The prices of cryptocurrencies can be volatile, which makes this type of investing likely a poor choice for conservative investors. If you are willing to assume greater risk as an investor, then investing in one or more cryptocurrencies may be right for you. Another way to gain investment exposure to Bitcoin is to buy shares in a company with significant Bitcoin exposure, such as a Bitcoin mining company. You can invest in Bitcoin directly by using one of the major cryptocurrency exchanges, such as Coinbase or Binance. How Can I Invest in Bitcoin?

A best practice among investors is to periodically review your entire portfolio to assess the need to rebalance your holdings. The prices of cryptocurrencies in the future could also be affected by regulatory changes, with the worst-case possibility that cryptocurrency becomes illegal and therefore worthless. That might mean increasing or scaling back your crypto exposure, depending on your investment goals and other financial needs. The prices of cryptocurrencies, even the most established ones, are much more volatile than the prices of other assets like stocks. Many investors are nonetheless attracted to the potential upside of investing in crypto. Investing in cryptocurrency is considered risky.

Your options range from the most established digital currencies like Ethereum. Invest in cryptocurrency-focused funds: If you don’t want to choose among individual cryptocurrency companies, then you can decide to invest in a cryptocurrency-focused fund instead. Bitcoin to virtually unknown coins that are newly released. Your options include cryptocurrency mining companies, mining hardware makers, companies like Robinhood Markets Inc. (HOOD) and PayPal Holdings Inc. (PYPL) that support cryptocurrency, and many others with varying levels of crypto exposure. You also can invest in companies like MicroStrategy Inc. (MSTR), which holds large amounts of cryptocurrency on its balance sheets. Invest in cryptocurrency companies: You can invest in companies with a partial or total focus on cryptocurrency.

How Do You Invest in Cryptocurrency? Cryptocurrency investing can take many forms, ranging from buying cryptocurrency directly to investing in crypto funds and companies. Most inventive asset classes available. Cryptocurrency is virtual money that is secured by blockchain technology. Are you considering investing in cryptocurrency? You can buy cryptocurrency using a crypto exchange or through certain broker-dealers. Find out more about how you can invest in one of the newest. Cryptocurrency investing can take many forms, from buying cryptocurrency directly to investing in crypto funds and companies. For direct investing in crypto coins, you can buy cryptocurrency using crypto exchanges or apps or through certain broker-dealers. Although Bitcoin is likely the best-known virtual money, thousands of cryptocurrencies already exist.