Matveev explains how crypto staking is similar to collecting dividends from your favorite stocks: "Crypto staking refers to the process of earning passive income by holding coins in a wallet. This concept bears some resemblance to a traditional bank deposit, though the crucial distinction lies in the utilization of the deposited funds. Rather than being used for investments and loans, staking employs these funds to facilitate the smooth functioning of the underlying blockchain network." Best-in-class security In case you are a US citizen, you can consider investing in a Bitcoin IRA. A Bitcoin IRA is a tax-free investment account that allows you to invest money in order to trade in Bitcoin or other cryptocurrencies. The account is aimed at building wealth toward your retirement and the money in it cannot be withdrawn before retirement age without incurring a penalty.
While Bitcoin is still the largest cryptocurrency by market capitalization, it’s no longer as dominant as it was in the very early days of cryptocurrency. Other altcoins such as Ethereum and Solana have grown in popularity, making the term altcoin somewhat outmoded. Now with a reported 15,000 or more cryptocurrencies in existence, it makes less sense than ever to define the industry as “Bitcoin and then everything else.” Where To Invest In Bitcoin? Harrison is bullish on Bitcoin’s price continuing to rise as more institutions and investors adopt the cryptocurrency. He notes that total supply is capped, and that a large proportion of Bitcoins haven’t been exchanged in over a year. “The total number of Bitcoins that actually trade—what you can consider the float—is a fairly small number,” Harrison says. “As institutions, corporates, and step up their Bitcoin purchases, you end up with a supply/demand mismatch that’s potentially pretty sizable.”