So You Wanna Invest in Crypto? Here’s How to Do It (Properly)
Key takeaways:
- Crypto is a thrilling investment opportunity, but it’s unregulated and can lead to big gains and destructive losses
- There are safer ways to invest in the space, such as crypto ETFs and blockchain stocks
- Don’t trash your hard drive containing 8,000 BTC
We get it — crypto is exciting. It promises massive gains, and you’re handing it to the banking world and governments. Why wouldn’t you want to invest in it?
Well, investors in cryptocurrencies like Bitcoin (BTC) see a lot of volatility. If you invested in BTC on June 9, 2022, and remained invested for ten days, you’d have lost 30%. But if you managed to hold your nerve and didn’t crystallize on your losses, you’d see the coin recover a year later.
Still, it can be tricky to take the emotion out of investing. Luckily, you can harness the power of AI investing with Q.ai’s Crypto Kit. This Kit offers a diversified approach to crypto, so you can reap the potential benefits while mitigating risk. And because you’re using an AI investment tool, there’s no need to worry about making costly heat-of-the-moment decisions.
Download Q.ai today for access to AI-powered investment strategies.
Regulated ways to invest in crypto
Because crypto is a novel asset class, it doesn’t neatly fit into any current laws or regulations. That leaves it open to exploitation by scammers, and it lacks protections like typical investments and accounts.
When crypto company Celsius went bankrupt in 2022, their customers discovered the problem with a lack of federal protection. Celsius froze billions of assets, and its customers are still battling to get their money back.
Thankfully, there are safer ways to invest in crypto than some of the dodgy ways you’ve likely come across in the past. These are still high-risk, but they’re regulated, so you won’t have a Celsius experience.
Safer ways to invest in crypto include:
Crypto ETFs
An ETF is an exchange-traded fund. These funds track indexes, commodities, sectors, and other assets, including crypto. Much like stocks, you can trade them on stock exchanges.
Crypto ETFs are regulated by the Securities and Exchange Commission (SEC), meaning they provide a safer haven for your cash. The SEC is picky about what it regulates. For now, the agency has only approved crypto ETFs linked to futures contracts on the Chicago Mercantile Exchange (CME).
ETFs are usually inherently diversified as they track more than one asset, which is another way to mitigate risk.
Another pro for ETFs is that they’re much easier to understand than tricky wallets, mining, and keys. Investors have used ETFs since 1993, while Bitcoin was only introduced in 2009.
Crypto mining company stocks
Another option is investing directly in blockchain companies that mine crypto and validate transactions. Like ETFs, the SEC regulates these stocks.
Blockchain has many more applications beyond crypto. This decentralized ledger technology helps companies run loyalty schemes, ensures the security of medical records, aids the transfer of real estate deeds, and much more.
Many investors shy away from the crypto world because of the steep learning curve. With Q.ai’s Crypto Kit, you don’t have to deal with currency wallets or try to decipher the latest technology. You also don’t have to worry about throwing out the wrong hard drive containing 8,000 Bitcoin (sorry, James Howells).
Download Q.ai today for access to AI-powered investment strategies.
