Financial Planning Ideas That Incorporate Crypto Investments

25 January 2023
 Categories: , Blog

If you are someone who is interested in alternative investments, then you most likely have come across cryptocurrency. Cryptocurrency has broken through into the mainstream discussion.

What was once a niche industry is now discussed in casual conversations around the water cooler at work. Crypto has even become the topic of Super Bowl advertisements.

So, how exactly do you incorporate crypto investments into your financial planning strategy? Well, there are a few ways to do so. Below you'll see a few ideas on how to invest in crypto.

Investing Directly into Cryptocurrency

Many people want to directly invest in cryptocurrency and own the "coins" themselves. This is perhaps the most common method of investing in crypto. In order to do that, you first need to decide what type of crypto coins you want to own.

The most popular coins are Bitcoin and Ether (part of the Ethereum network). There are many other coins, some of which are highly volatile.

A conservative approach to investing in crypto would involve choosing one of the more popular crypto coins.

After you have decided on which type of cryptocurrency you want to invest in, you will want to choose an online broker for the coins. Be sure to read reviews regarding the online broker to see how easy it is to withdraw your funds and sell your crypto.

Selecting Companies Involved in the Crypto Space

If you are hesitant to buy cryptocurrency directly, but still want to invest in the crypto space then you have many options. There are large companies involved in the world of crypto. These companies are publicly listed on the stock exchange and you can invest in them like any traditional stock.

For instance, you might see a company that is involved in mining cryptocurrency.

Selecting an ETF That Holds Crypto

Finally, one very popular method of investing in crypto is to look into an exchange-traded fund. There are several exchange-traded funds that are designed for crypto investors.

These funds are bought and sold in the same manner as stock. You can purchase them through your financial planner and then check the price online with the rest of your investments.  When you want to sell them, you simply sell them like you would a regular stock or mutual fund.

These funds might hold a variety of crypto mining companies, or they might hold a diverse selection of crypto coins. The ability to have wide exposure to different sorts of crypto investments is good for asset protection.