Cryptocurrencies at Vanguard
Cryptocurrencies offer many opportunities for investors and there are many ways to get involved with them. With a Vanguard trading account, investors can take part in the cryptocurrency markets in a variety of ways, but it is not as straightforward as you may think. Here are a few of the options that are available.
What is the Blockchain?
One important thing to keep in mind when considering adding cryptocurrencies to your investment strategies is that they have only just begun to be institutionally accepted. Cryptocurrencies come in a few different forms, but at their heart they are tokens that are created through code. That code is publicly shared and viewable, and transactions all take place on a public forum.
Each cryptocurrency is built on its own blockchain network and they are all created with a different use case in mind. Some are meant to be scarce, replicating gold and other precious metals, while others are plentiful and meant to facilitate microtransactions and low-cost money movement. Depending on the goal of the blockchain powering each of the available coins, the behavior and acceptance of the tokens can change to reflect that goal.
Investors at Vanguard are becoming quite interested in the potential that the cryptocurrency markets offer, and rightly so. Cryptocurrencies offer more volatility than almost every other asset class. Despite the growing interest, Vanguard has yet to offer a fund concentrated on cryptocurrencies that its investors can take advantage of.
It is not all bad news, though. There are some ways that Vanguard account holders can gain some cryptocurrency exposure.
Proxy Companies
One way to gain exposure to the world of crypto is to seek out ETFs and Mutual Funds at Vanguard that include companies that are somehow involved with cryptocurrencies. There are many, but some homework is required.
Some well-known companies that are actively involved with cryptocurrencies like Bitcoin include PayPal, Tesla, Visa, Galaxy Digital Holdings, Square, Riot, and Coinbase Global.
It is possible to search for and invest in companies involved with cryptocurrencies right from the ticker search page. This can be useful for investors looking to concentrate on cryptocurrencies instead of the broad scope offered by one of the 390+ ETFs and Funds offered at Vanguard.
Riot (RIOT) is a popular choice as it is a blockchain mining ticker that moves in correlation with the largest cryptocurrencies.
Cryptocurrency Funds at Vanguard
For many, the kind of volatility that comes with trading single stocks can cause a bit of whiplash, especially when those stocks are high-flying tech or crypto-related stocks. It can be much calmer (and less risky) to invest in ETFs and Funds, and as we already said, Vanguard has no shortage of those.
To find the best ETF, simply take a look at the company list that makes up the Fund. ETFs that have a higher percentage and weighting of companies involved with cryptocurrencies are going to move a bit more like the cryptocurrency markets than Funds concentrated on other sectors.
One good example of such an ETF is the Vanguard Growth ETF (VUG). Not only does it feature some of the biggest names in tech, but also companies who are heavily invested in blockchain and cryptocurrencies.
There are also non-Vanguard ETFs available to Vanguard users that are directly correlated with the blockchains they track. Examples include Grayscale’s Ethereum, Ethereum Classic, and Bitcoin indexes.
Alternative to Vanguard for Cryptocurrency Trading?
As you can see, investors have to get a little creative to get involved in the fast-moving world
of crypto and blockchain tech. It does not have to be complicated, though. Some alternatives to Vanguard for cryptocurrency trading offer many opportunities.
One of our favorite stockbrokers that feature cryptocurrencies is Webull.
Webull is FINRA/SEC regulated, and client accounts are SIPC insured, just like at Vanguard.
At Webull, traders can
invest in all the same ETFs and stocks available on Vanguard, but investors can also directly
access the most highly traded coins in the world. Here are the cryptocurrencies available on the Webull crypto trading platform:
- Aave (AAVE)
- Algorand (ALGO)
- Apecoin (APE)
- Avalanche (AVA)
- BAT (BAT)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- BNTUSD (BNT)
- Chainlink (LINK)
- Chiliz (CHZ)
- COMPUSD (COMP)
- Cosmos (ATOM)
- Crypto.com Coin (CRO)
- Curve DAO (CRV)
- Dash (DASH)
- Decentraland (MANA)
- ENJUSD (ENJ)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Dogecoin (DOGE)
- Fantom (FTM)
- FILUSD (FIL)
- Gala (GALA)
- ICPUSD (ICP)
- LINK (LINK)
- Litecoin (LTC)
- Loopring (LRC)
- Maker (MKR)
- Polygon (MATIC)
- REN (REN)
- SHIB (SHIB)
- Solana (SOL)
- Stella Lumens (XLM)
- Sushi (SUSH)
- Stella Lumens (XLM)
- Terra (LUNA)
- Tezos(XTZ)
- The Graph (GRT)
- UNI (UNI)
- USD Coin (USDC)
- XLM (XLM)
- yearn.finance (YFI)
- Zcash (ZEC)
Advantages of Webull for Crypto Trading
There are many reasons that investors would select Webull over Vanguard for blockchain trading.
One of the most notable is the direct access to the crypto markets that Webull provides.
Another is the fact that Webull has a
zero fee structure for trading stocks, crypto, and ETFs.
Investors also enjoy a generous sign on bonus offered by the platform that gifts
12 stocks to all new members after a $100+ deposit. The stocks can be valued as high as $30,600.
Another advantage with Webull is the trading platforms that are provided. Whether traders are
interested in desktop, web, or mobile trading, the Webull trading software is top class. There are
many charting settings to make identifying price action trends easier, and many technical indicators for traders looking for even more.
Learn more...
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Open WeBull Account
Trading Options on Blockchain Stocks and ETFs
Another possibility for investors looking to take part in the cryptocurrency markets is options. Options are offer many advantages over ETFs and stocks but also come with substantial risk.
At Vanguard, investors will have access to basic options trading functionality for all securities, funds, and ETFs that offer options. Many do not. It is also useful to know that Vanguard does not offer multi-leg options strategies.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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