Beyond that, for most people, the best (i.e. simplest) way to invest in bitcoin starts with setting up a cryptocurrency wallet. Dec 15, · Investing in Bitcoin can seem complicated, but it is much easier when you break it down into steps. Buying Bitcoin is getting easier by the day and the legitimacy . Dec 18, · Take a look at our Complete Guide to Bitcoin if you need a primer on the History. Long-term Investing or “Hodling” Many long-term ‘hodlers’ view Bitcoin as the .
How to invest in btcThe 3 Best Ways to Invest in Cryptocurrency Right Now | InvestorPlace
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To find out more about our editorial process and how we make money, click here. Whether or not the cryptocurrency will ultimately turn out to be a good investment or just a passing fad remains to be seen. Indeed, in the past several months Bitcoin prices have enjoyed a run-up that makes the tech bubble look staid by comparison.
That excitement — the promise of sudden riches or sudden ruin — has a lot of people wondering how a bitcoin investment actually works.
Like any speculative investment, buying bitcoin at sky-high valuations is risky business. The other risk to keep in mind if you plan to invest in bitcoin, aside from the overall volatility of the cryptocurrency, is of a cyber attack. People or entities can buy and sell cryptocurrency anonymously, and there are fewer middlemen taking a cut of transactions. Prices are extremely volatile, and the risks are distinct from investing in conventional assets. For example, the currency is typically stored in a digital wallet — and that means it may be stolen by savvy hackers.
At present, Robinhood is the only broad investment app that offer users the opportunity to invest in cryptocurrency.
Most states, although not all, allow commission-free investing in crypto with the Robinhood app. This lets users buy and sell:. Robinhood is appropriate for investing in specific crypto assets, but not for using the digital currency to buy goods and services. But, unlike Robinhood, these apps trade crypto only, not other types of investments. Arguably, the most popular bitcoin exchange is a full-service cryptocurrency firm.
Before investing in crypto, there are a few preliminary steps to take. Coinbase offers a digital wallet, and the crypto secured on their servers is protected by their insurance policy. Their process is simple — create an account, link your bank account, and begin buying and selling. Coinbase has a large base of available crypto assets for trading, as well as a library of education resources.
As with any investment, investigate the fees before selecting a crypto exchange. Coinbase has been charged with having higher fees than some competitors. Other competing and popular digital investment platforms include Kraken, Coinbase, Cash App and Binance. Exchange-traded funds have made investing in a variety of assets as easy as buying and selling a stock online.
The Securities and Exchange Commission is moving slowly with this new asset class. Unfortunately, at present only institutions and enormous investors can participate in the following cryptocurrency funds. Coinbase offers an index fund with exposure to four of the largest digital currency. In the meantime, smaller investors can purchase blockchain ETFs.
These funds invest in companies involved in developing and using blockchain technology. They also track the performance of Bitcoin or other cryptocurrencies through futures contracts or by owning the underlying currencies. Like any other investments, do your homework before investing.
Understand what you are investing in as well as the risks and returns. With speculative investing, it is wise to invest only a small portion of your net worth. Barbara A. Friedberg, MBA, MS is a veteran portfolio manager, expert investor, and former university finance instructor. Follow her on twitter barbfriedberg and roboadvisorpros.