Scalable Capital Review crypto broker 2024

Our veredict

Scalable Capital, primarily known for its robo-advisory services, offers a limited but solid entry into the cryptocurrency market through exchange-traded products (ETPs). This platform is particularly suited for beginners and those looking for a secure and regulated environment to start their crypto investment journey. The ETPs provide exposure to popular cryptocurrencies like Bitcoin and Ethereum without the need to manage a digital wallet, thus simplifying the process and reducing risk associated with handling private keys. Scalable Capital also offers attractive features like staking rewards and the ability to start with small investments, making it accessible for novice investors.

However, there are notable limitations. Scalable Capital does not offer real cryptocurrencies but rather ETPs, which might not appeal to investors looking for direct ownership of digital assets. Additionally, the selection of cryptocurrencies is relatively small compared to other platforms, and trading fees can be higher than some competitors. These factors might deter more experienced crypto traders or those looking for a broader range of digital assets and lower fees. Overall, Scalable Capital is a good starting point for those new to crypto investing, but it might fall short for more advanced users.

Pros

1. Regulated Marketplace Access and Secure Custody Scalable Capital operates under the regulation of BaFin, providing a secure and regulated environment for cryptocurrency investments. Moreover, all crypto ETPs are securely held in custody with Baader Bank, ensuring the safety and security of the underlying assets.
2. Easy Handling via ETPs The platform offers crypto exposure through exchange-traded products (ETPs), simplifying the investment process and reducing the need to manage digital wallets.
3. Staking Rewards Available Scalable Capital provides opportunities for staking, offering rewards between 3% to 5% annually, adding an attractive feature for investors.

Cons

1. Higher Trading Fees Compared to Competitors Trading fees on Scalable Capital can be higher than those on other platforms, potentially reducing the overall returns for active traders.
2. Small Selection of Cryptocurrencies The platform offers a limited selection of only 13 cryptocurrencies, which may be insufficient for investors looking for a broader range of digital assets.

3,5

Threenvest Score

Fees

3,8/5

Regulated

BaFin

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Why choose Scalable Capital?

Choosing Scalable Capital for your cryptocurrency investments offers several advantages, making it a compelling option for many investors. Firstly, the platform’s integration with regulated ETPs provides a secure and straightforward way to gain exposure to cryptocurrencies without the complexities of managing digital wallets or private keys. This feature is particularly beneficial for beginners who may find the direct handling of cryptocurrencies daunting.

Secondly, Scalable Capital’s user-friendly interface and comprehensive mobile app make it easy to monitor and manage investments on the go. The platform offers a seamless experience from account setup to portfolio management, ensuring that users can easily track their performance and make necessary adjustments.

Finally, Scalable Capital’s strong emphasis on security and regulation ensures that investors’ assets are well-protected. Partnering with Baader Bank for custody services, the platform ensures that crypto ETPs are securely held, and the involvement of BaFin provides an added layer of trust and compliance. This combination of user-friendly features, security, and regulatory oversight makes Scalable Capital a reliable choice for those looking to invest in cryptocurrencies in a controlled and safe environment.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert on our site, I highly recommend Scalable Capital for those looking to invest in cryptocurrencies in a secure and regulated manner. The platform’s use of crypto ETPs makes it accessible and straightforward, especially for beginners. The strong regulatory oversight by BaFin and secure custody with Baader Bank add significant trust and security to your investments. It’s a solid choice if you’re seeking a reliable entry into the crypto market without the complexities of direct cryptocurrency ownership.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.