Wells Fargo Ethereum

Buying Ethereum, Dogecoin, Cardano Crypto on Wells Fargo (2022)


Wellstrade crypto trading account. Can you buy Wells Fargo cryptocurrencies mutual fund, blockchain fund, ETF, BAT, NEO, Ripple, Stellar, Shiba Inu, Cardano, Dogecoin, Ethereum (ETH), and Litecoin (LTC) alt coins.


Cryptocurrency at Wells Fargo


A lot of buzz and excitement surrounds bitcoin and other cryptocurrencies nowadays. Although WellsTrade doesn’t offer direct trading in the coins themselves, it is possible to gain exposure to the cryptocurrency market with a WellsTrade brokerage account. Keep reading, and we’ll show you how.


Crypto ETFs at WellsTrade


Several exchange-traded funds have been created in recent memory that aim to provide exposure to the burgeoning cryptocurrency marketplace. These funds don’t always invest in cryptocurrencies themselves, but rather assets that are tied to them.

One example is BTF, the Valkyrie Bitcoin Strategy ETF. This fund buys and sells bitcoin futures contracts, so it does not hold actual currency. It does a pretty good job of tracking the price of the digital currency.

BTF has an expense ratio of 0.95%, which is pretty good for an actively-managed fund. It has just over $35 million in assets at last count, so this is a very small ETF.

Because Valkyrie’s fund invests solely in crypto contracts, it is non-diversified and pays no dividend.


How to buy bitcoin on Wells Fargo


If you want both, you should check out LEGR, the First Trust Indxx Innovative Transaction & Process ETF. This fund pays a dividend (more than 1% annually) from a large selection of stocks. Many of these equities are investing quite a few resources into various areas of cryptocurrencies. Some of the companies in LEGR include:

- Fujitsu
- IBM
- Oracle

LEGR tracks an index called the Indxx Blockchain Index. For a company to make it into the fund, it must be actively developing products that benefit from blockchain technology.

WellsTrade shows mixed reviews for LEGR. Lipper grades the fund a 5 (its highest grade) for capital preservation, but only a 1 (its lowest grade) for consistent return.

WellsTrade has a zero-commission policy for online trades of ETFs, which means bid-ask spreads are the only cost of trading them. LEGR has an average daily volume of just north of 27,000 shares, while BTF is above 740,000 shares.


Crypto Stocks at WellsTrade


Although you can’t avoid bid-ask spreads with stocks, you can avoid management fees. Individual stocks don’t have expense ratios, and as we have already seen, there are individual stocks that are connected one way or another to cryptocurrencies.


Crypto Wells Fargo


Marathon Digital Holdings specializes in the mining of cryptocurrencies. Mining is the computerized process of creating more coins. The company’s stock trades on the Nasdaq with symbol MARA.

According to WellsTrade’s profile for MARA, the stock pays no dividend, and its most recent earnings were negative. The beta for MARA is over 4.0, which represents a high level of volatility.

Despite these rather negative points, WellsTrade’s profile shows an overall trade recommendation of strong buy created from multiple analysts.

Another company actively engaged in the world of cryptocurrencies is Visa. Trading with ticker symbol V, this large and famous company has rolled out many programs and services that will be used in the future (some can be used today) for cryptocurrency transactions. Examples include crypto APIs, cross-chain interoperability, crypto-linked cards, and offline crypto transactions.

Unlike MARA, Visa pays a dividend (it's $1.50 per year). Also unlike MARA, Visa is a mega-cap company. At recent count, Visa’s market count was over $470 billion.

WellsTrade’s profile for Visa shows an overweight rating from Wells Fargo Securities and a neutral rating from Morningstar.

WellsTrade charges no commissions on stock trades.


Options on Crypto Stocks and Funds


If you’re looking to capture short-term movements on crypto stocks and funds, the options market is one way to do it. During our investigation, we discovered that many of the stocks and funds in the crypto space have options contracts trading on them.

For example, Visa has close to 100,000 contracts for the nearest expiration date. There are of course other expiration dates, and these have thousands of contracts.

Besides their short-term nature, options also are inherently leveraged, which increases the amount of risk and potential return.

WellsTrade’s website and mobile app place calls and puts side-by-side as is traditionally done. It is also possible to display just calls or just puts. Neither software platform offers multi-leg strategies, so calls and puts are it. It is not possible to build custom orders at WellsTrade.

Option chains on the broker’s website do not show open interest, but it is possible to find this information. Just click on a red plus sign next to a contract and you’ll get a drop-down window with more details.

Derivative trades at WellsTrade have a base charge of $5.95 plus a per-contract fee of 75¢.


Trading OTC Crypto Securities at WellsTrade


Besides the large national exchanges, WellsTrade also provides access to the OTC marketplace. Some securities trading over-the-counter do invest in cryptocurrencies, some quite heavily.

For example, a really popular bitcoin fund is GBTC. This is the Grayscale Bitcoin Trust. It trades on the Pink Sheets with a current market price of around $30. The fund holds actual bitcoin, not futures contracts or stocks linked to bitcoin. As of publication, GBTC has about 650,000 bitcoins, which is tremendous. This is the largest bitcoin fund in the world.


Bitcoin on Wells Fargo


Trading GBTC or any other over-the-counter security at WellsTrade follows the same procedure as for a regular trade. Just enter the ticker symbol in the top-right search field on the website and select Trade from the drop-down list of choices.

Once on the trade ticket, you’ll see several fields like share quantity and order type. Just fill in these details and you’re ready to submit.

WellsTrade has no surcharges for OTC trades, although it does charge extra for penny stocks (securities listed below $1 per share).


Webull’s Direct Crypto Trading


If the indirect methods of trading cryptocurrencies at WellsTrade don’t impress you, there is always direct trading of coins themselves. While this cannot be accomplished at WellsTrade, it can at Webull.

Webull offers no-fee brokerage accounts with trading in over 20 cryptocurrencies. These include some unusual ones like:

- Uniswap Protocol Token
- Decentraland
- Fantom
- Chainlink

And of course, the majors like Bitcoin and Ethereum are available as well.

Webull charges no commissions on crypto trades, although bid and ask prices are spread out by 100 basis points. This spread generates revenue for the broker.

Buying and selling cryptocurrencies at Webull is pretty easy. The process follows the same basic procedure for stocks and ETFs. Just enter a ticker symbol or coin name in the search field on any of Webull’s three platforms (mobile app, desktop system, or browser platform) to pull up the coin’s profile.


How to buy bitcoin on Webull


A coin can be added to a watchlist just like a stock or ETF, and it’s possible to create a dedicated watchlist just for cryptos if that’s what you want. It’s also possible to set up alerts for digital currencies (price and % change are the only 2 triggers).

A crypto trade at Webull can be placed either in whole dollars or in whole coins. The brokerage house does have a minimum purchase of one dollar. This of course is an extremely small fraction of some coins (like bitcoin).

Research tools for digital currencies are rather limited at Webull, as they are at most other direct brokers. There is no currency search engine, but we did find news articles on them.

Charting tools, however, are on a much higher level. The same charting tools for securities are available on Webull’s software for cryptocurrencies. There are drawing tools, technical studies, right-click trading, and much more.

One final benefit of choosing Webull for direct cryptocurrency trading is social networking. The company’s mobile app (but not its computer platforms) has community forums where traders are able to discuss investment news and specific assets. It’s a great way to connect with other Webull customers and chat about crypto news.

Some of the comments on bitcoin include the price of the currency relative to its futures contracts, the possibility of a price bubble, and how to buy dips.

Learn more about Webull crypto trading...


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Upsides of Trading Cryptocurrencies Directly Over Other Approaches


Direct crypto trading has several advantages over the indirect methods discussed above. Among them are:

24/7 trading: Unlike securities, cryptocurrencies trade day and night, weekday and weekend. Webull does take a one-hour break each day for software maintenance, so technically it will be 23/7 at Webull. Nevertheless, many more hours are available.

No management fees: Unlike funds, cryptocurrencies have no annual expense ratios. This of course reduces the cost of on-going ownership.

Low minimum investment: With only a $1 minimum purchase amount, it’s very easy at Webull to start trading cryptocurrencies. Trading stocks and ETFs at a broker like WellsTrade that does not offer fractional-share trading will have higher minimums.

Quick settlement: Proceeds from crypto sales are available immediately for reinvestment. They can be withdrawn the following business day.

Free crypto: Webull and other crypto brokers often have specials where new customers can get fractional shares of coins for free.

No PDT rules: Cryptocurrencies do not have pattern day-trading rules, so they can be day traded freely. The indirect funds and stocks discussed above do have PDT rules and thus require $25,000 in account equity to day trade.


Wells Fargo Crypto Summary


WellsTrade clients have several methods at their disposal to gain exposure to the cryptocurrency market. But one is missing.

Updated on 2/17/2022.


About the Author
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.