Curious about whether or not you can trade crypto on Questrade?
I’ve personally traded stocks and ETFs with Questrade for over ten years now, and it’s always been one of my top picks for trading platforms in Canada.
While the platform is excellent for more traditional investments, Questrade doesn’t allow direct investment into cryptocurrency securities. However, users can still get exposure to cryptocurrency by buying crypto ETFs and publicly-traded crypto mining companies.
Here are the steps on how to buy crypto on Questrade in 2023:
- Open a self-directed account on Questrade
- Deposit funds into your trading account
- Research crypto ETFs and mining companies on the Toronto Stock Exchange (TSX)
- Purchase and trade crypto ETFs on Questrade
- Set up price alerts to minimize risk
Below, I’ll go through each of these steps in further detail and explain some differences between buying crypto on Questrade versus using a cryptocurrency exchange.
Recently, I’ve received a number of questions asking, “Can I buy/trade crypto on Questrade?”
The good news is that you can invest in crypto on Questrade.
However, unlike traditional cryptocurrency exchanges, you can’t buy or hold the cryptocurrency assets themselves on Questrade.
Since Questrade isn’t registered as a cryptocurrency exchange, users will be limited to investing in crypto ETFs and publicly-listed companies that operate in the crypto/blockchain space (such as public crypto exchanges or crypto mining companies).
Investing in crypto ETFs and crypto-related stocks is a lot different than purchasing cryptocurrency tokens on a crypto exchange.
When you purchase crypto on an exchange, you’ll be given a crypto wallet address where your coins will be stored upon purchase.
After this, you would have the option to move your crypto tokens to:
- Another crypto exchange
- A software wallet on your device
- A hardware wallet (hard wallet) for cold storage off of the blockchain
Investing in crypto ETFs and public crypto companies on Questrade is the same as purchasing/trading regular ETFs and stocks. The main difference is that crypto ETFs and stocks can be much more volatile than other publicly traded companies in more stable industries.
Now that you’re aware of what sets Questrade crypto trading apart from using a regular crypto exchange, let’s break down the steps that I mentioned above.
As long as you’re of majority age and a legal resident of Canada, you can open an account with Questrade.
Although Questrade offers professionally managed investment accounts (Questwealth), you’ll want to open a self-directed Questrade account if you want to invest in crypto companies and ETFs.
Due to the volatility and unpredictability of the crypto market, Questwealth account managers aren’t likely to add any crypto-related ETFs and stocks to your investment portfolio.
When it comes to self-directed trading accounts, you’ll be able to open up the following types:
- TFSA: Tax-Free Savings Account (tax-free investment earnings)
- RRSP: Registered Retirement Savings Plan (retirement account investing)
- RESP: Registered Education Savings Plan (invest in your child’s future)
- Cash or Margin Trading Account (standard trading account)
There are various pros and cons to each type of account, and you can click on the links to learn more about each type of investment account. I’ll leave it up to you to decide which best fits your goals.
However, if you’re just looking to experiment with some crypto market trading on Questrade, consider starting a regular cash trading account, as there aren’t any rules regarding contribution limits.
- How to open an account: Click here to open your Questrade account
Once you register your trading account, you’ll need to fund it. This is the easy part. All you need to do is connect your Canadian bank account to your Questrade account. From here, you’ll be able to deposit money directly into your trading account.
Once your bank account is linked and verified, you can initiate transfers to and from the account.
Note – funds may take several business days to settle in your Questrade account after being transferred from your bank account.
If you’re looking for an instant transfer, you can also link an eligible Canadian Visa debit card to your Questrade account. While debit card transfer limits are typically lower than bank account transfer limits, this can help you fund your account more quickly.
Now, it’s time to put in some work…
Before investing in any ETF (crypto or otherwise), you should do your due diligence. This means making a list of prospective crypto ETFs and crypto-related companies that are available on the Toronto Stock Exchange.
From here, you’ll want to do background research on each ETF/stock, track its market performance, and look into each stock ticker’s most recent news and earnings reports. This will help you determine whether to view the investment as a quick “swing trade” or a potential long-term investment.
To help you start your research, I’ve listed a few of the top crypto ETFs and crypto-related stocks in Canada below.
After doing your research on your chosen crypto ETFs and their potential price points, it’s time to make a purchase. To do this, simply view Questrade’s list of ETFs or use Questrade’s ‘search’ function to look up the ticker.
From here, you’ll be able to invest in your first cryptocurrency assets.
While this step is optional, I highly recommend it.
Like most trading platforms, Questrade allows users to set up price alert notifications. You can program the platform to email, text, or send push notifications to your device whenever certain stocks and ETFs fall below or rise above a defined price point.
This will help you accomplish three things:
- It can help you identify a good entry point (i.e., the stock price is low and has the potential to rise)
- It can notify you when an investment is falling, so you can sell it and secure your profits
- It can notify you when an investment is rising, so you can track its progress
Given the volatility of the crypto market as a whole, it’s also a good idea to set a stop-loss order on certain investments.
A stop-loss will trigger Questrade to automatically sell a portion (or all) of a particular investment if it falls below a certain price point. This can help you trade smart and minimize losses before you lose too much.
A “day trade” occurs when you buy and sell the same stock or options contract within the same trading day. Full-time traders often engage in day trading, as they have time to watch the constant market fluctuations to catch sudden uptrends and downtrends.
Questrade users can day trade crypto ETFs and crypto stocks just as they would regular ETFs and stocks on the platform.
However, be aware that this is a risky strategy with a low probability of success usually.
Questrade Crypto Investments Available
To help get you started, here’s a list of some of Canada’s best crypto ETFs and stocks.
Best Bitcoin ETFs in Canada:
- Evolve Bitcoin ETF
- Purpose Bitcoin Yield ETF
- Fidelity Advantage Bitcoin ETF
- 3iQ CoinShares Bitcoin ETF
- Ninepoint Bitcoin ETF
- CI Galaxy Bitcoin ETF
- Purpose Bitcoin ETF
Best Ethereum ETFs in Canada:
- CI Galaxy Ethereum ETF
- Purpose Ether ETF
- 3iQ CoinShares Ether ETF
- Evolve Ether ETF
In addition to these crypto ETFs, you can also purchase stock in the US-based cryptocurrency exchange – Coinbase (NASDAQ: COIN). The company went public on the US Stock Exchange and can be purchased on Questrade.
In addition to investing in crypto ETFs, Questrade users can also invest in cryptocurrency mining companies. Unlike metals (i.e., gold, silver, copper), Bitcoin and other cryptos aren’t mined underground.
Instead, the tokens are awarded to “nodes” (computers) that support the blockchain network. These mining computers operate 24/7, solving complex algorithms and equations to be rewarded with Bitcoin and other mineable cryptocurrencies.
Large crypto-mining companies manage massive warehouses lined with thousands of computers. While the operating costs can be high, the crypto awarded to mining companies almost always outweighs this.
With this in mind, here are some of the top publicly-listed crypto mining companies in Canada:
- HIVE Blockchain Technologies Stock
- Bitfarms Stock
- DMG Blockchain Solutions Stock
- Galaxy Digital Holdings Stock
- Hut 8 Mining Stock
- SATO Technologies Stock
If you’re just getting started investing in crypto, then you may be unsure of whether you should invest in crypto ETFs and stocks on a trading platform like Questrade, or if you should use a dedicated crypto exchange like Bitbuy or Wealthsimple Crypto.
So, here’s a quick chart outlining some of the key differences of investing in crypto on a standard stock trading platform versus a dedicated crypto trading platform:
|Differences||Stock Trading Platform||Cryptocurrency Trading Platform|
|Types of assets||Stocks, bonds, options, ETFs, etc. (with available crypto ETFs, stocks)||Cryptocurrencies only|
|Available cryptocurrencies||You can’t purchase actual cryptocurrency tokens, only crypto ETFs and crypto-related stocks||Wide selection of major coins and altcoins|
|Trading hours||Limited to stock market hours||24/7 trading|
|Access to research||Extensive research and analysis tools||Limited research and analysis tools|
|Security and regulation||High level of security and regulation||Less regulation and security|
Interested in investing with a dedicated crypto exchange instead? Here’s a quick overview of some of the best crypto exchanges in Canada.
- Sign Up: Wealthsimple Crypto
Wealthsimple is an all-in-one wealth management and investment platform based in Toronto. It launched the Wealthsimple Crypto platform in 2020 and has since amassed over a million users.
This exchange supports over 35 different cryptocurrencies, in addition to major tokens like Bitcoin and Ethereum. While the trading fees may not be the lowest compared to other exchanges, they are still reasonable, ranging between 0.5% to 2%.
One unique feature of Wealthsimple is its 24/7 customer support, available through both email and live chat. This level of support isn’t commonly found in the crypto industry, which makes it a great platform for beginners.
- Sign Up: Bitbuy Crypto Exchange
With trading fees starting at 0.2%, Bitbuy offers a cost-effective solution for those starting out in the crypto world. With 25 different cryptocurrencies to choose from, it offers almost as many options as Wealthsimple Crypto.
Bitbuy offers an easy-to-use mobile trading app and is also recognized by the Ontario Securities Commission as a Registered Marketplace and Investment Dealer, which offers some added peace of mind.
Conclusion – Questrade Allows Users To Invest In Crypto ETFs and Stocks Only
Although you can’t invest in cryptocurrency tokens on Questrade, you can invest in crypto ETFs and stocks using a self-directed Questrade account. This can be a good way to dip your toes in the crypto market without having to create an account with a separate crypto exchange.
Want to learn more about the Questrade platform? Keep reading to see how to get $50 of free trading credit on Questrade.