GOBankingRates President: Bitcoin Is Worth It — 5 Tips From Experts To Invest for $5,000
Written by
Gabrielle Olya
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The price of a single bitcoin has exceeded $100,000, but it’s possible to invest in the popular cryptocurrency with far less than that. Even if you only have $5,000 to invest, it’s worth considering investing in fractional shares of bitcoin to diversify your portfolio.
“Bitcoin is not the easiest investment to understand by most Americans, but it is something to consider investing in, even at a small amount, to take advantage of the opportunity,” said Jeff Bartlett, president and co-founder of GOBankingRates.
If you’re interested in investing $5,000 or less in bitcoin, here are some of the easiest ways to do it.
Cryptocurrency Exchange
Cryptocurrency exchanges, like Coinbase or Kraken, are easy to use for those new to investing in bitcoin. You simply need to set up an account using a valid ID and proof of address, select a payment method — which can be a bank account, debit card or wire — and then buy directly on the platform.
“These platforms offer various tools to simplify purchases,” said Alexandr Sharilov, CEO of CoinDataFlow.com, a global platform that provides real-time cryptocurrency market analytics and insights. “This is ideal for those who are just starting their trading journey, but are ready to dive in.”
Cash App
If you already have a Cash App account, this is one of the easiest ways to buy bitcoin. On the Cash App home screen, select the “Money” tab, tap on the “Bitcoin” tile and press “buy.”
“This option is best for those who do not want to deal with wallets or private keys,” Sharilov said.
Bitcoin ATM
Bitcoin ATMs allow you to purchase bitcoin from a kiosk using cash or a debit card. Since bitcoin is stored in the blockchain rather than traditional bank accounts, you will need to have an existing bitcoin wallet to utilize a bitcoin ATM.
“Bitcoin ATMs are really convenient to buy with cash, and can be a way [to buy bitcoin] for those who do not trust online platforms,” Sharilov said. “However, the commission on such machines is very high.”
PayPal
Another easy way to purchase bitcoin is via PayPal.
“Anybody with a PayPal account can buy any amount of bitcoin they want directly from the PayPal website or app with their linked bank account or PayPal balance,” said John Koch, CFA, senior investment analyst at iSectors. “Five-thousand dollars, or even just $50 worth of bitcoin, is very easy to buy on PayPal.”
Bitcoin ETFs
Investing in a bitcoin exchange-traded fund is one more way you can invest in the crypto with $5,000 or less.
“There are bitcoin ETFs available on many brokerage platforms,” Koch said. “An investor would simply type in the ticker symbol of one of these ETFs — FBTC, IBIT or BITB, for example — and they could buy as many shares as they would like.”
More From GOBankingRates
