Summary: Freetrade does not provide cryptocurrency trading on its platform. Instead, investors in the UK will need to sign up with a Financial Conduct Authority (FCA) licensed crypto-friendly multi-asset investing platform, such as eToro, to buy, sell or trade digital assets like Bitcoin (BTC) and Ethereum (ETH).
Intermediate Traders and Investors
Can you buy crypto with Freetrade?
Unfortunately, you can’t buy, sell, or trade crypto on Freetrade directly. While you can gain indirect exposure to cryptocurrencies by investing in crypto-related stocks such as Coinbase (NASDAQ: COIN) or Roblox (NYSE: RBLX), to buy the underlying digital assets themselves, you will need to connect to an FCA-licensed cryptocurrency exchange.
How to buy crypto with Freetrade?
An alternative broker to Freetrade that offers cryptocurrencies is eToro, which is an FCA-licensed and widely trusted multi-asset investing platform with over 70 cryptocurrencies and unique features such as “Copy Trading” (enables users to imitate top-performing crypto traders), a staking service, custom watchlist, as well as advanced charts and technical analysis tools.
How to buy crypto with Freetrade: 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 GBP amount you want to deposit on the eToro platform;
- Step 3: Connect your bank 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.
Intermediate Traders and Investors
Freetrade is a UK-based fintech company that offers free and premium online trading services. The company was founded in 2016 and launched its iOS app in 2018, followed by an Android version in 2019. It has since grown to accommodate one million registered users.
Products and services offered by Freetrade include:
- Investments: Stocks, OTC stocks, SPAC stocks, ETFs, REITs, investment trusts;
- Services: Commission-free trading, fractional shares, pension savings accounts,
- Educational content: Demo account, investment guides, market analysis, and news, as well as upcoming initial public offerings (IPOs).
Freetrade’s crypto policy
Freetrade does not have cryptocurrency trading services, which means you cannot buy, sell or trade any individual crypto assets with Freetrade.
Investors can, however, gain indirect exposure to cryptocurrencies through some of the financial instruments offered by Freetrade, such as crypto-related (mining/gaming/blockchain) stocks. For more information, dive into their comprehensive guide to crypto-stocks here.
How to buy crypto safely
While cryptocurrencies can be a lucrative investment with astronomically high returns, their volatile nature makes them considerably riskier than traditional asset classes such as stocks or bonds. In addition, the crypto market is rife with scams, frauds, and scandals, further demonstrating that the space should be entered with caution.
Moreover, although FCA-licensed crypto brokers are required to have anti-money laundering (AML) and terrorist financing procedures in place, crypto assets themselves are not regulated in the UK. In fact, with most cryptocurrencies, investors are unlikely to have access to protections from the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS) if something were to go wrong.
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 money:
- 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.
FAQs about how to buy crypto with Freetrade:
Does Freetrade have crypto?
Although Freetrade offers access to various financial assets, it does not provide access to crypto trading.
How to buy crypto on Freetrade?
Customers at Freetrade can get indirect exposure to cryptocurrencies through crypto-related stocks. However, to buy the underlying cryptocurrencies themselves, investors must sign up with a regulated investing platform that offers cryptocurrencies.
Can you buy crypto on Freetrade?
Although Freetrade provides some indirect exposure to cryptocurrencies, it doesn’t allow customers to buy individual cryptocurrencies.
What is Freetrade crypto policy?
Though Freetrade doesn’t offer cryptocurrency trading directly, customers can gain indirect exposure to crypto assets through investment in crypto-related stocks.