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.
With its popularity it has become increasingly questioned whether the platform offers crypto for users to invest in. The simple answer is no, they don’t, at least not directly.
But while you can’t buy Bitcoin, Ethereum or whatever your favorite altcoin is on Questrade, there are still ways to gain exposure to the crypto industry.
We’ll review your options on Questrade before giving you some alternative platforms to use if you want to buy cryptocurrencies directly, rather than through the options available through Questrade.
Table of Contents:
What does Questrade offer?
The main way to gain exposure to cryptocurrencies on Questrade is through cryptocurrency-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. Actions available through the TSX on Questrade. They have mining operations in Canada, Sweden and Iceland.
MicroStrategy (MSTR)
Famously led by cryptographic bull Michael Saylor, MicroStrategy is a manufacturer of analytics and mobility software. The company currently owns 121,044 Bitcoins.
Voyager Digital Limited (VOYG)
The company has focused on providing a fully functional suite of APIs and mobile apps to allow anyone to buy, sell, trade, invest or earn with their digital assets. The broker has its own cryptographic token called Voyager Token (VGX).
Coinbase (COIN)
Buy shares on one of the world’s largest crypto exchanges by volume. Based in San Francisco, the exchange became public in April 2021.
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 can be bought or sold on exchanges in the same way as a regular stock. 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 assets directly.
When you invest in ETFs you do not actually buy the asset itself, but you buy 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 of a company that mirrors the performance of the cryptocurrency of interest.
If you were to buy an asset like BTCC or BTCX on Questrade, you wouldn’t actually buy Bitcoin. However, your account balance would reflect any gains or losses incurred by the token, as BTCC and BTCX are ETFs that directly monitor Bitcoin’s performance.
Advantages and disadvantages of ETFs or stocks
There are a couple of advantages to investing in an ETF or stock rather than investing directly in a cryptocurrency. The main advantage is that it is easy to exit a position for cash, as the ETF or security is bought and sold exclusively for fiat. This means that when profit is attractive you can easily cash out and you can easily use a tax-free savings account (TFSA) to do so without having to pay taxes. In addition, no knowledge is needed 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 of downsides to investing in an ETF or stock. The main disadvantage is that you are actually not buying the underlying asset directly, but rather a stake in the company that owns it. If Bitcoin or Ethereum explodes in value, your ETF or stock share is likely to rise, but the profit margin is likely to be lower than when you bought the asset directly. You also don’t get the utility of the crypto asset, which means you can’t use it to pay for anything. If you have $10,000 in a Bitcoin ETF you can’t 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 cryptocurrencies?
While Questrade has not openly stated whether it will offer cryptocurrencies for direct purchase, it seems possible that it will do so in the future.
That’s because the industry is growing, and Questrade would probably prefer users not to go to another platform to make an investment for which Questrade could simply add support. Meanwhile, ETFs and stocks are the only options.
Questrade Alternatives Offering Crypto
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:
Wealthsimple
Wealthsimple was launched in late 2014, and the financial technology company focuses primarily on providing ways for users to easily access and manage investments via automated asset systems. Users are able to buy and sell shares through a variety of exchanges in a personal or TFSA account and can also buy and sell digital assets supported in their crypto account. It offers many of the same options as Questrade and is also Canadian.
Wealthsimple Crypto
- All-in-one app offering banking, stock, and cryptocurrency options
- Wealthsimple Crypto is only available to Canadians
- 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 focused primarily on allowing their clients 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 beginner friendly than Questrade while still offering encryption.
Robinhood
- A great one-stop-shop for anyone looking to invest in cryptocurrency or stocks
- A simple onboarding procedure requires very little of the user
- Fully regulated financial institution in the United States
- ETH, LTC, BCH, DOGE, ECC and BSV
Support for BTC,
SoFi
SoFi stands for Social Finance. It is a personal finance company based in San Francisco and was originally founded way back in 2011. SoFi offers a variety of financial services such as investments, banking, and personal loans, and now offers cryptocurrencies in addition to traditional finance. SoFi has taken market share from platforms like Questrade as they offer more services and cryptocurrencies.
SoFi Crypto
- Get $10 when you start trading crypto assets
- Only available in the U.S.
- Complete custody platform
- ETH, LTC, BCH & ETC
Supports BTC,
