How to Buy Crypto with Wealthfront

Can I Buy Bitcoin with Wealthfront?

No, Wealthfront only offers exposure to Bitcoin and Ethereum through the iShares by BlackRock Bitcoin Trust (IBIT) and the Grayscale Ethereum Trust (ETHE). You cannot buy, hold, or trade individual coins directly on Wealthfront. For digital asset ownership and trading, consider using cryptocurrency exchanges in the USA that comply with FinCEN regulations. 

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How to Buy Crypto with Wealthfront

‍While Wealthfront offers exposure to Bitcoin and Ethereum through ETFs, it does not support direct crypto purchases. Users should consider Kraken as it is registered as a Money Services Business with FinCEN under registration No. 31000239561651, making it a secure exchange for American investors. It also supports staking, allowing users to earn up to 30% APY.

Here’s a quick guide to buying crypto with Kraken:

1. Account Setup: Go to Kraken’s website and register for a free account by providing your email address and creating a password.
2. Connect Bank: Visit the deposit section and transfer USD using your preferred payment method.
3. Crypto Exploration: Explore the wide selection of over 250 digital currencies available on the platform.‍
4. Execute Trade: Input your desired investment amount, select an asset, and confirm your acquisition.

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What are the Fees?

Wealthfront offers exposure to Bitcoin and Ethereum through trusts, which come with their own management fees ranging between 1.5% - 2.5%. Additional fees for management are also applied. For those seeking an affordable investment experience, we recommend using an exchange.

For lower fees and direct cryptocurrency trading, consider Kraken. Kraken’s maker fees start at 0.16% and taker fees at 0.26%, much lower than platforms like Coinbase, which can charge up to 2%. It also provides free USD deposits through ACH transfers and bank transfers.

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About Wealthfront

Wealthfront is an automated investment service offering financial planning, investment management, and banking solutions. Key products include the Wealthfront Cash Account for high-interest savings and the Wealthfront Investment Account for diversified portfolios. The Path tool assists with retirement, home buying, and education savings plans. Wealthfront's platform simplifies financial management for users seeking to grow their wealth efficiently.

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Bottom Line

In summary, Wealthfront offers indirect exposure to Bitcoin and Ethereum through ETFs but does not support direct cryptocurrency purchases. Kraken is a secure and affordable alternative with access to over 250 digital assets. Wealthfront is ideal for automated financial planning and investment management, while Kraken is better suited for direct crypto transactions.