Crypto Portal FAQs

This article reviews frequently asked questions for WeStreet’s Crypto Portal and general cryptocurrency questions.

WeStreet’s Crypto Portal FAQs

Am I able to place a limit order or stop/loss?

At the moment, trading is limited to market orders only. However, additional order types might become available in the future.

Are my digital asset holdings with WeStreet taxable?

When you decide to sell your cryptocurrency holdings, it is important to keep in mind that they are subject to taxation, just like any other investment asset.

Your yearly 1099 will be available for you to access through online or mobile banking.

Can I deposit digital assets into my digital asset accounts with my financial institution?

Currently, we don’t allow digital asset deposits. You can buy, sell, and hold digital assets on our platform. We plan to offer deposits in the future.

Can I place an order for digital assets over the phone?

No. You can only place orders for digital assets through your online banking or mobile banking app.

Can I send digital assets to a wallet outside of WeStreet?

No. The two most important goals for us as a financial institution in offering cryptocurrency is to make it as easy and safe to buy, sell and hold cryptocurrency as possible.

To ensure ease and safety, cryptocurrency cannot be sent outside of the financial institution due to security and regulatory reasons.

Can I use my digital assets to make purchases?

At this time, we solely offer the option to purchase, sell, and retain digital assets via your financial institution, but we do not have the capability to make payments or transfer funds.

How do I find more information on coins?

You can view more information about coins at Cryptocurrency Coins: What You Need To Know.

How do I know my digital assets are secure?

We use a combination of systems to ensure the crypto you store with WeStreet is secure.

We independently monitor your crypto balance with our qualified custodian daily to ensure there is agreement on the balance between all parties and immediately work to resolve any discrepancies if any do appear.

Crypto being held with our qualified custodians is not used for any other purposes and is there for you when you want to sell it.

I see information about other coins. Why can’t I buy other coins?

We want to offer robust educational content on various coins so you are making informed buying decisions. However, not all coins we offer education content on are available for purchase. In the future, we may offer the ability to buy and sell some or all of the coins you see in the education section.

What are the fees associated with each trade?
There is a $0.99 minimum fee per trade, with a fee range of 1-6% per trade depending on the size of the transaction. You will be shown the amount of the trading fee before you confirm the trade.

What happens to my digital assets if I close my WeStreet account?

Just as you would with any other assets such as Certificates of Deposit (CDs), you would be required to liquidate your cryptocurrency holdings before you close your account. You will be able to close your account once you have sold all of the cryptocurrencies held in your account.

What happens to my digital assets if I die?

Your cryptocurrency holdings are like any other assets you hold with WeStreet, and they are treated the same as any other assets if you die. Your beneficiary or other designated person with a power of attorney would have access to your Credit Union assets and liquidate them on whatever basis they felt was warranted.

What happens to my digital assets if WeStreet shuts down the digital asset offering?

If we were to shut down the program, you would still be able to retrieve your cryptocurrency directly from the qualified custodian that stores your holdings. In this event, you will be provided instructions on how to retrieve your holdings.

How do I learn more about cryptocurrency?

We have provided a robust learning library that can be found here.

General Cryptocurrency FAQs

What is Bitcoin halving?

Approximately every four years, the total amount of Bitcoin rewarded is cut in half. This causes supply to increase more slowly, thereby increasing demand. The previous Bitcoin halving occurred on May 11, 2020, and the next is expected to occur in 2024. The process will culminate when 21 million bitcoins are in circulation, when the system will stop producing new Bitcoin. The halving policy was written into Bitcoin’s mining algorithm to counteract inflation by maintaining scarcity. Halvings have correlated with intense boom and bust cycles that have ended with higher prices than before the event.

Why are there so many coins?

Anyone equipped with the needed skills can create a cryptocurrency. There is no central authority that regulates or approves new cryptocurrencies. New coins are also designed for different purposes and with new features – to be more private, faster, scalable, or energy efficient. Still others are used for specific applications, such as decentralized finance (DeFi), gaming, or non-fungible tokens (NFTs). [FI] constrains the number of coins available for investment to the most secure cryptocurrencies. Not all cryptocurrencies are created equal or have a legitimate purpose. Some of them are scams, copies, or derivatives of existing coins that aim to exploit the hype or the lack of regulation in the crypto space.

Why does cryptocurrency have value?

Cryptocurrency is unique in that unlike other assets like stocks or commodities, there is no underlying asset driving its value. Instead, its value is derived from a community of people trusting and agreeing upon its value together.

For example, the US Dollar has value because everyone agrees it has value and treats it as such. Many crypto investors and visionaries see popular cryptocurrencies taking a similar position and becoming widely accepted to have value. People having faith in its value gives it inherent value, which will only grow with continued adoption.

The various real-world applications of blockchain and cryptocurrency technology further drive its value. For instance, the Ethereum network powers smart contracts, NFTs, and a variety of other decentralized applications.

Cryptocurrency is also said to have value because of how it could act as a hedge against inflation. As only 21 million Bitcoin can ever be produced, it has defined scarcity and value.

Are Bitcoin and other cryptocurrencies legal?

In the United States, Bitcoin and other cryptocurrencies are generally considered legal, but they are subject to regulation by various government agencies. For example, the Internal Revenue Service (IRS) considers Bitcoin and other cryptocurrencies to be property for tax purposes, which means that transactions involving cryptocurrencies are subject to capital gains taxes.

Can cryptocurrencies be hacked?

Cryptocurrencies themselves cannot be “hacked” in the traditional sense, as they are decentralized digital assets that exist on a secure, distributed ledger called a blockchain. However, the wallets and exchanges used to store and trade cryptocurrencies can be vulnerable to hacking and other cyber attacks.

How can I protect myself from Bitcoin scams?

Bitcoin scams are unfortunately common in the cryptocurrency world, but there are several steps you can take to protect yourself.

Learn more about the types of scams and warning signs

How is my crypto kept secure?

We use a combination of systems to ensure the crypto you store with WeStreet is secure.

We independently monitor your crypto balance with our qualified custodian daily to ensure there is agreement on the balance between all parties and immediately work to resolve any discrepancies if any do appear.

Crypto being held with our qualified custodians is not used for any other purposes and is there for you when you want to sell it.

Can I lose my cryptocurrency?

Losing cryptocurrency held at WeStreet is very unlikely – it is securely held on your behalf by your credit union.

Can my cryptocurrency lose value?

Yes, like any investment product, your cryptocurrency may lose (or gain) in value over time. Cryptocurrencies are volatile and unpredictable, meaning their prices can go up and down quickly and without warning.

Many factors can affect a cryptocurrency’s value, such as supply and demand, regulation, hacking, competition, innovation, and market sentiment. You should only invest in cryptocurrencies if you are aware of the risks and willing to accept the potential losses.

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This information is for educational purposes only, is believed to be accurate at the time of publication, and should not be construed as investment advice.