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Can I buy Crypto with Wealthfront?
The short answer is no. The Wealthfront platform only offers two Crypto-related ETFs , which are:
- Grayscale Bitcoin Trust (GBTC) - synthetic exposure to Bitcoin.
- Grayscale Ethereum Trust (ETHE) - synthetic exposure to Ethereum.
The Wealthfront trading platform does not offer individual cryptocurrencies coins, or wallets for customers to hold their tokens. They also have a rule where investors cannot allocate more than 10% of their portfolio value to Crypto. Overall, Wealthfront is not a good platform to invest in crypto.
What is a Wealthfront Alternative that offers Crypto?
The best alternative to Wealthfront for US investors to invest in cryptocurrencies is the eToro trading platform. They offer over 70 real cryptocurrencies to trade, as well as 7,000 stocks, ETFs, commodities, currencies, mutual funds, and much more. Their platform also has a built-in Crypto wallet, which means you can withdraw your assets to your personal wallet at any time.
To get started, follow our simple 4 step guide:
- 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.
Why can't I own more than 10% of my Portfolio in Crypto on Wealthfront?
Wealthfront's portfolio construction team has set a 10% maximum because they believe that crypto is still a very volatile asset class and is best suited as a small satellite holding. Their investment committee meets quarterly to re-evaluate the max weighting and will make changes as they see fit.
About Wealthfront
Wealthfront is a robo-advisor company that provides financial planning and investment management services for individuals. It was founded in 2008 by Adam Nash and his co-founder, James Norman. The company is headquartered in Redwood City, California.
Wealthfront offers its clients a variety of services, including goal-based investing, tax-optimized investing, and estate planning. It also provides access to financial planning tools and resources, such as a retirement calculator and a college savings planner.
Their platform has over $10 billion in assets under management (AUM) as of 2021. It serves over 200,000 clients and is one of the largest robo-advisor companies in the United States. Wealthfront has been recognized for its innovation and growth. It was named one of CNBC's Disruptor 50 companies in 2013 and 2014, and it was ranked #1 on Forbes' list of America's Most Promising Companies in 2015.
In 2016, Wealthfront launched a new service called Path, which is designed to help its clients plan for their financial future. Path is a goal-based financial planning tool that allows users to set and track goals, such as saving for retirement or buying a home. In 2020, Wealthfront acquired Carson Group, a provider of financial planning software and services. The acquisition will allow Wealthfront to expand its services and reach more clients.
Final Thoughts
Wealthfront is a popular robo-advisor that provides financial planning and investment management services for individuals. It offers a variety of services, such as goal-based investing, tax-optimized investing, and estate planning. The company has over $10 billion in AUM and serves over 200,000 clients.
It only offers a maximum of 10% allocation towards crypto investments, so investors who are looking for more exposure to cryptocurrencies should consider other investment platforms such as eToro. eToro is a trading platform that offers over 70 real cryptocurrencies, 7,000 stocks, ETFs, commodities, currencies, mutual funds and more. It also has a built-in Crypto wallet, so you can withdraw your assets to your personal wallet at any time.
Regardless of which platform you use, it's important to do your research and understand the risks associated with investing in cryptocurrency. As always, make sure to consult a financial advisor when making any investments.
