There is no doubt that E*Trade is currently working to bring customers some of the latest and greatest crypto trading products. If successful, this could herald the beginning of a new age for the crypto markets. While mainstream investors may still be skittish about the volatile crypto markets, an influx of conventional traders could go a long way to stabilizing the industry.
Currently, the best way to trade in this asset class is to buy and sell cryptocurrencies directly. This isn’t the most efficient use of capital, though, as these assets are subject to limited liquidity. However, a number of brokers offer futures and options on a variety of cryptoassets. Compared to other futures contracts, these are more expensive and have fewer features. Nonetheless, these are a great option for people who want to get in on the action, but want to avoid the high risk of direct exposure to a crypto asset.
One of the best places to get started is with an account on a reputable e-wallet provider. Among the best options are Coinbase and Uphold. The former offers a wide range of cryptoassets and a robust commission free trading platform, while the latter offers a cheap and convenient method of buying and selling over 200 digital assets. Moreover, it’s licensed by the FinCEN.
In addition to a plethora of crypto-related services, E*Trade also provides a handful of other financial services. In the case of the cryptocurrency market, these include the ability to buy and sell crypto stocks and ETFs, and to invest in a crypto ETF. A spokesman for the company stated that its crypto-related product line is growing. As such, it is making moves to allow customers to trade in a number of cryptocurrencies, including the top three largest coins: Bitcoin, Ether, and Litecoin. Whether or not E*Trade will ever offer a direct-to-the-consumer exchange of digital coins is another matter.
The most interesting aspect of this announcement is that E*Trade will provide its customers with a slew of other useful crypto related services. For example, the company will offer a “Disclosure Library” that lists the top 50 cryptocurrencies by volume. It’s also been rumored that E*Trade plans to offer a number of other crypto-related products in the near future.
The company’s entry into the crypto-market will likely be the next logical step in its ongoing quest to be the premier financial services provider for retail investors. Adding crypto to the mix would allow the company to demonstrate its expertise in a relatively uncharted area, and it would also bolster its credentials as a trusted partner. And, although this may seem counterintuitive to some, the foray would give the company credibility with institutional investors.
Ultimately, the decision to choose a brokerage firm for your crypto-related investments is a personal one. Make sure to conduct your research, and consult with a qualified professional. That said, if you do decide to engage in this type of investment, the most important thing to remember is to take the time to understand the risks involved, before committing any funds to a new project.