What is a Bitcoin ETF?
If you are interested in cryptocurrency investments, you have surely heard of Bitcoin ETF. But what exactly is Bitcoin ETF? ETF stands for exchange trading funds and can be used not only in relation to Bitcoin. The term ETF is connected to diversification (which means “spreading” your investments by buying equities of different companies). ETF helps you save time and money by purchasing a package of different equities in exchange for a certain fee.
Bitcoin ETF meaning
So what does it mean when you decide to buy a Bitcoin ETF? Bitcoin ETF is a fund that issues shares and allows you to buy them without going deep into the details of the Bitcoin investment mechanism. Bitcoin ETF may consist of Bitcoin ETF stocks and other equities apart from Bitcoin. This is one of the biggest advantages for those who want to minimize risks when investing in cryptocurrencies.
Accessing Bitcoin ETFs
If you are interested in Bitcoin ETFs, you need to know how and where to buy them. Unlike Bitcoin, which can be purchased even from the Bitcoin ATM, Bitcoin ETF has to be purchased through a brokerage account. You can also refer to your broker or advisor if you are not experienced in ETFs.
Bitcoin ETF vs. owning Bitcoin
Bitcoin ETF is one of the most controversial innovations on the crypto currency market. Whereas it exists in many countries, it has still not been approved in the U.S.The reason is that the meaning of Bitcoin ETF is contradictory to the idea of cryptocurrency. Cryptocurrency allows you to perform transactions quickly, anonymously, and without a third party. Meanwhile, the ETF makes you dependent on the government.
Regarding investments, there are a few differences between owning a Bitcoin and a Bitcoin ETF. When buying an ETF, you don’t get ownership. When you buy Bitcoin, you get the key to the wallet where you store your cryptocurrency. You can sell it or exchange it for other currencies or goods. In the case of the ETF you do not get ownership, and you cannot operate with Bitcoin. However, if you are not aware of cryptocurrencies’ mechanisms and not willing to learn about them, Iit can be an advantage for you.
However, there are evident pros of EFT investments. First, you can invest in it without using special currency exchanges. The process is simple and doesn’t require understanding the crypto market. Second, the price of EFT changes just like the price of Bitcoin. However, those changes may be inaccurate, which may disadvantage an investor. Third, the Bitcoin ETF is safe. As mentioned before, you don’t get a crypto wallet. This basically means that you will not be able to lose your key together with all the money you have, and you can not be afraid of scammers.
Why is it better to own Bitcoin?
Investing in a Bitcoin ETF can be a good option if you are looking for a safe investment and want to minimize risks. However, if you don’t want to waste your money on high fees and feel confident in the crypto market, you should definitely opt for investing in Bitcoin. It is always better to have actual Bitcoin ownership and be able to operate with the cryptocurrency you purchase. You can easily buy Bitcoin with cash or using your debit card at cryptocurrency exchanges. If you are looking for a place to buy Bitcoin in Prague, you should definitely check out B2Cash. B2cash is the most popular crypto exchange by cash in Prague, which offers its partners great crypto exchange conditions. So if you want to invest in Bitcoin, this is your sign to start today!