Cryptocurrency at Northwestern Mutual
You cannot invest in Dogecoin, Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) or
any other cryptocurrencies on Northwestern Mutual at this time.
As an alternative, you can use a
$0 commission broker called Robinhood
that does offer cryptocurrencies investing.
Robinhood Promotion
Open Robinhood Account
Cryptocurrencies on Robinhood
Robinhood offers trading and investing in most popular cryptocurrencies:
- Aave (AAVE)
- Avalanche (AVAX)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Chainlink (LINK)
- Compound (COMP)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Pepe (PEPE)
- Shiba Inu (SHIB)
- Solana (SOL)
- Steller Lumens (XLM)
- Tezos (XTZ)
- Uniswap (UNI)
- USDC (USDC)
- XRP (XRP)
Zero-Commission Goodness
Best of all, trading cryptocurrencies on Robinhood does not involve any brokerage fees or commissions—this is how Robinhood handles all its trades.
On the other hand, many crypto-only brokerages like Coinbase charge fees and commissions. With the current high activity and volatility in the crypto market, such fees can significantly eat into profits. Robinhood's zero-commission model gives it a strong advantage, especially for active traders.
Open Robinhood Account
Free stock up to $200 and 1% IRA match when you open an account.
Open Robinhood Account
Research and Charting
Robinhood has started offering cryptocurrencies by focusing on the most popular ones. Ethereum (ETH) has the second-highest market cap, while Litecoin (LTC) ranks around third or fourth.
While these are among the safer options in the volatile cryptocurrency market, they still carry high risks. Cryptocurrencies are subject to new government regulations and are not FDIC insured, representing a new and unpredictable sector of finance.
Robinhood provides comprehensive research tools for these cryptocurrencies, including the latest press releases, 52-week highs and lows, and recent trading prices, based on a 24-hour cycle.
While there aren’t traditional stock screeners for cryptos on Robinhood, you can set price alerts, draw on charts, or overlay charts from different cryptocurrencies.
High-Risk, High-Reward
Robinhood requires customers to opt-in to trade cryptocurrencies, reflecting its cautious approach by only offering a select range of cryptocurrencies. This is partly because Robinhood uses a separate company, Apex Crypto, which is not a member of FINRA and does not offer FDIC insurance, to handle crypto transactions. Therefore, investments in these products carry no guarantees.
There are many other cryptocurrencies available through various brokerages, but be cautious: there have been instances of fraud in smaller crypto firms. The intense competition and lack of unique products in the market create a high-risk environment when trading these lesser-known coins. Invest wisely.
Doing thorough research on these lesser-known cryptocurrencies can be challenging due to their lack of substantial information and differentiation. Robinhood’s selective approach in offering cryptocurrencies is a prudent strategy.
Updated on 7/5/2024.
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