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Can You Buy Crypto On Questrade? (9 Things You Should Know!)

Jamey Muller
Updated: June 6, 2022
5 min read

Questrade is an excellent fit for investors hoping to save thousands on fees when buying stocks and bonds.

But can you buy cryptocurrencies on Questrade?

Here’s if You Can Buy Crypto on Questrade:

You cannot directly purchase cryptocurrencies on Questrade simply because the platform does not support the exchange of cash currency for encrypted digital keys. If you want to invest in crypto, you can do it indirectly by buying Questrade’s crypto exchange-traded fund (ETFs). 

Questrade does not have the required technological infrastructure to make cryptocurrency transactions. 

When you buy crypto and the holding key, they are transferred to a cold storage digital wallet to give you sole, incontestable ownership of the purchase.

Questrade does not offer this capability. 

Executing actual cryptocurrency transactions also requires a lot of computing power. If a platform that offers crypto ends up struggling to handle huge-scale transactions and secure user keys, the consequences are significant.

Like other popular financial technology platforms, Questrade provides a diverse range of investments, but not direct crypto purchases.

For crypto investments, you can buy the ETFs offered by the platform.

Can You Buy Bitcoin on Questrade?

No. You cannot buy Bitcoin on Questrade. The same applies to Ethereum (ETH) and Litecoin (LTC) or any other cryptocurrencies.

For buying, selling, transferring and storing crypto, you can use secure platforms like Coinbase.

What Crypto Can You Buy on Questrade?

While you cannot directly buy cryptocurrencies using your Questrade account, you can still invest in crypto through the ETFs offered on the platform.

If you want proprietary ownership of encrypted keys, you will need to choose a different platform that caters to buying and selling of cryptocurrencies.

What Exactly Are Crypto ETFs?

Exchange-traded funds or ETFs are available for all types of assets, including cryptocurrencies. These are tools usually utilized to make it easier for regular individuals to invest in complex positions.

You should note that when your invest in ETFs, you are not actually buying the asset itself. What you are purchasing is a stake in a company that holds fundamental positions in the asset.

In the case of crypto ETFs, you will not be buying the cryptocurrency itself. You are acquiring shares in a firm that mirrors the crypto performance that you are interested in.

For example, you are to buy Bitcoin ETF on Questrade. Your account balance will not show Bitcoin crypto. What it will reflect are the gains and losses experienced by the ETF that tracks Bitcoin’s performance.

ETFs are an excellent way to increase your crypto exposure and diversify your portfolio. They validate digital assets by allowing them to be purchased through regulated channels.

Since you do not have a personal crypto wallet, you do not have to worry about losing your private keys.

However, you cannot use the crypto you bought via an ETF to purchase other cryptos. 

You will not be able to use your Bitcoin funds to make payments, even if you have a $1 million of Bitcoin in an ETF on Questrade, 

Which Crypto ETFs Can You Buy on Questrade?

The following are crypto ETFs available through Questrade:

  • Purpose Bitcoin ETF (BTCC)
  • Evolve Bitcoin ETF (EBIT)
  • CI Galaxy Bitcoin ETF (BTCX)
  • CI Galaxy Ethereum ETF (ETHX)
  • Evolve Ether ETF (ETHR)
  • 3iQ CoinShares Ether ETF (ETHQ)

Should You Buy Crypto ETFs on Questrade?

Definitely. Crypto ETF purchases are free on Questrade. Moreover, you only pay a low transaction fee for every transaction when you sell ETFs.

Questrade has a long track record, with over $25 billion in assets. If you are a new client who deposits at least $1,000, you can get $50 in free trade credits.

It is also excellent for new investors who want to try out DIY investing. The trading platform is not complicated, so it is easy for you to buy and sell ETFs.

buy-crypto-questrade_sell-buy-analysis

Advantages of Buying Crypto ETFs on Questrade:

Questrade takes no commission fees from the ETFs you purchase. Doing so allows investors to get their feet wet in the world of investment by lessening the risks.

This is the reason why Questrade is highly recommended by experts to young investors who want to steadily build wealth over time.

One main advantage of buying crypto ETFs on Questrade is the simplicity of the process. When trading, you do it the same way you would for other types of investment.

Questrade clients do not need advanced technical skills regarding data mining or encrypted key transfers.

The platform also makes it easy for you to buy small stakes in crypto. While prices of Bitcoins or Ethers are mostly out of the price range of regular investors, this is not the case with ETFs.

For instance, an investment of $50 into a Bitcoin ETF can easily become $60 if Bitcoin enjoys a 20% increase in price.

Lastly, trading ETFs makes easy conversion of your crypto investment into cash. 

If you need to convert your holdings to cash, you only need to sell your stake in the ETF and cash out. The process is the same as when you cash out using other types of Questrade investment.

Disadvantages of Buying Crypto ETFs on Questrade:

An underlying argument for buying cryptocurrencies through EFTs is about proprietary ownership in the cryptocurrency itself.

When you buy a crypto ETF, you do not own cryptocurrencies. You are simply investing in the crypto asset of whatever coin you have invested in.

You have not acquired the keys to the crypto as they are held by the fund you put your investment in. For some, “no keys” is tantamount to “no coins.”

Moreover, you cannot use crypto brought via an ETF to make purchases using crypto. Your Questrade holding is basically useless if a vendor requires payment to be made in Bitcoin.

This should not be an issue if you are the type of investor who sees crypto as an investment for your growing wealth.

However, if you prefer to have the utility to pay using digital assets, you will need to choose a different platform where you can obtain crypto keys.

Because crypto ETF is still very new, its long-term sustainability is uncertain. As such, it is considered a high-risk investment.

Will Questrade Ever Support Buying Crypto and Not Just Crypto ETFs?

Questrade has not explicitly stated whether it will offer cryptocurrencies for direct purchase, but it may in the upcoming years.

Crypto is a growing sector and Questrade would probably prefer its clients to not transfer to another platform to make investments that it cannot support.

For now, crypto ETFs are your options for crypto investments on the platform.

Sources:

Questrade

Investopedia

Written by
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.
Have any questions? Write us a message.
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.