Investing in cryptocurrency has become increasingly common among both individual and institutional investors. This is largely due to two main factors: investors who play the crypto market correctly can see enormous returns on investment; and it has become much easier to purchase cryptocurrency in recent years.
For almost the entire first decade after the launch of Bitcoin in 2009, it took more than a bit of tech-savvy to purchase, store, and use all types of cryptocurrency. However, now anyone with internet access can easily invest in many of the top cryptocurrencies using common investing apps (more on that later).
Cryptocurrency investment has proven to be very lucrative for some investors, and many believe there are still plenty of fortunes to be made. For instance, Bitcoin was practically worthless when people started trading it (about $0.0008 per coin). It took the coin a few years to even reach $0.08!
Yet, at times Bitcoin has since soared well above the $40,000 mark, allowing early or timely investors to see massive ROI. It certainly isn’t too late to jump on the Bitcoin bandwagon, with at least one Bitcoin price prediction for 2025 as high as $1 million.
Of course, there are numerous other cryptocurrency options available—many even for the price of Bitcoin back in 2009. Before you jump into the world of cryptocurrency investment, there are few things you should know.
Many investors wonder if choosing cryptocurrency is right for them, and we argue that just about any investor can benefit from adding cryptocurrency to their portfolios. While cryptocurrencies are often more volatile and riskier than stocks, owning just a small amount can expose you to high upside potential. Allocating just 3% of your portfolio to Bitcoin can offer huge growth potential.
And if you have money set aside for speculating on markets, trading cryptocurrencies can be a lucrative avenue as well.
When Wall Street firms and funds (together known as institutional investors) and public companies buy up Bitcoin, they buy it up big, in purchases worth millions or billions of dollars. Their cash influx won’t prevent the price from falling again, but it will keep the price from falling too low. It’ll also encourage others to invest and push Bitcoin to new highs. Here are some of the recent notable “big money” Bitcoin investments that helped push the price over $50,000:
| Company/Fund | No. of Bitcoin | Approximate Value on March 1 |
| Grayscale Investments (OTCMKTS: GBTC) | 656,166 | $31.2 billion |
| MicroStrategy Inc. (NASDAQ: MSTR) | 90,859 | $4.5 billion |
| CoinShares Group | 69,730 | $3.49 billion |
| Tesla Inc. (NASDAQ: TSLA) | Est. 40,500 – 52,000 | $2-$2.6 billion |
| Ruffer Investment Company | 45,000 | $2.3 billion |
| 3iQ Bitcoin Fund | 22,590 | $1.13 billion |
| Galaxy Digital Holdings (OTCMKTS: BRPHF) | 16,402 | $820 million |
Source: Decrypt.co; Yahoo Finance
When choosing the best cryptocurrency to buy, consider that a coin's value is ultimately decided by five main factors:
Although cryptocurrency is a relatively new investment, getting started is a lot simpler than most people might think.
The first thing you should do is sign up for a cryptocurrency exchange. These exchanges will allow you to buy, sell, and hold cryptocurrency. Some common cryptocurrency exchanges include Coinbase, Kraken, Gemini, Binance, and more. When choosing a cryptocurrency exchange, compare the features of each. For example, you may want to choose an exchange that lets you withdrawal your crypto to your own personal wallet for safer keeping.
Next, you’ll connect your cryptocurrency exchange to your bank account. To do this, you will need to provide personal documents such as your driver’s license, social security number, and bank account information. This will be how you transfer funds from your cryptocurrency wallet to your bank account.
Now, you’re ready to place a cryptocurrency order. Cryptocurrency exchanges offer many of the same features as traditional stock brokerage options. You can pay, sell, and trade cryptocurrency investments quickly and easily.
You don’t have to buy Bitcoin to profit from its gain. You can also buy stocks that are correlated to Bitcoin or companies that are investing in BTC, like these five we have our eyes on now:
| STOCK | PRICE ON 3/2/21 | YTD GAIN on 3/2/21 |
| Riot Blockchain Inc. (NASDAQ: RIOT) | $50.40 | 206% |
| Grayscale Bitcoin Trust (OTCMKTS: GBTC) | $45.15 | 29% |
| Overstock.com Inc. (NASDAQ: OSTK) | $68.62 | 39% |
| MicroStrategy Inc. (NASDAQ: MSTR) | $781.07 | 84% |
| Snap Inc. (NYSE: SNAP) | $66.11 | 33% |
In addition to using an exchange, you can also buy Bitcoin using apps like Robinhood, Cash App, and even PayPal. You can also buy Bitcoin at a Bitcoin ATM, although the fees can be high (as high as 10%).
Lastly, you can buy Bitcoin through a P2P (peer-to-peer) network. These networks consist of individuals selling Bitcoin themselves. Bitcoin.com has its own P2P trading platform
Want to learn more about getting started with Bitcoin? Check out our guide How to Buy Bitcoin. Luckily, you don’t have to understand all the technical ins and outs of cryptocurrency. All you need to know is how to buy, sell, and trade this potentially valuable investment.
Investing in cryptocurrency is similar in many ways to trading stocks online or through apps. If you’re ready to dive in, read some of our cryptocurrency articles to help set you on the right path.
The Holochain coin (HOT) is down more than 50% in the last month.
Crypto traders want to know if they've hit bottom yet.
The answer may have something to do with the coin itself.
Our Holochain price prediction has HOT going up in the future.
It's just a matter of when.
The Holochain coin (HOT) is down more than 50% in the last month.
Crypto traders want to know if they've hit bottom yet.
The answer may have something to do with the coin itself.
Our Holochain price prediction has HOT going up in the future.
It's just a matter of when.
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And the catalyst driving these gains is not only incredibly powerful, it’s gaining more strength every day.
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Here’s why the price of Ethereum is destined to go much higher…
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Though the lawsuit hangs in the air for now, the coin still shows some life.
Today, we give you our Ripple Price Prediction for the next five years.
Ankr's meteoric, 2,500% rise over the last year has gotten the crypto communities attention.
But is there more upside from here? Is the coin worth owning? We'll cover all that and more with our Ankr coin price prediction.
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Most of the stories out there talking about a “SafeMoon price prediction” are calling for big gains.
But at Money Morning we disagree.
This crypto project is loaded with red flags that suggest investors are more likely to get fleeced than to get rich.
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Here’s why you should steer clear of SafeMoon…
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The creators of Elongate say 1% of the weekly transaction volume will be donated to charity each week.
They've already boasted that they've sent $750,000 to non-profits like Action Against Hunger and The Ocean Cleanup.
Of course, incorporating Elon Musk's joke that "If there's ever a scandal about me, *please* call it Elongate," has helped its initial popularity too.
But does that mean you should buy it? Almost certainly not.
Following an eventful few weeks, Bitcoin had a rough couple of days over the weekend.
And while its drop was pretty significant and sudden, Tom's not worried about it in the long run.
He'll show you what actually happened and where we're headed in the next few days, plus a chart that points to where the buying opportunities are... .
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Now the door is wide open for a wave of crypto IPOs.
And there's no shortage of crypto startups waiting in the wings to be the next to hit the market.
These 15 crypto companies are the most likely to follow Coinbase...
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But before COIN shares could trade, a few basic criteria needed to be met over the first five days of trading.
Well, those criteria have been met, so we're seeing options trades happen right now.
And Shah's already getting an extremely profitable one ready for his Total Wealth readers.
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That’s making it more and more popular.
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Find out why Pi may not be all it’s cracked up to be…
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With that much cash behind it, COIN has become an instant institution that’s moved the timeline forward on the crypto market.
So, what are the investing implications for Bitcoin and its biggest stocks? While the trend is currently down, Chris will show you some charts that’ll make clear just how big of a buying opportunity this is….
Coinbase's massive IPO means cryptocurrencies have "officially" arrived on Wall Street.
It's an extremely bullish development for Bitcoin, but... investors everywhere want to know about the exchange's stock itself - "Should I buy Coinbase?"
Here's what you need to know...
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Plus, we've now got a huge potential catalyst coming with the initial public offering of Coinbase.
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EOS, the cryptocurrency behind EOS.IO, could be one of the hottest cryptocurrencies of 2021.
By now, most investors are intimately familiar with Bitcoin.
You likely know quite a bit about Ethereum.
Even other altcoins like Cardano are catching on.
EOS could be next.
If you’re interested in making money from cryptocurrencies, this altcoin absolutely needs to be on your radar.
