Is GBTC an Easy Way to Invest in Bitcoin?

GBTC is not the best method for investing in Bitcoin. Nowadays, their premium is high. Basically, NAV (net asset value) is not very good these days which means people should avoid investing through GBTC at least until it comes to the better ratio.

What is NAV? It is a very significant index for open-end mutual funds like GBTC. NAV is simply the difference between fund’s assets and its liabilities. That difference divided with a number of shares is an indicator of the position that fund holds. Taking into perspective, it’s clear that today, there are more efficient ways of investing in Bitcoin.

Since many retailers opened up to Bitcoin, there are more than few ways for a person to directly invest in Bitcoin and achieve profit from its price movement without compromising the security of assets with greater risk than using channels like exchange trusted funds.

What are the other simple ways of investing in Bitcoin? For those who know their technology, user controlled wallet comes rather convenient since it is more private and secure because there are no third parties involved. One of the good ways for doing so is Bitcoin Core which was one of the first wallets of this sort. Its downsides are complexity, since using this method implies downloading entire blockchain with all the records it contains. In the case of Bitcoin Core, that means 51GB of data.

A simpler way of creating Bitcoin wallet is through hosted wallets. Most frequent hosted wallets are CoinBase, Circle, or Xapo. Advantages of hosted wallets are that they are less complex, host will manage security keys, it’s user-friendly and it is reachable through multiple devices (mobile, PC, etc.) It’s basically similar to the service traditional banks offer. Downsides are the chances of getting hacked or locked out of BTC. Knowing that it’s better to keep assets in more than one wallet. Also, it’s preferable using hosts that are more frequent and reliable.

Considering other options can’t do much damage and if one learn a little bit more about the ways for investing in Bitcoin, soon will realize that there are more profitable methods. These days, BTC became accessible to everyone and very simple to obtain. That means going directly to the exchanges can result in bigger profit, since the high premium ETFs offer are avoided, especially considering GBTC.


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