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Investing in Bitcoin

  • Investing in Bitcoin means that you own individual Bitcoin, which is traded on a cryptocurrency exchange.

  • Trading individual Bitcoin comes with transaction fees that are typically between 2-6%.

  • Practically, investing in Bitcoin also means that you need a digital wallet to store it, for which you’ll need a password that you cannot lose. Bitcoin does not have a support line or password reset function.

Investing in a Bitcoin ETF

  • Investing in a Bitcoin exchange traded fund, or ETF, means that you are not investing in individual Bitcoin. Instead, you’re investing in a fund that tracks the value of Bitcoin, and trades on a traditional market exchange, like the Nasdaq. In other words, the ETF attempts to closely mimic the price and performance of Bitcoin.

  • There are no transaction fees with an ETF, instead they typically charge a management fee of <1%.

  • You do not need a digital wallet to invest in a Bitcoin ETF.

Crypto

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What is the difference between investing in Bitcoin and a Bitcoin ETF?

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