How to Buy Crypto with ETRADE

Summary: ETRADE's platform doesn't facilitate the direct acquisition of cryptocurrencies. Instead, it offers avenues for investors to indirectly engage with the digital asset market through instruments such as ETFs and mutual funds, which are tied to the performance of cryptocurrencies. It's important to note that this method isn't favored for investing in digital assets, as it usually involves higher costs and a heightened risk of counter-party complications.

After evaluating over 20 platforms, we determined that eToro is a superior multi-asset broker. It grants access to a wide range of real cryptocurrencies, complemented by a user-friendly interface and competitive fee structures. Notably, eToro is a licensed exchange adhering to FinCEN regulations, allowing for seamless USD deposits from any bank in the US.

Can I Buy Crypto with ETRADE?

At present, ETRADE does not offer the functionality to buy cryptocurrencies directly. Their platform mainly focuses on providing access to crypto-linked investment instruments such as ETFs and stocks in companies involved in the crypto sector, like Coinbase and the Grayscale Bitcoin Trust (GBTC).

Investors should exercise caution when considering these derivatives due to potential risks that encompass managerial and custodial concerns. The downfall of past entities like FTX can serve as a testament to these inherent dangers. Additionally, investing in these derivatives often incurs higher costs compared to purchasing primary assets like Bitcoin (BTC), Ethereum (ETH), or Cardano (ADA).

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How to Buy Crypto with an ETRADE Alternative

The safest approach for purchasing cryptocurrencies, as an alternative to ETRADE, is by utilizing a digital asset exchange in the USA that is regulated by FinCEN. These platforms allow for secure USD deposits through various methods, including bank or ACH transfers, and credit or debit cards. We have a preference for eToro when compared to well-known competitors like Coinbase, owing to its competitive fee structure, narrower spreads, and wide selection of assets.

You can get started with this simple guide below:

1. Navigate to the eToro website and complete the identity verification process.
2. Find and click the 'Deposit Funds' option, usually at the lower left corner of your screen.
3. Specify the sum in USD you intend to deposit along with your desired deposit technique (e.g., ACH Transfer or Credit/Debit Card).
4. Finalize the USD deposit and employ the credited amount in your account to venture into the world of cryptocurrencies.

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What are the Fees?

When trading crypto stocks, ETFs, and various derivative products on ETRADE, you will find that there are no overt charges or upfront fees. Nevertheless, ETRADE does implement a fee within the spread between the buying and selling price of equities and other investment assets, usually hovering around the 1% mark. 

This fee framework mirrors that of our suggested alternative, eToro. A distinctive advantage with eToro, though, is the ability to purchase actual cryptocurrencies on their platform, as opposed to being limited to derivatives.

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Will ETRADE Offer Real Crypto Assets?

it seems quite unlikely that ETRADE will venture into offering real crypto assets in the near future. The primary hindrance is the absence of a robust infrastructure that is capable of securely storing real crypto assets for both retail and institutional investors. 

Building such a system would entail a substantial investment in technology and security protocols, which ETRADE has not indicated any intentions of undertaking as of yet. Hence, it would be reasonable to anticipate that ETRADE will continue to focus on their existing offerings and services, which do not encompass direct crypto-asset transactions.

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About ETRADE

ETRADE is a prominent online brokerage firm based in the United States, offering a wide variety of financial services and investment options to both individual and institutional investors. Established in 1982, the platform has grown to become a reliable avenue for trading in stocks, bonds, mutual funds, and other financial instruments, including derivatives. 

While it is well-regarded for its user-friendly interface and tools that facilitate ease of trading and investment management, it currently does not support the direct trading of real crypto assets, focusing instead on crypto-related stocks and ETFs. ETRADE is known for its commitment to providing comprehensive financial solutions, educational resources, and customer service to assist investors in navigating the financial markets effectively.

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Bottom Line

In conclusion, for those keen on diving directly into cryptocurrency investments, ETRADE might not be the most suitable platform at this time. While it provides pathways to engage with the crypto market through derivatives like ETFs and stocks, this method is often associated with higher costs and increased risks. 

The alternative, eToro, is a more favorable choice, offering a user-friendly interface and a broader selection of real cryptocurrencies while aligning with FinCEN regulations for secure and straightforward USD deposits. As ETRADE seems to lack plans to develop infrastructure for facilitating real crypto assets transactions, it appears more beneficial for potential investors to explore other regulated platforms that specialize in digital assets to safeguard and maximize their investments.