Crypto ETFs or buying crypto directly — which is safer?
Your Digital Self
Opinion: Buy bitcoin, ether and other crypto ETFs with less risk. Just follow these tips.
Cryptocurrency ETFs are safer than owning crypto itself — but you’re still in unknown territory
Published:
With the rise of cryptocurrency-linked exchange-traded funds, many investors believe they’ve found a safer way to dip into the volatile world of bitcoin BTCUSD , ether ETHUSD and other digital assets. While crypto ETFs offer a layer of protection direct crypto investment lacks, they’re not without their own set of risks. Here’s what you need to know to protect your crypto holdings:
1. Keep it real: Investing in crypto through ETFs is generally safer than holding cryptocurrencies directly. You’re not dealing with digital wallets, private keys or the risk of crypto-exchange hacks. Yet this apparent safety net can lull investors into a false sense of security. Remember, the underlying assets are still highly volatile, and this volatility will be reflected in the ETF’s value.