Does ETRADE offer Cryptocurrencies?

Yes, ETRADE provides customers in the United States with indirect access to invest in cryptocurrencies through buying and selling crypto stocks, ETFs, and coin trusts using brokerage accounts and IRAs, but they do not currently allow investors to purchase spot cryptocurrencies for holding or withdrawal into a crypto wallet which is typically considered the optimal way to invest in digital assets. Popular investment options for crypto on ETRADE currently include the Grayscale Bitcoin Trust, Riot Blockchain Inc., Microstrategy, Marathon Digital Holdings Inc., and more.


How to buy Crypto with an ETRADE Alternative

As outlined above, best way to buy cryptocurrencies in the United States with an ETRADE alternative is through a FinCEN & FINRA regulated broker. To help you get started quickly, we recommend eToro because they licensed and offer a wide range of crypto assets and stocks. They offer instant USD deposits via ACH Transfer, Debit Card, Credit Card and other methods.

Here is a step-by-step guide to help you get started:

  1. Visit eToro to sign up and verify your identity.
  2. Select the 'Deposit Funds' button on the bottom left of your screen.
  3. Select the amount of USD you want to deposit and your preferred deposit method (e.g ACH Transfer or Debit/Credit Card).
  4. Complete the USD deposit and use the funds credited to your account to invest in cryptocurrencies.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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:

  1. 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.
  2. 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.
  3. 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.

Bottom Line

While ETRADE does provide indirect access to cryptocurrency investments through crypto-related securities like ETFs and Mutual Funds, this method is not the most preferred due to higher costs and increased counter-party risk. For individuals looking to invest in digital assets directly, eToro is a recommended alternative with a wide range of cryptocurrencies, as well as traditional assets, available for purchase through a FinCEN and FINRA-licensed exchange.