Bakkt Crypto: A Beginner's Guide To Investing

Bakkt Holdings, Inc. is a US-based company that provides a platform for owning and trading cryptocurrencies and redeeming loyalty points. It was founded in 2018 by Intercontinental Exchange (ICE), which also owns the New York Stock Exchange. The company offers an institutional-grade platform with multi-layered security for digital asset custody, trading, and onramp solutions. To invest in Bakkt crypto, you need to open an account with Bakkt Crypto, which is a licensed virtual currency business. You can then submit orders to buy or sell cryptocurrency through the Public app, which executes the orders through your Bakkt Crypto account. Bakkt charges a transparent fee of 1.25% per trade, which is calculated based on the value of the order.

Opening a Bakkt Crypto account

Bakkt Holdings, Inc. is a US-based company that provides a platform for owning, trading, and investing in cryptocurrencies. It also allows users to redeem loyalty points. To open a Bakkt Crypto account, follow these steps:

• Sign Up: Visit the Bakkt website and click on the "Get Started" option. You will be directed to a page where you need to enter your email address and create a password to sign up for an account.
• Verification: After signing up, you will need to verify your identity. This is a standard Know Your Customer (KYC) procedure. Provide the required personal information, such as your full name, date of birth, address, and social security number. You may also need to submit a copy of your government-issued ID and proof of address.
• Funding Your Account: Once your account is verified, you can fund your Bakkt Crypto account. You can link your bank account, set up ACH transfers, or use a wire transfer to deposit funds into your Bakkt account.
• Choosing Cryptocurrencies: With your funded account, you can now choose the cryptocurrencies you want to invest in. Bakkt offers various options, including Bitcoin (BTC), Ethereum, and more. Select the crypto you want to purchase and decide how much you want to invest.
• Placing Your Order: After deciding on the amount and cryptocurrency, place your order. Bakkt Crypto charges a transparent fee per trade, which is 1.25% of the order amount. You can also set up recurring investment plans, which are charged at the same rate.
• Trading and Storage: Bakkt provides a secure platform for trading cryptocurrencies. Your purchased cryptocurrencies will be stored in your Bakkt Crypto account. You can also use the Public mobile app or website to trade cryptocurrencies. Remember that cryptocurrency values fluctuate, so be sure to understand the market and the risks involved before investing.

By following these steps, you can open a Bakkt Crypto account and start investing in cryptocurrencies. Remember to do your research, understand the risks, and make informed investment decisions.

Trading fees

When it comes to trading fees, Bakkt Crypto charges a transparent fee per trade according to the value of the order. This fee is currently set at 1.25% of the order amount, regardless of whether the trade occurs through a recurring investment plan. For example, if a member places an order to buy $75 worth of BTC, they will be charged a transaction fee of $1.69. Similarly, if a member sells $2,500 worth of BTC, their transaction fee will be $31.25. Even a small weekly recurring BTC purchase of $25 will be subject to a transaction fee of $0.31 for each weekly purchase.

It is important to note that if you are using a third-party platform, such as the Public app or the Hapi app, to trade cryptocurrency, your order will be sent to Bakkt Crypto for execution, and you will be subject to their trading fees. For instance, Hapi does not charge any commission on securities trades, but since cryptocurrencies are not securities, your trades will be executed by Bakkt Crypto, which charges a 1% markup for each transaction. This markup is reflected in the price at which your order is executed.

Bakkt's history

Bakkt, founded in 2018, is a publicly-traded company that provides businesses and institutions with services in the crypto industry. It is headquartered in Alpharetta, Georgia, and was created by Intercontinental Exchange (ICE), which also owns the New York Stock Exchange.

Bakkt's formation was announced by ICE on 3rd August 2018, with Microsoft and Starbucks named as partners. The company's initial focus was on warehousing bitcoin, but it has since expanded to provide digital services for online video gaming and commercial loyalty programs.

Bakkt's first use case was for trading and conversion of Bitcoin (BTC) versus fiat currencies. In January 2019, the company acquired certain assets of Rosenthal Collins Group to advance its consumer payments initiatives, and in April 2019, it acquired the Digital Asset Custody Company (DACC). These acquisitions allowed Bakkt to handle payments between customers and merchants on its platform.

In September 2019, Intercontinental Exchange began trading bitcoin futures, and in the same year, Bakkt announced its plans to move into the consumer space with a cryptocurrency consumer app and merchant portal. The company has continued to expand its services and partnerships, including a partnership with Mastercard in October 2021 to enable card users to pay their bills with bitcoin.

Bakkt became a publicly-traded company in October 2021 after completing a merger with VPC Impact Acquisition Holdings, with its Class A common stock and warrants listed on the New York Stock Exchange under the ticker symbols “BKKT” and “BKKT WS”, respectively.

Fiat onramps

Bakkt Holdings, Inc., provides a platform for owning, trading, and investing in cryptocurrencies. The company was founded by Intercontinental Exchange (ICE), which also owns the New York Stock Exchange. Bakkt's first use case was for trading and conversion of Bitcoin (BTC) versus fiat currencies.

The partnership between Bakkt and Plaid simplifies the user experience by streamlining the process of connecting and authenticating bank accounts. This results in faster onboarding and improved user satisfaction. Additionally, Plaid's verification process ensures the secure and compliant handling of user information.

Bakkt's institutional-grade platform provides a regulated environment for crypto trading. It holds the necessary licenses, including an NYDFS BitLicense, MSB registrations, and Money Transmitter Licenses, enabling it to operate in all 50 states and select international regions. Bakkt's platform also supports ACH and Wire transfers for both onramp and offramp to fiat and crypto, although crypto onramps and offramps are not available in New York State, and fiat is not available outside the United States.

By leveraging its partnership with Plaid, Bakkt offers a fast and secure fiat-to-crypto onramp solution, enhancing the user experience and making it easier for investors to enter the world of cryptocurrency.

Security

Bakkt's custody service stores Bitcoin in cold storage, a secure form of storage that keeps the currency offline. This adds layers of security and makes it harder for hackers to access. The company also offers warehouse storage for the safekeeping of Bitcoin, keeping customers' private keys "offline". Bakkt uses a separate ledger to record who owns what, rather than moving Bitcoin around, which adds an extra layer of security.

Bakkt Trust Company LLC is an NYDFS Qualified Custodian offering institutional-grade custody solutions. The company maintains comprehensive regulatory compliance and security with regular third-party audits. It holds an NYDFS BitLicense, MSB registrations, and Money Transmitter Licenses to trade across all 50 US states and select international regions. Bakkt also prioritises compliance, security, and transparency at every level, holding clients' crypto funds in 1:1 reserves. The company's business continuity plan ensures operational resilience, and its commitment to privacy compliance in the locations it serves protects its customers.

Frequently asked questions