Are You Buying Bitcoin?
You may already own it.
But if you’re thinking of jumping on the Bitcoin or cryptocurrency train, you need to be armed with some important information.
There are many ways to play it – some even in your retirement account so you can defer taxes on the gains (if there are gains).
In the stock market, you can buy crypto funds, like the Grayscale Bitcoin Trust (OTC: GBTC) or the Bitwise Crypto Index Fund (OTC: BITW). However, the problem is that while these two vehicles give you access to crypto in a simple fashion, you would be paying a huge premium to the net asset value. As you can see from the screenshot taken earlier today, that’s more than 100% premium!
You can invest in companies that use blockchain, are associated with Bitcoin payments or even make chips for Bitcoin miners. They will definitely get attention when cryptos move up and down.
Cryptos can be bought on exchanges like Coinbase or Kraken. The problem here is that you are at the whim of technology. It might be exciting when you’re getting in and it’s moving higher, but when these sites crash or are inaccessible, like Coinbase was for hours yesterday, you have to wonder if you can get out when these assets pull back sharply (the last sharp pullback in Bitcoin was from $17,000 to $3,000). It can be very painful!
The best bet is to get exposure to all three and cover your bases by position sizing. That way you can take advantage of the volatility and not be stuck in the wrong place at the wrong time!
In The War Room, we have our own resident crypto expert who goes by Footie57. This member has been covering Bitcoin in The War Room forever! Take a look at his crypto update post from November, when Bitcoin was well under $20,000.
Footie57 11/16/2020 at 9:46:47 a.m.
Crypto update – BTC nice PB below 16K over the weekend consolidating S, despite whales moving 1,000 into public view (often a precursor of selling). Plenty of sale orders clustered at 16.5 and futures contracts too. Break above could see shorts scurrying for the hills.
Action Plan: The War Room is more than just options and stocks. We are a unique trading community of like-minded investors who love to share ideas and recommendations.
Join me now so you can benefit… or even chip in with your expertise like Footie57 does!
P.S. Bitcoin and cryptos are known for their insane volatility. But thanks to COVID-19 and social unrest, the markets have also been in an extended period of volatility. Most investors fear volatility and run for the exits anytime it spikes. But in The War Room, we thrive off it.
During last year’s crazy market environment, we hit 468 winners for an 80% win rate. And we believe volatility is here to stay. If you want to learn how to profit – instead of panic – when markets swing, join our Volatility Survival Summit by clicking here.