Abra Review: Trading Fees, Pros and Cons Unveiled!
7 min read
Introduction: Are you looking for a trustworthy cryptocurrency exchange? With so many options out there, it's hard to know where to start. That's why we've conducted a thorough review of Abra, examining its features, security, and customer service. Whether you're a seasoned trader or just getting started, our unbiased assessment will help you determine if Abra is the right exchange for you. Keep reading to discover if Abra makes sense to use!
Abra is a cryptocurrency exchange platform founded in 2014 by Bill Barhydt. The company is headquartered in Mountain View california and has over 200 employees. The platform is registered in the Philippines as Plutus Technologies Philippines Corporation and is also registered by the SEC in the United States. Abra is also registered as a money services business with FinCEN which demonstrates its compliance with US regulations.
Abra is only available as an app and is available on both Android and IOS and used by people in 150 countries. The Abra app has been downloaded over 2 million times and has a 4-star rating based on 55,000 reviews. The apps have quite limited functionality overall but do give it's user the ability to buy and sell over 100 cryptocurrencies like Bitcoin, Ethereum, Solana and many other well known coins.
Abra Signup & KYC
When it comes to signup and KYC, Abra requires KYC verification for all of its users. The signup process with Abra can be frustrating for users who do not like being forced to download an app. Having said that, the signup process it's self is straight forward like most signup flows these days. Users only need to download the Abra app and enter their name, email, and phone number. After this, they must write down the recovery phrase provided by Abra before they can enter the app.
The verification process on Abra typically takes between 2-4 days to complete. Although this may seem like a long time, it is not uncommon for exchanges to take several days to verify user information. The KYC process is necessary in order to ensure the security of the platform and to prevent fraud.
Abra Products & Services
Abra is a mobile-only platform that offers the ability to purchase, lend, borrow, and stake cryptocurrencies. It's not totally clear why While the app can be a bit buggy and the user experience is quite average, Abra still offers over 100 cryptocurrencies to choose from.
One of the standout features of Abra is its lending and borrowing service which allows users to earn interest on their crypto or borrow against it. This can be a great way to earn passive income or access funds when in need. Additionally, Abra offers staking for certain cryptocurrencies, allowing users to earn rewards for holding their coins on the platform.
Besides the limited features available, at the time of writing, Abra does not offer any proof of reserves of user assets. Considering it's one of the few lending and borrowing players on the market that has not gone bankrupt, a simple proof-of-reserves would the company more attractive to users who are looking to earn yield on their assets.
Overall, Abra is a decent option for those looking to buy, lend, borrow, or stake cryptocurrencies on their mobile. While the user experience could use some improvement, the app is decent and gets the job done for the limited functionality that it offers.
Abra does not have traditional maker and taker spot fees as the company does not operate an exchange. Instead, users can buy cryptocurrencies through the MoonPay third-party integration. MoonPay charges $4.99 + a 3.5% for purchases below $141 and a 7% commission for purchases above that amount. This is frankly an outrageously high fees that they charge their users.
When it comes to fiat deposits, Abra currently only has supported for two fiat currencies, US Dollars and PHP. Abra offers several deposit methods including ACH, Bank Wire, and Visa/MC via MoonPay. ACH Bank Transfers are free of charge but MoonPay charges a 1% fee for bank transfers. Abra does not charge any additional fees besides the commission taken by MoonPay.
Abra Withdrawal Methods
When it comes to withdrawing funds from Abra, users again only have the option withdraw funds with USD or PHP. Fiat bank withdrawals are completely free of charge and the process is quite simple to use. Simply select the bank transfer option and choose whether you want to withdraw funds to a US or PH bank account. Within a few business days, your funds will be transferred directly to your account, with no additional fees or charges.
When it comes to withdrawing cryptocurrencies from Abra, once again the company charges a hefty fee even for this. A simple USDT (ERC-20) withdrawal comes with a 4.9 USDT withdrawal fee. This is almost twice the amount that most other exchanges charge today.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal.
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.