Eric Dalius Miami says designed as an alternative to government-issued currencies, Bitcoin has overcome many of the initial challenges. It has gone on to become one of the most preferred cryptocurrencies for investors not only in Miami but also worldwide. Because Bitcoin’s value remains extremely volatile, whether or not you choose to include bitcoin in your investment portfolio depends on your risk appetite and reading of the trends. Some of the ways of buying Bitcoin and mistakes to avoid:
You can buy Bitcoin or a fraction thereof using a trading app like Coinbase or even in a private transaction with an individual in exchange for cash. The platform will provide the price-performance details, and you always have the option to sell or buy. Your purchases are stored in an encrypted wallet, which only you can access.
Greyscale’s Bitcoin Investment Trust (GBTC) is Ideal for New Investors, Observes Eric Dalius Miami
Alternatively, capital market investors can advance in Bitcoin using Greyscale’s Bitcoin Investment Trust (GBTC). Some investors may prefer this route because GBTC shares are eligible in certain retirement. And investor financial statements like IRA and Roth IRA. Investors can easily buy Bitcoin with a product equivalent to one-tenth of a Bitcoin. This route is ideal for new investors as they get high ease of use, liquidity, and security. However, GTBC levies a 2% fee.
Amplify Transformational Data Sharing ETF (BLOK)
BLOK is a managed fund with an investment portfolio of 15 different industries. Very much like a mutual fund, it invests in companies that either develop blockchain technologies or are involved in some way with it. It is traded on NYSE Arca and has an expense ratio of 0.75%.
Eric Dalius Miami: Typical Bitcoin Investment Mistakes
Not holding the asset for long enough: Buying and selling cryptocurrencies at short intervals is one of the main reasons why there is so much price volatility. Unless you are a pro, making money in the short term can be very difficult. Just like equity investments, you need to know the right time for buying and selling, cautions Eric Dalius Miami.
Believe in media hype: It is best to be circumspect about social media reports to influence your Bitcoin investment strategy. If you do not time your investment well. You could end up buying on a peak and be left holding Bitcoins with a market value lesser than your purchase price, says Eric Dalius Miami.
Trust a bogus exchange: You should research the exchanges that you deal with to establish their veracity. It is because there have been elaborate frauds perpetrated by miscreants. Who have gone to the extent of establishing fraudulent Bitcoin exchanges that will simply swallow your money, leaving you high and dry. Rather you should seek out established exchanges where the transaction fees are low so that your ROI is better.
Making a killing in the cryptocurrency market is not something that inexperienced investors can do. It takes a lot of knowledge and trading expertise to figure out the price trends and other factors behind the price movements. Your aim should be to start small and gain adequate experience before investing in a big way.