Have you heard of ‘Just Own the Coin Directly’? This new approach in cryptocurrency investing allows you to take full control of your coins without relying on third-party exchanges. Keep reading to learn more about this innovative concept and how it can benefit you as a cryptocurrency investor.
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Kevin O’Leary, known for his successful businesses and appearances on Shark Tank, recently expressed his views on Bitcoin ETFs. In 2024, when the Securities and Exchange Commission (SEC) approved several Bitcoin ETFs, O’Leary made it clear that he would never invest in them. Instead, he believes in owning the coin directly.
The main reason O’Leary is hesitant to invest in Bitcoin ETFs is the management fees associated with them. These fees can range from 0.24% to 1.5%, reducing the overall returns for investors. In contrast, owning Bitcoin directly only incurs transaction fees, which are typically minimal.
Additionally, owning Bitcoin directly provides more control and flexibility. Investors can stake their tokens, receive interest, and use them for transactions. This level of ownership is not possible with ETFs, which only allow users to benefit from price movements.
Despite his reservations about Bitcoin ETFs, O’Leary sees them as a positive development for the crypto community. He believes that they signal a shift towards regulated financial services companies embracing crypto technology.
Overall, O’Leary remains bullish on Bitcoin and has allocated a 5% weighting of Bitcoin in his portfolio. While ETFs may offer convenience for some investors, O’Leary’s preference for direct ownership highlights the importance of understanding the differences and fees associated with each investment option.
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1. What does it mean to “just own the coin directly”?
– It means to purchase and hold cryptocurrency without using a third-party service or exchange.
2. Why would someone choose to own the coin directly?
– Some people prefer owning their own cryptocurrency for increased privacy and security.
3. How can I buy cryptocurrency to own it directly?
– You can buy cryptocurrency from a peer-to-peer platform or use a hardware wallet to store it securely.
4. Are there any risks associated with owning cryptocurrency directly?
– There are risks such as losing access to your wallet or being vulnerable to hacking if you don’t take proper security measures.
5. Can I easily sell my cryptocurrency if I own it directly?
– Yes, you can sell your cryptocurrency on a peer-to-peer platform or through a hardware wallet that supports trading.
Win Up To 93% Of Your Trades With The World’s #1 Most Profitable Trading Indicators
Win Up To 93% Of Your Trades With The World’s #1 Most Profitable Trading Indicators
