Summary: At present, Wealthfront clients are unable to directly procure cryptocurrency assets through the Wealthfront online investment platform. To buy Bitcoin and other digital currencies, clients need to transfer US Dollars (USD) to a regulated exchange. Choosing a platform with a solid reputation and that is regulated by organizations like FinCEN is paramount.
After a thorough review of leading US platforms, we suggest eToro for Wealthfront clients. eToro offers a quick and efficient means for investors to transfer US Dollars (USD) using various methods like bank transfers, credit cards, among others to purchase Bitcoin, Ethereum and other top digital assets.
- Free and instant USD deposits with US bank transfer (ACH), credit/debit cards and more.
- Trade over 25 Crypto Assets on a trusted and regulated platform with low fees.
- eToro USA LLC is licensed and registered with FinCEN.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
Can I Buy Bitcoin with Wealthfront?
Wealthfront, at present, does not offer direct purchase of cryptocurrencies. However, users can explore the possibility of acquiring digital assets through a duly regulated US-based cryptocurrency exchange. It is crucial to remember that these exchanges must maintain appropriate licenses and authorizations from regulatory agencies like FinCEN and FINRA in the USA. With these regulated exchanges, Wealthfront users have the opportunity to access a platform where they can buy and sell cryptocurrencies, potentially linking to their Wealthfront account.
How to Buy Crypto with Wealthfront
The best strategy for acquiring cryptocurrencies via your Wealthfront account in the U.S. is using a regulated platform like eToro. Renowned for efficient, affordable US Dollar deposits from Wealthfront, eToro provides seamless trading of top cryptocurrencies. Its low fees and advantageous spreads, combined with FinCEN regulation, ensure secure and successful trading.
Get started with our easy-to-follow, four-step guide outlined below to begin trading in minutes:
- Create an account: Sign up to the eToro US trading platform.
- Deposit funds: Select the 'Deposit Funds' button on the bottom of your screen to deposit USD via any US Bank Account, or Debit Card/Credit Card.
- Find your Crypto: Once the USD hits your account, find the Crypto you want to buy on the eToro platform with their 'Discover' tab.
- Execute your trade: Input the USD amount you want to invest and execute your trade.
Wealthfront Cryptocurrency Policy
As a leading figure in the US robo-advising scene, Wealthfront has taken a forward-thinking stance on cryptocurrencies. The company has extended its services to cater to clients interested in digital asset investments, achieved via cryptocurrency exchanges under the regulatory purview of authorities like the Financial Crimes Enforcement Network (FinCEN).
Amidst uncertainties in traditional investment sectors, this step offers a crucial alternative for Wealthfront's clients. It presents opportunities for portfolio diversification with Bitcoin and other cryptocurrencies, which have experienced substantial growth in recent times. By leveraging reputable platforms, Wealthfront's clients can smoothly invest in these digital currencies, ensuring swift and secure USD transfers through various methods such as direct bank transfers, credit cards, or digital wallets.
About Wealthfront
Wealthfront is an automated investment service, often referred to as a robo-advisor. Founded in 2008, it is based in Palo Alto, California. The platform is designed to offer a variety of financial planning and management services, including diversified portfolio management, tax loss harvesting, and retirement planning.
The underlying principle of Wealthfront's service is based on modern portfolio theory. It works by creating a diversified portfolio of low-cost, index-based ETFs, personalized for each user based on their risk tolerance and investment goals. The software then automatically rebalances the portfolio and applies tax-loss harvesting strategies where appropriate.
Final Thoughts
In conclusion, Wealthfront, while not directly facilitating cryptocurrency purchases, recognizes the value of digital assets. It enables users to buy cryptocurrencies via regulated US exchanges like eToro. These platforms, adhering to strict regulatory standards, assure secure and reliable trading. This Wealthfront initiative broadens investment options for its users, permitting portfolio diversification with digital currencies like Bitcoin. Trades can be conveniently carried out via bank transfers, credit cards, or digital wallets, promoting a smooth transition into digital asset investment.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
