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Investing $100K in Crypto
Serious investors do not invest in crypto, but if you have $100,000 to invest then here are a few options to consider:
Buy cryptocurrency
The easiest way to invest in cryptocurrency is to buy it. You can use an exchange like Binance or Coinbase and keep your crypto safely in a wallet. Some exchanges even pay interest on the amount you own, which can provide a decent amount of income.
If you have $100,000 then we’d suggest that you spend $35,000 in buying crypto directly.
Invest in companies that own currency
Those who do not wish to buy crypto can invest in companies that own crypto, such as Tesla and Marathon Digital Holdings. You can do so by owning stocks of these companies but remember that share prices may go up or down based on not just crypto prices but other factors as well.
If you have $100,000 then we’d suggest that you spend $30,000 buying stocks of companies that own crypto.
Try crypto-focused funds
Exchange-traded funds (ETFs) offer a convenient and regulated way to gain exposure to digital coins. In addition, you can choose cryptocurrency investment trusts.
If you have $100,000 then we’d suggest that you spend $20,000 buying ETFs. The top-performing crypto ETFs of 2023 have offered gains between 51% and 108%, but this option is risky.
Become a miner
It's still not too late to be a miner. Miners earn rewards in crypto for verifying blocks of transactions by solving an encryption problem on the blockchain. However, this option can be expensive because you will need a good system, which can cost up to $10,000, to invest digital coins. Another option is to crowdfund a mining project.
If you have $100,000 then we’d suggest that you spend $10,000 in being a miner. But, only if you have the time and resources to manage this business. This is a profitable option and the 30-day average of revenue earned by miners has improved steadily this year to hit a 18-month high at $32.46 million last month.
Invest in a cryptocurrency Roth IRA
A Crypto Roth IRA is a unique investment vehicle that allows individuals to hold crypto within their Roth Individual Retirement Account. This option offers additional benefits such as increased security and tax advantages. However, you might not be able to include all digital coins in your account.
You can't contribute crypto directly to your Roth IRA, but you can hold it there if you have a provider who allows that. There are limits of up to $6,000 a year. If you are 50 or older, you can contribute $7,000 a year. We suggest you meet these limits if you have $100,000 to invest.
Try margin trading
The riskiest but also often the most rewarding option is to try margin trading. You can invest only a few hundred and buy a Bitcoin, which you will never own but you will make money if the prices move in your predicted direction. The downside? You can lose all or a large chunk of your money if prices move in the opposite direction. We do not suggest this option.
But, if you wish to try, you can start with a demo account then with as low as $100 on platforms like xm.com and markets.com.
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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.