Investing in virtual currencies such as Bitcoin can be lucrative if you invest at the right time and understand the investment you are making. However, there is also a big risk to cryptocurrency investing.
Many people want to take the risk because of the potential for substantial returns as the cryptocurrency market expands. A Bitcoin attorney can provide advice on complying with the law and taking steps to protect investments for those who want to get into the cryptocurrency market.
However, there’s another snag that many rookie investors hit when they want to try to buy Bitcoin or other virtual currencies. The process of making a purchase and owning Bitcoin can be pretty complicated.
However, Bloomberg reports that inexperienced investors without technical knowledge could soon have an easier option for making investments as there are new apps currently being developed that aim to streamline the process.
New App Could Make Investing in Bitcoin Easier
Bloomberg recently reported on a new app, called Buy the Market, which makes it simple and easy to buy a total of seven different kinds of digital coins. The app was created by Circle Financial Ltd., which is a cryptocurrency trading firm that has the backing of Goldman Sachs Group Inc., and it specifically caters to first-time buyers of virtual coins by streamlining the purchasing process.
According to Bloomberg, investors are able to start with investments of just $1 and they can buy all seven digital coins at the same time, with their investment automatically spread across all of the tokens according to their market value. The coins that investors purchase include Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Monero, Litecoin, and Zcash.
The app makes money by building in a one percent spread between buy and sell prices. It works off of a similar model of passive investments that has become common for individual investors and retail investors purchasing many different types of assets. The theory is that this model of allowing investors to gain exposure to all of these different coins will help people to get invested in cryptocurrencies without having to evaluate individual virtual currencies and figure out how to actually purchase, hold, and sell coins on their own.
This app isn’t the first to allow investors to easily gain exposure to a broad range of different cryptocurrency investments. Coinbase has also announced an indexed fund that accredited investors will be able to buy that trades all of the four coins available on Coinbase’s marketplace. And, other financial startups have also been trying to develop new products for cryptocurrency trading.
However, Bloomberg reports that Buy the Market has a much lower investment minimum and retail buyers also have the option to buy in, while many of the other startups are catering to experienced traders or accredited investors only. This means a wider pool of investors can gain access to cryptocurrencies through Buy the Market than through the Coinbase index fund or other emerging products.
Of course, it is always important to research any potential investment, and to research any tools that purport to help you make investing easier. A Bitcoin attorney can provide help in making fully informed choices about Bitcoin and other cryptocurrency investments.