Questrade is one of the most popular investment platforms on the market. The Canadian company was founded in 1999 and has been helping users invest in a variety of ways for over 20 years now.
With its popularity it has become increasingly asked whether the platform offers crypto for users to invest in. The simple answer is no, they do not, at least not directly.
But while you cannot buy Bitcoin, Ethereum, or whatever your favorite altcoin is on Questrade, there are still ways to gain exposure to the crypto sector. We will look at your options on Questrade before giving you some alternative platforms to use if you do want to buy crypto directly, rather than through the options available through Questrade.
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What Does Questrade Offer?
The main way to get exposure to crypto on Questrade is through crypto focused stocks, such as mining companies, and through ETFs, which are available for both Bitcoin and Ethereum. Below is a list of some of the crypto investment options available through Questrade:
Hive Blockchain Technologies Limited (HIVE)
A Bitcoin and Ethereum mining company based in Vancouver, Canada. Stocks available through the TSX on Questrade. They have mining operations in Canada, Sweden, and Iceland.
MicroStrategy (MSTR)
Famously headed by crypto bull Michael Saylor, MicroStrategy is an analytics and mobility software maker. The company currently owns 121,044 Bitcoins.
Voyager Digital Limited (VOYG)
Company focused on providing a fully functional suite of APIs and mobile apps to let anyone buy, sell, trade, invest, or earn with their digital assets. The brokerage has its own crypto token called Voyager Token (VGX).
Coinbase (COIN)
Buy stock in one of the world’s largest crypto exchanges by volume. Based in San Francisco, the exchange went public in April 2021.
ETFs
Here’s a collection of some of the notable Bitcoin-based ETFs that have been released:
- Purpose Bitcoin ETF (BTCC)
- Evolve Bitcoin ETF (EBIT)
- CI Galaxy Bitcoin ETF (BTCX)
- CI Galaxy Ethereum ETF (ETHX)
- Evolve Ether ETF (ETHR)
- 3iQ CoinShares Ether ETF (ETHQ)
What is an ETF?
An exchange traded fund, or ETF, is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock is. ETFs are available for all types of assets and are tools used to make it easier for average people to invest in complex positions. Crypto ETFs were launched in late 2021 and allow investors to gain exposure to the crypto sector without having to buy the assets directly.
When investing in ETFs you are not actually buying the asset itself but buying a stake in a conglomerate that holds underlying positions in the asset or group of assets. So, in the case of a crypto ETF, you are not actually buying units of the cryptocurrency itself, but instead buying shares in a company that mirrors the performance of the crypto of interest.
If you were to buy an asset such as BTCC or BTCX on Questrade, you would not actually be buying Bitcoin. However, your account balance would reflect any gains or losses experienced by the token, as BTCC and BTCX are ETFs that directly track Bitcoin’s performance.
Benefits and Downsides of ETFs or Stocks
There are a couple benefits to investing in an ETF or stock rather than directly investing in a cryptocurrency. The main benefit is that it is easy to exit a position for cash, as the ETF or stock is solely bought and sold for fiat. This means that when the profit is appealing you can easily cash out and you can easily use a Tax-Free Savings Account (TFSA) to do so without having to pay tax. You also do not need any knowledge on how to send cryptocurrency transactions or use a crypto wallet, making it a low technological barrier of entry for new investors.
There are also a couple downsides to investing in an ETF or stock. The main downside is that you are not actually directly buying the underlying asset, but rather a stake in the company who owns it. If Bitcoin or Ethereum explode in value, your ETF or stock share is likely to go up, but the profit margin is likely lower than if you bought the asset directly. You also do not get the utility of the crypto asset, meaning you cannot use it to pay for anything. If you have $10,000 in a Bitcoin ETF you cannot buy something that costs $10k in BTC without first selling your ETF position and then buying Bitcoin, both of which will incur fees and reduce overall profits.
Will Questrade Ever Offer Crypto?
While Questrade has not openly stated whether they will offer cryptocurrencies for direct purchase, it seems possible that it will in the future.
This is because the sector is growing, and Questrade would probably prefer that users did not go to another platform to make an investment that Questrade could simply add support for. In the meantime, ETFs and stocks are the only options.
Alternatives to Questrade 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:
Wealthsimple
Wealthsimple was launched in late 2014, and the financial technology company is mainly focused on providing ways for users to easily access and manage investments via automated savings systems. Users are able to buy and sell stocks across a variety of exchanges in a personal or TFSA account and can also buy and sell supported digital assets in their crypto account. Offers many of the same options as Questrade and is also Canadian.
- All-in-one app that features banking, stocks and cryptocurrency options
- Wealthsimple Crypto is available to Canadians only
- Wealthsimple is very safe and insured by several regulators
- One of the fastest growing online financial institutions in the world
Robinhood
Robinhood is an investment platform mainly focused on allowing their customers to invest in the traditional stock market but Robinhood also added a crypto section of their platform during the huge crypto asset bubble of 2017. Robinhood is only available to American citizens. More suited for beginners than Questrade while offering crypto.
- A great one-stop shop for anyone looking to invest in cryptocurrency or stocks
- Easy onboarding procedure requires very little from user
- Fully regulated financial institution in the United States
- Support for BTC, ETH, LTC, BCH, DOGE, ETC, and BSV
