Cryptocurrency ETFs have made investing in digital assets more accessible than ever. Here’s how to get started.
Transcript:
CONWAY GITTENS: So tell me, what advice do you have for people then who want to invest? They want to put that 1 to 2% into crypto, but they don’t know where to start?
RIC EDELMAN: Yeah you know, I couldn’t answer that question easily. A year ago. But I can now because this year the SEC has made available Bitcoin ETFS and Ethereum ETFS. Bitcoin and Ethereum are the Coke and Pepsi of crypto. They are the biggest market share between the two of them. There’s 70% of the entire market cap of the entire crypto world. So all you got to do is a combination of bitcoin and Ethereum and you can now do these with the ETFs. You can buy them in any brokerage account, fidelity or Schwab or your favorite financial advisor. They’re simple and easy. They work just like every other ETF. They’re incredibly cheap, like 20 basis points. That’s 2/10 of 1% per year in fees. Very, very low. They’re liquid, they’re tradable. You can rebalance dollar cost average, you can do tax loss harvesting. You can use them just like every other ETF in your portfolio. And it’s real simple and easy to do. So the bitcoin ETFs and the Ethereum ETFs are offered by some of the biggest companies on Wall Street, and it makes it easier than ever for everybody to participate.
CONWAY GITTENS: Is there a right time or a wrong time to begin that investment in crypto?
RIC EDELMAN: Well, you know, you pointed out that that Bitcoin is very, very volatile. So with your dumb luck, you’ll buy it today and it’ll crash tomorrow. So the solution to that is to dollar cost average instead of putting your money into it today, put a little bit of it today and a little bit of it next month and the month after that. In other words, if you are going to invest $1,000 into bitcoin, I would put $100 a month over 10 months. This way you’ll smooth out the volatility of the next 10 months and you’ll get the average price. And you won’t have to worry that you put it all in today and it crashes tomorrow.
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