Cryptocurrency ETFs
A newer avenue for Bitcoin investment is through cryptocurrency exchange-traded funds (ETFs). While you don’t own Bitcoin directly with these ETFs, their performance mirrors that of Bitcoin.
Crypto ETFs allow for buying and selling shares via an investment brokerage account, eliminating the need for cryptocurrency storage or opening a separate crypto exchange account.
Invest in cryptocurrency-related stocks
For those hesitant about direct Bitcoin investment, consider investing in cryptocurrency-focused stocks. Options include publicly traded crypto exchanges, tech companies, and payment processors. These firms may use Bitcoin or incorporate it into their operations, allowing you to indirectly benefit from Bitcoin’s performance.
Is it a good time to invest in Bitcoin?
Bitcoin is still a relatively new asset, but it has displayed impressive past performance, and more and more companies are using it or accepting it as a payment method. As Bitcoin becomes more established, it may experience fewer fluctuations in price too.
“Bitcoin’s price volatility is steadily decreasing over the years,” said Brady Swenson, co-founder and head of product marketing at Swan Bitcoin. “As a far more liquid asset, its price volatility is lower than relatively illiquid cryptos.”
If you plan on holding onto your investment for the long haul, investing money into Bitcoin could be a good choice.
“It’s always a good time to invest in Bitcoin with a long-time horizon, [such as] 10 or more years,” said Swenson. “Cryptos are for gambling, not investing.”
