Investment apps Bux and Trade Republic offer crypto for the first time

At the beginning of this week, Bux announced that its customers can now also invest in cryptocurrencies such as bitcoin, ethereum and litecoin via the mobile investment app Bux Zero. In addition to the Netherlands, the service is also being rolled out in Belgium, Ireland and Spain.

Low-threshold apps

At Trade Republic, which has been active in the Netherlands since last month, cryptos will be available before the end of the first quarter, the company confirms after reporting from Het Financial Daily. Trade Republic already offers the virtual currency in Germany and Italy. “Cryptocurrency has been around for about a decade and has proven to be part of a good, diversified portfolio,” the company said.

Investing in crypto has already been available in recent years through crypto exchanges such as Coinbase and online brokers such as Bitonic and BTCdirect. But with Bux (founded in 2014) and Trade Republic (2015), they are now also available in two more accessible mobile apps that are popular with younger investors in particular.

‘A lot of demand’

According to Bux, the enthusiasm for cryptos is currently high. “From conversations with customers and customer surveys, it appeared that there was a lot of demand to also invest in crypto,” a company spokesperson said.

Bux also points to historically low savings rates, high inflation and an ‘unsustainable’ pension system. “As a result, younger generations have to look for ways other than saving to build wealth. Investing is one of the few accessible ways for a better financial future.”

The fact that there are risks associated with investing, and in particular the unregulated cryptocurrencies, is a frequently heard warning from regulators in many countries, including the AFM in the Netherlands. In December, it turned out that younger investors in the Netherlands in particular invest in crypto, with half of them stating that they had not invested more than 500 euros.

Short videos

Bux says it will educate its customers about those risks through informative articles and short videos. Like Trade Republic, it highlights the importance of a diversified investment portfolio. “We try to make it clear to all our clients never to put all your eggs in one basket, and that diversification across different investments is very important.”

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