Yes, you can purchase cryptocurrencies on M1 Finance via a separate crypto account powered by Bakkt, with commission-free trades and set limits.
M1 offers digital asset trading inside its app alongside stocks and ETFs. Crypto sits in its own account, runs on a different backend, and follows its own rules. Below, you’ll see how it works, what it costs, how trades execute, tax basics, and the practical steps to get started without tripping over fine print.
What Crypto Access On M1 Looks Like
M1 routes crypto activity through a partner: Bakkt Crypto Solutions LLC, via M1 Digital LLC. Your stock and ETF activity stays with the brokerage affiliate, while coins live at the crypto custodian. That split shapes everything—statements, protections, and where cash parks before a buy. The platform keeps the familiar Pie approach for targets, with a dedicated crypto account separate from equities.
| Area | How It Works On M1 | Why It Matters |
|---|---|---|
| Where Coins Are Held | Custody and execution through Bakkt Crypto via M1 Digital | Different legal entity and disclosures than the brokerage arm |
| Account Structure | Dedicated crypto account; separate from stock/ETF Pies | Digital assets don’t mix with equities inside one Pie |
| Trading Costs | Commission-free trading; platform charges may apply | Out-of-pocket commissions are $0, but review other fees |
| Trade Timing | On-demand and automated windows; monthly on-demand cap | You get convenience, with limits to manage flow |
| Cash Handling | Cash for crypto activity held with the clearing partner | Funds move before buys; statements will show the path |
| Supported Assets | Curated list of mainstream coins (varies over time) | Choice focuses on established names, not every token |
| Statements & Docs | Separate crypto statements; brokerage docs for stocks/ETFs | Expect different forms and delivery timelines |
| Insurance | No SIPC or FDIC coverage for digital assets | Risk profile differs from brokerage accounts and bank cash |
Buying Crypto With M1 Finance — Rules, Costs, Steps
If you’re brand-new to the app’s coin features, start with the account setup process and the trading basics. The steps are quick, but a few toggles matter for smooth funding and order handling.
Create The Account
Open the app or web dashboard, tap Invest, select Add Account, then choose the crypto option. You’ll accept the crypto disclosures and connect funding. Equity Pies stay separate; the app will show a new tile just for digital assets.
Build A Crypto Pie
Pick from the available coins and set targets by percentage. You can start from a blank slate or a template. Targets guide automated buys in trade windows, and you can send on-demand orders up to the monthly cap if you need a quick allocation change.
Place Orders
Orders route in trade windows and through on-demand bursts. The platform limits the number of on-demand actions per calendar month to keep processing efficient. Crypto access is available around the clock, with short maintenance pauses at times. If you queue activity during a pause, it fires once service resumes.
Costs, Spreads, And Platform Fees
There’s no per-trade commission when you buy or sell coins in the app. That said, you may see price spreads typical of crypto venues, and some users pay the platform’s monthly fee when they don’t meet waiver criteria. Review the fee page before you start so there are no surprises down the line. If you’re running both brokerage and crypto activity, check whether your overall usage qualifies for a waiver.
What You’ll Actually Pay
Expect $0 commission on each crypto order. Any spread between buy and sell quotes is embedded in execution prices, which is common across the industry. The app also lists account and service fees in a public schedule; scan that list to see if your profile triggers a monthly charge.
Where To Check The Fine Print
The platform’s legal center lays out the crypto disclosures, who handles custody, and how cash flows into the account. You’ll also find a general fee list and the platform fee explanation on separate pages. Bookmark those pages so you can confirm details before big allocation moves.
Trading Windows, Automation, And Limits
M1’s hallmark is automation. You can let targets drive buys during scheduled windows, or you can tap on-demand for faster moves. The system caps the number of on-demand orders per month. That keeps processing predictable while leaving room for tactical tweaks.
24/7 Access With Short Pauses
Crypto access runs around the clock, with scheduled maintenance windows sprinkled in. If maintenance overlaps with your planned activity, queue the action and the system will execute once the window opens again. This rhythm differs from equities, which follow market hours.
Good-To-Know Constraints
- On-demand actions: limited per calendar month.
- Automated windows: follow the app’s trading schedule.
- Asset mix: coins and equities can’t live inside one Pie together.
- Account type: crypto sits in its own account with its own statements.
Account Setup And Eligibility
You’ll need a funded brokerage profile to enable the crypto account. Identity checks apply. After approval, you can move cash into the crypto sleeve. If you have an existing M1 balance, transfers are quick; bank transfers follow standard ACH timelines.
Supported Coins
The list is curated and updates over time. Expect large-cap names first, with occasional additions or removals. If you want long-tail tokens, use a dedicated exchange alongside your M1 portfolio. Keep your asset list tidy so automation can do its work without manual overrides every week.
Taxes, Records, And Statements
Digital asset activity is taxable in the U.S. Capital gains apply when you sell at a profit, and ordinary income can apply to certain rewards. The agency’s guidance confirms that digital assets are treated as property for tax purposes. Midyear rule shifts and form changes do happen, so keep your records clean.
Two resources to keep handy in the middle of the year:
- IRS digital assets page — definitions, reporting basics, and the return question.
- SEC investor alert on crypto assets — risks, platform protections, and due-diligence tips.
What To Expect From Documents
Crypto sales produce a gain/loss statement from the crypto provider. Brokerage forms cover stocks and ETFs separately. If you trade both, you’ll download multiple files at tax time. Keep exportable CSVs from the app or use a tracking tool so your cost basis reconciles with your forms.
Quick Reference: Limits, Timing, Documents
| Topic | What To Know | Tip |
|---|---|---|
| On-Demand Cap | Monthly limit on on-demand crypto orders | Batch small tweaks to save slots |
| Trade Windows | Automation runs in scheduled windows | Use targets; let the app rebalance |
| 24/7 Availability | Crypto open round-the-clock with brief maintenance | Queue orders; they run once service resumes |
| Account Fees | $0 commissions; platform fee may apply | Check waiver criteria on the fee page |
| Forms & Records | Separate crypto statements; brokerage docs for stocks/ETFs | Export CSVs to track basis across both |
| Asset Mix | Coins and equities live in separate accounts | Mirror targets across sleeves if needed |
Safeguards, Custody, And Risk
Digital assets don’t carry SIPC coverage. That’s standard across U.S. venues today. The crypto custodian stores the coins; the brokerage affiliate does not. Read the crypto disclosures so you understand who holds what, where cash sits before a buy, and which entity issues your statements. If a claim mentions insurance, check whether it refers to cash at a clearing partner or to the assets themselves.
Volatility And Platform Protections
Prices swing fast. Slippage can appear during spikes. Platforms that combine brokerage-like features with wallet-style functions may offer fewer guardrails than a traditional exchange or bank. The SEC link above outlines the kinds of risks you should account for when you size positions and decide how much to keep on any one platform.
Practical Setup: From First Dollar To First Trade
- Open the crypto account in the app and accept the disclosures.
- Fund the sleeve with cash; confirm the available balance.
- Build a crypto Pie with target weights for each coin.
- Turn on auto-invest or send an on-demand order for an initial buy.
- Set a review cadence—monthly is common—to nudge targets as needed.
Troubleshooting
If an on-demand button is greyed out, you may have used your monthly allotment. If a window is closed, your order will queue. If a coin disappears from the list, it may have been removed from the curated roster. In each case, check the in-app message center and the help center for specifics.
Who Thrives With M1 For Digital Assets
Goal-based investors who favor target weights and scheduled activity tend to like this setup. If you day-trade with dozens of intraday orders, the monthly on-demand cap can feel tight. If you want long-tail tokens, you’ll still need a specialist exchange. If you prefer guardrails and a single view of your money—cash, stocks, ETFs, and coins in one dashboard—the app’s approach lands well.
Tips To Keep Risk In Check
- Size positions small relative to your total net worth.
- Use targets so the system sells high and buys low over time.
- Keep a cushion of cash in the sleeve to avoid failed orders.
- Export transactions monthly so tax prep doesn’t pile up.
- Read every change log in the help center before big moves.
Bottom Line On M1’s Crypto Access
The app lets you buy and sell a curated set of coins inside a separate account with $0 commissions, automation, and a monthly cap on on-demand actions. Custody lives with the crypto provider, not the brokerage affiliate. If you like goals, target weights, and a single money hub, it’s a clean way to add digital assets without juggling another login. If you need every token under the sun or dozens of intraday orders, pair this with a specialist venue and keep allocations modest.