Can You Buy Crypto on Merrill Edge?
While Merrill Edge does not directly allow you to trade cryptocurrencies, there are several ways to invest in Bitcoin and other cryptocurrencies through a Merrill Edge account. By the end of this article, you'll understand these methods and how to buy cryptocurrencies directly.
Blockchain Stocks
Many tech companies are heavily investing in blockchain technology. Blockchain is the digital ledger that records all transactions of Bitcoin and other cryptocurrencies. Tech companies value this digital ledger because it promises a future of reduced cybercrime, being a transparent record.
Baidu, a Chinese company, introduced its blockchain service in 2018 for businesses and launched a beta version called Xuperchain in 2020, open to the public. Before launching these services, Baidu already accepted Bitcoin for certain transactions on its website.
Baidu is listed on the Nasdaq in the United States under the ticker symbol BIDU. It has a strong buy rating from over 30 analysts and, despite not paying dividends, shows a high trading volume, suggesting a minimal cost difference between buying and selling prices.
Trading BIDU through Merrill Edge does not incur transaction fees because it's a zero-commission broker.
Blockchain ETFs
If you're worried about the risks of investing directly in companies like Baidu, consider blockchain ETFs which are less volatile because they include a range of assets.
Several blockchain ETFs have been launched, such as the Siren Nasdaq NexGen Economy Fund (BLCN), available through Merrill Edge. This ETF invests in companies actively using or developing blockchain technology and follows a specific index to manage its investments.
Here are some of the companies included in BLCN:
- Microsoft
- Square
- International Business Machines
- Baidu
- Tencent
- Digital Garage
- Galaxy Digital Holdings
Baidu is also part of this ETF, demonstrating its diversified investment approach. BLCN also pays dividends quarterly, currently at 10.2 cents per share.
Other blockchain ETFs available on Merrill Edge include KOIN, BLOK, and LEGR.
Trading Cryptocurrencies Directly at Robinhood
For direct cryptocurrency trading, consider using Robinhood, which unlike Merrill Edge, allows this type of trading.
Open a Robinhood account here. Robinhood offers zero commission trades on cryptocurrencies and you can start trading with as little as $1.
- Aave (AAVE)
- Avalanche (AVAX)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Compound (COMP)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Shiba Inu (SHIB)
- Steller Lumens (XLM)
- Tezos (XTZ)
- Uniswap (UNI)
- USDC (USDC)
Trade cryptocurrencies on Robinhood without commission.
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Open Robinhood Account
Trading at Merrill Edge vs. Trading at Robinhood
Trading cryptocurrencies on Robinhood offers different conditions compared to Merrill Edge. Cryptocurrencies are available for trading almost continuously, except during short maintenance breaks.
Settlement for cryptocurrency trades on Robinhood is immediate, while Merrill Edge's stocks and funds take two days after the trade date to settle.
Grayscale Funds
For more direct exposure to cryptocurrencies, consider Grayscale’s investment funds. These funds, which trade over the counter, carry higher risks.
Popular Grayscale funds include:
- Grayscale® Bitcoin Trust
- Grayscale® Bitcoin Cash Trust
- Grayscale® Ethereum Trust
- Grayscale® Ethereum Classic Trust
- Grayscale® Litecoin Trust
- Grayscale® XRP Trust
These funds directly track the performance of their respective cryptocurrencies.
You can find all these Grayscale funds at Merrill Edge.
Updated on 7/5/2024.
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