Can You Buy Crypto on M1 Finance? (Quick read)LAST UPDATED: April 4, 2023 | By Conrad Golly
In recent years, the popularity of cryptocurrencies has grown exponentially, with more and more investors looking to diversify their portfolios by adding these digital assets. One platform that has caught the attention of many investors is M1 Finance, an easy-to-use interface for investing in stocks, ETFs, and potentially cryptocurrencies. This raises the question: Can you buy crypto on M1 Finance?
As of July 2022, M1 Finance announced that they would be offering crypto investing, joining the ranks of other platforms like Robinhood, SoFi, and CashApp(Market Realist). In response to growing demand from their clients, M1 Finance introduced M1 Crypto, a feature that allows users to invest automatically in custom Pies, commission-free(M1 Crypto).
To take advantage of M1 Crypto, users with a funded M1 Invest Account can open a Crypto Account for free. All crypto assets are traded commission-free, though other fees may apply(M1 Finance Help Center). This means that investors on M1 Finance can now seamlessly integrate crypto assets into their long-term investing strategy while enjoying the benefits of a user-friendly and straightforward investing platform.
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M1 Finance Overview
M1 Finance is a modern, financial platform that offers commission-free investing in stocks, ETFs, and more recently, cryptocurrencies. Their unique interface allows users to create custom portfolios called “Pies,” which can hold multiple assets in one account (M1 Crypto). With the introduction of their crypto functionality, users can now include digital assets in their long-term investing strategy.
Although M1 Finance is primarily known for its traditional investment offerings, like stocks and ETFs, they have expanded its platform to include cryptocurrency investing. This move has allowed clients to access a wider range of assets and diversify their portfolios further.
However, crypto investments on M1 Finance are held separately in Apex Crypto Accounts, managed by Apex Crypto (M1 Finance Help Center). Users should be aware that cryptocurrency slices cannot be added to stock or ETF Pies.
As a platform, M1 Finance offers its users automatic rebalancing and the ability to invest in various pre-made investment portfolios for added convenience (U.S. News). With the integration of cryptocurrency within M1 Finance, users who are enthusiastic about digital assets can now incorporate this asset class into their investment mix on a familiar and easy-to-use platform.
Crypto Trading on M1 Finance
M1 Finance, a popular robo-advisor and online brokerage firm, has introduced crypto trading to its platform, making it possible for users to buy and sell digital assets alongside their traditional securities and portfolios.
As of now, any M1 client with a funded M1 Invest Account can open a Crypto Account for free. Furthermore, all crypto assets on the platform are traded commission-free. M1 Finance has plans to roll out commission-free trading services for ten digital assets. However, it is crucial to note that not all cryptocurrencies are available for trading on M1 Finance.
Alternatives Within the Platform
Investors looking to gain exposure to cryptocurrencies indirectly within the M1 Finance platform, they can do so through investments in stocks and ETFs with exposure to cryptocurrencies and the blockchain industry. Users need to research these investment options and ensure they understand the risks and potential rewards associated with investing in the digital currency space.
Reasons for Limited Crypto Options
|Focus on Long-term Investing||M1 Finance promotes long-term investing strategies and encourages users to consider Bitcoin and Ethereum as part of a balanced investment approach.|
|Regulatory Constraints||Cryptocurrency regulations are constantly evolving, limiting the range of assets an investment platform can offer. M1 Finance focuses on the most established cryptocurrencies to ensure compliance with financial authorities.|
|Technical Complexities||Adding more crypto options may introduce technical challenges and increased operational costs. Limiting the number of available cryptocurrencies enables M1 Finance to provide a secure and seamless experience for users.|
Note: M1 Finance may expand its crypto offerings in the future, but potential investors should research and consider the risks associated with cryptocurrencies before investing.
As of now, M1 Finance has introduced a platform that enables users to securely buy and sell cryptocurrencies, specifically Bitcoin and Ethereum, commission-free. However, the crypto options available on M1 Finance are limited compared to other platforms. There are several reasons behind this limitation:
1. Focus on Long-term Investing
M1 Finance primarily emphasizes long-term investing strategies and building a diverse portfolio, as opposed to short-term crypto trading. By offering just Bitcoin and Ethereum, they encourage users to consider these digital assets as part of a balanced investment approach.
2. Regulatory Constraints
Cryptocurrency regulations are constantly evolving, which may limit the range of assets an investment platform like M1 Finance can offer. By focusing on the most established cryptocurrencies, M1 Finance can better navigate the regulatory landscape and ensure compliance with financial authorities.
3. Technical Complexities
Adding more crypto options to the platform may introduce technical challenges and increased operational costs. Limiting the number of available cryptocurrencies enables M1 Finance to provide a secure and seamless experience for users.
It is worth noting that M1 Finance may expand its crypto offerings in the future, as its platform evolves and the market demand shifts. As always, potential investors should thoroughly research and consider the risks associated with cryptocurrencies before making investment decisions.
Alternative Platforms for Crypto Trading
While M1 Finance does offer some cryptocurrency options, there are other platforms dedicated to a broader range of cryptos, making them better options for more extensive crypto trading. These alternative platforms cater to various needs and preferences, such as ease of use, fees, variety, and accessibility.
One popular platform for crypto trading is eToro, which offers a vast selection of cryptocurrencies and is ideal for investors seeking a more comprehensive crypto trading experience. eToro, like M1 Finance, is a centralized finance (CeFi) platform that is recommended for beginners.
Some of the best M1 Finance alternatives focused on cryptocurrency trading include:
- TD Ameritrade: Best for Balance
- Moomoo: Best for No Commissions
- E*TRADE: Best for Accessibility
- Robinhood: Best for Satisfaction
- Webull: Best for Cryptocurrencies
These platforms provide a variety of features, such as no-commission trading, extensive accessibility, and high user satisfaction. It is advised to research each platform individually to determine which one best aligns with your trading strategy and personal preferences.
FAQs: Can You Buy Crypto on M1 Finance?
Is It Good To Invest In Crypto?
Investing in cryptocurrency can be a profitable and exciting endeavor for some investors. However, it is essential to understand that investing in cryptocurrencies can be highly volatile and involves risks. It is crucial to consult your investment, legal, or tax advisors for guidance and consider your risk tolerance before deciding to invest in crypto.
Where Does M1 Store Its Digital Assets?
M1 Finance does not lend out or trade crypto assets on margin. Crypto assets are fully paid for and are not lent out by Apex Crypto account holders, Apex Crypto itself, or Apex Crypto’s omnibus wallet providers, ensuring their security and custody (source).
What Does Crypto Actually Do?
Cryptocurrencies, such as Bitcoin and Ethereum, are digital or virtual currencies that use cryptography for security and operate on decentralized networks called blockchains. Crypto offers an alternative to traditional financial systems, allowing for peer-to-peer transactions, lower transaction fees, and increased financial inclusion for many who might not have access to traditional banking services. Additionally, some cryptocurrencies, like Ethereum, have a strong focus on building decentralized applications and smart contracts, which can automate processes and create new digital platforms.