Investing in Bitcoin and Cryptocurrencies: An Overview
Whether you're a seasoned investor or just starting out, finding the right avenues to invest in cryptocurrencies, such as Bitcoin, can be a daunting task. This article explores some of the best options for investment, including Bitcoin Investment Trusts (BIT) and platforms like Iconomi, which offer a more managed approach to cryptocurrency investing.
Bitcoin Investment Trusts: A Deeper Look at the BIT
For a Comprehensive Experience
When you're looking to invest a modest sum, say $1,000, consider setting up a personal Bitcoin wallet and purchasing directly. This allows you to engage in a hands-on, educational experience with minimal fees. However, if you prefer a more seamless and less hassle-prone option, the Bitcoin Investment Trust (BIT) is a highly recommended choice.
The BIT, established in 2013 by Barry Silbert, the founder of SecondMarket, is a reputable investment platform based in New York City. As a trust that holds Bitcoin and issues non-registered shares closely tied to the value of Bitcoin (BTC), it offers a straightforward avenue for investors to gain exposure to the cryptocurrency market. Unlike many crypto investment vehicles, the BIT is operated by a serious investment management firm, making it a reliable and trustworthy choice.
Grayscale Investment Trust: For Accredited Investors
Direct accreditation pathway
If you are an accredited investor or a broker-dealer, you can invest directly in the BIT, bypassing the need for shares. This direct investment route offers greater control and flexibility for those with a broader understanding of the market and investors' rights.
On the official website, you'll find extensive information about the BIT, including its management structure, performance metrics, and investment horizons, providing a transparent and detailed view for potential investors.
Exploring Iconomi for Diversified Cryptocurrency Investing
Invest in multiple cryptocurrencies without the hassle
For investors looking to diversify their crypto holdings beyond Bitcoin, the platform Iconomi stands out as a valuable option. Launched in December 2016, their ICNX fund offers a managed way to invest in a basket of cryptocurrencies, including Bitcoin and Ethereum, without the need to individually manage each cryptocurrency wallet.
This platform simplifies the investment process by allowing users to invest fiat currency directly into the fund using their credit card or bank transfer. Users can allocate their funds to the ICNX fund, benefiting from the growth of multiple cryptocurrencies under managed index funds. This approach appeals to those seeking a low-stress, hands-off way to invest in a range of digital assets.
Conclusion
Investing in cryptocurrencies, particularly Bitcoin, can offer significant growth potential. The BIT and Iconomi provide two distinct methods to achieve this, catering to different investment styles and risk tolerances. Whether you prefer a hands-on approach or a more managed investment, these options can help you navigate the dynamic and potentially lucrative world of cryptocurrency investment.