Bitcoin is the biggest cryptocurrency by market cap, price, and popularity. Growing from $0 when it was launched in 2009 to more than $68,000 all-time high in 2021, Bitcoin has turned early investors into millionaires and billionaires.
Bitcoin has proven market experts wrong time and again by breaking forecast price ceilings. For this reason, many market analysts speculate that it still has massive growth potential. And this could be true as Bitcoin and the crypto industry as a whole is proving to be a more reliable hedge against rising inflation and a great way to diversify and grow retirement portfolios.
That said, the industry is still new and, therefore, plagued with risks. Top among them are security and volatility. So, if you want to know how to invest in Bitcoin while keeping your risks low, a digital asset wealth management firm will definitely interest you.
What is a Wealth Management Firm?
A wealth management firm is a company that offers expert financial advice and investment management services to individuals, institutions, and other companies.
Basically, a wealth manager helps you navigate the tricky financial bits so that your money actually works for you. In the case of digital assets like Bitcoin, a wealth management firm facilitates trading, staking, custody, and management of crypto assets.
Benefits of Investing in Bitcoin Through a Wealth Management Firm
Now, say you want to invest in Bitcoin, how exactly can a digital asset wealth management firm benefit you?
Minimizes Your Risks
A wealth management firm will invest your money into Bitcoin in a way that keeps your risks low. In this case, we are talking about regulated products like unit trusts. A unit trust is a type of investment where several investors’ wealth is pooled together and invested in a range of assets.
This means that you will share the profits as well as the risks while keeping your portfolio diversified.
Insures Your Holdings
Investing in Bitcoin by yourself puts you at risk of hacking and scams, which could see you losing your coins. However, a wealth management firm insures your investment against these eventualities, which should give you peace of mind.
Increases Your Potential Gains
By partnering with a firm, you get exposure to all that Bitcoin has to offer while keeping the risks low. That means you have the potential to reap big when there is a windfall. And your portfolio will continue to grow as it is managed and monitored by financial experts.
Makes Performance Tracking Easy
A firm makes it easy to follow up on your Bitcoin investment performance. And that is because a firm operates much like the traditional financial services we are used to.
How to Invest in Bitcoin Through a Wealth Management Firm
Every firm or custodian works differently. However, unlike investing on your own, where you have to get a wallet, connect it to an exchange, and basically figure out everything by yourself, a firm will guide you through the entire process.
Maximize Profits and Minimize Risk by Investing in Bitcoin the Right Way
Do you like all that is good about Bitcoin but are hesitant to invest because of the risks? A wealth management firm bridges security, traditional finance, and the potential of digital assets. This way, you can grow your wealth while keeping your risks relatively low.