Bitcoin Forum

Hi folks!

Why isn't that possible?! At least I haven't seen the possibility anywhere. It's a huge gap in the market! I'd even buy stocks with 5% or more fees and pay with Bitcoin. Can't be that nobody has ever thought of making money and offering it to you?! So why not? What am I missing?

I thought etoro and mt4 offered it at least?

You're not missing anything--I remember this question being asked years ago, but we still haven't evolved to the point of being able to deposit bitcoin into your stock brokerage account and buying stocks with it.  I thought Robinhood might have made progress in that area, except that when you buy crypto there, you're not actually in control of the private keys and Robinhood is the custodian of whatever crypto you own with them.  You can't deposit bitcoin, which would obviously be the key to buying stocks with it.

Nevertheless, I haven't been able to understand why anyone would want to do this, since bitcoin in itself is an investment and is usually bought with fiat.  If you've got fiat and a choice of how to spend it, there's no barrier to buying stocks.  My guess is that stock brokers probably don't want to have to deal with accepting crypto from people and not knowing how that bitcoin was obtained (though it shouldn't matter, just like fiat).  A decade later and bitcoin is still associated with illegal business. 

Things might change in the future, OP, but as far as I know converting bitcoin into fiat and then buying stocks with that is the only way I know to go about doing what you want to do.

You can find plenty of CFD instruments that track the prices of stocks and indices, just not access to real stock certificates. SimpleFX is probably the most reputable in the space and also probably has the most markets.

They have a few dozen US stocks, all the major indices (Dow Jones, S&P 500, DAX, Nikkei) and some foreign equities too. Also gold and silver, and lots of forex pairs if you're into that. They support a bunch of crypto options for deposit and withdrawal.

You can find a full list of markets here: https://app.simplefx.com/

Check E-toro.

And there's another way,

As long as, there is a:
- legit broker based on your country
- local crypto-exchange based on your country

1. Check the payment method available on your stock market account - if there's crypto, good, but mostly none, and the usual is bank transfer.
2. In your local crypto-exchange, convert your bitcoin to fiat then transfer it to your bank.
3. Then transfer the money to your stock market account.

You can buy stocks with bitcoin you just lazy


What is rather associated with illegal business, bitcoin or fiat? Bitcoin is still more traceable than fiat.

BTC raises some flags with finance companies as they are under alot of red tape to verify the source of all funds to avoid money laundering and so on.   I was asked to trace and prove the source of Bitcoin funds going back the better part of a decade, they want the full audit trail in theory though Im just a simple joe and dont employ an accountant to run books for me.   Tough luck, you can be presumed guilty of anything and its not just crypto but any large unaccounted cash funds; one example I heard was a business with coin machines who ran a float of 10k and had it all taken awaiting evidence to prove every coin used in their machines was legitimate.   Unfortunately you can end up in a nasty pickle, there is so many complaints with KYC and the idea of mixing crypto with something like stocks is like doing hand stands through a mine field just to show off.
   I heard some brokers were willing to take gold as security for an account, I expect this was on the scale of 100k worth rather then anybody on the consumer scale.   I get your general point but its fairly unlikely many want the complication.    Years ago there was a stock exchange for crypto companies with price and purchases all in Bitcoin, in the lull that was after the '13 peak they no longer operate.

Why is it impossible? Because BTC is some mysterious meat in the eyes of the state and no one will give you a mix of btc and "classic" tools until the crypto gets legal status.

You can still do that if you are looking for a true financial trader. A 5% fee is a bargain fee and no one wants to refuse a good deal like this. You should look for traders in stock, they will definitely buy your bitcoins at a fee of 5%. or if you don't want to spend a lot of fee then you should sell bitcoins and withdraw them to fiat money. then deposit it on the stock exchange and buy stock, that will be a way to save you a lot of money.

You aren't missing anything because no broker offers this service. The reasons are very simple,

1. Stock market is highly regulated. The responsible authorities ensure the cash flow into the stock market is legal. So they simply don't want bitcoin to flow into the market. Japan may be an exception through I am not sure.

2. Bitcoin doesn't have a fixed value and it is highly volatile. So if you can buy 10 stocks of a company using 0.1 bitcoin at 10:25 AM, you may not be able to execute the same trade at 10:26 AM on the same stock exchange. So a two-pronged calculation methodology needs to exist as a technical support.

3. Majority of the stock brokers or associated people looks at bitcoin as an asset and not as a payment method. If you hold a stock and bitcoin of similar value for 1 year, most likely bitcoin will give you better return. Who wants to miss such opportunity!!

These are the simple reasons in layman's language why bitcoin is not yet accepted as a payment method to buy stocks!

Hope this helps!

I don't believe that this is going to happen - at least in the recent years.
In order to be able to buy with cryptocurrencies a stock this means that the issuer of the stock accepts cryptocurrencies as a way of payment. And if we consider that a lot of issuers do not want cryptos to exist, this is not possible until they start to accept them.

I think you haven't done enough research because there are various services where you can buy stocks with Bitcoin. Moreover, these services also allow leveraged transactions. I don't want to advertise the services I mentioned, but there are 2 popular services that I can suggest. One of these services will be "e-Toro" and the other will be "Koinpro". These two services are popular in their fields and they have teams that can easily find solutions to your problems in case of any problem. On the other hand, I advise you not to opt for websites that are not used much and have started new service while doing this type of service research.

It takes less than one hour to get your btc into lbc get to the bank get a new bank account, visa and trading options, by when you finished you can have the money instantly by several ways and the btc already confirmed, that excluding any service that might let you buy stocks with crypto, idk where i read about it.

Yes but as soon as you sell your crypto coins into fiat you need to pay capital gains tax. If you would be able to buy stocks with crypto same way as you can buy gold with crypto you would avoid paying capital gain tax.

There are CFD platforms which offer this option. I used to buy stocks on 1broker (and even receive dividends) , but unfortunately this website is no longer available.

CFD or spreadbet platforms is one avenue (these are not available in every country), you could short BTC and go long a stock which is basically very similar to the idea of exchanging BTC for company shares.   This is all very risky, hence its often classed as gambling and they usually want to extend leverage and charge some interest on that.    But gambling is far more accessible then the idea of using plain BTC as a currency for a regulated industry like stocks, they have to track who is buying for purposes of insider dealing and all kinds of tracking hence they want an audit trail.

BTC can very easily outperform any stock perhaps later on I will produce a chart  on AAPL priced in BTC and priced in gold for YTD and then vs Dollar, Euro, Yen.    Swiss bank back their currency by holding apple stock in reserve as an asset I've read, they used to use gold of course.

Hi Op,

I belive the below news will help you to some extent,

https://news.bitcoin.com/bitcoin-suisse-users-can-now-trade-gold-against-bitcoin-and-ethereum/

Not stocks but gold. A step forward I believe!

He said he can buy stocks with bitcoin, he just doesn't want to overpay 5% which is absolutely understandable.
Bitcoin is really associated with illegal activities, like hacking and everything in "darknet" regular person doesn't understand.
It doesn't mean bitcoin has a real connection to illegal activities tho

For any platform to offer that kind of service, it would require a lot of legal work and it might be difficult for them to handle. They will have to calculate the stocks worth in dollars and then also calculate in Bitcoin. So, my advice would be to just focus on one; if you want to be investing in cryptocurrency, then you should be focusing on that and if you like stocks, then focus on that.

Moreover I don’t see anything wrong with buying stocks with fiat, I do that all the time I invest in gold. My cryptocurrency stays as cryptocurrency and I don’t bother myself in this kind of situation. Buying stocks using bitcoin does not sound right for me. Because, you are spending a high yield investment for the sake of another investment which may not match with bitcoins in terms of ROI.

I actually thought of Etoro quickly but I think it's not that you can buy and pay it directly with bitcoin with any stocks you want. It is needed to be converted to USD first before purchasing stocks and vice versa.

It's a strategy for investors that you have to diversify so whenever the other is in loss, you can still have time to recover with your other investment. Diversification is good if you have various investments and it is scattered to bitcoin, stocks and other investment vehicles.

Unfortunately if you do want to buy stocks with Bitcoins right now , you have to first convert them in the local currency and then proceeded with buying stocks normally like you do with money .

Problem is :

1. Government and companies see Bitcoins as a Competition and therefore allowing people to trade in Bitcoins regarding the stocks wouldn't be profitable for them.

2. Bitcoins is in no way related to fiat , bank accounts in many countries ban buying and selling of cryptocurrencies , conversion of Bitcoins does take time and at the same time the softwares right now are not equipped to handle this simple task , no one is interested in making them .

This is undoubtedly easy , but it does involve added risks. There will be concerns regarding the privacy.

The fee will double and at the same time it would take a lot of time (time is gold in the stock market) . Plus people who are interested in stock market and people who are interested in Bitcoins , it might seem the same but they are on two opposite poles .

3. It is much easier to actually just buy stocks and Bitcoins separately without hampering your privacy :D

Maybe in the future they will allow the same but right now you should keep your Bitcoins secure and try using the traditional way , till we have a solution.

It's actually very simple. Because the price of each of these stocks are denominated in fiat currency. For example, the Apple stock (AAPL) is listed in NASDAQ exchange. Now we know that all the shares that are listed in NASDAQ are priced in US Dollar. There are crypto stock exchanges such as BitFunder, where you can purchase stocks for Bitcoin or other cryptocurrency.

Then what is the point of converting the bitcoins to a local currency, the OP is asking for a direct way of investing in stocks with bitcoins.
I believe this to be a KYC issue as the user has to provide many national documents and have to pass many checks for opening a DMAT account and also the legibility of bitcoins as currently bitcoins are in a grey area and many companies aren't accepting bitcoins as a mode of payment for their services just because of the government not legalizing the cryptocurrency sector as a whole.

US Companies priced at USD has nothing to do with them not being able to accept Bitcoin as a payment it is more related to stock brokers not accepting Bitcoin for their clients to be able to do so. Traditional stock brokerage services often accept traditional payments such as direct cash payments or via bank deposits, it has been in that way for a long time now and I don't think they will accept anymore new methods anytime soon. But like what others have said online brokerage services like eToro has the option to accept Bitcoin as payment. @OP if you don't mind putting in an extra added step for your BTC payments I would suggest you having a custodial wallet where you can liquidate your BTC via bank deposit, the money you receive can be use to fund your account.

If the state (government) accepted cryptocurrency, then I think that there would be no problem buying shares for cryptocurrencies. Once this happens, the cost of bitcoin will increase at times, most likely

It is good that you can't buy stocks with bitcoin. For two main reasons to me, one makes sense to everyone I suppose and one is just pure morony by me. The one that is accepted by many people is the fact that bitcoin could not be traced that well, you can't just buy stocks from a company and be anonymous, you need to come out and that requires KYC, when you get that formal and that legal, you might as well use dollars to buy it as well.

Moreover, there are legal reasons why some people can't buy stocks as well, like being from another country means you need to first get clearance on buying it which takes time. All in all legally speaking it is not that easy to buy stocks with bitcoin, doable but very hard. The silly reason is that I do not want more bitcoin money to go to stocks, I already hate stock market as it is, might as well stay away from bitcoin itself.

Actually it depends on the broker and in which country we will buy stocks. Because in some countries bitcoin is considered illegal,
therefore rarely can we buy stocks with bitcoin. But there are some websites that accept the purchase of stocks with bitcoin, you
just need to a little diligent just search on the internet. Even in my country there are several brokers that accept payments with
bitcoin.

Because no such project has been done yet. Moreover since crypto are not completely legalized we might not see something like that soon. However if @o_e_l_e_o is correct then you should check those sites out and see if they suit you. May vary depending on which country you are in and depending on what stock you actually want to buy since it will be listed on separate exchanges.

Point is that you are not the first person to think of this, I am sure someone has thought the same and hit a wall trying to develop a project in similar objectives. Quite possibly the failed in my assumption.

But you can sell your bitcoins for fiat and use that to pay your broker. But it is thus the long route and not the streamlined one.

Historically it would be a step into circles we walked before, dollar of course used to be gold in exchange on demand not domestically but effectively it was that the world wide.   Still that legacy lives on despite not being true over 40 years, thats how we got right here.     A return to assets, commodities in reserve even crypto rather then FIAT seems possible however the hard liners will say BTC is FIAT hence we have a battle ahead and a long road.

It should be accepted by many countries and then the transfer of bitcoin to Fiat is very easy and efficient. So you can buy the stock with the exchange of bitcoin. I had another idea for you. You can exchange your holding bitcoin at the peak market to your own fiat and then further you can buy assets with that fiat itself. The process which I had shared will be seems lengthier ,but now we have no other option. You may use the cryptocurrency to buy stocks may be in future .

I think Cameron Winkelvoss (The Twins) wanted to do something like this with their Gemini Exchange. In December 2017, Gemini partnered with the CBOE which launched the first-ever cash-settled bitcoin futures contract whose prices are based on Gemini's auction price for bitcoin, denominated in U.S. dollars. Source : https://www.investopedia.com/tech/gemini-winklevoss-bitcoin-exchange/

I also saw this article last year, https://bitcoinist.com/bitcoin-buy-stocks-150-countries-abra/  - I think this is for US citizens only, so just check on the site. https://www.abra.com/

The thing is, these organizations are very regulated, so your anonymity will go out the door, the moment you register for these services. We pride ourselves for the pseudo-anonymity of this technology, but we destroy it by signing up for over regulated services linked to the Fiat system.  ::)

It just works around a few corners at the moment. We need to wait. Whoever builds an exchange that makes this possible and gets the blessings from FED and Wall Street will be a rich Mofo soon

i heard few sites where op wants is possible but i only forget the name but to make things easier , your suggestion here is also verry applicable  .

not sure if the op already know this idea but what if he didnt also like the idea of converting his crypto to fiat but instead he like direct conversion  . you know its hassel or time consuming too but he also does not want to expose his privacy   .

I think that some brokers might accept Bitcoin for their services but then again the coins you would give them for buying stocks they need to convert to fiat currencies.
As far as I know regulation for stock exchanges is very strict and KYC is required so probably buying stocks half anonimous with currency that is not formaly regulated and in most countries not even defined aa currency is not an option.

https://www.bitstocks.com

?

Etoro has that option also mt4 though I think it's not really direct bitcoin-to-stocks option. Some workarounds can be done to do this as well, though it also involves the conversion of BTC to fiat before being transferred to your account. Most brokers do not really implement this as of yet given the volatility of bitcoin, plus there needs to be special licenses to be acquired before they can accept bitcoin as source of funds. Gemini, I think, tried to do this at the least though I haven't heard much from that project since 2018 so..

It will take some serious consideration on the brokers' end before they accept bitcoin or crypto as a means to fund your trading account given the regulations accompanied with dealing crypto.


Abra is also offering this same option in the Philippines although with very limited stocks as of the moment. I don't think that the offerings will expand sooner given that there really isn't that much of an interest to that here currently.

I don't know of any platform that is offering that kind of service. Wouldn't that be a lot of work for anyone that tries to do it? And moreover I don't see why you would buy Bitcoin and then be looking for stocks to buy with it. Why not buy the stocks and make payments directly from your bank? If you're looking for something stable, there are some cryptocurrencies that are backed by assets these days or you can buy stablecoins like USDT or PAX.

I do invest in gold by local shop where I never think about any electronic payment options. But I am sure about buying gold for bitcoins in next 3 to 5 years. As of now I believe it is time for saving bitcoins hence I guess it is not right to think about investing using bitcoins.

The main reason it is so hard to buy BTC relates to the issue of using US dollars electronically. Hardware wallets, aka wallets on a secure device, are the safest option; the drawback is that unlike popular apps and software, hardware wallets cost money. Bitcoin trading was eliminated and Japanese financial authorities started issuing cryptocurrency.

The reason that there are no stocks that can be bought through bitcoin is that, stock market is tied to the government which means that they are putting taxes on this stocks, dividends, and index funds. Bitcoin on the other hand do not possess this kind of ties with any government because of decentralization, though in the future this can be developed which I hope to be sooner because this is a big opportunity that can further spur bitcoin in mainstream financial circulation.

One thing I really agree with is that if you don't want to make a lot of money, you should sell your bitcoins and get your Fiat money back, then deposit the exchange and buy the stock. This will save you money.

Bitcoin payment transaction always need internet and it has a huge transaction fee and it's volatility,i think that is the reason why you can't buy stocks with bitcoin anywhere. Why not exchange it into your local money before using it to buy? So,that you can spend it easily.

Yes, Bitcoin is very easy to spend but I think Bitcoin is not supplied in your country so this problem is appearing in stock If Bitcoin cannot be converted to US dollars and stocked you can convert it to Fiat currency. Fiat currency is centralized and legal so there will be no problem here The exchange will not be a problem.

You could send btc to the cashapp wallet then sell it for usd and buy stocks all within the app. I know you meant directly but it is still a decent option.

You are missing the people who need to buy bitcoins. Bitcoin is actually just a commodity, not a currency. That's why it happened that you couldn't buy stocks with bitcoin. but if you find someone who wants to buy bitcoins then you will most likely trade with that person. But I think you shouldn't be too hard, just exchange bitcoin for fiat money and then buy it on the stock exchanges. It's easier than finding someone who needs to hold bitcoin. ;)

As far as I know some brokers such as Etoro offer you bitcoin payment methods. But usually they won't accept the bitcoin and other crypto currencies because stocks are monitoring hardly by the governments and it's not easy to track bitcoin transactions, specially if you were using bitcoin mixers. I believe, soon, after bitcoin's maketcap increase the value all other brokers will accept crypto currencies as payment method. It's just about the time.

Even if you can get stocks with bitcoin payment that is not really the ideal situation because bitcoin is volatile whereas stocks are not as volatile as bitcoin. So, the money you are sending could be worth 100 dollars right now but could worth 110 or 90 in an hour and thats a risk those companies are not really willing to take. What makes a difference is the stablecoins, with stablecoins you could probably get more of a value out of stock exchanges.

Of course, for that to happen first we need to figure out how to convince those new hip startup stock exchange apps or websites to take a look at stablecoins, but if we can manage that believe me they will be going for it by the bunch because if one of them does it and get users the other ones will want to get it too.

indeed it seems possible brokers should also think of accepting payments for the purchase of shares using bitcoin. we must acknowledge that changes in the price of bitcoin are running per second and cannot be predicted. of course there will be risks that can be beneficial but can also be detrimental because of the instability. it seems to make a purchase of shares they can be sure they are more happy by exchanging it to fiat first and then making a transaction. besides maybe brokers are also crypto activists and being able to analyze the matter of bitcoin is certainly not a problem, but is there anyone who can, I also don't know.

There've been a few places in the past that appeared to be offering it but I would not be inclined to have trusted any of them. Legit places to buy stocks will be about as legacy as they come. They may be reluctant to give BTC that type of endorsement even though there's no shortage of gold vendors who take it.

It's not technically hard at all if you use a payment processor. It's the politics primarily.

But that is redundant way of buying something is it not? In a perfect world we should have been able to buy stocks and bitcoin with fiat without any delay but it is not the case if you want to go without an intermidary exchange that allows this.

But some of the links posted above may be useful to the people having any such idea. Still we are far from seeing what the OP asks for in the real world.

Not all are accepting bitcoin as a payment to buy goods and services because of it's high volatility. But you can use it to pay bills and buy loads in our country. Stores or any business establishment that accept bitcoin as payments is depend in the area or country. Maybe your country is not well accepting bitcoin that's why you can't buy stocks with your bitcoin.

You are right that he cannot buy stocks because of the low use of Bitcoin in their country but if the government supports him he will be able to buy stocks effortlessly. However, Opi is able to give you good advice.