The news of the possible approval of a Bitcoin ETF in the USA has caused the price of the cryptocurrency Bitcoin to rise above 60,000 dollars. But why is the euphoria about it so great? The ETF can offer some advantages to certain investors. We present 3 important differences between the cryptocurrency Bitcoin and the Bitcoin ETF.
Bitcoin vs Bitcoin ETF - Easier and more traditional purchase
Many investors are still put off by the Bitcoin acquisition process. If you want to buy bitcoins, you have to take some steps on the exchanges that, while they can keep the transactions safe, can be confusing and intimidating for some buyers. In general, it takes a while for beginners to become familiar with blockchain technology and trading habits.
A Bitcoin ETF simply reflects the performance of the Bitcoin. They can be bought and sold on traditional financial exchanges. Many investors are more familiar with these traditional exchanges, so it will be easier for them to buy Bitcoin ETFs there.
No need for a wallet
The privacy of owning cryptocurrencies has the price that the owner has to take good care of keeping it safe. There are also a large number of wallets that you can use to keep your Bitcoins safe. However, new investors also have to deal with the topic a little and get to know how it works.
A wallet is not required for the Bitcoin ETF. It's just a financial product, which reflects the value of bitcoin. The investor does not own any BTC himself. As a result, he renounces the decentralized character and the privacy aspect of Bitcoin but gains a certain comfort, so to speak.
Bitcoin vs Bitcoin ETF - "Betting" on the course of the course possible
A bitcoin can be purchased when an investor thinks the price will go up. It can be sold if the investor expects the price to decline in the future. Or the person holds the Bitcoin as an investment for the long term and hopes for a positive performance over the years.
With the Bitcoin ETF, however, the investor can also "bet" on a fall in price by doing short selling. This is a popular speculative strategy in the financial market, in which the investor speculates on the depreciation of an asset. With a correct prediction, he will make a profit from a loss of value. This strategy will be possible with Bitcoin ETFs.
My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
BetFury - Stack BFG for daily dividends - Play smart!
Pipeflare - Faucet that pays in ZCash and Doge, Games pay in DAIWomplay - Mobile dApp gaming platform that rewards in EOS
Cointiply - The #1 Crypto Earning SiteLiteCoinPay -
The #1 FaucetPay earner for LitecoinUpland - Collect Digital Properties & Test Your SkillsLBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FireFaucet - An earning site that pays better for some than Cointiply
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily
Comments
Post a Comment