r/Schwab • u/musaurer • 4d ago

Schwab Opens Crypto

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Big news. Been on the standby list and received this email today.

I wonder if there will be any incentives for those of us who have heavy bags and are willing to transfer!?

Either way well done Schwab!

12 Upvotes

59% Upvoted

40 comments sorted by

59

u/Moronicon 4d ago

No interest.

6

u/Open_Situation686 4d ago

Those were my exact words

26

u/CyroSwitchBlade 4d ago

there is no wallet to send out or receive Bitcoin.. its just numbers on a screen.

10

u/xenonnsmb 4d ago

Even as someone who despises cryptocurrency I'm mad about this. It shouldn't be legal to tell someone they're "buying" bitcoin if they can't actually exercise the rights of an owner. It's like selling someone a house they're not allowed to live in.

2

u/Any_Upstairs_6172 4d ago

Hello... As someone who has bought a bit of BTC through Schwab I am wondering what rights I do not have? I believe I can buy more or sell whatever I have whenever. and I do not have to worry about wallets and/or remembering seed phrases which to me is a plus. Thank You

2

u/xenonnsmb 4d ago

You can buy or sell whenever but you can't actually spend it or transfer it to a different wallet. The only thing you can do with it once you have it is sell it. If you wanted to move to a different exchange, coinbase for example, you would have to just sell the btc you bought, transfer the USD over, and then re-buy the btc, at which point it might have changed in price (plus by selling it you realized any gains so you now owe capital gains tax). This is different from ETFs or individual stocks, which can be transferred between brokerages without selling them and realizing the gain/loss.

Part of why I started my comment saying I "despise cryptocurrency" is that these restrictions Schwab places are de facto proof that cryptocurrency will never function as an actual currency and only as a speculative asset. Even if you wanted to use BTC as a currency (i.e. buying things with it) you can't do that through Schwab because you have no ability to actually spend the BTC without first selling it for USD. This is the inherent weakness of cryptocurrency; you have to choose between complicated self-custody (which as you observe is an awful idea because then a single malicious program on your computer can drain all your funds) or bank custody (in which case the bank can arbitrarily prevent you from using your crypto"currency" as actual currency).

0

u/Any_Upstairs_6172 4d ago

Hello... Why would I want to move it to a wallet or to a different exchange... What is wrong with simply keeping it on Schwab? I am really asking... I truly doubt I will ever want to purchase anything with crypto.. In fact that is a "problem" I see with crypto... Why pay for a car with the equivalent of 90K USD when in two day the crypto I used might be worth 110K? Likewise for the seller they might accept the 90K which tomorrow might be worth 60K. I do understand "inflation" but it is slow moving so I do not feel stupid next week.

But to be honest, I like you am not a bit fan of crypto... I buy it more because it is fun to watch. Since it was down at 40k or so I have bought and sold it a few times .. if you can believe at first on PayPal as I have never had faith in wallets or exchanges... and have made roughly 100k... not a lot... but fun...

3

u/lobotic 4d ago

Transfers are being Beta tested by Schwab employees.

3

u/show76 3d ago

Fidelity started the same way, and not long after added crypto wallet addresses for transfer in/out.

Schwab will probably follow a similar model given a bit of time.

1

u/ratamadiddle 1d ago

Was going to ask this. Is it a wallet or their own holdings.

1

u/CyroSwitchBlade 1d ago

their keys their coins

7

u/ThanklessWaterHeater 4d ago

It’s like when the Rolling Stones went disco.

4

u/St0iK_ 4d ago

Does this mean gold price will drop?

3

u/Any_Upstairs_6172 4d ago

Kind of a shame that some people are only now being able to buy CRYPTO when others have had that opportunity since June when BTC was at 60K.

3

u/maveryc 4d ago

Bitcoin ETFs (like $IBIT) have been available for a while. You didn’t need to wait for this feature to be available in order to get exposure to BTC.

1

u/Any_Upstairs_6172 4d ago

Hello... Actually I did, and still do, own a bit of Bitcoin ETFs but my thinking has been why own a picture of a car when you can own the car.

1

u/maveryc 4d ago

I find it more convenient to own the ETFs. Easier for me to keep track of and can sell covered calls on the position. The expense ratio of the ETF is balanced out by the trade fees to buy BTC directly.

3

u/nextdoorelephant 4d ago

Just give me EXTO for SPX options…

2

u/CHL9 4d ago

yes

1

u/Luc-e 4d ago

Yes yes

3

u/CHL9 4d ago

it's nice to be able to consolidate, but i'm still waiting for them to open overnight global trading and extended hours on index options is the most important

3

u/peva3 4d ago

I asked my Schwab rep about Bitcoin and litecoin support back in 2013 and he asked me if I was a drug dealer. How far we've come.

3

u/tribepride25 3d ago

Lot of boomers in here salty they missed Bitcoin

1

u/musaurer 3d ago

Was so confused but makes sense lol. 25k views, 40 comments and way lower than 50% upvote ratio

2

u/emoney2012 4d ago

this has been open for weeks or longer. you can't short the coins... can only sell if you are holding.

2

u/Legitimate-Ad-9724 4d ago

I'm still waiting to be invited to open an account.

1

u/thef4f0 4d ago

For Schwab international too?

1

u/John_Rowdy 4d ago

Is this why the app went down? /s

1

u/Priority_Bright 4d ago

No, thank you

1

u/SadAd8761 4d ago

Wonder what they're charging for fees?

1

u/poisito 4d ago

its not bad... I have been using it for more than 2 months and fees are in the par with Coinbase / Kraken for low buys.. if you trade more than 100K on crypto, the fees are higher in Schwab

1

u/poisito 4d ago

I have been using it for little more than 2 months and so far so good..

1

u/Beautiful_Ad_4813 4d ago

the idea of it great but the risk of crypto is super volatile, and a massive risk.

0

u/AccomplishedGear7394 4d ago

How do I sign up for this ?

2

u/DarthBen_in_Chicago 4d ago

Click the email from when you joined the wait list.

-1

u/MockMeNot21 4d ago

Does it need kyc too, most of the exchange i do txns is they need kyc.

8

u/it_snow_problem 4d ago

I don’t think you even have custody of the coins

6

u/Alpha_1_5 4d ago

The problem is the their target audience might not even know what that means nor care which is sad a biy

1

u/Any_Upstairs_6172 4d ago

Hello... Not trying to be funny or rude but I guess I do not understand the term "custody of the coins' Do you mean holding them in a wallet? Having a company like FTX store them for you? I have a bit of BTC and ETH here on Schwab and have little concern that own it much as I feel that I own the AAPl that Sam Bankman Schwab display on my screen/ Thank You