If you purchase a large amount of Bitcoin, you may be able to capitalize on a market surge and sell your coins for a much higher value when there are lots of buyers. There’s also a slight possibility that Bitcoin will truly become the healthcare models and domains overview currency of the future or a more popularly traded asset, and you could hopefully generate returns from long-term holdings. It should be noted, however, that Bitcoin values are generally decreasing every year.

Recent shifts toward sustainability have led more miners to adopt water, wind, solar, and nuclear power. But, overall, the energy consumption by the network still remains high. The entire network relies on cryptographic algorithms and game-theoretic principles that incentivize honest behavior among miners and nodes.

There are more than 17,000 cryptocurrency coins on the market, according to Coingecko. Crypto coins range from household names like bitcoin and Ethereum to controversial meme coins like TRUMP or the Shiba Inu’s SHIB. There are a variety of ways to invest in Bitcoin, with some safer than others. Keep in mind, though, that at the end of the day, Bitcoin is still a highly volatile investment. Even if you try your best to mitigate your risk, only invest money you’re prepared to lose.

How Do Cryptocurrencies Work as Investments?

Alternative investment vehicles offer flexibility for gaining Bitcoin (BTC) exposure without directly buying and managing the asset. Your investment strategy should align with your financial goals, risk tolerance, and time horizon. Here’s a comparison of the most popular Bitcoin investment strategies used by investors in 2025 — from beginners to experienced HODLers.

Finality and security

In this Fool Live video clip, recorded on March 18, senior analyst John Rotonti and Motley Fool Deutschland lead analyst Bernd Schmid discuss the basics of adding Bitcoin to your investment strategy. Currently, Bitcoin has a 50% weighting in this index, while XRP start your own exchange in minutes best white-label crypto software cryptocurrency trading has a 9% weighting, and Solana has a 5% weighting. Heading into 2025, Bitcoin has a tremendous amount of momentum, thanks in large part to the campaign promises of President-elect Donald Trump. On the campaign trail, Trump promised to bolster the Bitcoin mining industry, make America the crypto capital of the world, and create a new strategic Bitcoin reserve. Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians®, has written about money matters for over 10 years.

Covering Crypto Livestream

• Answering these questions will help you figure out whether Bitcoin is the right investment option for you.
• This may be out of reach for most investors, but you don’t have to buy an entire bitcoin.
• Nevertheless, the answer to the questions, “How do I buy bitcoin?” and “How do I buy cryptocurrencies?” is essentially the same.
• Increasingly, brokerage platforms and fintech mobile apps offer options for trading crypto.
• As mentioned earlier, understanding BTC’s price moves can be a good way to analyze the entire crypto space.

It’s important to know that cryptocurrency trading platforms have been in the headlines recently as several large exchanges have collapsed. Investors who use an exchange that collapses are at risk of losing their money. And XRP continues to be a trusted platform for settling financial transactions, especially those that involve cross-border money flows. Ripple, the company behind the XRP token, recently settled long-running case with the SEC, and now appears ready to launch a new wave of innovations to support the XRP blockchain network. If you are determined to invest in cryptocurrencies, then Bitcoin and Ethereum are likely the safest way to go.

What is the safest cryptocurrency to invest in long-term?

This gives you some exposure to Bitcoin by investing in its potential value, without actually having to own a piece of the cryptocurrency itself. That’s important given cryptocurrency’s volatility and the other potential risks of investing directly in Bitcoin. Investors can choose from Bitcoin mining stocks, blockchain stocks, and crypto exchanges to diversify their Bitcoin investments. As the market matures, more brokerage platforms and financial services companies may start offering the option to hold crypto or crypto-related assets in retirement accounts. In general, crypto is highly volatile, so make sure you understand the implications of a potential investment before jumping in.

What to know about Bitcoin transaction fees

Between the high fees, knowledge required to use a Bitcoin wallet and the lack of customer support for Bitcoin ATM transactions, this is one of the more cumbersome and costly ways to buy Bitcoin. Of the crypto platforms on our list, Robinhood, Interactive Brokers and Fidelity are all traditional brokers that offer Bitcoin. We believe everyone should be able to make financial decisions with confidence. Enter your email address to learn more about using beta to protect your portfolio.

This ensures that the ETF’s price closely follows the market value of bitcoin. ETFs, on the other hand, offer an arm’s-length way to invest that crypto forecast for the first half of 2021 doesn’t expose you to bitcoin’s volatility firsthand. If you’re used to investing in traditional assets in a regulated stock market environment, bitcoin ETFs might be more comfortable for you. Another way to get Bitcoin exposure in your portfolio is by investing in Bitcoin-related companies that are publicly traded. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

Nobody knows what the future holds for bitcoin, and even indirect investments could lose money if the crypto asset fails to meet the increasingly high expectations of speculators. If you want a more direct link, there are publicly traded bitcoin mining companies such as RIOT and MARA, whose share prices are closely linked to the value of bitcoin. Custodial wallets are the most convenient way to store your keys, but crypto exchanges are a prime target for hackers. Anyone using a crypto exchange to store their keys without good security hygiene puts their keys—and therefore their crypto holdings—at risk.

It also provides educational articles that teach users crypto basics. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The value of your investments, and the income derived from them, may go down as well as up. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

• Additionally, in the event of bankruptcy proceedings, preferred stock is junior to corporate debt.
• Investors speculate that Bitcoin’s value may rise significantly if there’s a surge in the market.
• Full performance can be found on the company or index summary page on the interactive investor website.
• Invest in crypto like bitcoin and ethereum in a traditional, rollover, or Roth IRA.
• After placing your buy order, your broker will execute the transaction on your behalf.
• Here’s a comparison of the most popular Bitcoin investment strategies used by investors in 2025 — from beginners to experienced HODLers.

You might set a rule, then, that your top three holdings should account for two-thirds of your overall crypto portfolio. You then have some additional flexibility to add in a few high-risk, high-reward cryptos to round out your portfolio. Adding in a top artificial intelligence (AI) crypto, for example, might be one way to turbo-charge your returns.