Oct 07, · Investing in cryptocurrency seems profitable and replete with fast profits. After all, during the past six months, bitcoin (BTC-USD) bottomed out in . Dec 19, · What to know before investing in bitcoin Despite being over a decade old, bitcoin remains a relatively immature asset. There's less trading volume on its markets, . Apr 11, · There isn't a way to invest in Bitcoin the way you would invest in the stock of a company. But depending on the long-term plan for your newfound cryptocurrency, buying Bitcoin Author: Steve Fiorillo.
Invest bitcoin stock marketThe 3 Best Ways to Invest in Cryptocurrency Right Now | InvestorPlace
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. As of this writing, she did not hold a position in any of the aforementioned securities. Log in. Log out. About Us Our Analysts.
Bitcoin was priced so low because investors feared for the health of the economy and its people. What is Cryptocurrency? Although investing is one use of cryptocurrency, there are other reasons to buy the asset: You can own and use it anonymously. You can use it to buy goods and services. Crypto payments may avoids fees and transaction costs.
Crypto transactions are fast. Source: Shutterstock. Sponsored Headlines. More from InvestorPlace. Subscriber Sign in Username. Sign in. These exchanges follow stringent know-your-customer KYC guidelines, so you will need to prove your identity before being able to trade using them. Most exchanges have minimum deposit requirements for fiat currencies and cryptocurrencies, but these are usually very low.
Here are some tips for reducing your exposure to risk while also increasing your exposure to potential gain. Keep it safe and secure: Crypto-exchanges still continue to suffer the occasional hack even today.
Since bitcoins do not exist in physical form, seasoned bitcoin investors store them in digital wallets. A hardware wallet is a handheld, offline device that securely stores the private key necessary to transfer your bitcoin holdings from one place to another. Ledger and Trezor are two reputable brands.
Start small, rather than big: Given its short history and still highly unpredictable behavior, it's usually wise to keep your initial investment in Bitcoin relatively limited. Even experienced investors e. And, despite the hype and forecasts, maintain your investment discipline, buying only what you can afford to potentially lose and not getting swept up by promises of gigantic upswings.
Have a buy-and-hold mentality: Unless you're prepared to watch the market daily and move at a moment's notice, investing in bitcoin should really be undertaken for the long term. And with more institutional investors buying bitcoin every month , and the cryptocurrency's relative supply shrinking, most analysts seem to think it still has space to rise higher.
Not only has the future never looked better for bitcoin, but it has never been easier to buy and invest in the cryptocurrency.
From payment apps to bitcoin funds to crypto-exchanges, there are now a multitude of options for anyone wanting to gain exposure to the original all-digital asset. Times Internet Limited. All rights reserved.
For reprint rights. Times Syndication Service. Globe Icon An icon of the world globe. Amazon Sale Tech Business. Link Copied. How to invest in bitcoin: The major ways to buy, their pros and cons, and the strategies to consider Simon Chandler. There are a variety of ways to invest in bitcoin, even if you aren't a professional day trader or regularly play the currency markets. From financial apps to publicly traded funds to crypto-exchanges, there are now a multitude of options for investing in bitcoin.
Bitcoin remains risky and volatile, so individuals should invest small amounts, keep their accounts secure, and think long term. Bitcoin's dramatic price rise since its debut is attracting both institutional and individual investors. Let's demystify how to invest in bitcoin: the various places to buy it, the risks and rewards, and strategies for safely ensuring a higher return.