Since its inception in 2009 Bitcoin has emerged stronger and stronger. Who would have expected an unregulated currency like this would reach this point? Today, the whole world is eying Bitcoin and not just as a haven but also as a safe investment for their future.
Though the market is highly volatile it still projects growth and potential and if you want to make the best out of that too, then jump right in. This article will talk about the various ways through which you can invest in Bitcoin.
So, let’s get started:
Trade-in Standalone Bitcoin
Various apps, exchanges and brokers give you the ability to buy and sell Bitcoin. Most of these platforms also have Bitcoin wallets, meaning that they allow you to safely store your crypto there. The price fluctuates according to various market factors, so you should keep an eye on its performance. Due to the highly volatile nature of Bitcoin, many people choose to trade it, aiming to sell Bitcoin for a higher price than where they bought it.
Now, those who have a penchant for the Capital market can even go for Greyscale’s Bitcoin Investment Trust (GBTC). This fund was set up to make an investment in Bitcoin easier and smoother. As it allows you to hold Bitcoin in the form of an IRA and investor’s account, which has numerous tax benefits and adds an extra layer of security.
GBTC charges a minimum fee of 2%, which, while expensive, is arguably justified by the enhanced security, ease of usage, and convenience of liquidity it offers. It even gives the users the option to save their money in offline wallets keeping it safe from any discrepancies.
Bitcoin Index funds
There are various types of Cryptocurrencies which you can choose to invest in. However, there is an option that lets you invest or trade in them all at the same time. This option is called the Bitwise 10 Private Index Fund which represents an accumulative average of top 10 performing Cryptocurrencies.
This way you are not putting all your eggs in one basket and will get to access the information about all the top-performing crypto assets. It provides an absolute convenience of usage, trading, and securing your money in these wallets.
The only downhill to this is that it requires a minimum investment of $25,000. As it is trading and accessing 10 Crypto assets simultaneously the investment here is big. Nevertheless, it’s all worth it because it is one of the safest ways to invest your money in Cryptocurrency.
Amplify Transformational Data Sharing ETF (BLOK)
Some companies and businesses are actively involved in Bitcoin trading. For example, the ‘Amplify Transformational Data Sharing’ ETF is a portfolio of the equities of companies who are in some or other way related to the Blockchain technology.
Now, that could be either in the form of research, investment, or trading. BLOK is that ETF is actively managing these investments of these 15 different industries and it trades on the New York Stock Exchange.
This is a great option is you want to get some broad exposure to a range of different blockchain-related companies.
Keep a long-term Goal
Keeping a long-term goal, or put in crypto language ‘Buy and HODL’, is essential for any investor. Hodl stands for ‘HOLDING BITCOIN FOR DEAR LIFE’, which outlines that there is a lot of value to be gained in holding bitcoin for the long-term.
Bitcoin is only likely to increase in value over the coming years, as it is being used more and more freqeuently.
Stay away from Day-trading
Day trading is for professionals and not for new entrants like you. They know how to read the signal, study the chart, read the price graph, and understand the market movement. Hence, it is easier for them to trade and they almost always end up making profits. On the other, beginners will have a tough time understanding these market graphs and might end up losing their money. So, as a newbie, you should stick to a long-term plan and avoid indulging in day trades, unless you’re using software such as the Bitcoin Revolution app that helps to do it for you.