This guide provides a step-by-step process on how to buy crypto with TD Ameritrade account. We explore why TD Ameritrade currently does not allow direct crypto purchases and suggest regulated alternatives that enable secure engagement with digital assets using your bank account.
Summary
Buying cryptocurrencies through TD Ameritrade directly is not a common practice, as the brokerage platform does not offer this service. Instead, individuals typically use specialized cryptocurrency exchanges or platforms to buy digital assets. This guide focuses on understanding and managing cryptocurrency investments alongside traditional TD Ameritrade accounts, providing insight into external platforms for purchasing cryptocurrencies.
We recommend using eToro, a regulated crypto exchange compliant with FinCEN guidelines, as an ideal platform for buying crypto. eToro offers a wide selection of cryptocurrencies alongside an intuitive interface, competitive fees, and multiple USD deposit methods including ACH bank transfers.
How to Buy Crypto with TD Ameritrade Using eToro
Step 1: Register an Account on eToro
Visit eToro’s website to create a user account and provide your personal details for identity verification.
Step 2: Complete Identity Verification
Comply with eToro’s KYC requirements by submitting documents to confirm your identity. The verification process may take 1-2 days.
Step 3: Link TD Ameritrade Account
Connect your TD Ameritrade bank account to eToro to enable USD deposits and withdrawals. Under Profile > Settings, add your account details.
Step 4: Deposit Funds
Transfer money from your linked TD Ameritrade account to credit your eToro USD wallet. Minimum deposit is $50. Select ‘Deposit Funds’ and choose your preferred deposit method.
Step 5: Purchase Cryptocurrency
Use the USD balance in your eToro account to buy popular coins like Bitcoin, Ethereum, Litecoin as well as altcoins.
What is TD Ameritrade’s status on cryptocurrencies?
Currently, TD Ameritrade does not provide the option for customers to directly purchase cryptocurrencies. The platform instead allows exposure to crypto markets through investment vehicles like futures contracts and ETFs.
Does TD allow crypto purchases?
No, TD Ameritrade does not enable direct cryptocurrency transactions. You cannot use the brokerage platform to buy coins like Bitcoin or Ethereum.
What do I do if TD Ameritrade is not crypto friendly?
As TD Ameritrade does not facilitate crypto asset trading, utilize external platforms that are regulated and secure. A recommended option is opening an account on eToro to buy and manage cryptocurrency investments safely.
Another alternative is to open a separate bank account at a digital asset friendly institution for funding crypto purchases. You can retain your existing TD Ameritrade services for other investment needs.
Conclusion
While buying cryptocurrencies directly with TD Ameritrade is currently not possible, regulated exchanges like eToro provide suitable avenues for crypto asset trading alongside your brokerage account. Take a cautious approach, continuing your own research into emerging decentralized technologies.
FAQs:
Does TD allow crypto purchases?
No. Buying cryptocurrencies directly through TD Ameritrade is not yet possible. The brokerage offers indirect exposure to crypto markets via investment vehicles like futures and ETFs. For direct ownership of coins, external platforms are required.
What cryptos can I buy on TD Ameritrade?
TD Ameritrade does not offer any actual cryptocurrencies for purchase. However, you can invest in crypto-related assets like futures contracts and ETFs that provide indirect exposure to the performance of digital tokens.
How do I buy crypto on TD Ameritrade?
As TD Ameritrade does not facilitate direct crypto transactions, you need to use an external platform. Open an account with a regulated exchange like eToro to fund your account via bank transfer and securely buy cryptocurrencies.
