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How To Buy Into Bitcoin Stock BEST

MicroStrategy, co-founded by Bitcoin bull Michael Saylor, amassed approximately 129,699 BTC over several years at an aggregate purchase price of $3.977 billion. Despite market uncertainties, the business analytics software firm continues to pursue its goal of acquiring more BTC by selling company stocks. The filing confirmed:

how to buy into bitcoin stock

While I had first heard about bitcoin in 2011, it wasn't until I watched a documentary and started reading forums about the cryptocurrency that I decided to buy it. It was easy to see how bitcoin could disrupt the entire financial system.

I decided to buy as a long-term experiment and used less than 1 percent of my net worth at the time to buy into bitcoin. Sure, I wanted to make money on it, but if I lost everything, it wasn't going to change the course of my life.

As of this writing, bitcoin is trading at $16,600, which makes my bitcoins now worth $1,148,720. It took me five years working 80-hour weeks to make over $1 million saving and investing in the stock market, but with bitcoin, my coins have increased to over $1 million in 2017 alone. It's by far, without a doubt, the easiest money I have ever made.

On my blog Millennial Money, I've received over 100 emails from readers asking about investing in bitcoin and other cryptocurrencies. I was even talking to a reader last week who told me he put his entire life savings into bitcoin, buying in at around $11,000. That's a terrible idea.

When the price of anything fluctuates 20-30 percent in one day, it's obviously unstable, so you could lose all of your money very quickly. Especially if you need your money in the next year, don't buy bitcoin. With the insane short-term fluctuations, bitcoin is short-term gambling, not investing.

Litecoin is a good example. Sure, bitcoin has an early mover advantage, but it was created to buy and sell things online securely, which no one is doing right now because the price is so insane and transaction costs are skyrocketing.

You might think that digital wallets are secure, but cryptocurrency exchanges and wallets continue to get hacked regularly. More than $70 million in bitcoin was hacked from NiceHash, a bitcoin mining marketplace, last week.

Just because exchanges like Coinbase have $200 million in venture funding and a nice shiny marketplace doesn't mean that they can't get hacked either. Because there is no central governing body guaranteeing your bitcoin, if you lose it, it can be difficult to get back. If it gets stolen, then you are out of luck. Hacks will continue to happen.

If you do decide to buy bitcoin, I encourage you to buy responsibly. Don't buy using more than 1 percent of your net-worth, and be honest with yourself: Bitcoin is a gamble, not an investment. It's super risky and there are far better places to invest your money securely for both the long- and short-term.

Cryptocurrency is a digital form of currency that's transferred peer-to-peer through the internet. Fidelity is here to help you gain access to assets like bitcoin, the first and largest asset in the growing category, with expertise in security and reliable support.

You could say we were crypto curious early on. In 2014, Fidelity began mining bitcoin. By 2018, we launched our first crypto service: Fidelity Digital AssetsSM, an institutional custody and trading platform for digital assets. As crypto evolves, we're committed to unlocking new investment opportunities for our clients.

VolatilityPeople's faith and trust in a currency play a major role in its stability. Digital currencies are still in their infancy compared to fiat currencies like the US dollar, the Chinese yuan, or British pound. Many investors liken crypto to the early days of tech stocks. And, as more people accept its real-world use, opinions can shift.

When Bitcoin was created, its founder(s) limited the number of Bitcoin that can ever be mined into existence to not more than 21 million. As of August 2021, 18.77 million Bitcoin have been mined into existence. The limit on the number of Bitcoin that can be mined creates the rarity that may enhance its value.

Going in a different direction, USD Coin is considered a stablecoin. The term applies to this crypto, and others like it, because its value is tied to the U.S. dollar. That direct conversion is more than casual. As a stablecoin, USDC is readily convertible into dollars, and more easily transferred between crypto exchanges.

In a way, calls for federal regulation of crypto speak volumes about the success of the currency. And fortunately, no one is calling for an outright ban of crypto. That means its place in the future looks secure. After all, stocks, bonds, mutual funds, and other investments are also federally regulated. And those markets are larger than ever, even with regulation.

When you start looking at some of the returns Bitcoin has made (1,510% in 2011 and 6,092% in 2013) you start to understand why it has been the best performing asset over the past 10 years. Just to put it into perspective, look how those returns stack up on this chart (data provided by Koyfin):

When you buy into Bitcoin, your purchase will be recorded on the blockchain (but your privacy will be protected). As the blockchain becomes more widely used for mainstream transactional purposes, the more likely bitcoin and other cryptos will play a role in serving as the monetary tokens for these exchanges.

The market for trading digital assets in maturing rapidly. The volatile nature of cryptocurrencies initially sparked widespread scepticism among those running big financial institutions, with the heads of JPMorgan and Goldman Sachs emerging as critics of bitcoin and other currencies.

But since late last year, more banks and fund managers have begun to explore the possibility of trading these assets, with many having set up internal groups to looking into the risks and opportunities.

The share of the population that have ever transferred funds into a crypto-related account tripled during the COVID-19 pandemic, rising from a cumulative 3 percent prior to 2020 to 13 percent as of June 2022. See box below for background on how we track crypto-related flows. The adoption of crypto accounts (defined by the first observed crypto transaction) and the volume of transfers have come in concentrated episodes that coincide with sharp increases in the price of bitcoin. The majority of new crypto users in our sample, from 2015 to 2022, made their first transactions in a set of days spanning less than five months, all of which coincide with a trailing monthly price change exceeding 25 percent.

Consistent with crypto-assets being a new entrant to the retail investment landscape, in aggregate U.S. households have been net purchasers of crypto-assets over the past several years. In our sample, the ratio of transfer to crypto accounts to money flowing back into traditional checking accounts was 2 to 1 from 2017 to mid-2022. However, the relative flows had shifted to nearly balanced after the declines in bitcoin prices in May and June of 2022 (Figure 2), as transfers to crypto assets fell and outflows remained elevated. We view the rise and fall of crypto use since the onset of COVID as consistent with the joint relationship between retail flows and market prices seen in prior research. Additionally, the trend in crypto flows also tracks dynamics of household savings, which spiked to historic highs early in the pandemic but has begun to reverse.ii

Among crypto users, men are also more deeply involved in crypto than women, as measured by the gross amount of transfers into and out of crypto accounts vis-à-vis traditional checking accounts. The median total gross transfers for men is approximately $1,000 for men and $400 for women. We investigate the depth of financial risk taken by demographic groups in more detail in Finding 3.

With prices trading near $20,000 over the past several months, our average transaction price measurements imply that the majority of U.S. individuals have faced losses on their crypto investments. While a number of individuals have transferred money out of crypto, especially around the price declines in May and June 2022, only 13 percent of individuals have transferred out as much money as they transferred into crypto accounts. Figure 9 shows the share of individuals in our sample with implied average crypto purchase prices across the range of bitcoin prices. Less than 20 percent of individuals that transferred money into crypto accounts did so when bitcoin was below the recent trading range sub-$20,000 as of November 2022. Over half of individuals made their average crypto transfers when prices were above $40,000, suggesting significant investment losses for that group.

The timing of transfers around significant price spikes is characteristic of herd-like behavior. A wide range of U.S. households transferred money into crypto accounts when those assets were trading near their highest levels. Using bitcoin prices around the time of transfers to crypto accounts as a proxy for investment price, we find that lower income households bought crypto at substantially higher prices. The majority of U.S. households were likely facing significant losses in percentage terms at cryptocurrency prices prevailing in late-2022.

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