Can I Buy Crypto with ETRADE?

ETRADE does not allow direct cryptocurrency purchases or trading. However, you can gain exposure to the crypto market through ETRADE by investing in ETFs like the iShares Bitcoin ETF, or stocks tied to blockchain or crypto-related companies.

To buy cryptocurrency directly, use a US-regulated exchange registered with FinCEN, which supports secure transactions and easy USD transfers from US banks. This allows you to buy, hold, and potentially stake cryptocurrencies.

How to Buy Crypto with an ETRADE Alternative

If you're an ETRADE user looking to invest in cryptocurrency, Kraken is a reliable alternative. As a US-based exchange, Kraken offers access to over 200 cryptocurrencies and allows users to stake assets to earn yield. It also supports easy USD deposits from US banks, making it a practical choice for diversifying your investment portfolio.

Here are the steps for ETRADE users to start on Kraken:

1. Sign Up: Register on Kraken’s website.
2. Link Your Bank Account: Connect your US bank account to enable USD transactions.
3. Browse Cryptocurrencies: Explore the available cryptocurrencies on Kraken.
4. Purchase: Choose your cryptocurrency, enter the amount, and finalize the purchase.

What are the Fees?

When converting USD to cryptocurrency, it's crucial to be aware of the associated fees. These typically include charges for deposits, trading, and withdrawals. Trading fees often range from 0.1% to 0.5%.

Kraken offers competitive rates, with trading fees starting at 0.16%. They also provide free USD deposits via ACH transfers, making them a cost-effective option for U.S. investors entering the crypto market.

Will ETRADE Offer Real Crypto Assets?

ETRADE is unlikely to offer direct cryptocurrency assets soon due to the significant challenges in creating a secure system for storing digital assets. The required investment in technology and security is substantial, and ETRADE has not signaled any intention to make such a move.

However, ETRADE will continue to support investments in SEC-registered spot Bitcoin and Ethereum ETFs, including those from Blackrock and Bitwise. This allows investors to gain exposure to crypto markets without the need for direct asset management.

Bottom Line

In summary, while ETRADE does not currently support direct cryptocurrency purchases, it provides opportunities to invest in the crypto market through ETFs and related stocks. For those looking to buy cryptocurrency directly, using a regulated exchange like Kraken is a practical alternative, offering a secure and cost-effective way to enter the market.