It is evident that the current crypto rally is primarily fueled by excitement over the approval of a Bitcoin spot ETF expected early next year. But how well are you prepared for the new investment opportunity? In this article, we will discuss the various ways you can adopt to prepare yourself for a Bitcoin spot ETF.
A Guide to Preparing Yourself for Bitcoin Spot ETF
Here is how you can get yourself ready for a Bitcoin spot ETF:
Purchase and Hold Bitcoin
The first step of preparing for Bitcoin ETF involves purchasing BTC. Doing this now allows you to buy the coin at a fair price, considering that crypto analysts anticipate a massive rally in January. In the event Bitcoin’s price surges next month as predicted, you could make decent profits if you buy the crypto asset now.
Where to Buy Bitcoin
Buying Bitcoin from a reliable trading platform is key. There are several trustworthy crypto exchanges that list this coin. They include:
Coinbase: Headquartered in the United States, Coinbase has a presence in Europe and Canada. When buying Bitcoin from this exchange, expect a 1% fee.
Kraken: With a presence in over 150 countries, Kraken is undoubtedly one of the world’s biggest crypto exchanges. It charges a 0.16% maker fee and a 0.26% taker fee.
Binance: Although Binance has found itself in the middle of troubles with the US regulators in recent months, it remains the leading crypto exchange. The platform can be accessed by users from over 170 countries.
Where to Hold/Store Bitcoin Before ETF Approval
After buying Bitcoin, you need to store it somewhere safe. There are several Bitcoin-compatible wallets you can consider. They include:
Zengo: If you are just getting started with crypto, then we recommend you check out Zengo. This wallet promises to eliminate all the complexities around Bitcoin storage.
Wirex: Do you wish to convert your Bitcoin into fiat whenever you wish? Well, try the Wirex crypto wallet. Moreover, it makes it possible for you to pay for online purchases using your BTC holdings.
Youhodler: With Youhodler, you can lend your Bitcoin while waiting for ETF approval.
GridPlus: If you like storing your crypto assets offline, then GridPlus is a perfect option. By maintaining your Bitcoin in an offline environment, you essentially block cybercriminals from accessing the coin.
Start to DCA Bitcoin
This alternative is for those who cannot afford to buy Bitcoin at once. Dollar-cost averaging involves buying BTC regularly, regardless of the coin’s price fluctuations. With this strategy, you do not have to time the crypto market.
Start Tracking Your Portfolio
As a Bitcoin investor, you need to keep an eye on your portfolio regularly. To do this effectively, we recommend you adopt a portfolio tracker. One of the trackers you can use is Delta. Along with helping you track your portfolio, Delta gives you access to news related to crypto to keep you updated.
Monitor News Events and Market Trends
As you wait for the United States Securities and Exchange Commission to approve an ETF, monitoring news affecting Bitcoin and the wider crypto market is important.
Moreover, watch how the market will trend after the Commission makes its decision regarding an ETF. If the regulator gives the green light to the new investment vehicle, the crypto market is likely to rally. In that case, decide whether you want to continue holding or book profits.
Institutional Investors Participation in the Bitcoin Market
As hopes for a Bitcoin ETF keep growing, institutional investors have appeared to be injecting funds into the Bitcoin market, given the large BTC purchases made in recent weeks. This shows the eagerness around a Bitcoin spot ETF.
Crypto analysts believe that approval of Bitcoin spot ETF will lead to increased interest in Bitcoin from traditional institutional investors, thus boosting the coin’s price. However, nothing in crypto is guaranteed. Therefore, consider investing what you can afford to lose.
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