Photograph of Bitcoin token
Photo by Kanchanara on Unsplash

How To Purchase Bitcoin Without Risking Your Money

Trading crypto usually comes with unique risks. Find out how to purchase Bitcoin without putting your money at risk.

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Photograph of Bitcoin token
Photo by Kanchanara on Unsplash

Trading crypto usually comes with unique risks. Find out how to purchase Bitcoin without putting your money at risk.

Bitcoin is a transaction currency that serves as a payment for various goods and services worldwide. It also doubles up as an investment asset. However, you must own the tokens to spend them. While different avenues exist for getting Bitcoin, purchasing the coins is the most reliable way most investors and individuals acquire the funds.

Crypto exchanges are the best places to buy Bitcoin. The platforms allow businesses and individuals to purchase Bitcoin with other cryptocurrencies or fiat money. However, accessing the services require new users to create accounts with crypto exchanges. Register with to start buying Bitcoin directly through a crypto exchange.

You can also purchase Bitcoin from Bitcoin ATMs and independent vendors online, apart from crypto exchanges. However, crypto is a highly volatile asset with numerous unforeseen risks that could drain your pockets in a blink. The following article outlines the best ways to purchase Bitcoin without risking your money.

Bitcoin Exchange Traded Funds (ETFs)

Bitcoin Exchange Traded Funds is one of the best ways to acquire Bitcoin without putting your money at risk. While Bitcoin ETFs have been available in many countries, including Europe and Canada, they only came into the U.S. market in 2021. Buying Bitcoin-related ETFs entails investing in futures that track Bitcoin spot prices through contracts.

The most popular Bitcoin ETFs that attract vast numbers of investors include the BITO and BTF. Investing in Bitcoin ETFs bears fewer risks because you are betting on price movements. They are mainly suitable for investors that want to consolidate their holdings in traditional brokerage accounts that do not allow actual crypto investments.

Buying Stocks in Companies With Bitcoin Investments

Bitcoin’s high value and resilience to inflation have made it one of the most sought-after investments by institutions today. Several leading companies have accumulated extensive Bitcoin holdings to diversify their investments and safeguard wealth from inflation. Thus, buying stocks in publicly traded companies can be a great way to own Bitcoin without risk exposure.

Those companies have extensive assets that serve as collateral if the markets experience turmoil. That offers investors better protection from market volatility, making sure you do not lose your investments even if the markets disappoint. However, many suggest buying stocks in companies with substantial Bitcoin holdings such as Tesla, Galaxy Digital Holdings and MicroStrategy Inc.

It is also advisable to evaluate a company’s sector and its performance on stock markets. If you choose to pursue the above option, go for a firm with better growth prospects.

Stock ETFs

Some investors often prefer to hold their investments on a single platform for easy asset management. However, doing so also limits the opportunities for making profits significantly. Thus, savvy investors recommend spreading your Bitcoin investments across multiple platforms to maximize profitability.

Stock ETFs enable you to spread your Bitcoin holdings across multiple companies, significantly reducing risk exposure. However, do a little research to find the best stock ETFs with higher return profiles. You also need to find reputable companies and invest in them.

Bitcoin Trusts

Trust funds were the go-to places for gaining exposure to Bitcoin before futures-based ETFs. Grayscale Bitcoin Trust is among the prominent Bitcoin trusts, having been around since 2013. Crypto investment trusts usually charge relatively lower fees for asset management, and sometimes, the funds trade at discounted rates to Bitcoin’s value.

Bitcoin is increasingly becoming accessible to global populations due to its mass adoption. However, the crypto market is rife with numerous bad actors and risks. The strategies discussed above can help you acquire Bitcoin without risking your money.

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