Bitcoin ETF VS Buying Bitcoin Directly from Exchanges. Which is Better?
Well both have their own advantages and disadvantages. Let's Find out.
Should you Invest in Bitcoin ETF?
Advantages:
1. Regulatory and Security Benefits.
Bitcoin ETFs are approved by regulatory bodies like The U.S. SEC ( security and Exchange Commission) offers high standard of security benefits.
2. Worrying about Safe Storage?
One of the biggest advantage of buying Bitcoin ETF is the simplified access of bitcoin. We don't have to worry about their storage and safety of the funds
3. Diversification and Tax Benefits.
Investing in bitcoin ETF allows for diversification and may be eligible for tax efficiency.
Disadvantages:
1. Control and ownership
Investing in Bitcoin ETF means you do not own actual bitcoin which means you don't have full control over your asset.
2. Cost Implications
Buying Bitcoin ETF is actually expensive in the term of purchase fees because of management fees and operational cost.
3. Market Hour Limitation.
Investing in Bitcoin ETF means you are limited to set the trading hours of the exchange, Monday to Friday from 9.30am to 4pm. EST
Advantages:
1. Gets Direct ownership of BTC
Once you buy Bitcoin on cryptocurrency exchange, you own own it. You can transfer it anywhere
2. Acquisition fees is low
Unlike bitcoin ETF, there is no sponser fee. Some fees can be associated with buying and selling BTC which are very less.
3. Trades 24/7
Cryptocurrency exchanges like #Binance work around the clock 24/7. You can buy or sell btc anytime
Disadvantages:
1. Low Security
Storing you btc can be challenging and requires higher technical expertise
2. High risk and volatility
Bitcoin is known for its high volatality. Somehow funds are be at risk due to Extreme high volatality
3. Technical expertise Needed
Buying bitcoin directly involves using various storage wallets and exchanges which may require the technical expertise
