Cryptocurrencies like Bitcoin and Dogecoin have been around for quite some time to attract attention from traders. Chances are that you are considering buying some crypto yourself. If you are an Etrade customer or you’re planning on becoming one, you need to know: is Crypto on Etrade?
No, you cannot buy crypto like Dogecoin, Ripple, Bitcoin, Ethereum, and other cryptocurrencies on Etrade. If you want to get some through a broker, you can choose eToro. If that’s not your concern, you can simply open an account at a crypto exchange like Coinbase, Kraken, Binance, etc.
In this article, I will explain why Etrade doesn’t offer crypto and whether it will ever be available on Etrade again…
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Why Doesn’t Etrade Offer Crypto?
Etrade probably doesn’t crypto because they consider it far too risky to hold for you for the service they would provide.
It’s actually not very common for brokers to offer crypto; that’s the job of crypto exchanges. Brokers generally don’t like the risks associated with such currencies. One of the biggest factors may be that cryptocurrencies are not fiat, meaning they’re not issued by governments and thus may pose a greater risk than a fiat one for investors.
But let’s take a look at all the risks that crypto often involves which is the most likely reason that brokers like Etrade don’t offer it…
First of all, cryptocurrencies aren’t backed by governments. There’s no law that requires you to accept any kind of crypto as payment. Instead, the use of it is only limited to individuals who are willing to do so. If all stopped accepting crypto assets, they would become completely worthless.
At the same time, the platforms that allow you to transact crypto are prone to hacking and some have failed in that regard. This has resulted in many consumers losing their money in the blink of an eye.
Also, crypto transactions are subject to theft and fraud. For instance, someone could pose as a crypto exchange or intermediately with the intent to make you spend money and get robbed. While institutions like credit unions and banks do provide some kind of guarantee of safety to you, digital wallets can offer none.
Another issue is that when you make transactions with crypto, these transactions are generally irreversible. It solely depends on the willingness of someone to give you a refund.
When it comes to the anonymity that crypto provides, there have been many instances when it has been used for illegal practices like money laundering and drug dealing. This kind of activity can greatly affect consumers. If the law dictates that the crypto exchanges must be restricted to a certain degree or shut down completely, limiting your access to using crypto or completely prohibiting you from doing so.
Many speculators are attracted to trading crypto because of the promise they can make a quick buck. But the bigger that promise is, the bigger the risk. And the losses here are difficult to predict.
It’s also important to mention how the prices of famous crypto assets like Bitcoin have fluctuated very wildly since their inception.
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When Will Crypto Be Available On Etrade?
It seems like there’s some chance that Etrade will start offering crypto assets like Bitcoin and Ethereum to its customers at some point. That would easily make them one of the largest brokers out there that allow crypto trading. That’s based on anonymous sources that were interviewed by Bloomberg.
At first, at least, Etrade will supposedly allow traders to buy crypto assets like Bitcoin and Ethereum, which currently are the biggest cryptocurrencies based on market capitalization.
Surely, if Etrade decides to go through with this and offer crypto to customers, it would mark a major step forward when it comes to the influence of crypto in present transactions. More precisely, it would help the crypto world be a little closer to becoming mainstream and gaining credibility with institutional investors.
Conclusion
As I said, Etrade doesn’t offer cryptocurrencies because brokerage firms generally avoid this kind of asset. It could be because of the many risks associated with them as I explained above or because they’re not as credible as fiat currencies.
But this doesn’t mean that Etrade will never allow customers to trade crypto on their platform. Sources interviewed by Bloomberg seem to indicate that there is a plan for this too, albeit in its early stages.
Did this article answer your question? Did you enjoy it? If yes, please share it with others who might be interested in it. Also, be sure to leave a comment below if you have any questions and I’ll get back to you as soon as I can.
Thank you for reading and I’ll talk to you next time!
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