Can You Buy Stocks Using Your Bitcoin?
You can buy stocks with BTC but it is not a common practice. In most cases, investors have to convert BTC to fiat currency to work with most brokers. There are stockbrokers who accept BTC as a valid method of payment.
However, you will not be able to invest in most mainstream companies. Since stock market earnings are taxable income it is subject to laws and local jurisdiction.
When you invest in stocks you become a shareholder of a company. All companies operated according to laws and regulations where they are registered. Buying stocks with BTC may seem a viable option at the beginning, yet there are some handicaps you should be aware of.
Before we delve into any further, why would someone want to invest in the stock market with BTC?
Why Invest In Stocks With Bitcoin?
There are two main reasons that come to my mind. I also believe there may not be any other good reason.
Reason #1: Buy stocks anonymously using BTC
I believe most people who want to achieve it don't have much information about the stock market. You cannot be an anonymous investor in any company provided that company is a legitimate business in the country it is registered.
But, I know where this question comes from. People who have never bought stocks before and coming from the crypto market are assuming that the stock market and the cryptocurrency market function the same.
Although the cryptocurrency market is growing, it is still a semi-regulated market. It has major weaknesses like security failures, the possibility of unfair practices, and a lack of transparency. The governments don't have full control over how it works.
We also know stockbrokers are registered businesses in the country they operate. That wouldn't make any sense for a stockbroker to accept BTC and sell stocks in a company while keeping its owner anonymous.
You may already know what we have just mentioned in Reason #1. Then your reason may be the next one.
Reason #2: Avoid big commissions moving money between BTC and stocks.
This is a very valid concern. You know how to invest in both the stock and crypto market. You simply want to move your BTC to the stock market. Because you don't want to pay commissions for the exchanges (BTC to fiat & fiat to stocks).
This is mainly what we are going to discuss in this post.
There are stockbrokers who accept Bitcoins as a payment method, and you can buy or sell stocks with BTC. You no longer need to move your money from BTC to fiat and then from fiat to the stock market.
Before delving any further I want to note if you plan to buy Bitcoin from your IRA, you will need to open a Bitcoin IRA.
How can you get started?
Step 1: Find an online broker that accepts bitcoins for deposits and trades US-based securities like ETFs or mutual funds the list is growing but still pretty limited!
Step 2: Create your account on the website of this brokerage; enter information about yourself (name, address); provide payment details such as bank number/account type; upload an ID document in jpg format.
Steps 3 & 4: (optional ones) If you want help from customer service representatives after hours when they are offline then call them up beforehand so they know who's calling and what kind of error message might come up later during trading activities at night while waiting for their assistance).
I am not going to mention how you can buy BTC in this post. I assume you already have your BTC and looking to invest in stocks. But if not here are a few great platforms you can securely buy BTC:
There are brokers that accept Bitcoin deposits and allow you to trade stocks with them. However, you shouldn't choose a broker solely because it accepts BTC. There are many other important aspects to look for choosing a reliable stockbroker.
Here is a list of stockbrokers that accept BTC deposits.
Are there any cryptocurrency mining company stocks?
There are a ton of cryptocurrency mining company stocks available, but many have been disappointing. Cryptocurrency companies like Bitmain and Canaan Creative Limited trade on the Hong Kong Stock Exchange (HKSE) or Shanghai Shenzhen A-share (SZSE).
Top 7 Stockbrokers that accept Bitcoin deposits
1. EToro
Etoro was founded in 2007, and it has grown to be one of the most popular stock sites in the world. It has over 17 million users and in more than 100 countries, and the US alone has millions of users who rely on this website.
Etoro is a website that is a graphics-intensive forex and stock trading platform with numerous tools that aid users in their cryptocurrencies trading. Besides, customers who don’t come from the US can trade different assets such as stocks and CDFs.
If you are well-versed in stock trading and forex, then this is your ideal website. Initially, there was a $5 withdrawal fee for US customers, but that has been withdrawn. But if you are a resident or citizen of another country, you still have to pay $5.
Most cryptocurrency traders from the US rely on and trust Etoro to provide them the solutions they need when trading.
Customers from other countries are also permitted to trade CFDs and stocks on this platform. One of the unique features of Etoro is their ease of copying a trade.
You can copy some of the best traders on this platform who have risk-control rules which guide them in their trading strategies.
Therefore, if you are not experienced in trading well-enough, you only need to copy the successful investors' trades in the platform in real-time.
It has also been systemized but notes that copy trading doesn’t guarantee you success. Instead, with a good investor, you increase your chances of making more.
2. SimpleFX
Launched in 2014, SimpleFX is one of the best CFD brokers. It has the necessary registration and over 300,000 users, but financial regulators have not yet licensed it. However, its policies, including funds segregation and others, protect it’s the security and funds of the clients.
With SimpleFX, you can trade without any commission on over 200 CFDs, covering many fields such as stocks, forex, and commodities from the MetaTrader4 platform. This platform is available for Windows computers, and there is also a web version.
Additionally, users with an android or IOS phone can use the mobile apps for this trading platform. These apps have a wide range of currency pairs, crypto pairs, stocks, indices, and commodities, and there are also numerous deposit options.
SimpleFX is ideal for anyone who loves BTC and other forms of cryptocurrency. Besides using BTC to deposit money into this stockbroker, you can also opt for wire transfer, credit card, debit card, and numerous payment methods supported by the site.
Using BTC in this platform when depositing or withdrawing is important as you can remain anonymous in your transactions. And besides, one of the amazing things about SimpleFX is that they don’t charge their customers' trading fees.
Additionally, their site is intuitive, easy to use, and is beginner-friendly.
3. Plus500
If you’re looking for the best stock broker, then you will not go wrong with Plus500. It’s one of the best stock sites worldwide, and you can start with demo accounts where you will learn to trade using virtual money.
Therefore, beginners don’t have to worry about losing their money as they can learn how to use the platform without using real money. This platform also features excellent customer support, and in case of any issue, you will receive responses faster.
4. ThinkMarkets
Well, if you are looking for an award-winning and renowned stockbroker from London, then ThinkMarkets is your perfect match. They offer foreign exchange and enable you to buy or sell CDs on stocks, indices, precious metals, commodities, and cryptocurrencies.
During the 2017 Global Forex awards, it won the award for the Best Value Broker from Asia.
Besides this incredible reward, it has also received numerous other awards, including the Best trader for Stock, and you can check them on their official website.
The British FCA is the regulator for Think Markers since it’s from the UK, and you will enjoy a maximum of one million pounds’ deposit security. This site supports MT 4, MT5 and they also have an in-site trading platform accessible from their main website.
5. Block-Fi
Block-fi is a website that enables you to invest in stock and cryptocurrencies. Here, you will get interested in your holdings by lending them. Besides, you don’t need to sell your stocks when you need some cash as you can borrow a loan against them.
And investors who also want to keep tokens will earn interest from them. You will also get other amazing offers on signing up with BlockFi.
6. Robinhood
Robinhood is one of the newest players in the market, but it's quickly gaining traction in the stock exchange world. Here, you will enjoy crypto trading for free, and though it’s available in some states only, they already support BTC and Ethereum.
Though they still have some challenges, it's free, and on opening a free account, you will be given some stock.
7. Kraken
This is one of the earliest and most popular crypto trading platforms in the world. Krakens boasts of numerous tokens and coins you can invest in, and you can also margin trade. But considering that it's majorly an exchange, it's not ideal for beginners who are still learning about forex and cryptocurrencies.
But it’s ideal for the high-risk investors who love wagering huge amounts of money to buy a high volume of stocks. This site supports Bitcoin, and over time, it’s expected to roll out support for the other cryptocurrencies.
8. Crypto.com
This is one of the fastest-growing exchanges on the internet. It’s located in Hong Kong, but even US customers will enjoy the maximum support from the administrators of this site.
With over 90 coins and tokens, you have numerous investment choices, and they also offer good rates in their savings accounts. But you only have to work through their app as there is no web version.
Bottom-line
Well, are you now ready to start funding your stock account using BTC. Our top websites list allows bitcoins to feature sites with the best rates, low transaction fees, maximum security, and other benefits.
And since cryptocurrencies are the future of the financial world, other sites need to embrace this payment method. This will ensure they become versatile and adapt to the changing needs and preferences of the modern-day investor.
Finally, you are highly recommended to take a look at these books explaining how to invest in the stock market.
