Ok. so, the headline is a little click-baity, I admit, but there really is a way to ride the bitcoin wave where you don’t have to handle the cryptocurrency on your own or worry about losing access to your coinbase account. And there is a way to do it without having to pay a commission fee!
Grayscale Investment Trust is a fund that invests in bitcoin for you. The company trades at a huge premium so that basically means that it is rife with risk. As of this post I own two shares of the stock (SYMB: GBTC). This provides me with exposure to the price of bitcoin without having to worry about losing my bitcoin keys or other information. To be clear, it is far from a perfect science and there are plenty of very reputable investment companies that are pleading with newbie investors to stay far, far away from the stock. On top of that (and for further clarity), the stock can be heavily sold on a day that bitcoin might be up and the stock will still move down… that’s because it is traded like a regular security. But there are other ways to be exposed to bitcoin without having to own the stock and there is also a company out there that will help you purchase the shares without having to pay a commission fee. That’s where things get a little more interesting and safer than owning $GBTC in your portfolio.
UPDATE: Just a few days ago, Robin Hood announced plans to allow their members to purchase bitcoin directly through their app. I am not clear on how much the fee would be for each transaction but you would better hurry to get your name in because there is an active waiting list that is growing by the minute. Super stoked to try trading bitcoin using my Robin Hood App… as soon as I have additional updates or experiences, I’ll be sure to post them here.
When you sign up for a brokerage account with Robin Hood, you are granted access to commission-free trades. This results in a wide world of different investment opportunities. And there are a number of companies out there that are investing in bitcoin-related technologies and services that could, potentially, provide slightly less risk than owning $GBTC outright.
Robin Hood makes their income through the clients (the larger clients, in particular) in their database that maintain cash in their account. By making a small amount of interest on the available cash reserves across the entire brokerage company, they are able to turn around and offer their clients commission-free trades. This is where it gets interesting for the newbie trader… you can quickly place trades from your phone with an easy-to-use UI. To be clear: I am not a certified financial planner (or anything close to it) nor do I know if you will be making a ton of money or losing everything based on trading bitcoin (both are possible). You should always consult a certified investor before making any decisions!!! Happy trading 🙂