You scoffed when you heard about millennial hipsters buying cryptocurrency, hiding your secret embarrassment at not knowing what it was. You were shocked when Bitcoin hit $1,000 in 2013. You shook your head when the digital currency flirted with $20,000 four years later. But when Bitcoin surpassed $100,000 earlier this month, you felt something different: jealousy? self-doubt? resignation? In recent days, you’ve even considered finally jumping on the crypto bandwagon. But you’re afraid you’ll be too late. And, depending on your financial goals, risk tolerance, and timeline, you might be right.
To some extent, cryptocurrency is a generational phenomenon. Speaking to USA Today earlier this year, Craig J. Farentino, president of Craig James Financial Services in Melville, New York, said that among millennials, “everyone knows someone who’s become a crypto millionaire.” If you’re more than a decade or two older, you probably don’t know anyone who can definitively define crypto.
So, what exactly is crypto?
Cryptocurrency is digital money. It’s not issued by governments or banks, so there’s no central authority. It exists on decentralized networks and uses a technology called blockchain, which tracks transactions and assets. Bitcoin is the leading brand. For years, ordinary investors who wanted to trade digital currencies typically had to go to a crypto exchange, a potential deal-breaker for neophytes. That changed in early 2024, when federal regulators voted to allow ordinary American investors to buy and sell bitcoin ETFs the same way they trade stocks. (Exchange-traded funds, or ETFs, are an investment vehicle similar to mutual funds.) Bitcoin surpassed the $100,000 threshold this month, fueling speculation that a second Trump administration would give it a boost. On the campaign trail, Trump vowed to make the United States the “crypto capital of the planet.” Is it too late to get into crypto? Has the “Trump effect” begun? If you’re jumping into digital currency, how much hard currency risk should you be willing to take? We asked some experts. Here’s what they said.
If you haven’t invested in crypto, is it too late?
“It’s never too late to start investing in crypto,” said Investopedia editor-in-chief Caleb Silver. But ask yourself: Why? “Profiting from the rise of Bitcoin may be your primary reason,” Silver said, but it’s important to understand that all cryptocurrencies, including Bitcoin, are highly volatile, unregulated, and widely misunderstood. Bernd Schmid, contributing crypto analyst at The Motley Fool, more or less agrees. “It’s never too late to start investing in crypto as long as you have a long-term perspective,” he said. "Crypto adoption today is where the internet was in the late 1990s and early 2000s." Brian Armour, director of passive strategy research for North America at Morningstar Research Services, preaches caution with crypto. "It's not too late, but that doesn't mean it's a good investment," he said. "Crypto is a speculative investment with high volatility. If someone is uncomfortable with it, there's no point in investing in it." Jonathan Swanberg, a certified financial planner in Houston, is more skeptical. "I'm not a crypto guy," he said, "but if you don't like crypto at $20,000, I think you need to look at why you would like it at $100,000, other than FOMO (fear of missing out). So, yeah, I think it's too late."
Has the ‘Trump effect’ materialized? Will Bitcoin go higher?
“Yes and no,” Schmidt said. “Yes, because the potential for a crypto-friendly administration was initially underestimated and now it’s priced in,” meaning that bitcoin’s value already reflects the Trump effect. “No,” Schmidt said, “because we’re still waiting for solid regulatory developments” in a second Trump administration. Silver agrees. “While the election’s impact on cryptocurrency prices may have been felt by now,” he said, “the Trump administration is preparing to create a whole new regulatory ecosystem around this asset class by appointing former PayPal executive David Sachs, the country’s first crypto czar, and Wall Street veteran Paul Atkins as SEC chairman. This move, and Trump’s campaign promise to make the U.S. the ‘crypto capital of the world,’ set the stage for cryptocurrencies to become more widely available to retail investors, which could drive prices higher.”
If you want to buy crypto but don’t know how?
“Individual investors can find their way into investing in cryptocurrencies,” Silver said, “by opening an account with an online broker and buying individual tokens and coins by the dollar amount.” In other words, you don’t have to pony up $100,000 to buy crypto. “Alternatively, they can buy spot Bitcoin ETFs, which track the price of Bitcoin, through many of the major online brokers,” Silver said. “While these ETFs don’t give investors ownership of the actual digital coins, they do track the price closely and trade throughout the day like stocks. When choosing a spot Bitcoin ETF, investors should focus on the largest fund with the most assets under management, liquidity, and low expense ratios. Armour offers specific ETF recommendations: iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund “come from familiar brands, have low costs and are easy to trade,” he said, adding that Bitwise Bitcoin “comes from a company that is more embedded in the crypto world, which is important for an investor.” Swanberg warns investors against getting too far into the crypto wilderness. “I would probably go with an ETF, to avoid trying to hold crypto outside of a traditional investment account,” he said, “although I wouldn’t recommend crypto to anyone.”
If you’re more than a decade or two older, you probably don’t know anyone who can definitively define crypto.
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