Can I buy stocks with crypto

🟢 Dialogue: "Can I buy stocks with crypto?" (USA edition)

Coach: Today we’ll talk about how crypto and traditional stock markets work together. So… can you buy stocks with Bitcoin?

Student: Hmm... Technically yes? But I guess it’s not that simple?

Coach: Exactly. In the U.S., crypto isn’t legal tender, but it’s legal to use. It’s treated like property — so if you use Bitcoin to buy stocks, it’s like bartering.

Student: So… it’s taxed?

Coach: Yes! You pay capital gains tax. You basically "sell" your crypto to buy the stock, even if you never touch fiat.

Student: But can I go to a broker and just say: "Here’s my ETH, give me some Tesla"?

Coach (laughs): Not really. Most brokers want U.S. dollars. So you have to convert first. But — some fintech platforms make it easier.

Student: Like which ones?

Coach: eToro accepts stablecoins like USDT for deposits — then you can trade stocks. But in the U.S., some features may be limited. Interactive Brokers lets you hold crypto like BTC and ETH in your account — via Paxos. You can’t fund your account with crypto yet, but they’re working on using it as collateral for margin trades.

Student: Interesting. And what about apps like Revolut?

Coach: Good catch. Yes — Revolut and Uphold let you hold crypto and convert it inside the app before investing. Fast, no bank needed.

Student: That’s cool. So it's more like indirect crypto investing?

Coach: Yes. Direct payments? Not common. But indirect ways? Totally doable.

Student: Any examples of success?

Coach: Absolutely. In 2022, a company called BTCS paid dividends in Bitcoin. They called it a Bividend!

Student: Seriously?

Coach: Yes! The stock price jumped 44% in one day. Retail investors loved it — finally, crypto and Wall Street shaking hands.

Student: I wish more companies did that.

Coach: So do I. But regulators move slowly. The SEC and FINRA still have strict rules on KYC, AML, and custody.

Student: Right, the boring legal part.

Coach (smiles): Exactly. But boring is what keeps your money safe.