When Bitcoin was designed, the plan in mind at the time was for Bitcoin to then become an international form of currency. However, since its inception, it has turned out to be a hugely volatile form of digital currency and even more so a volatile investing asset. The good thing is that you can make many purchases depending on which merchant you go to and if they are willing to accept it.
However, the question still remains, is it worth investing in Bitcoin? It is definitely worth investing in if you are comfortable with the risk profile and the volatility of it all. First, though, you must learn about the various ways you can invest in Bitcoin as well as the intricate strategies you can use and the dangers that may be involved.
Types of investment
Since its inception in 2009, many different ways to invest in Bitcoin have popped up and this includes Bitcoin trusts and ETFs. So, to begin investing, you must first understand the many different ways you can invest in Bitcoin. Here are three of the most popular ways.
- Bitwise 10 Private Index Fund– This way to invest is based on the Bitwise 10 Large Cap Crypto Index which is essentially a basket of large capacity coins that a company strives to provide security for with the ease of use of a traditional ETF. It requires a minimum investment amount of $25,000 and has a 2.5% fee ration.
- Buying Standalone Bitcoin– One of the most common ways to invest in Bitcoin which has also been said to be the easiest is simply by buying standalone Bitcoin. All you do is purchase a coin or a fraction of the coin via trading apps. Then you are able to find trading apps such as the one on the Bitcoin Equaliser website which can help with the rest of the process.
- Greyscale’s Bitcoin Investment Trust (GBTC)- If you are looking to invest in Bitcoin through capital markets, you are able to access an investment through Greyscale’s Bitcoin Investment Trust (GBTC). There are certain advantages when you choose to take this route such as the shares being eligible to be held in a certain IRA. This then allows super easy access for investors no matter their current experience to a large number of different accounts.
The most important part of investing in Bitcoin is understanding all of the factors involved so you know exactly what you’re getting yourself into before you are in too deep and can’t go back. Just doing your research, talking to people, and understanding what you’re doing will make a world of difference in the long run. If you are interested, there are many different routes you can take within the Bitcoin investing world and most options are fairly user-friendly.
An important thing to remember is that this form of investing is highly volatile and it is considered a high-risk form of investing, so make sure to never invest more than you’re willing to potentially lose.