‘Crashes are the best times to get rich’ — here’s why Robert Kiyosaki thinks bitcoin’s plunge is great news and how you can take advantage of it

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‘Crashes are the best times to get rich’ — here’s why Robert Kiyosaki thinks bitcoin’s plunge is great news and how you can take advantage of it

‘Crash­es are the best times to get rich’ — here’s why Robert Kiyosa­ki thinks bitcoin’s plunge is great news and how you can take advan­tage of it

Bit­coin is on a wild ride.

The world’s largest cryp­tocur­ren­cy soared to $68,990 last Novem­ber. Now, it’s at around $29,000 — a stag­ger­ing 58% pull­back from the peak.

If the down­trend con­tin­ues, Rich Dad Poor Dad author Robert Kiyosa­ki says he’s ready to start buying.

“BITCOIN CRASHING. Great news,” he tweet­ed last week. “I am wait­ing for Bit­coin to crash to 20k. Will then wait for test of bot­tom which might be $17k. Once I know bot­tom is in I back up the truck. Crash­es are the best times to get rich.”

Kiyosa­ki added that bit­coin “is the future of mon­ey” and that its bot­tom may be even low­er at $11,000.

In today’s mar­ket envi­ron­ment, it’s not easy to be a con­trar­i­an investor. But if you share Kiyosaki’s view, here are three sim­ple ways to cap­i­tal­ize on bit­coin’s poten­tial rebound.

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Buy bitcoin directly

The first option is the most straight­for­ward: If you want to buy bit­coin, just buy bitcoin.

These days, many plat­forms allow indi­vid­ual investors to buy and sell cryp­to. Just be aware that some exchanges charge up to 4% in com­mis­sion fees for each trans­ac­tion. So look for apps that charge low or even no commissions.

While bit­coin com­mands a five-fig­ure price tag today, there’s no need to buy a whole coin. Most exchanges allow you to start with as much mon­ey as you are will­ing to spend.

Bitcoin ETFs

Exchange-trad­ed funds have risen in pop­u­lar­i­ty in recent years. They trade on stock exchanges, so it’s very con­ve­nient to buy and sell them. And now, investors can use them to get a piece of the bit­coin action, too.

For instance, ProShares Bit­coin Strat­e­gy ETF (BITO) start­ed trad­ing on NYSE Arca in Octo­ber 2021, mark­ing the first U.S. bit­coin-linked ETF on the mar­ket. The fund holds bit­coin futures con­tracts that trade on the Chica­go Mer­can­tile Exchange and has an expense ratio of 0.95%.

There’s also the Valkyrie Bit­coin Strat­e­gy ETF (BTF), which made its debut a few days after BITO. This Nas­daq-list­ed ETF invests in bit­coin futures con­tracts, and charges an expense ratio of 0.95%.

Bitcoin stocks

When com­pa­nies tie some of their growth to the cryp­to mar­ket, their shares can often move in tan­dem with the coins.

First, we have bit­coin min­ers. The com­put­ing pow­er doesn’t come cheap and ener­gy costs can be sub­stan­tial. But if the price of bit­coin goes up, min­ers such as Riot Blockchain (RIOT) and Hut 8 Min­ing (HUT) will like­ly receive grow­ing atten­tion from investors.

Then there are inter­me­di­aries like Coin­base Glob­al (COIN) and Pay­pal (PYPL). When more peo­ple buy, sell, and use cryp­to, these plat­forms stand to benefit.

Final­ly, there are com­pa­nies that sim­ply hold a lot of cryp­to on their bal­ance sheets.

Case in point: enter­prise soft­ware tech­nol­o­gist MicroS­trat­e­gy (MSTR). It has a mar­ket cap of $2.3 bil­lion. Yet its bit­coin count reached 129,218 at the end of March, a stock­pile worth around $3.8 billion.

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This arti­cle pro­vides infor­ma­tion only and should not be con­strued as advice. It is pro­vid­ed with­out war­ran­ty of any kind.

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