Overview of Abra
Abra is the world’s first global investment smartphone app that has been designed from the ground up to accommodate the future of digital finances and transactions. It’s available to users in over 150 different countries and supports over a hundred different cryptocurrencies via a single dashboard. This gives everyone the freedom to buy and sell cryptocurrency, but they also offer users additional services such as the ability to earn interest.
Abra was founded in 2014 as a global cryptocurrency exchange that also offered various digital wallet services. It was founded by Bill Barhydt, a former fixed-income analyst that worked for Goldman Sachs. He was also the former director of Netscape Communications Corporation.
What are the main services offered by Abra?
Abra offers a variety of financial services for crypto users. Their three main services include; trading, earning, and borrowing.
Abra Trade is the trading platform offered by Abra. It offers over 100 different cryptocurrencies including Ethereum, and Bitcoin.
All users have to do is download the app and they’ll be ready to buy cryptocurrency within just a couple of minutes. They can exchange their fiat currencies into crypto with easy on-ramps such as ACH, wire, credit card, and more options. With access to over a hundred different cryptocurrencies, it gives users plenty of choice on which ones they want to invest in and trade. There are also many altcoins and tokens that can be traded, and more are added every day as they become available.
Abra Trade also allows for custom notifications that can be set by the user. These can help alert you of any market movements to keep track of your favorite coins or any large dips in the price of certain coins. This helps you stay up to date with cryptocurrencies and allows you to take advantage of drastic price changes.
One of Abra’s most popular services is Abra Earn. Earn allows you to yield up to 13% interest on all of your cryptocurrencies. Better than just letting your crypto sit idle, Abra offers some of the most competitive rates on crypto deposits.
Once users have downloaded the app, they can quickly set up an account in a few minutes and then start using the Abra services to change their fiat currencies into cryptocurrency. This process is safe and secure while enabling users to do it with full confidence. Once your fiat currency has been exchanged with cryptocurrency, you’ll start to earn interest every day as it sits in your account much like any other savings account.
Abra Earn rates vary depending on the cryptocurrency that is stored in your account. For example, Polkadot (DOT) can earn up to 10% interest, Bitcoin (BTC) 1.75%, and Paxos (USDP) up to 7.5%. These rates are likely to change in the future and users can keep up to date with the latest numbers by using the Abra app.
Payouts with Abra interest are distributed every Monday and the interest is paid out in the same asset that is stored in the Earn account. Abra also offers compound interest, meaning you’ll continue to grow your savings at an accelerated rate.
Abra Borrow offers US dollar stablecoin loans using your cryptocurrency as collateral with extremely competitive terms and 0% interest at a 10:1 loan to cover.
Unlike many other borrowing options, Abra Borrow requires absolutely no credit checks. In fact, the only thing they look at is your wallet assets. They’ll never perform a background check on your credit history which means you have a lot more flexibility with your loan options. Since your cryptocurrency is used as collateral, you could potentially borrow a lot of money with Abra.
This option is highly customizable. You can pick your own repayment terms with interest rates as low as 0%, and you can be approved for an Abra Borrow loan in just under 10 minutes. Abra’s website has a loan calculator that you can use to determine how much you can borrow and how much collateral you’ll need to do so. It also gives you the option to adjust your loan term so you can see exactly how much interest you’ll be paying.
Getting an Abra Borrow loan only takes a few steps if you’re an existing Abra user. If you don’t have an account, then signing up and getting improved is quick and simple. Since there are no credit checks involved, the only factor that is taken into consideration is how much cryptocurrency you have. As long as you have enough collateral, you can easily take out a loan with Abra.
There is currently a limit of $500,000 for the maximum loan size, but this can change depending on your current location. In addition, Abra only accepts Bitcoin and Ethereum as collateral right now, likely due to their value and overall stability compared to other coins. Loans are also issued in US dollar stablecoins and all of the processing is handled in the app itself.
Private clients and family offices
In addition to these individual services that Abra offers, they also have private client and family office services that provide a more personalized financial solution for topics such as cryptocurrency trading, investment, and asset management. Abra’s team of crypto specialists can assist you in navigating the fast-paced environment of the digital assets industry to help you unlock more opportunities and gain a better understanding of how cryptocurrency flows.
This service offers consultative relationship management with a crypto industry insider, 24/7 access to account servicing, and tailored solutions for everything from cryptocurrency management and offshore investment to yield and borrowing services.
Since this is a completely personalized service, it requires separate signup and constant communication between the client and Abra’s specialists. If you’re looking for a bespoke service to help expand your financial assets, then this could be a great option to help you get the help and expertise that you need.
How does Abra make money?
As a brokerage, Abra makes money by serving as a middleman that connects buyers and sellers. While they currently don’t charge fees on currency exchanges, they do generate an exchange rate income on the spread between different currencies. For example, if a user converts their US Dollars into a cryptocurrency such as Bitcoin, then there’s a small spread in the exchange rate that will be shown on the app for transparency.
The spread rate changes depending on the currency and is based on market conditions. There may also be other fees involved in certain transaction types and withdrawal options, but these are always shown and displayed in the app so users know exactly how much they’re paying.
Abra also makes money from the interest generated from Abra Borrow loans. Much like traditional banks, Abra pays interest to depositors. They take the deposits and loan them out to borrowers, at a higher interest rate. This interest rate differential is another way in which Abra generates revenue.
What are the fees on Abra?
Abra has very few fees and most of them are unique to certain payment processing or withdrawal methods. Depending on the country you live in, fees for deposits into Abra can vary. For a full list of the fees on Abra, check out the support page titled “What fees does Abra charge?”.
Is Abra safe to use?
There are a number of features that make Abra more secure than the majority of cryptocurrency exchanges out there.
For starters, Abra uses a non-custodial wallet. This means that Abra never has access to users’ funds or their recovery phrases. This means that the user has full control over their account. In the highly unlikely event that Abra’s servers and systems were compromised, hackers would be unable to gain access to user wallets because Abra itself cannot access the information required to open them.
Abra also uses two-factor authentication (2FA) to ensure that people cannot access your account by only having your login information. They’ll also need access to your smartphone or the device of your choice which contains the 2FA code.
As of writing, Abra has not suffered any major security breaches that would have compromised customer data or cryptocurrency. Abra takes security very seriously.
Is Abra regulated?
Abra is registered with the U.S. Department of Treasury Financial Crimes Enforcement Network as a money services business. This means that they adhere to strict compliance and regulatory standards set by financial regulators in the United States. Outside the U.S, Abra also has the necessary partnerships, licenses and regulatory approval to operate and provide crypto services in. Wherever Abra operates, they operate a compliant, secure and professional crypto brokerage business.
Is Abra insured?
Deposits made with Abra are not federally insured. Unlike most U.S banks that have FDIC insurance, Abra does not. The majority of crypto platforms don’t have federal deposit insurance and Abra is no exception. This isn’t the fault of Abra or the crypto industry. It’s simple due to the fact that cryptocurrencies aren’t legal tender the same way U.S dollars are.
Abra is however, a financially regulated platform in the United States. Although deposits made with Abra aren’t guaranteed by the U.S government, Abra does take the same approach to compliance and security as many banks.
What countries is Abra available in?
Abra is currently available in over 150 different countries. There are 50 cryptocurrencies available for US users and over 100 cryptocurrencies available for international users. Abra’s services can be accessed in all countries that they operate in via their mobile app.
For a full list of country availability, please refer to the “Where is Abra available?” entry in their knowledge base.
How do I open an Abra account?
Setting up an Abra account revolves around downloading the relevant application, creating an account, and then filling in the required information. There is currently no Know Your Customer (KYC) process involved.
Once you’ve downloaded the Abra app, you’ll be asked to make an account by submitting some basic information like your name, email address, and phone number. Once you've submitted the details, you’ll receive a verification code on the associated phone number. This will be required to verify your account to finalize the setup process. You’ll also be asked whether you are a resident of the United States of America or not. This will limit your access to certain cryptocurrencies due to regulations.
Now that the account and your region have been verified, you’ll be asked to set a 4-digit PIN to secure your wallet. This will be used to safeguard your recovery seed and also enable you to start trading. From here, you have full access to Abra’s services. You can start trading immediately, you can earn interest on your cryptocurrency, and you can even borrow money using your crypto as collateral.
How to withdraw from Abra
Withdraw to your bank account
You can withdraw USD to a US bank account by going to the “Withdraw” screen and selecting “Bank ACH Transfer”. Note that you must first convert your funds to TrueUSD (TUSD) in order to withdraw USD. It will take about 2 to 3 business days for your funds to appear in your bank account.
Withdraw crypto from Abra
You can withdraw your cryptocurrency assets from Abra by going to the “Withdraw” screen and inputting your withdrawal wallet address details. Crypto withdrawals are usually processed in a few minutes and incur a small fee. The exact processing times and fee depends on the asset you’re looking to withdraw.
What sort of customer support does Abra offer?
Abra has excellent customer support that is offered via a live chat, email, and also their social media pages such as Instagram, Facebook, and Twitter. Contacting a representative with any of these channels is simple and you’ll receive a quick response with minimal downtime.
Live chat is arguably the fastest way to get in touch with someone at Abra. You’ll be connected in under a minute and the immediate responses will help you solve your issue as quickly as possible.
In addition to live support, Abra also has a comprehensive knowledge base on the Abra support page. This contains many frequently asked questions that can be sorted by topic and searched to help you find a solution to your issue. It’s also a great place to learn more about Abra and the services they offer. Whether it’s information about supported countries or identity verification, you’ll find that the support pages contain enough information to solve most of your issues.
You’ll also find live chat options on this support page so that if you can’t find a solution to your problem, you can quickly get in touch with a member of staff.