Navigating the world of cryptocurrency investing can be complex, especially when it comes to understanding how your digital assets are stored, protected, and managed within a financial platform. This comprehensive guide answers the most frequently asked questions about M1’s crypto offerings, helping you make informed decisions with confidence.
Whether you're new to crypto or expanding your investment strategy, clarity on security, accessibility, and regulatory compliance is essential. We’ll walk you through everything from document access and asset storage to transfer policies and account limitations—ensuring you have a clear picture of what to expect.
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Where Can I Access My Crypto Documents?
All your cryptocurrency-related documents are securely stored within your M1 account. To access them, simply navigate to the Settings section and select the Documents tab. Here, you’ll find transaction records, disclosures, and other important compliance materials related to your crypto holdings.
These documents are vital for tax reporting and personal record-keeping, so it's recommended to review and download them periodically.
Does M1 Support NFTs or ICOs?
Currently, M1 does not support Non-Fungible Tokens (NFTs) or Initial Coin Offerings (ICOs). The platform focuses exclusively on established cryptocurrencies available for direct purchase and sale through its integrated interface.
While NFTs and ICOs represent innovative corners of the blockchain ecosystem, they come with heightened volatility and regulatory uncertainty. As such, M1 has chosen to maintain a conservative approach focused on widely recognized digital assets.
Can Non-U.S. Residents Open a Crypto Account?
At this time, M1’s crypto services are only available to U.S. citizens, permanent residents (Green Card holders), and certain qualifying visa holders. To open an account, applicants must:
- Be at least 18 years old
- Have a current U.S. residential address
- Possess a valid U.S. phone number
Unfortunately, international residents outside these criteria cannot currently access M1’s cryptocurrency features.
Are There Special Rules for New York Residents?
Yes. Due to strict state-level financial regulations, New York residents face certain restrictions. You’ll notice a reduced selection of available coins under the Research tab, as some assets are not compliant with NYDFS (New York Department of Financial Services) guidelines.
Additionally, if you relocate to New York after purchasing certain cryptocurrencies, those positions may become “liquidate only”—meaning you can sell but not buy more.
How Are My Crypto Assets Stored?
Security is a top priority. All M1 crypto assets are held by Bakkt Crypto Solutions, a trusted institutional custodian that partners with leading wallet providers to ensure maximum protection.
Your assets are stored in secure omnibus custodial wallets, with the majority kept in cold storage—offline systems isolated from the internet to prevent unauthorized access. This method significantly reduces exposure to hacking attempts and cyber threats.
It’s important to note: Cryptocurrencies are not FDIC or SIPC insured, nor are they classified as securities. This means they do not benefit from the same government-backed protections as traditional bank deposits or brokerage accounts.
What Security Measures Protect My Crypto?
M1 collaborates with Bakkt Crypto Solutions, which enforces rigorous security protocols:
- Regular third-party audits of wallet security controls
- Daily verification of wallet balances
- Monthly internal audits and annual reviews by independent financial auditors
- Continuous monitoring for vulnerabilities and compliance with industry best practices
These layers of oversight help ensure your digital assets remain protected against fraud and operational risk.
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Do I Have Access to Private Keys or Individual Wallets?
No. M1 does not provide individual wallets or private keys to users. Since assets are held in omnibus custodial wallets managed by Bakkt Crypto Solutions, account holders do not control their own private keys.
This custodial model enhances security and simplifies the user experience—especially for beginners—by removing the burden of self-management while still maintaining transparency through detailed transaction records.
After each trade settles, your assets are automatically swept into cold storage for added protection.
Can I Transfer Crypto In or Out of My M1 Account?
Outbound Transfers
Yes—but with conditions. If you wish to transfer crypto to an external wallet, you must contact Bakkt Crypto directly via:
- Email: [email protected]
- Phone: 1-800-322-1719
Please note: A $150 fee applies per transfer, charged by Bakkt. Alternatively, you can sell your holdings and withdraw USD to your linked bank account without fees.
Inbound Transfers
No. M1 does not accept incoming cryptocurrency transfers from external wallets. The only way to fund your crypto account is by depositing USD from a linked bank account.
How Do On-Chain Transactions and Margin Loans Work?
On-Chain Transactions
Currently, on-chain deposits and off-chain withdrawals are not supported. However, these features are expected in future product updates.
Margin Loans Against Crypto
You cannot take out a margin loan directly against your crypto holdings, as the Crypto Account operates as a cash-only account. You must deposit funds before making purchases.
That said, you can transfer margin loan funds from your taxable investment account into your Crypto Account, offering some flexibility in capital allocation.
Can I Combine Stocks and Crypto in One Portfolio?
Not at this time. M1 does not allow clients to mix cryptocurrencies with stocks or ETFs in a single "Pie" (portfolio). Crypto assets are held in a separate account, distinct from your equity investments.
This structural separation helps maintain regulatory compliance and clear tax tracking across asset classes.
Is It Possible to Hold Crypto in Retirement Accounts?
No. M1 currently does not support cryptocurrency holdings in Individual Retirement Accounts (IRAs). All crypto investments must be made through a taxable account.
Frequently Asked Questions (FAQ)
Q: Are my crypto assets insured?
A: No. Unlike traditional securities, cryptocurrency holdings with M1 are not covered by FDIC or SIPC insurance, as they are not considered securities.
Q: Who handles custody of my crypto?
A: Bakkt Crypto Solutions LLC (NMLS ID 1828849) is responsible for custody and execution under a software licensing agreement with M1 Digital LLC.
Q: Can I get my private keys?
A: No. Users do not have access to private keys since assets are held in institutional omnibus wallets managed by Bakkt.
Q: Why can’t I transfer crypto into M1?
A: For security and compliance reasons, M1 only allows funding via USD bank transfers—not inbound crypto deposits.
Q: Is Bakkt affiliated with M1 Finance?
A: Bakkt Crypto Solutions and M1 Digital LLC are separate entities from M1 Finance LLC and are not registered broker-dealers or FINRA members.
Q: What happens if I move to New York?
A: Some of your crypto positions may be restricted to “liquidate only” status due to NY state regulations.
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Final Thoughts
Investing in cryptocurrency involves significant risk and may not be suitable for every investor. Before getting started, carefully assess your financial situation and risk tolerance. Always refer to official disclosures for complete details on risks and limitations.
By partnering with Bakkt Crypto Solutions, M1 offers a streamlined, secure entry point into digital asset investing—though with notable constraints around transfers, wallet access, and portfolio integration.
Understanding these boundaries empowers you to invest wisely and plan effectively within the current framework.
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