Trading 212 is one of the most popular brokers in Europe. It offers a wide range of products, a low-cost fee structure, and features like fractional shares and auto investing.
Unfortunately, cryptocurrencies are not one of the products you can buy on Trading 212 right now.
However, the broker has recently acquired a Crypto Asset Services Provider (CASP) license in Cyprus, which means that the broker already has the license to offer crypto trading services to clients in the European Union. It’s a matter of time until the broker offers crypto.
This article will explain why you can no longer buy crypto on Trading 212 and alternative brokers that you can use if you want to buy real cryptocurrencies like Bitcoin, Ethereum, and other altcoins.
Can you buy crypto on Trading 212?
No, Trading 212 does not offer cryptocurrencies like Bitcoin or Ethereum.
However, the broker has recently acquired a crypto license from CySEC, which means that the broker might offer cryptos too soon.
Before the 6th of January 2021, buying cryptocurrencies on Trading 212 via crypto-derivative financial instruments was possible. This means that you would enter a contract where the broker would buy and sell the crypto you wanted for you, but you would never be the actual owner of the coins. Essentially you were predicting if the price of the crypto you wanted to buy would go up or down without ever owning it.
Due to the combination of the highly volatile nature of cryptocurrencies and the leverage offered by CFDs and other products, the FCA (Financial Conduct Authority), the body that regulates Trading 212 in the UK, decided to prohibit the sale of this type of asset to retail clients as a way to protect them from heavy losses.
However, since European clients were moved to the Trading 212 subsidiary in Cyprus, Trading 212 Markets Ltd., and are now regulated by CySEC (the Cyprus Securities and Exchange Commission), the door is open for Trading 212 to allow European investors to buy real cryptocurrencies on the platform. Unfortunately, there is no date set as to when this will happen. As of now, these assets are “view only”:
Are Bitcoin ETFs available on Trading 212?
No, Bitcoin ETFs are also not available on Trading 212. Bitcoin ETFs were approved by the SEC and are available for US-domiciled investors only.
How to get indirect exposure to cryptocurrencies on Trading 212
In case you want to get exposure to cryptos while using the Trading 212 platform, you can still look for crypto stocks that give you exposure to cryptocurrencies.
Some examples of such stocks are:
- Microstrategy: a company with high holdings of Bitcoin
- Bitcoin mining companies such as Cleanspark
Trading 212 alternatives for trading real cryptocurrencies
Even though you can’t buy real cryptocurrencies on Trading 212, there are several other alternatives to choose from:
eToro
eToro is the leading social trading platform. It supports over 65 cryptocurrencies and has many other products, such as stocks and ETFs. Cryptocurrency trading costs 1%, and this fee is charged on top of the Bid-Ask spread market price for both buy and sell trades.
Coinbase
Coinbase is one of the biggest crypto exchanges in the world, with over 100 million users. It offers a wide range of different digital currencies.
Kraken
Kraken is the fifth largest Bitcoin exchange globally, according to trade volumes. Kraken is operational in over 200 countries, with a chunk of its 10 million users resident in Europe.
Crypto.com
Possibly the most marketed crypto platform right now, Crypto.com allows you to gain access to over 250 different cryptos and earn interest on the crypto you buy by lending them to other investors. Your fees will be determined by how much you invest (higher investments will give you lower costs and vice versa), and the platform may also be challenging to navigate for new investors.
Bottom line
If you want to invest in cryptocurrencies, Trading 212 is not the broker you are looking for, at least for now.
This article presents some alternatives that allow you to be exposed to cryptocurrencies, both directly and indirectly. Explore their websites and decide for yourself!
Please keep in mind that cryptocurrencies are highly volatile, and your money will be at risk.
Happy investing!
