If you’re a fan of eTrade and are wondering whether you can buy crypto on the platform, the answer is no, at least not directly. While eTrade is one of the oldest and most popular investment platforms, it doesn’t offer digital currencies such as Bitcoin or Ethereum for purchase.
However, if you still want to gain exposure to the crypto sector through eTrade, some options are available. For example, you can invest in mutual funds with indirect exposure to digital assets or trade futures contracts on Bitcoin or Ethereum.
Alternatively, if you want to buy crypto directly, there are plenty of other online brokers and exchanges that do offer this service. Some popular options include Coinbase, Binance, and Kraken.
Ultimately, your decision will depend on your risk tolerance and investment goals. If you’re an active trader looking for direct exposure to crypto prices or want to invest in specific digital coins like Grayscale Bitcoin Trust (GBTC), Osprey Bitcoin Trust, or ProShares Bitcoin Strategy ETF, then traditional brokers like eTrade may not be the best fit for you.
However, if you prefer working with a well-established financial institution with a wide range of investment products available and don’t mind indirect exposure to digital assets via mutual funds or futures trading opportunities, then eTrade may be a good option.
| Topic | Summary |
|---|---|
| eTrade and Crypto | eTrade doesn’t offer direct purchase of digital currencies such as Bitcoin or Ethereum, but you can gain exposure to the crypto sector indirectly through mutual funds or trade futures contracts on Bitcoin or Ethereum. |
| Buying Bitcoin on eTrade | To buy Bitcoin on eTrade, you need to have an E*TRADE brokerage account, fund it by transferring money via wire transfer or other available options, choose from over 60 futures contracts to trade on eTrade, and place your order either online or via the mobile app at a cost of $1.50 per contract for Bitcoin futures trades. |
| Benefits and Downsides of ETFs or Stocks | ETFs and stocks offer the ease of exiting a position for cash and a lower technological barrier of entry. However, they may not offer the same level of returns as buying digital assets directly. |
| Will eTrade Ever Offer Crypto? | eTrade has not yet made any official announcements about adding support for crypto, but it seems likely that they will do so in the future. |
| Alternatives to eTrade That Offer Crypto | Popular alternatives to eTrade that offer crypto include crypto wallets or exchanges such as Coinbase or Binance, online brokers like Robinhood, and mutual funds like Grayscale Bitcoin Trust (GBTC) or Osprey Bitcoin Trust. |
| Uphold | Uphold is a cloud-based cryptocurrency trading platform that provides multiple solutions for storing, exchanging, and purchasing various cryptocurrencies, utility tokens, national currencies, and precious metals. |
| Crypto.com | Crypto.com is an all-in-one platform that allows you to buy and sell popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin, as well as earn interest on your crypto holdings, take out loans using your crypto as collateral, and even spend your crypto at over 70 million merchants worldwide. |
What you'll learn 👉
How to buy bitcoin on eTrade
E*TRADE offers the option to buy Bitcoin through its platform.
To do so, first, you need to have an E*TRADE brokerage account with all your personal information including name, address and Social Security number.
After opening the account, you can fund it by transferring money via wire or other options. Once the account is funded, you can choose from over 60 futures contracts to trade on E*TRADE, including Bitcoin futures.
Be sure to select the specific contract and month for trading using the quoted ticker symbol for the future contract of your choice.
When ready, place your order either online or via the mobile app at a cost of $1.50 per contract for Bitcoin futures trades.
It is important to keep in mind that purchasing Bitcoin futures is not equivalent to buying actual Bitcoin since they are contracts that predict a speculation of Bitcoin’s future price movements. For those interested in buying actual Bitcoin with E*TRADE or other cryptocurrency exchanges will have to use an appropriate exchange such as Coinbase or Binance.
Fees for buying Bitcoin futures on eTrade
Regarding fees, E*TRADE does not charge any fees for US-listed stock trades, ETFs, and no-load and no-transaction-fee mutual funds.
However, there are fees associated with other products, including a $25 fee for going through a broker, $6.95 or $4.95 for trades of OTC stocks depending on the number of trades, and $0.65 or $0.50 per contract for option contracts depending on the number of trades.
Futures cost $1.50 per contract per side, and there may be additional fees associated with the trade. Bitcoin futures carry a higher initial charge of $2.50 per contract per side, and these can also accumulate additional fees from the futures market.
What is an ETF?
ETFs track an index, sector, commodity, or other asset and are available for all types of assets. You can buy or sell them on a stock exchange just like regular stocks.
The exciting thing about ETFs is that there are now options available for crypto as well. Crypto ETFs were launched in late 2021, allowing investors to gain exposure to the crypto sector without buying the assets directly.
When investing in an ETF, you’re not buying the asset itself but buying a stake in a conglomerate that holds positions in the asset or group of assets themselves.
Benefits and Downsides of ETFs or Stocks
One major benefit is the ease of exiting a position for cash. Unlike directly investing in a digital asset, which can be more complicated and requires knowledge on how to send cryptocurrency transactions or use a crypto wallet, ETFs and stocks are bought and sold for fiat currency. This means that when you want to cash out your profits, it’s much easier and you can often do so without having to pay taxes.
Another big advantage is that ETFs and stocks have a lower technological barrier of entry. If you’re new to investing or don’t want to deal with the complexities of buying digital assets directly, ETFs and stocks may be a great option for gaining exposure to the market.
However, there are also downsides. For example, by investing in an ETF or stock rather than direct ownership of an asset, you may not experience the same level of returns as someone who holds the asset itself. It’s important to consider your risk tolerance and long-term goals when deciding whether to invest in an ETF or stock versus buying digital assets directly.
Will eTrade Ever Offer Crypto?
While eTrade has not yet made any official announcements about adding support for crypto, it seems likely that they will do so in the future. After all, why would they want their users to go to another platform to invest in something eTrade could easily offer?
In the meantime, if you’re interested in gaining indirect exposure to cryptocurrency through traditional brokers like eTrade, ETFs and stocks are your best bet. While these options may not offer the same level of returns as buying digital assets directly, they can still be a great way to gain exposure to this exciting market.
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Alternatives to eTrade That Offer Crypto
One popular choice is to use a crypto wallet or exchange, such as Coinbase or Binance. These platforms allow you to buy and sell digital coins directly, and often offer lower fees than traditional brokers.
If you prefer to stick with online brokers, there are a number of options that offer both stocks and crypto. Robinhood is one such platform, although its limited selection may not be ideal for more experienced traders. Other alternatives include TD Ameritrade and Fidelity.
For those interested in futures trading or more advanced investment strategies, mutual funds like the Grayscale Bitcoin Trust (GBTC) or the Osprey Bitcoin Trust may be worth considering.
Ultimately, the best option for you will depend on your individual risk tolerance and investment goals. Don’t be afraid to consult with an investment advisor if you’re unsure where to start!
So if eTrade isn’t quite scratching that crypto itch for you, rest assured that there are plenty of other ways to get involved in this exciting market.
Uphold
Uphold is a cloud-based cryptocurrency trading platform that provides multiple solutions for storing, exchanging, and purchasing various cryptocurrencies, utility tokens, national currencies, and precious metals.
The platform was established in 2014 by American entrepreneur Halsey Minor and holds licenses in the US and Europe, ensuring regulatory compliance for users. Although Uphold is globally available except for certain countries, it offers exclusive financial capabilities such as a crypto staking program and an Uphold debit card that rewards account holders on their spendings.
Besides these impressive features, Uphold also allows employers to make payments in multiple currencies of their choice, withdrawals to over 30 bank accounts or private crypto wallets, and partnerships with Brave browser which pays its users in Basic Attention Token (BAT) cryptocurrency through the Uphold integration.
If you’re looking for a reliable platform to manage your digital assets while earning rewards simultaneously, then Uphold could be your optimal choice!
Crypto.com
Crypto.com is all-in-one platform not only allows you to buy and sell popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin, but it also has its own wallet for secure storage of your digital assets.
Plus, they offer a range of other services such as the ability to earn interest on your crypto holdings, take out loans using your crypto as collateral, and even spend your crypto at over 70 million merchants worldwide.
What’s even better is that Crypto.com is available in over 90 countries, making it accessible to people all around the world. With their easy-to-use mobile app and web platform, investing in crypto has never been easier.
So if you’re looking for a comprehensive solution for all your crypto needs, give Crypto.com a try. With their user-friendly interface and range of services, it’s no wonder they’ve become one of the most popular platforms in the industry.
