E-Trade certainly doesn’t need an introduction, it’s one of the oldest, and most popular investment platforms on the market, with an outstanding reputation.
The company was founded in 1982 and has been helping users invest in a variety of products for 40 years. While its popularity has not diminished over time, some users are still not sure if E-Trade offers crypto and if they can buy crypto on the platform. We won’t beat around the bush here, the simple answer is no – users cannot buy crypto directly from the site.
Don’t let that discourage you, while you cannot buy Bitcoin, Ethereum, or your favorite altcoin on the platform, there are still ways to invest in the crypto sector.
So what options do you have? We’ll explore your options and recommend alternative platforms to use if you want to buy crypto directly. Let’s get into it!
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What Crypto Investment Options Are Available On E-Trade?
The best way to get exposure to crypto on E-Trade is through crypto focused stocks, such as mining companies, and through ETFs. These are available for both Bitcoin and Ethereum.
Here’s a list of some of the crypto investment options they have available:
Maximize Your Investments: Unlock the Power of ETFs
Firstly, what is an EFT?
An ETF (exchange traded fund) is a type of security that tracks an index, sector, commodity, or other asset. They can be purchased or sold on a stock exchange the same way a regular stock is. These exchange funds are available for all types of assets and are tools that can help the average person invest in a complex position that they wouldn’t normally qualify for.
Crypto ETFs were launched in late 2021 to much excitement. They allow investors to gain exposure to the crypto sector without having to buy the assets directly.
When you invest in an exchange traded fund, 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. So, in the case of a crypto ETF, you are not actually buying units of the BTC or ETH, but instead, you’re buying shares in a company that mirrors the performance of the crypto of interest.
If you bought an asset such as BITO on E-Trade, you wouldn’t actually be buying Bitcoin. Your account balance, however, would reflect any upwards or downwards movement by the token, as BITO is an ETF that directly tracks Bitcoin’s performance.
ETFs and Stocks: Exploring the Benefits and the Downsides
The benefits:
There are two main benefits to investing in an ETF or stock, rather than directly investing in a digital asset.
➡️ It’s easier to exit a position for cash, as the ETF or stock is solely bought and sold for fiat. So when the profit is appealing, an investor can easily cash out and can easily use a Tax-Free Savings Account (TFSA) to do so.
➡️ You don’t need prior knowledge on how to send cryptocurrency transactions or use a crypto wallet. This means ETFs serve as an easy entry for new investors.
The downsides:
There are, unfortunately, downsides to investing in an ETF or stock.
➡️ You aren’t directly buying the underlying asset, but rather, a stake in the company who owns it. For example, if Bitcoin or Ethereum explode in value, the ETF or stock share is likely to go up, but the profit margin is likely lower than if you bought the asset directly.
➡️ You don’t get the utility of the crypto asset, meaning you cannot use it as a currency. If you have $20,000 in a Bitcoin ETF you will not be able to buy something that costs $20k in BTC without first selling your position and then buying Bitcoin to make the purchase. Both of which will incur fees and reduce overall profits.
E-Trade's Next Move: Will They Ever Offer Crypto?
While they haven’t confirmed whether they will offer cryptocurrencies for direct purchase in the future, it seems possible that they will at some point. The thing is, the crypto sector is constantly growing, and it would be to E-Trade’s benefit to provide more convenience for thier users, so they don’t go to another platform to make an investment. E-Trade could simply update their product offering.
So for now, ETFs and stocks are the only options on the platform.
Alternatives to E-Trade That Offer Crypto
Fortunately there are a number of Questrade alternatives that do offer crypto exposure in addition to traditional stocks and bonds. Here’s a look at some of the most popular platforms that offer crypto and stocks:
WeBull
Webull is a crypto and stocks trading platform that targets a new crop of millennial traders who are looking for a mix of convenience and functionality. Founded in 2017 by Fumi Technology, Webull boasts of a zero-commission model that compares competitively with brokerage platforms like Robinhood and Wealthsimple. More suited for beginners than eTrade, though you cannot withdraw crypto purchased through WeBull at this time.
- Online broker with support for stocks, ETFs, options and cryptocurrencies
- Buy cryptocurrency for as little as $1
- Commission-free trading
- Free stock for signing up
Coinbase
Coinbase is one of the biggest cryptocurrency exchanges in the world with trading volume only beaten by Binance and a great reputation for industry-leading security. It is considered one of the best ways to buy Bitcoin, especially for Americans. Coinbase is one of the oldest cryptocurrency exchanges in existence, having been in operation since 2012. Completely different from eTrade as they offer solely crypto services and not stocks or ETFS.
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
