How to invest in cryptocurrency stocks
Cryptocurrency stocks are shares of public companies tied to crypto, bought through a US brokerage; you check the company's SEC filings before you trade.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20264 min readFact-checked
On this page
- You own no coins when you buy a crypto stock.
- Check SEC filings for real crypto revenue.
- Sales in a taxable account go on your tax return.
- Use two-factor authentication and save confirmations.
You will use an ordinary brokerage account, the same kind you would use for any other stock. The steps below cover opening the account, reading the company's filings, placing a trade, and handling taxes and records afterward. If you want to own coins instead of shares, a separate guide explains how to invest in cryptocurrency.
What are cryptocurrency stocks?
Cryptocurrency stocks are shares of public companies tied to crypto, bought through a brokerage. They include miners, exchanges, and firms that hold digital assets. You own a stake in the business, not any coins. Some companies earn most of their money from crypto; others have a small side business.
How do you buy them step by step?
These are ordinary stock trades, so the process follows the same path as any other share. You can use an existing brokerage account or open a new one.
- 1Open a brokerage accountChoose a US broker registered with the SEC and FINRA. You give your name, address, and Social Security number.
- 2Fund the accountLink a bank account or send a wire. Wait for the cash to settle before you place a trade.
- 3Read the SEC filingsUse the SEC's EDGAR database to find annual and quarterly reports. Look for crypto-related revenue and risks; some companies claim crypto exposure without meaningful revenue.
- 4Place a stock tradeEnter the ticker symbol and choose a market or limit order. A market order buys or sells at the current price. A limit order sets the most you will pay or the least you will accept.
- 5Know when it executesUS stock markets usually execute trades during regular trading hours on weekdays. Orders placed outside those hours may wait for the next session.
What should you do after buying?
Your broker keeps a record of each trade. In a taxable account, when you sell, you report capital gains and losses on your tax return. A holding period over a year usually gets long-term treatment; a shorter one is taxed at ordinary income rates. Your broker sends a tax form you can use.
Frequently asked questions
No. A crypto stock is a share of one company. A crypto ETF is a fund that may hold crypto assets, futures, or a basket of crypto-related stocks.
Usually yes, if your broker offers an IRA and the stock is eligible. Traditional and Roth IRAs have different tax rules.
Some do and many do not. A company's board decides whether to pay a dividend, and crypto firms often reinvest cash instead.
Shareholders are usually last in line and may lose everything. Creditors and bondholders are paid first.
