Is it too late to buy bitcoin? Why some Wall Street experts say no — and 4 ways to start investing now.
according to Business insider
- Bitcoin has been on fire in 2024, topping all-time highs and soaring past $100,000.
- The price tag doesn’t scare some investors. In fact, now might be a good time to buy.
- Here are four ways to add bitcoin to your portfolio.
If you go by some of the many cautionary investing adages — like “buy low, sell high” or Warren Buffett’s “be fearful when others are greedy” — it may be tough to argue that bitcoin is a good buy right now.
The days when bitcoin traded at mere fractions of a cent are long gone. The cryptocurrency’s price is anything but low, at least relative to what it was, especially after a 55% rally to over $108,000 following Donald Trump’s reelection.
But some market experts are taking the opposite philosophy with bitcoin and believe it’s a fine time to buy, thanks to favorable fundamental trends.
“We believe it is the period leading up to large-scale adoption where the biggest future return potential could lie,” Samara Cohen, the chief investment officer of ETFs and index investments at BlackRock, wrote about bitcoin in a recent note.
Robert Cannon, a financial advisor at Experity Wealth, shares this view. “We’re basically in the beginning, even though $100,000 seems like a high number,” he told BI. He recommends investors allocate about 1% to 10% of their portfolios to crypto, depending on risk tolerance.
Cannon has seen inklings that other governments, such as Argentina, could adopt bitcoin as a strategic reserve asset, sending the cryptocurrency’s price even higher.
“You want to get there before the big money is there,” Cannon said. In other words, don’t sit out on the bitcoin rally just because you think the ship has already sailed.
Bill Miller IV, the chief investment officer and portfolio manager at Miller Value Funds, likens bitcoin to “digital gold” due to its scarce and decentralized nature.
But the recent overwhelming interest in bitcoin is hardly a guarantee of its success. It’s famously volatile and prone to dramatic price drops — hence why bitcoin bulls like BlackRock recommend exercising discretion and educating yourself on the risks when investing. But as institutional investors continue to pile in and talks about establishing a national bitcoin reserve swirl in Washington, it’s increasingly apparent that the asset is being legitimized in the investing landscape.
How to buy bitcoin
Centralized exchanges
Luckily for investors, there’s never been a more convenient time to be bitcoin-curious. As the cryptocurrency has gained steam in the past few years, mainstream brokerage firms have picked it up. You can purchase bitcoin directly through some online brokerages such as Fidelity, Robinhood, and Interactive Brokers. For those without $100,000 to drop on a bitcoin, these exchanges offer the opportunity to purchase fractional shares.
