Is It Too Late to Buy Bitcoin? What You Need to Know Now!
Remember when you rolled your eyes at those millennials diving headfirst into crypto? You felt a little left out, didn’t you?
You chuckled when Bitcoin hit the $1,000 mark back in 2013. You were skeptical when it danced around the $20,000 mark in 2017.
But now, with Bitcoin skyrocketing past $100,000, feelings of envy, self-doubt, and maybe even a tinge of regret creep in.
You might be contemplating whether it’s finally time to jump on the crypto train. But is it too late? Depending on your investment strategy, risk appetite, and timeframe, you could be spot on with that concern.
Crypto is not just a passing fad; it’s a generational movement. “Everybody knows someone who’s become a crypto millionaire,” says Craig J. Ferrantino, a financial guru from Melville, New York.
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But if you’re a bit older, you might feel lost in the crypto conversation. You may not even know anyone who can explain it without using jargon!
So, what exactly is crypto?
Simply put, cryptocurrency is digital cash. It isn’t controlled by governments or banks, making it free from central oversight. It’s powered by decentralized networks and employs blockchain technology to keep track of transactions and assets. Bitcoin is the star of the show.
For years, if you wanted to dabble in digital currencies, you had to navigate the murky waters of crypto exchanges. But the game has changed since early 2024, when federal regulators allowed everyday Americans to buy and sell Bitcoin ETFs just like stocks.
(ETFs are investment vehicles similar to mutual funds.)
Bitcoin’s recent leap over $100,000 is partly thanks to the buzz around a possible second Trump Administration which could bolster crypto initiatives. On the campaign trail, Trump promised to turn the U.S. into the “crypto capital of the planet.”
So, is it too late to dive into crypto? Have we seen the end of the “Trump effect”? And if you do decide to invest, how much cash should you allocate?
We turned to the experts for their insights. Here’s what they had to say.
Is it too late to invest in crypto?
“Not at all!” says Caleb Silver, editor-in-chief at Investopedia.
But before you rush in, ask yourself: Why?
Silver warns, “Chasing profits from Bitcoin’s ascent should be your primary motivation, but remember, cryptocurrencies, including Bitcoin, are notoriously volatile, largely unregulated, and often misunderstood.”
Bernd Schmid, a crypto analyst at The Motley Fool, echoes this sentiment, stating, “It’s not too late to dive into crypto, as long as you keep a long-term perspective. We’re at a similar stage for crypto adoption as we were for the internet back in the late ’90s and early 2000s.”
Bryan Armour, director at Morningstar, urges caution: “It’s not too late, but that doesn’t mean it’s a sound investment. Crypto is still a speculative arena, full of volatility. If you’re uncomfortable with that, it might not be for you.”
Then there’s Jonathan Swanburg, a financial planner in Houston, who remains skeptical: “If you weren’t interested in crypto at $20,000, what makes you think you’d want it at $100,000? Unless it’s out of FOMO, I’d say it’s probably too late.”
What’s the deal with the ‘Trump effect’? Will Bitcoin keep climbing?
“It’s a mixed bag,” Schmid admits.
“Yes,” he says, “because the potential for a crypto-friendly administration has already been factored into Bitcoin’s current price.”
“But no,” he adds, “because we’re still waiting on clear regulatory moves from a potential second Trump Administration.”
Silver concurs: “The effect of the elections on cryptocurrency prices may have calmed for now, but Trump’s team is preparing to create a new regulatory framework for this asset class. Appointing David Sacks as the crypto czar and proposing Paul Atkins as SEC chairman could open doors for broader access to cryptocurrencies and potentially spike prices.
Thinking about buying crypto but don’t know where to start?
“New investors can dip their toes into the crypto waters,” says Silver, “by opening an account with an online broker and purchasing individual tokens or coins for a nominal amount.”
That means you don’t have to fork over the whole $100,000 to get started!
“Alternatively, you can invest in spot Bitcoin ETFs, which mirror Bitcoin’s price through many of the biggest online brokerages,” Silver explains. “While these ETFs won’t give you actual coins, they closely track the price and trade like stocks. When choosing a Bitcoin ETF, look for the largest funds with ample assets, high liquidity, and low fees.”
Armour has some ETF picks: The iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund are both solid choices from reputable firms, featuring low costs and easy trading options,” he notes. For those seeking a deeper crypto connection, Bitwise Bitcoin is another option.
Swanburg advises caution and suggests staying grounded: “I’d recommend sticking to ETFs to avoid the headaches of holding crypto assets outside of traditional investment accounts. Although personally, I don’t endorse crypto investments.”
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How much should you invest in crypto?
“For newcomers to crypto or any investment, don’t put in more than you can afford to lose,” Silver cautions. “All cryptocurrencies are speculative, risky, and largely unregulated. It’s easy to get swept up in the excitement,” he says, highlighting the downside of crypto’s “wild volatility.” Silver suggests limiting your initial investment to just 5% of your portfolio.
Armour echoes the 5% guideline: “Our research indicates that Bitcoin’s volatility can overpower your portfolio if you invest too heavily.” It’s a reasonable cap for those looking to invest long-term.
Swanburg offers a more unconventional perspective: invest “as much as you’d be comfortable spending on a Beanie Baby collection back in the day.”
(This story has been updated to include a graphic.)
