eTrade is one of the oldest and most popular investment platforms on the market.
The company was founded in 1982 and has been helping users invest in a variety of products for 40 years. Although its popularity has not diminished over time, it is often asked if the platform offers cryptocurrencies for users to invest in. The simple answer is no, they don’t, at least not directly.
While you can’t buy Bitcoin, Ethereum, or your favorite altcoin on eTrade, there are still ways to gain exposure to the crypto industry.
We will review your options on eTrade before giving you some alternative platforms to use if you wish to buy cryptocurrencies directly, rather than through the options available through eTrade.
Table of Contents:
What does eTrade offer for Crypto?
The main way to gain exposure to cryptocurrencies on eTrade is through cryptocurrency-focused stocks, such as mining companies, and through ETFs, which are available for both Bitcoin and Ethereum.
What is an ETF?
An ETF, or exchange traded fund, is a type of security that tracks an index, sector, commodity, or other asset. They can be bought or sold on the stock exchange in the same way as a regular security. ETFs 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 do. Crypto ETFs were launched at the end of 2021 with great enthusiasm. They allow investors to gain exposure to the crypto sector without having to buy assets directly.
When you invest in an ETF you are not buying the asset itself, but buying a stake in a conglomerate that holds positions in the asset or group of assets itself. So, in the case of a crypto ETF, you are not actually buying units of BTC or ETH, but instead buying shares of a company that reflects the performance of the cryptocurrency of interest.
If you bought an asset like BITO on eTrade, you won’t actually buy Bitcoin. However, your account balance would reflect any upward or downward movement of the token, as BITO is an ETF that directly tracks Bitcoin’s performance.
Advantages and disadvantages of ETFs or stocks
There are two main advantages to investing in an ETF or security rather than investing directly in a digital asset. The main advantage is that it is easier to exit a position for cash, since the ETF or security is bought and sold exclusively for fiat. This means that when profit is attractive an investor can easily cash out and can easily use a tax-free savings account (TFSA) to do so without having to pay taxes. The other advantage is that you don’t need any knowledge on how to send cryptocurrency transactions or use a crypto wallet. This helps make ETFs a low technological barrier to entry for new investors.
There are also two main downsides to investing in an ETF or stock. The main disadvantage is that you are not buying the underlying asset directly, but instead a stake in the company that owns it. If Bitcoin or Ethereum explodes in value, the ETF or stock share is likely to rise, but the profit margin is likely to be lower than when buying the asset directly. The other downside is that you don’t get the utility of the crypto asset, which means you can’t use it as currency. If you have $20,000 in a Bitcoin ETF you won’t be able to buy something that costs $20k in BTC without first selling your position and then buying Bitcoin to make the purchase. Both will incur commissions and reduce overall profits.
Will eTrade ever offer cryptocurrencies?
While eTrade has not stated whether it will offer cryptocurrencies for direct purchase in the future, it seems possible that it will. This is because the cryptocurrency industry is growing and eTrade would prefer that users not go to another platform to make an investment for which eTrade could simply add support.
Meanwhile, ETFs and stocks are the only options on eTrade.
Alternatives to eTrade that offer cryptocurrencies
Fortunately there are a number of Questrade alternatives that offer crypto exposure in addition to traditional stocks and bonds. Here’s a look at some of the most popular platforms that offer cryptocurrencies and stocks:
WeBull
Webull is a cryptocurrency and stock trading platform that caters to a new group of millennial traders who are looking for a mix of convenience and functionality. Founded in 2017 by Fumi Technology, Webull boasts a zero-fee model that compares competitively to brokerage platforms such as Robinhood and Wealthsimple. More beginner-friendly than eTrade, although it is currently not possible to withdraw cryptocurrencies purchased through WeBull.
- Online brokers with support for stocks, ETFs, options and cryptocurrencies
- Buy cryptocurrency for as little as $1
- Commission-free trading
- Free stock for membership
SUPPORTED CRYPTOCURRENCIES BTC, ETH, SOL (21 total)
COMMISSIONS Commission-free trading
Coinbase
Coinbase is one of the largest cryptocurrency exchanges in the world with a trading volume beaten only 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 operating since 2012. Completely different from eTrade in that they only offer crypto services and not stocks or ETFs.
- Intuitive and robust security
- Great customer service
- Earn $5 in free Bitcoins after completing the registration process and making the first trade
- Diversified and constantly updated coin selection
PAYMENT METHODS Debit & Credit Bank, PayPal, ACH, Bank transfer
CRYPTOCURRENCIES 40+
COUNTRIES 100+
Crypto.com
One of the fastest growing crypto exchanges in the industry, the company has gained mainstream attention through media deals such as buying the naming rights of the Staples Center in Los Angeles. With a wide range of digital assets available and a good mobile platform, it is a great alternative to eTrade for those who wish to purchase crypto assets directly.
- Get $10 when you start trading crypto assets
- Only available in the U.S.
- Complete custody platform
- ETH, LTC, BCH & ETC
Supports BTC,
SUPPORTED CRYPTOCURRENCIES 30+ (Bitcoin, ETC, Cardano)
COMMISSIONS 1.25%
