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In short, TD Ameritrade does not currently offer cryptocurrency trading. However, we have received numerous requests from our clients for this type of trading product.
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Introduction
At this time, TD Ameritrade does not provide the ability to trade or hold cryptocurrencies directly in client accounts. However, we do offer the ability to trade certain cryptocurrency-related securities products, listed below. Please note that investing in these products is speculative and involves a high degree of risk. Prices can fluctuate considerably in response to news and global events. Investing in these products could lose all of your invested capital.
-Bitcoin Futures: CME (BTC)
-Bitcoin Futures: CBOE (XBT)
-Ethereum Futures: CBOE (ETH)
-Ripple Futures: CBOE (XRP)
What is TD Ameritrade?
TD Ameritrade is an American online broker based in Omaha, Nebraska. The company offers services for individuals and institutions that trade stocks, bonds, ETFs, mutual funds, forex, futures contracts, and options. TD Ameritrade is a publicly traded company on the NASDAQ stock exchange under the ticker symbol “AMTD”.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Transactions are verified by a network of nodes (computers) through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Other popular cryptocurrencies include Ethereum, Litecoin, Bitcoin Cash, Monero, Dash, Zcash and Ripple. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
Does TD Ameritrade Offer Cryptocurrency Trading?
Unfortunately, at this time, TD Ameritrade does not offer cryptocurrency trading. This may change in the future, but for now, TD Ameritrade does not support any type of cryptocurrency trading.
How to Trade Cryptocurrency on TD Ameritrade
Although TD Ameritrade does not currently offer cryptocurrency trading, there are still ways to trade digital currency using the broker’s platforms. Here’s a look at how to do it.
1. First, you’ll need to set up an account with a cryptocurrency exchange that offers trading pairs with USD. Coinbase Pro and Kraken are two popular exchanges that meet this criterion.
2. Once you have an account set up, you can then link it to your TD Ameritrade account using the broker’s integration with traditional exchanges like Coinbase Pro.
3. From there, you can trade cryptocurrencies on the TD Ameritrade platform using the same interface and features that are available for other assets classes like stocks and ETFs.
4. It’s important to note that TD Ameritrade does not currently offer custodial services for cryptocurrencies, so you will need to hold your digital assets in a wallet at the exchange where your account is located.
Conclusion
At this time, TD Ameritrade does not offer cryptocurrency trading. However, the company has invested in the technology underlying cryptocurrency and has been working on a potential solution for trading digital assets. While there is no timeline for when TD Ameritrade might offer crypto trading, it is something that the company is exploring. In the meantime, investors can trade Bitcoin futures through the TD Ameritrade thinkorswim platform.
