Looking to invest in Bitcoin and other cryptocurrencies? You’re among many. Bitcoin has come a long way from its introduction back in 2009. Back then, online casinos and a few forward-thinking businesses were the first to embrace it as a payment method.
People could simply use Bitcoin to buy and sell products, but it quickly evolved into a complete wallet and investment asset. Today, crypto spot ETFs are looking to have their shares publicly traded on exchanges. The crypto landscape is ever-changing, with new investor options emerging from each turn. Here’s how easy it has become to invest in Bitcoin:
Invest in Spot ETFs
Crypto exchange traded funds (ETFs) only became available in 2024, when the SEC approved Bitcoin Spot ETFs. Ethereum ETFs came next, and these two have done a great job introducing traditional investors to crypto investments. Those who don’t want to buy and hold Bitcoin directly can invest in ETFs instead. These funds track the price of Bitcoin in real time and offer shares that work more like traditional stock.
Instead of holding Bitcoin, investors own shares of the crypto-based funds. Investors can purchase shares through traditional brokerage accounts used for stocks and bonds, which eliminates the need to set up a crypto wallet or manage complex private keys. Investors are also freed from planning storage security for their assets. By investing in ETFs, crypto exposure becomes part of a more regulated product that offers safety and simpler management.
Shares also provide opportunities for lower entry points, like regular stocks and commodities. Fees are also generally lower than actively managed crypto funds. When the price of Bitcoin goes up, the ETF shares also rise, creating opportunities to make a profit from the volatile movements of the crypto. If you’re a classic ETF investor, adding crypto ETFs won’t be too hard. The model is equally regulated and standardized for easy trading, with the only difference being the underlying asset. Instead of tracking indices, commodities, and baskets of assets, the fund investors track crypto prices.
Buy and Own Bitcoin
One BTC today goes for over $100,000, which is remarkable considering Bitcoin was introduced at a value of zero. The price has grown steadily with multiple ups and downs, but has maintained an upward trajectory. In fact, experts predict the value of BTC to rise beyond $250k within the next few years. The currency is used everywhere, from new sweepstakes casinos to betting sites, restaurants, online stores, and retail stores.
In casinos, players use Bitcoin to get Gold Coins and Sweeps Coins, or real money betting chips. They also use it as a way to cash out BTC or fiat cash when they win a payout. How about music and video streaming platforms? They accept Bitcoin subscriptions and payments. Online stores and other businesses are all in it, making Bitcoin more like credit cards and fiat. Users can purchase Bitcoin and other cryptocurrencies from exchange platforms, like Binance and Coinbase.
Buying Bitcoin and other cryptos gives you ownership. If the value goes up, which is the expected outcome for Bitcoin, your holdings’ value will increase. Owning Bitcoin often requires an exchange site or a private crypto wallet. You can stack up Bitcoin, Ethereum, Solana, and other cryptocurrencies expected to rise in value, and enjoy higher profit margins when you exchange them in the future.
Consider Bitcoin IRAs
Bitcoin individual retirement accounts are another recent investment product that can introduce you to crypto. Looking to diversify your retirement income portfolio? Why not consider crypto? A Bitcoin IRA isn’t any different from traditional and Roth IRAs. They follow the same models, so you can invest in a traditional Bitcoin IRA or a Roth Bitcoin IRA. The only difference is that your crypto IRA allows you to hold crypto as part of your retirement savings, giving you an opportunity to leverage the long-term growth of coins like Bitcoin.
Traditional retirement accounts usually hold stocks, bonds, and mutual funds, instead of crypto. In a traditional Bitcoin IRA, you invest in a tax-deferred account that doesn’t impose any immediate taxes on your capital gains. The tax only comes when you withdraw funds after retirement, which may expose you to lower taxes. In a Roth Bitcoin IRA, the funds you invest are already taxed, so your capital gains and income will be tax-free. In both cases, you get the full value of your investment without immediate tax limitations, allowing you to put up more toward your retirement account.
Simply find a specialized custodian who handles crypto investments. The custodians usually provide secure storage for your investment and use cold wallets to prevent theft. Bitcoin is forecasted to keep growing for the coming decades, with its value anticipated to hit $100 trillion at some point. Adding it to your retirement account could expose you to substantial retirement wealth.
The Future of Bitcoin Investments
Bitcoin as an investment option is ever-expanding. We’ve gone from owning Bitcoin to ETFs, IRAs, and mobile trading platforms. Regulation is also improving globally, making crypto more accessible and legitimate. In fact, some countries use Bitcoin as a legal tender, while others are planning on creating crypto reserves. Whether you’re a new or seasoned investor, there are many paths to investing in Bitcoin, and more are expected to come with future innovations.
