with different levels of volatility, from relative stable Blue-chip or "large-cap" to highly volatile "penny stocks". | Usually with higher volatility than stocks even in the bigger capitalization cryptocurrencies like Bitcoin and Ethereum. |
What is blockchain?
Blockchain is a technology used by many cryptocurrencies to maintain records. It works by storing transaction information in successive blocks in a digital ledger. Each block is approved by a decentralized network and chained to the previous one, thus creating a blockchain. Once a block is closed, records cannot be changed without redoing the entire block sequence, which requires decentralized approval, making manipulation nearly impossible. This ensures a permanent and decentralized record for transactions.
The decentralization of blockchain is crucial. Instead of having a centralized entity susceptible to manipulation, each block is maintained by decentralized nodes. Manipulating the information would require hacking the majority of the network simultaneously. Therefore, blockchain is considered a permanent, secure, and unchangeable record without a single weak point.
Where are the crypto assets I invest in on Hapi stored?
When you trade crypto assets on Hapi, you do so through Bakkt Crypto, a company that provides cryptocurrency execution and custody services. Hapi provides the application and technology for users to buy, sell, and hold cryptocurrencies.
Currently, there is no cryptocurrency wallet on Hapi, so you cannot deposit cryptocurrency you own elsewhere or withdraw your cryptocurrency from Hapi to elsewhere. We understand that this is something our users may desire and we will take it into consideration for our future developments. The crypto assets you invest in on Hapi are stored in Bakkt Crypto, which partners with some of the largest and most trusted wallet providers in the USA to ensure that all crypto assets are securely stored with the highest security standards.
☝️ Important: Bakkt Crypto wallet partners are insured, which provides additional protections to users who invest in crypto on Hapi. All Bakkt Crypto user’s assets are stored together in one or more omnibus-hosted wallets, which means that your crypto assets invested on Hapi are stored alongside the assets of other investors from other platforms that provide crypto throughBakkt Crypto.
You should always have in mind that cryptocurrencies are not securities, and thus are not FDIC or SIPC insured.
Which cryptos can you find on Hapi?
You can buy, sell, or hold 8 coins currently on Hapi via Bakkt Crypto:
Bitcoin (BTC)
Doge (DOGE)
Shiba INU (SHIB)
Ethereum (ETH)
Litecoin (LTC)
Bitcoin Cash (BCH)
Ethereum Classic (ETC)
USD Coin (USDC)
🔎 Find them on Hapi: Look for the search bar in the bottom menu of the homepage on your app and type in the ticker or name of the cryptocurrency you want to find. If you can't find a cryptocurrency you're interested in, please reach out to us, as we're working to expand the list to include more options.
How to buy crypto?
Look for the 🔍 on the bottom menu of your app.
Search for any cryptocurrency by Ticker Symbol (e.g., BTC) or Name (e.g., Bitcoin)
Enter the amount you want to buy (you can change between buying in coins or in USD).
Select the "Buy" button at the bottom.
Follow the instructions to finish placing your trade! 🚀
✍️ Keep these tips in mind:
When you go to buy or sell crypto in Hapi, by default, it will be by quantity of coins
To buy a specific dollar amount, change the order type on the top right of the screen and select the buy or sell by dollars option
You can purchase or sell a minimum of US$1 of any crypto
There is a maximum limit per trade of USD 100,000
Cryptocurrency operations (deposits, purchases, sales, and withdrawals) may not be available to all users; it will depend on your country of residence. Currently, countries like Bolivia, Venezuela, Paraguay, and Panama have restrictions due to regulatory issues
You can contact our support team here. We're here to help!