Summary: You cannot buy Cryptocurrencies directly from your Charles Schwab brokerage account. They do not support Crypto Wallets or purchasing.
Investors will need to use regulated digital asset exchanges like eToro to deposit USD and buy Crypto.
Table of Contents
Can I buy Crypto on Charles Schwab?
Unfortunately for users of Charles Schwab in the United States, there is no way to directly buy or sell cryptocurrencies like Bitcoin or Ethereum through their app or with your 401k.
You can get indirect exposure to cryptocurrencies through certain investment vehicles that are available on their platform. Some examples of these include:
- Grayscale Bitcoin Trust (GBTC)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Litecoin Trust (LTCN)
With that said, we would not recommend investors invest in these indirect trusts because it does not give you real ownership over digital assets. This means that you cannot withdraw the cryptocurrencies into your personal and secure storage.
What are Alternatives to Charles Schwab?
The best way to trade Cryptocurrencies, Stocks, ETFs, Commodities and Bonds all in one platform is through a multi-asset brokerage like eToro. They accept USD deposits via Bank Transfer to trade over 40 cryptocurrencies and a wide variety of other assets.
Their cryptocurrency exchange allows investors to deposit US Dollars instantly, and they allow you to withdraw the crypto onto other platforms. This will give you the option to withdraw it into your own custody via a cold wallet.
Charles Schwab Fees
One of the strengths of the Charles Schwab platform is the fact that trading is completely commission free. This means that you will pay $0 in fees if you invest in one of the Grayscale Cryptocurrency Trusts.
However, there is a stealth fee that is charged in what is referred to as the 'Spread'. The spread is the price difference between the price to buy, and the price to sell an asset. This fee is usually around 1.5% on brokerages like Charles Schwab.
Can I buy Dogecoin on Charles Schwab?
Unfortunately Grayscale does not offer any Dogecoin related trusts for users of the platform. However, Coinbase does enable US investors to buy, sell and trade altcoins like Dogecoin or Shiba Inu.