How to Buy Crypto with Charles Schwab [2023] | Step-by-Step

Summary: While Charles Schwab provides indirect exposure to crypto through trusts, futures, and ETFs, it doesn’t offer customers the chance to trade individual cryptocurrencies directly from its platform. Instead, Charles Schwab customers can connect their banking accounts to a Financial Industry Regulatory Authority (FINRA) licensed cryptocurrency broker to buy digital assets like Bitcoin (BTC) and Ethereum (ETH). 

In short, to buy crypto with Charles Schwab, investors in the US will need to sign up with a FINRA-regulated crypto exchange like eToro and deposit USD from their Charles Schwab account.

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Finbold is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

Can you buy crypto with Charles Schwab? 

You can buy crypto with Charles Schwab (NYSE: SCHW) but you need to connect to a FINRA-licensed cryptocurrency exchange. As mentioned above, this is because Charles Schwab does not offer the buying and selling of cryptocurrency directly through its online banking platform.

How to buy crypto with Charles Schwab?

The best way to buy Bitcoin or any other cryptocurrency with a Charles Schwab online account in the US is through a FINRA-regulated broker like eToro, which is a licensed and widely trusted digital asset platform with over 70 cryptocurrencies and unique features such as “Copy Trading,” which enables users to copy top-performing crypto traders, in addition to a staking service, custom watchlist, as well as advanced charts and technical analysis tools. 

How to buy crypto with Charles Schwab: Step-by-Step

You can get started in minutes with four simple steps:

• Step 1: Create an account on eToro and complete your verification (personal or company);
• Step 2: Enter the USD amount you want to deposit on the eToro platform;
• Step 3: Connect your Charles Schwab account to deposit your selected fiat currency;
• Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

Best for:

Intermediate Traders and Investors

2.8 Million Active Accounts

Get Started

Finbold is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

About Charles Schwab

Charles Schwab is an American multinational financial services company headquartered in Westlake, Texas. It offers a wide range of investing and banking services, including consulting and wealth management advisory services to both retail and institutional customers. The bank boasts over 360 branches, primarily in the US and the UK, with over $8.5 trillion in client assets, making it the 7th largest banking institution in the United States. 

Services offered by Charles Schwab include: 

• Retirement accounts: 401(k)s and individual retirement accounts (IRAs);
• Investment products: Stocks, mutual funds, ETFs, indirect crypto trading, options, futures, fixed income investments such as bonds and certificates of deposits (CDs);
• Banking services: Checking accounts, savings accounts, small business accounts, credit cards, loans, and mortgages;
• Insurance products: Health, life, and home insurance;
• Wealth management: Financial planning, portfolio management, thematic investing, and Robo-advisors. 

Charles Schwab’s crypto policy

Although Charles Schwab customers can get exposure to crypto markets in numerous ways, such as coin trusts, Bitcoin futures, cryptocurrency stocks, and ETFs, they cannot trade cryptocurrencies like Bitcoin or Ethereum directly through their accounts. However, customers can use their Charles Schwab online banking account to deposit or withdraw funds to or from regulated crypto exchanges.

The bank encourages clients interested in cryptocurrency to approach them as speculative financial instruments and consider their investment goals as well as the risks involved. They recommend cryptocurrency be used primarily for trading outside the traditional diversified portfolio.

For educational resources on digital assets, Charles Schwab has dedicated a section of their website to cryptocurrencies.

How to buy crypto safely

While cryptocurrencies have become widely popular, it’s worth remembering that they have only been around for just over a decade. As such, they are considered a much riskier investment than stocks or commodities, and you need to be brave to enter these uncharted waters as an investor.

Furthermore, although cryptocurrency broker-dealers in the US are required to register with FINRA, which imposes several requirements on them, including implementing and maintaining both anti-money laundering (AML) and customer identification programs (CIPs), crypto assets themselves are not regulated. 

Fortunately, there are steps you can take to ensure you’re being careful when buying crypto. Let’s look at a few tips on what you should do when getting started with digital assets and how to best protect yourself and your hard-earned cash:

• Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks are; 
• Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
• Choose a reputable exchange: Ensure the exchange is licensed by the appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where your money is kept and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
• Secure your account: Use two-factor authentication and a strong password to protect your account;
• Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
• Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
• Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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