You can invest in cryptocurrency exchanges or even buy shares in companies that accept Bitcoin as payment. Instead of learning how to navigate a cryptocurrency exchange to trade your digital assets, you can add cryptocurrencies to your portfolio directly from the same brokerage agency that you already have a retirement account or another traditional investment account with. There are also some investment funds and trusts that are exposed to cryptocurrencies, which is a less risky way to invest than buying the coins themselves. If you don't have a lot of extra money lying around, chances are you have your money invested in assets that are hard to sell right now, or you're just sitting in cash because of the uncertain situation.
This means that bitcoin is much harder for any government to ban, plus millions of people are now indirectly investing in Bitcoin by holding shares in these companies. We always tell people that if they can't explain their investments to a 10-year-old, they don't have to invest in them to begin with. In addition to demand for investment purposes, PayPal is the only one suitable to finally break down the door to the widespread use of cryptocurrencies as a payment vehicle. If you have faith in this technology, you know that this is the worst time to sell in panic and the best time to continue hoarding, or better yet, buying more crypto.
Recently proposed legislation could make it easier for the IRS to find cases of tax evasion when it comes to cryptocurrencies, although investors should already keep records of any capital gains or losses in their crypto assets. If you're just investing to try to make quick money, it's a dangerous game and you're likely to end up losing more than you make. In theory, it makes sense to try to buy investments when their prices are lower and then sell them once they peak. Timing the market is incredibly challenging, and it's even harder with cryptocurrencies because these investments are much more volatile than average stocks.
The key to making money in the stock market is to buy solid investments and maintain them for the long term. This potentially indicates that investors were accumulating in “cash”, or at least crypto cash equivalents. If you buy now because it seems that prices have bottomed out, there is a possibility that they will fall even further and that you have invested too soon.