How to invest in crypto

When companies use digital assets that are accounted for as intangibles for business transactions, such as paying vendors, these transactions will require a different accounting treatment, which is more complex. That is a consequence of the intangible asset now being used as a tangible one—i.e., a financial versus nonfinancial asset. The resulting financial reporting oftentimes doesn’t align, or “make sense.” Many have expressed concerns that the financial reporting may be misleading, rather than useful, to investors. That said, more and more mainstream financial services and fintech companies are now offering customers the possibility of holding or exchanging bitcoin. Crypto Investing 101 The investing strategy requires you to identify more stable assets that will be around for the long term. Assets such as Bitcoin and Ethereum have been known to show a long-term price increase and can be considered a safe investment in this regard.

While cryptocurrency has been around since 2009 — longer than it has been well-known in the public consciousness — it’s still in its infancy compared to other investment vehicles. For a while, no financial advisor who wanted to be taken seriously would recommend putting any money into cryptocurrencies. The $1.9 trillion cryptocurrency market has made many reconsider its place in a balanced investment profile in recent years. Consider Why You Are Investing in Cryptocurrency If you want full control of your cryptocurrency without a third party's involvement, you can opt for what's called a non-custodial wallet. While you don't have to worry about the third party being hacked, you do have to remember your password yourself, or risk losing your cryptocurrency. But having more control means you can participate in more advanced activities, like yield farming, which allows the cryptocurrency owner to lend out their assets to generate higher returns. Coinbase customers can choose to download the Coinbase Wallet, separate from the app, which is a non-custodial wallet.