The price of Bitcoin exceeds $100,000, but you can invest in the world’s most popular cryptocurrency at a much lower cost

with The recent surge in Bitcoin Many investors are wondering how they can participate in this event. But with the price of a single Bitcoin exceeding $100,000, how exactly can you invest in Bitcoin? The most valuable cryptocurrency in the world?

3 ways to invest in Bitcoin without spending $100,000

One common misconception about buying cryptocurrencies is that you have to buy the entire currency if you want to invest. This is not necessarily the case, although there are many of them Cheaper altcoins You can purchase individually. If you would like to purchase BitcoinHowever, it may be wise to purchase coins or funds linked to Bitcoin.

Whatever method you choose to invest, know this Investing in cryptocurrencies can be risky. Prices are driven only by what others are willing to pay for the coin, not by tangible factors like cash flow or business performance, so keep that in mind before investing your hard-earned money.

Here are three ways to buy Bitcoin, even if you don’t have $100,000.

1. Buy a small portion of Bitcoin

If you want to start investing in Bitcoin, the good news is that you have options. You can head to Crypto exchanges or Online brokerage To buy pieces of currency – or fractions – rather than a whole unit. If you don’t already have an account on any of these platforms, it’s easy to create one in a matter of minutes.

Each platform has different trading minimums for purchasing cryptocurrencies. For example, Webull has an account minimum of $1 — roughly 0.00001 of a bitcoin as of mid-January — for trading cryptocurrencies. If you bought $50 worth of Bitcoin, you would have approximately 0.00047 worth of Bitcoin.

Note that Each platform has its own fee structure. Even commission-free trades may have a profit margin, which means that costs are built into the price of buying or selling the currency.

2. Invest in a Bitcoin ETF

A Bitcoin exchange-traded fund (ETF) This may be suitable for you if you want to invest in Bitcoin but prefer not to own Bitcoin directly or manage the inherent risks, such as storage.

Bitcoin ETFs are approved in 2024, making it easier to invest in Bitcoin and helping you avoid the more risky process of using a cryptocurrency exchange. Ethereum, the second largest cryptocurrency, can be purchased through it ETFsalso.

Since Bitcoin ETFs track Bitcoin, you should see the same returns — minus expense ratios — as holding the currency directly but without the hassle of safely storing your cryptocurrencies. the Best Bitcoin ETFs They are easy to purchase and tend to offer low fees.

You can even Buy fractional shares From a Bitcoin exchange-traded fund. More advanced investors might consider this Trading Options on Bitcoin ETFs Or login Bitcoin Futures ETFs.

However, investing in cryptocurrency ETFs is still risky. If the price of Bitcoin declines, the value of Bitcoin ETFs will also decline.

3. Invest indirectly in Bitcoin

Bitcoin is big business. If you want to step back from investing directly in Bitcoin, you can invest in Bitcoin-related stocks or ETFs. Some possibilities include:

• Bitcoin mining: An exchange-traded fund (ETF) or stock in a company Bitcoin mines It can provide indirect exposure to Bitcoin.
• Bitcoin buyers: MicroStrategy, a publicly traded company holding hundreds of thousands of bitcoins, offers something of Bitcoin proxy investment. You can gain exposure to cryptocurrency through MicroStrategy shares.
• Adjacent encoder: Besides individual stocks, some ETFs focus on companies operating in the cryptocurrency industry.
• Blockchain ETFs: Blockchain It is the digital ledger technology that underpins Bitcoin. Blockchain ETFs They allow you to invest in the backbone of Bitcoin without holding the currency itself.

Should you invest in Bitcoin?

Bitcoin can be part of your broader investment strategy, but it shouldn’t be your only strategy – if only because cryptocurrencies are volatile and have no real assets to back their value. Cryptocurrency prices rise and fall based solely on investor sentiment Huge gains in the past do not guarantee future results. Some advisors recommend allocating only 1 to 2 percent of your portfolio to digital assets.

Before you think Investing in cryptoArrange your financial affairs. Make sure you have an emergency fund, a level of debt you can manage, and a diversified investment portfolio. Understand that cryptocurrencies are speculative and never invest more than you are willing to lose.

Bottom line

If you want exposure to Bitcoin without having to spend more than $100,000 for a single coin, there are other ways to invest. You can buy fractions of Bitcoin through cryptocurrency exchanges or brokerage platforms, invest in Bitcoin ETFs or look for cryptocurrency-related stocks and ETFs.

Editorial Disclaimer: All investors are advised to conduct their own independent research on investment strategies before making an investment decision. Additionally, investors are advised that past performance of an investment product does not guarantee future price appreciation.