Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Summary: DEGIRO does not offer direct crypto purchases but provides options for investing in crypto-related ETFs and stocks, such as Coinbase and Grayscale Bitcoin Trust. For those looking to directly invest in cryptocurrencies, eToro is recommended as a regulated alternative with access to over 3,000 digital assets.
DEGIRO's model involves higher fees compared to direct crypto exchanges and lacks the option for personal asset custody, contrasting with eToro's direct crypto purchase and ownership features.
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Can I Buy Crypto with DEGIRO?
Currently, DEGIRO does not support the direct purchase of cryptocurrencies such as Bitcoin or Ethereum. Nonetheless, it offers investment opportunities in cryptocurrency-related Exchange-Traded Funds (ETFs) and stocks of companies within the crypto ecosystem, including Coinbase (NASDAQ: COIN) and the Grayscale Bitcoin Trust (GBTC).
For those considering crypto-related investments through DEGIRO, it's important to be aware of several aspects. First, the ongoing fees, or carry costs, tend to be higher compared to direct purchases from cryptocurrency exchanges in Europe. Additionally, investing through DEGIRO means you won't hold the assets directly, limiting your ability to manage counterparty risk by transferring assets off the platform.
How to Buy Crypto with a DEGIRO Alternative
For those seeking a DEGIRO alternative for crypto investments, numerous regulated platforms are available. Our research highlights eToro as a top choice, offering access to more than 3,000 cryptocurrencies, stocks, ETFs, and other assets. Regulated across Europe, eToro enjoys the trust of over 30 million users worldwide. Follow this simple guide to begin:
- Website Registration: Navigate to the eToro website and complete the identity verification to secure your account.
- Deposit Funds: Look for the 'Deposit Funds' option, usually found at the bottom left of the dashboard.
- Initiate Deposit: Specify your deposit amount in Euros or another currency of your choice, and choose your preferred deposit method.
- Start Trading: After your deposit is processed and your account is funded, you're ready to dive into the vast array of cryptocurrencies available.
What are the Fees?
When you deal with crypto-related stocks, ETFs, or similar instruments on DEGIRO, you'll find that there aren't distinct fees or upfront costs. However, DEGIRO does have a cost integrated as a spread. This spread represents the gap between the purchase and sale prices of securities or other investments, generally hovering around 1%.
This cost approach parallels eToro, a platform we often suggest for crypto enthusiasts. One key advantage of opting for eToro over DEGIRO is the capability to acquire actual cryptocurrencies, broadening your investment horizons and granting the flexibility to transfer and hold the assets personally. This is distinct from DEGIRO, which mainly offers derivatives and indirect ways to invest in crypto.
Will DEGIRO Offer Crypto Assets?
Considering DEGIRO's historical stance and cautious approach towards cryptocurrency investments, it seems unlikely they will offer direct crypto asset trading anytime soon. Adopting such assets would mean not only a significant enhancement in technology and security measures but also a re-evaluation of their risk management strategy within the European regulatory framework.
While there haven't been clear indicators pointing towards a shift in their strategy, it's reasonable to assume DEGIRO will remain focused on their core financial products, steering clear of direct cryptocurrency transactions for now. The platform offers access to over 2,000 stocks and ETFs across 50 markets.
In conclusion, while DEGIRO does not currently support direct cryptocurrency purchases, it provides avenues for crypto-related investments through ETFs and company stocks within the digital asset ecosystem. For direct crypto investments, eToro emerges as a compelling alternative, offering a broad spectrum of cryptocurrencies alongside traditional financial instruments, all within a regulated environment trusted by millions. The choice between DEGIRO and alternatives like eToro ultimately depends on individual investment strategies and the desire for direct cryptocurrency ownership versus indirect exposure through traditional financial products.