STAKING

Voyager Crypto Review 2022 | NextAdvisor with TIME

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If you’re looking for the best price on your crypto and want someone else to do the searching for you, the Voyager app might come in handy. 

Unlike other crypto exchanges, Voyager works more like a crypto broker. The app’s main selling point is that it scours the exchanges for the best price on the token you want, offering more than 80 cryptocurrencies. While it claims to be commission-free, Voyager’s unique approach to fees has drawn some negative attention in the form of a class action lawsuit that alleges hidden charges exceeding fees and commissions charged by competitors. We reached out to Voyager for comment on the lawsuit, and will update this review if the company responds.

Voyager also offers a rewards program by which you can earn up to 12% annually on some digital assets. The company was founded in 2017 and is based in Jersey City, New Jersey. 

Pros and Cons of Voyager

Pros

  • Access to more than 80 digital assets across multiple exchanges

  • Up to 12% annual rewards for more than half of coins held in Voyager

  • Recurring-buying options

  • FDIC-insured cash holdings

Voyager At a Glance

  • Centralized
  • 80+ currencies available
  • Connected to multiple exchanges and uses routing technology to find the best price on a token
  • Ability to earn up to 12% annually on certain coins held in your Voyager account
  • Option for recurring, automatic investment
  • Cash holdings are FDIC insured up to $250,000
  • Coin-to-coin exchange isn’t available

Cryptocurrencies Available on Voyager

Voyager offers access to more than 80 cryptocurrency assets across multiple exchanges. Voyager claims to have one of the widest available selections of altcoins for U.S.-based crypto traders and investors. Available tokens include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Solana (SOL)
  • TRON (TRX)
  • Tether (USDT)
  • Polkadot (DOT)
  • ChainLink (LINK)

Voyager Fees

Voyager makes money on its spread when finding pricing discrepancies. The app’s technology allows it to compare cryptocurrency prices on different exchanges. When Voyager can save money on a price, it passes some of the savings on to you, while maintaining a portion of those savings for itself.

However, there are some other fees that you need to be aware of when you use Voyager.

Withdrawal fees

If you want to withdraw your crypto to an external wallet, you will see a dynamic fee. This fee depends on the token involved, as well as the current balance and any network fees for using the blockchain to complete the transfer. Before withdrawing, you can use the “Send Crypto out of Voyager” feature to see what the fee will be.

Wire transfer fee

Voyager doesn’t charge a fee for using ACH transfer for cash. However, there is a $50 fee for incoming and outgoing wire transfers, and you must transfer a minimum of $10,000 out.

Voyager security

Voyager is regulated in the United States and it’s a publicly traded company. As a result, there are some security measures you can expect, such as having cash held in your Voyager account insured by the FDIC. But crypto assets don’t have that same protection on the app. For example, you can convert your cash to USD Coin (USDC), a stablecoin pegged 1:1 to the U.S. dollar, and earn up to 9% on the holding. However, funds held in USDC aren’t the same as cash, and they won’t be protected. Only fiat currency balances are protected by FDIC insurance.

You can hold your coins in Voyager’s custodial wallet or transfer them to your own external wallet. Voyager says it uses best practices to protect accounts. You can enable two-factor authentication, and the app encourages new users to choose a strong password. To connect to your bank account, Voyager uses the service Plaid, which tokenizes your information to keep it more secure.

Additional Details

Earn Rewards

By buying and holding certain crypto tokens, you can earn staking rewards as the tokens contribute to the blockchain network. Voyager offers staking rewards on 30 cryptocurrencies. Rewards are fairly generous, up to 12% annually. Compare that to Coinbase, which offers up to 5% annually for staking

The amount you earn is based on the token in question. For example, if you have a minimum monthly balance of 20 DOT, you can earn 12% annually, while you need at least 0.5 ETH to earn 4.25% annually. Rewards are paid out in the token you stake, so if you stake DOT, your interest payment, which arrives monthly, will be paid in DOT.

Recurring buy

For those who want to use dollar-cost averaging to build a crypto portfolio, Voyager offers an automatic investment option. You can set up a recurring day of the week or month for the funds to be transferred from your bank account to your Voyager account. Then you set up a regular asset buy of a specific coin. If you purchase a coin that has staking, you could earn interest on the amount that you regularly invest.

Voyager Debit Card

Voyager plans to release a debit card that comes with no annual fee, lets you spend USDC like cash, and offers 9% annually for holding USDC. You can also earn rewards for holding Voyager’s native token, VGX. While the card’s timing is unclear, Voyager is collecting emails for interested users on its website.

Who Is Voyager Best For?

Voyager is likely to work best for intermediate cryptocurrency investors who want to buy and hold crypto tokens and hope to get the best prices for their purchases. 

It could also appeal if you want access to a variety altcoins and stablecoins without the hassle of maintaining accounts at multiple exchanges, or comparing live prices across exchanges. Additionally, Voyager can be a good choice if you want to earn potentially higher yields from staking than on other exchanges.

How to Open an Account with Voyager

Voyager is available for iOS and Android devices, so you need to first download the app. You then enter your email address and choose a password. You need to provide your name, address, and Social Security number, and then verify your account via email. Approval can take up to 12 weeks, but usually happens faster. In the course of researching for this review, we found the approval happened almost immediately.

Voyager Compared to Others

Voyager Gemini Coinbase
Coins 80+ 70+ 150+
Fees No trading fees; dynamic withdrawal fee when sending coins to external wallet 0.50% convenience fee; $0.99 to $2.99 transaction fee; 1.49% transaction fee for trades over $200 0.50% spread; trading fee between 1.49% and 3.99% (or $0.99 to $2.99 flat fee).
Wallet Storage Keep coins on Voyager account or transfer to your own wallet Keep coins on Gemini account, in Gemini wallet, or transfer to your own wallet Keep coins in Coinbase account, in Coinbase Wallet or Vault, or transfer to your own wallet
Minimum trade $10 Equal to the smallest amount of each coin that can be traded $2

Frequently Asked Questions

Is Voyager legit crypto?

Yes, Voyager is a legit app for buying and staking cryptocurrency. U.S. dollar funds are protected by FDIC insurance and the company complies with U.S. regulations.

Do you own the crypto on Voyager?

While you have ownership over the coins you purchase on Voyager, note that Voyager’s wallets are custodial. That means Voyager controls the wallet and has the private keys. You can withdraw the crypto you buy on Voyager to your own private noncustodial wallet, but you will pay a fee when you do so.

Is Voyager a crypto exchange?

No, Voyager is technically not a crypto exchange. Instead, Voyager is a broker. Rather than offering an exchange for tokens, Voyager helps you buy cryptocurrencies. Voyager compares prices across a variety of exchanges and then fulfills your order using the best price.

Does Voyager offer coin-to-coin exchanges?

No, Voyager doesn’t offer coin-to-coin exchanges. For example, you can’t exchange BTC for ETH like you can on an exchange like Coinbase. Instead, you need to take the intermediary step of selling one coin and receiving fiat currency in exchange, and then using the resulting funds to buy another coin.

Traciwininger
Author: Traciwininger

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