How to buy crypto at Charles Schwab? Buy Bitcoin directly!
There are already some indirect ways you can invest in crypto at Charles Schwab. With the steps in this article, you can even buy Bitcoin & Ethereum directly with your account at Charles Schaw!
How to buy Bitcoin at Charles Schwab?
Step 1: open an account with a crypto exchange
You cannot directly buy crypto like Bitcoin or Ethereum at Charles Schwab. Fortunately, this doesn’t have to stop you! By opening an account at a crypto exchange, you can still invest in popular crypto currencies with your bank account at Charles Schwab. In the table below, you can immediately see at which exchanges you can invest in crypto:
|Trade in Bitcoin & other cryptos! Try for free with a demo & deposit money with Charles Schwab after. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.|
Step 2: activate account & deposit money
Before you can start investing in crypto, you need to go through verification. You do this by confirming your identity and answering some questions. Reliable crypto exchanges should ensure that crypto is not used for criminal purposes.
After going through verification, you can deposit money into your account. This can easily be done by linking your Charles Schwab account to the crypto exchange.
Step 3: buy crypto with your Charles Schwab account
Now that you have an account with your favourite crypto exchange, you can start buying crypto. To do this, select the crypto you want to buy and simply press the buy button. When doing so, pay attention to the spread: this is the difference between the buy and sell price. These transaction costs will be deducted from your final result.
Tip: spread crypto buying
It may be wise to apply dollar cost averaging when investing in crypto at Charles Schwab. The idea behind dollar cost averaging or dca is that you buy crypto at fixed times for a certain amount. That way, you buy Bitcoin or other crypto at both high and low prices and can achieve average returns.
This way of investing removes a lot of stress. Indeed, very few investors manage to beat the market and with this strategy, that is not the goal.
Can you buy crypto at Charles Schwab?
You cannot invest directly in crypto at Charles Schwab. However, it is possible to invest in a crypto ETF at Charles Schwab. An ETF is an investment vehicle that tries to follow the price of an underlying security as closely as possible.
Some examples of ETFs you can use to invest in crypto are:
- Grayscale Bitcoin Trust (GBTC)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Litecoin Trust (LTCN)
ETFs make it easier & often safer for individuals to invest in crypto. Yet there are also disadvantages: transaction costs, for instance, are often higher. At Charles Schwab, you don’t pay direct transaction fees, but you do pay a spread. Moreover, funds charge annual fees that lower your returns.
However, if you want to invest in crypto with your 401k, Charles Schwab may be a good option!
What is Charles Schwab’s stance crypto?
Charles Schwab clearly takes a fairly positive view of crypto. In fact, they offer several ETFs that allow customers to invest in crypto. Moreover, Charles Schwab has jointly launched a crypto exchange with Fidelity Digital Assets called EDX Markets. However, this bank also warns about the risks of investing in crypto: they are in fact above average.
About Charles Schwab
Charles Schwab ranks seventh among the largest financial services firms in America. With 360 branches in both America and the UK, it is therefore a serious player that is hard to ignore.
You can turn to Charles Schwab for the following services:
- Investments in stocks, ETFs and options, for example.
- Banking services such as savings accounts, credit cards and loans.
- Wealth management like financial planning assistance
- Insurance such as life and health insurance
- Pension accrual with 401(k)s and IRAs
In my opinion, Charles Schwab is a reliable party to handle your financial affairs. It is advisable to look at your situation with a financial adviser so that you can make the best decision.
Can you buy crypto at Charles Schwab?
You cannot invest in crypto directly at Charles Schwab. Nevertheless, this major financial firm embraces crypto by offering several ETFs that allow you to invest in the best-known crypto currencies. If you want more flexibility, you can choose to invest in different crypto currencies with a crypto exchange. That way, you can still buy crypto currencies yourself with your Charles Schwab account.