Can You Trade Crypto Currencies With TD Ameritrade?
Cryptocurrencies have grown increasingly popular as one of the safest and fastest ways to transact online. Bitcoin, Ethereum and Litecoin have all gained great traction globally; however, many other coins and tokens exist that could prove just as profitable for investors. While popular brokerage houses such as TD Ameritrade, Etrade, and Scottrade all provide their customers with investment options, are these effective choices for investing in crypto currencies?
Can I Trade Crypto Currencies with TD Ameritrade? Although TD Ameritrade doesn’t directly provide trading of digital assets such as cryptocurrency futures contracts on thinkorswim platform, clients still gain exposure to crypto markets via indirect investments like these which come with higher fees and counter-party risks.
Kraken is an excellent option for TD Ameritrade clients seeking direct cryptocurrency trading, offering compliant and secure trading environments to its users. Furthermore, its maker fees start from just 0.16% – making Kraken an affordable alternative to exchanges that charge up to 2% or more per transaction.
Kraken may be known for being a safe and secure platform for buying and selling cryptos, yet the company still faces challenges building out an adequate infrastructure to support its growing user base. Due to this issue, features like fiat deposit/withdrawal have taken longer to roll out.
When buying cryptos, it is always advisable to choose well-established and trustworthy exchanges in order to reduce risk while getting maximum value for your investment. This way, your funds won’t go missing and will deliver maximum return for every cent invested.
There are various platforms where cryptocurrency purchases and sales take place, including Coinbase, Kraken, Bittrex and Binance – but the three most popular according to CoinMarketCap rankings are Binance, Coinbase Pro and Kraken. Some require setting up a wallet where cryptos will be stored while others allow direct sales through cash transactions.
While the term “cryptocurrency” can be misleading, implying certain broad characteristics common among coins and tokens, there are significant variations between individual cryptos when it comes to technology, incentives and structure. For instance, utility cryptos like Filecoin provide users with decentralized storage space; platform currencies like Ethereum offer users new ways of authenticating documents or data.
Therefore, it is crucial that you conduct ample research when selecting an exchange or broker for cryptocurrency investments. Your choice should depend on your specific needs and budget; additionally, keep in mind that cryptocurrency prices can be extremely volatile; losing more than initially invested could happen quickly and thus it’s essential that you monitor your portfolio closely if volatility becomes uncomfortable for you.