Bitcoin has gone over $100,000 this year, and some analysts are predicting even bigger gains next year. With this, many financial advisors are recommending at least some caution, while investing in cryptocurrencies and making sure only a small portion of your overall portfolio is being used for investment. Bitcoin prices have fallen, but have recovered quickly after the Federal Reserve signaled it might cut rates less frequently next year, but they have more than doubled. Asset manager Blackrock recommends a 1-2% allocation to bitcoin in a portfolio that otherwise consists of a traditional stock/bond allocation due to bitcoin’s volatility. Experts like Malcolm Ethridge and David Rosenstrock weigh in on the risks and rewards of investing in bitcoin, emphasizing that it’s important to know why you want to invest. Buying bitcoin directly, investing in an ETF, or buying shares in companies that trade bitcoin each involve a number of different considerations. New investors should consider ETFs as a beginner-friendly option, but experienced investors like Douglas Boneparth prefer to hold bitcoin directly, for more control and security.
Investing 1-2% of my income to Bitcoin will not bring a significant return. Maybe this advice will be more suitable to millionaires or even Billionaires. The most suitable way for low income earners to invest is through the DCA. Investing a part of your income that you can live without is cool. If you can consistently do it althrough the Bitcoin circle or more, you might get good returns.
Why would you consider buying Bitcoin through a centralized platform when you can buy it directly. Are you part of the people who cannot keep their investments safe? It will be better to be your own Bank than to rely on a middleman that cannot be trusted.