Does ETRADE offer Cryptocurrencies?
Yes, ETRADE does indirectly offer cryptocurrency investing for customers in the United States. The company allows users to buy and sell crypto stocks, ETFs and coin trusts through brokerage accounts and IRAs. That said, they do not allow investors to buy spot cryptocurrencies to hold and withdraw into a crypto wallet - which is the best way to invest in the asset class.
At time of writing, some popular investment choices for crypto on ETRADE includes:
- The Grayscale Bitcoin Trust (GBTC)
- Riot Blockchain, Inc. (RIOT)
- Microstrategy (MSTR)
- Marathon Digital Holdings, Inc (MARA) + many more.
How to buy Crypto with an ETRADE Alternative
The best way to buy cryptocurrencies in the United States with an ETRADE alternative is through the Uphold platform. They are licensed and regulated in the USA by FinCEN and offer over 200 cryptocurrencies and hundreds of stocks, ETFs, metals and other assets. The Uphold exchange offers fast and cheap US Dollar (USD) deposits via ACH Transfer, Debit Card & Credit Card.
Here is a step-by-step guide to help you get started:
- Create Free Account: Sign up to Uphold and complete your identity verification.
- Fund Account: Connect your US Bank account to complete a bank transfer via Plaid or ACH.
- Find Token: Head to the search bar, type in the crypto you want to buy, then click ‘Trade’.
- Buy Crypto: Input the amount of USD you want to invest and tap ‘Open Trade’.
Is it Risky to Invest in Crypto Equities?
Crypto stocks, crypto equities, and crypto mutual funds can be risky investments for a number of reasons. Here are a few:
- Self-Custody: Buying crypto-equities means you are buying a contract that represents the price of an asset. This carries high counter-party risk and can result in loss of funds. The recommended way to invest is to buy real coins and withdraw them to a personal wallet.
- Volatility: The value of cryptocurrencies can fluctuate significantly over short periods of time. This can make it difficult to predict the value of a crypto investment, which can be risky for investors.
- Lack of regulation: Cryptocurrencies are not regulated by governments or financial institutions, which can make them more susceptible to fraud and other types of financial crime.
- Limited liquidity: There are a limited number of crypto stocks, equities, and mutual funds available - and it is not the most popular way to trade the asset class. This means that liquidity can be thin, making it hard to fill large orders.
Overall, it's important for investors to carefully consider the risks associated with investing in crypto stocks, equities, and mutual funds, and to do thorough research before making any investment decisions. It may be helpful to consult with a financial advisor or professional before investing in these types of products.
Is ETRADE a good way to invest in Crypto?
ETRADE is a brokerage firm that offers a range of financial products and services, including the ability to buy and sell cryptocurrencies. Whether or not ETRADE is a good way to buy crypto depends on your individual investment goals and risk tolerance, as well as the specific features and fees offered by ETRADE.
Some things to consider when deciding whether to use ETRADE for buying crypto include:
- Fees: ETRADE charges fees for its brokerage services, including fees for buying and selling cryptocurrencies. It's important to understand what fees you'll be charged and how they compare to other brokerage firms.
- Selection of cryptocurrencies: ETRADE offers a limited selection of cryptocurrencies that are available for trading. If you're interested in a particular cryptocurrency that is not offered by ETRADE, you may need to look elsewhere.
- Security: ETRADE has strong security measures in place to protect the assets of its customers. It's important to consider the security measures of any brokerage firm you're considering using, particularly when dealing with cryptocurrencies, which can be vulnerable to fraud and other types of financial crime.
Ultimately, the decision of whether to use ETRADE (or any other brokerage firm) to buy crypto should be based on your individual circumstances and investment goals. It may be helpful to research and compare different brokerage firms before making a decision.
While ETRADE does offer crypto stocks, ETFs and coin trusts to customers in the US, there are better alternatives available for those who want to buy spot cryptocurrencies. Uphold is one of the best options for investors looking for a fast and secure way to buy over 200 different digital assets - including Bitcoin, Ethereum, Litecoin, and many more. Be sure to do thorough research and consult with a financial advisor before investing in any crypto asset. Good luck!