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If I found a crate in Team Fortress 2 and open it with a key, can I trade or craft the item stored inside?

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up vote 5 down vote accepted

Yes, crate-opened items can be crafted or traded.

The only items not craftable or tradeable (excluding event or limited edition items) are those bought directly from the store.

If items bought from the store could be traded and crafted, there is a possibility of massive, massive inflation on the item economy. Hence, the ban.

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Just a clarification, store promotion items are craftable but not tradeable. An example of a store promotion item is a bonus item that you get by spending 20 dollars at the store in one purchase. You can use this item in crafting, but any items that are produced in this way cannot be traded (but can still be crafted). – TM. Oct 12 '10 at 5:04
A side note, if you buy gift wrap, and wrap any item that is not normally tradeable, you should be able to trade it. – Nottinylil Aug 8 '11 at 11:37
I believe achievement items can also be crafted but not traded. – Aviv B. Aug 8 '11 at 16:56
Well, recently (past year), they did make half of the store craft-able (cosmetics). – Shadow Z. Feb 18 '15 at 13:02

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