With Bitcoin’s latest meteoric rise in value, many traders are questioning how they’ll get in on the motion. However with the worth of 1 Bitcoin exceeding $100,000, how precisely are you able to make investments on the planet’s most useful crypto coin?
3 methods to put money into Bitcoin with out spending $100,000
One widespread false impression about shopping for crypto is that you must purchase the entire coin if you wish to make investments. This isn’t essentially the case, although there are many cheaper altcoins you should purchase individually. If you wish to purchase Bitcoin, although, it could be wiser to purchase items of the coin or Bitcoin-related funds.
Whichever method you select to take a position, know that investing in crypto will be dangerous. Costs are solely pushed by what different individuals are keen to pay for the coin, not by laborious belongings corresponding to money movement or enterprise efficiency, so maintain that in thoughts earlier than investing your hard-earned money.
Listed below are 3 ways to purchase Bitcoin, even in the event you don’t have $100,000.
1. Purchase a fraction of a Bitcoin
If you wish to begin investing in Bitcoin, the excellent news is that you’ve got choices. You possibly can head to crypto exchanges or on-line brokerages to purchase items of the coin — or fractions — reasonably than a whole unit. When you don’t have already got an account with any of those platforms, it’s simple to set one up inside a matter of minutes.
Every platform has totally different commerce minimums for getting crypto. Webull, for instance, has an account minimal of $1 — roughly 0.00001 of a Bitcoin as of mid-January — to commerce crypto. When you purchased $50 value of Bitcoin, you’d have roughly 0.00047 of a Bitcoin.
Notice that every platform has its personal price construction. Even zero-commission trades could have a diffusion markup, that means that the prices are constructed right into a coin’s purchase or promote value.
2. Put money into a Bitcoin ETF
A Bitcoin exchange-traded fund (ETF) could be for you if you wish to put money into Bitcoin however choose to not personal Bitcoin immediately or handle the inherent dangers, corresponding to storage.
Authorised in 2024, Bitcoin ETFs make it simpler to put money into Bitcoin and make it easier to keep away from the doubtless riskier strategy of utilizing a crypto trade. Ethereum, the second-largest cryptocurrency, will be purchased by way of ETFs, too.
As a result of Bitcoin ETFs monitor Bitcoin, it’s best to successfully see the identical returns — minus expense ratios — as holding the coin immediately however with out the effort of safely storing your crypto. The very best Bitcoin ETFs are simple to purchase and have a tendency to supply low charges.
You possibly can even purchase fractional shares of a Bitcoin ETF. Extra superior traders could think about buying and selling choices on Bitcoin ETFs or entering into Bitcoin futures ETFs.
Investing in a crypto ETF continues to be dangerous, although. If the worth of Bitcoin falls, so will the worth of Bitcoin ETFs.
3. Make investments not directly in Bitcoin
Bitcoin is an enormous enterprise. If you wish to take a step again even farther from investing immediately in Bitcoin, you could possibly put money into a Bitcoin-related inventory or ETF. Some potentialities embody:
- Bitcoin mining: An ETF or inventory in an organization that mines Bitcoin may supply oblique publicity to Bitcoin.
- Bitcoin purchaser: MicroStrategy, a publicly traded firm that owns tons of of 1000’s of Bitcoins, gives one thing of a Bitcoin proxy funding. You possibly can achieve publicity to MicroStrategy by way of its inventory.
- Crypto adjoining: Past particular person shares, some ETFs deal with corporations that function within the cryptocurrency trade.
- Blockchain ETFs: Blockchain is the digital ledger expertise that helps Bitcoin. Blockchain ETFs can help you put money into the spine of Bitcoin with out holding the coin itself.
Do you have to put money into Bitcoin?
Bitcoin will be a part of your broader funding technique, but it surely shouldn’t be your just one — if solely as a result of crypto is unstable and has no actual belongings backing its worth. Crypto costs rise and fall primarily based solely on investor sentiment and outsize positive factors up to now don’t assure future outcomes. Some advisors suggest solely allocating 1 to 2 p.c of your portfolio to digital belongings.
Earlier than you think about investing in crypto, get your funds so as. Be sure you have an emergency fund in place, a stage of debt you’re in a position to handle and a diversified funding portfolio. Perceive that crypto is speculative and by no means make investments greater than you’re keen to lose.
Does crypto make sense in your portfolio?
A monetary advisor can work with you to create a balanced portfolio that meets your short- and long-term targets — and Bankrate’s AdvisorMatch may also help you join with a CFP® skilled.
Backside line
If you’d like publicity to Bitcoin with out having to spend greater than $100,000 for one coin, there are different methods to take a position. You should buy fractions of a Bitcoin on crypto exchanges or brokerage platforms, put money into a Bitcoin ETF or look to crypto-related shares and ETFs.
Editorial Disclaimer: All traders are suggested to conduct their very own unbiased analysis into funding methods earlier than investing determination. As well as, traders are suggested that previous funding product efficiency isn’t any assure of future value appreciation.
