Bitcoin (BTC-USD) has been gaining momentum leading up to the Bitcoin 2024 conference in Nashville, Tennessee, where notable figures such as former President Donald Trump and Robert F. Kennedy, Jr. are scheduled to speak.
Ross Mac, founder of Macanomics and a Yahoo Finance contributor, joins Wealth! to discuss the fundamentals of crypto investing and offer advice for newcomers to the space.
Mac recommends starting with cryptocurrency ETFs before directly owning the assets themselves. He points out that ETFs, like the spot Bitcoin and spot Ether products approved by the Securities and Exchange Commission (SEC), can be a more accessible and less volatile entry point into crypto investing.
“You don’t need to be tech-savvy, and it’s going to be less volatile. However, there are downsides,” Mac explains. “One drawback is that you don’t actually own the underlying crypto. We’ve seen that holding the actual crypto often yields better returns year-to-date. Additionally, ETFs come with management fees, as those companies handle the buying and holding of the crypto for you. If you’re just starting out, ETFs can be a good introduction. But eventually, I’d recommend transitioning to owning the underlying crypto itself.”
Catch more insights from Ross Mac on the Yahoo Finance series Financial Freestyle with Ross Mac.
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