Is It Too Late to Invest in Bitcoin?
The price of the world's No. 1 cryptocurrency recently surpassed $120,000 for the first time. Is it too late to invest in bitcoin?


Few things can capture an investor's imagination like FOMO, especially when that fear of missing out is rooted in six-figure-profit stories. Such may be the case for investors who witnessed the price of bitcoin cross the $120,000 mark for the first time in mid-July.
If you've been on the bitcoin bandwagon for a good length of time, you're probably singing a merry tune amid the cryptocurrency's meteoric rise.
But if you're among the multitudes who have shied away from what remains a volatile asset, perhaps you saw its recent peaks and started questioning your portfolio choices.
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Has this bandwagon crossed the river for good? Is there still time to jump aboard?
Is it too late to invest in bitcoin?
Bitcoin past, present and future
Before you can determine if bitcoin is a good investment today, you need to be sure you understand what you're getting into.
Bitcoin is a decentralized asset, meaning there is no government or bank acting as a central authority overseeing it. This puts it in a weird regulatory grey area that also makes it susceptible to fraud and scams.
For example, in 2011, Mt. Gox, the largest bitcoin exchange at the time, was hacked. The hackers made off with millions of user funds, but even investors who were not directly involved took a hit when the price of BTC plummeted more than 90%.
This is important for prospective investors to keep in mind: Bitcoin can fall as fast as it can rise — if not even faster. Indeed, we just witnessed a massive liquidation event earlier this year when the price of BTC crashed more than 25% from January to April.
That said, bitcoin rebounded sharply and has now surpassed the previous peak it reached as President Trump kicked off his second term. During his campaign, Trump pledged to make the U.S. "the crypto capital of the planet and the Bitcoin superpower of the world."
And it's not only the U.S. that's showing increased interest.
"Across the globe we are beginning to see federal banks purchase BTC as a reserve currency and there is massive momentum globally to establish legislative and regulatory standards," says Robert Krugman, chief digital officer at Broadridge Financial Solutions. "The next several months should be quite telling."
Bitcoin will probably continue to be a rocky ride, but experts say the chances of it going to zero are unlikely.
"Too many large institutions own cryptocurrencies," says Dan Casey, founder of Bridgeriver Advisors and Panic Proof Retirement. "Whether you understand the blockchain or not, cryptocurrency is here to stay."
Additionally, Congress is currently considering legislation to create more regulatory boundaries for cryptocurrency. These include the GENIUS Act, which is meant to develop guardrails for stablecoins and has already passed the Senate.
There's also the Digital Asset Market Clarity Act, which would outline a system for regulating digital assets.
Should you invest in bitcoin today?
So the question remains: Is it too late to invest in bitcoin?
"I absolutely do not think it's too late to invest in bitcoin," Casey says. "With the SEC chair, Gary Gensler, stepping down and a very pro-crypto president taking office, bitcoin should continue to do very well."
But there are caveats to consider. For instance, don't expect the same outsized returns, says R.J. Weiss, a certified financial planner and CEO of The Ways to Wealth. This, coupled with the fact that bitcoin is likely to continue being highly volatile, means "today's risk-reward ratio is much different than it was for early adopters."
Most advisors recommend limiting your investment in bitcoin to 1% to 5% of your net worth, he says. The real question to ask yourself isn't if now is a good time to invest in bitcoin. Rather, your focus should be on whether it "has a long-term place in your portfolio, depending on your goals and risk tolerance."
If a 50% drop will make you panic, this likely isn't the investment for you.
How to invest in bitcoin
If you've decided to invest in bitcoin today, the next question is how to do it. How do you invest in an asset that's trading around $120,000?
Luckily, modern finance is once again your friend. You can start investing in bitcoin with as little as $1 through a broker such as Fidelity or an exchange that lets you buy bitcoin tokens on a per-dollar basis.
However, you'll need a place to store those coins, typically with a crypto wallet or with an exchange. Both of these methods are susceptible to hackers and scams.
Another way to invest in bitcoin is through a bitcoin ETF. These funds are designed to track the price of bitcoin, and they trade just like any of the best ETFs.
They can be easier and more familiar than buying bitcoin tokens. And they can even hold a variety of different cryptocurrencies. You also won't need to store your crypto keys in a wallet or on an exchange.
Bitcoin ETFs let you participate in bitcoin's price appreciation (or depreciation) through a more secure channel – but know that you don't own actual BTC. You own shares of the fund. These funds also come with expense ratios, so ensure the benefits outweigh the costs.
Whatever method you choose to invest in bitcoin, have an exit strategy in mind.
"Given bitcoin's volatility and cyclical peaks, it may be wise to take profits gradually or begin exiting well before the projected cycle top," says Utkarsh Ahuja, founder and managing partner of Moon Pursuit Capital.
Ahuja notes that "institutional investors, well-versed in Bitcoin's cycles" will trade in a way that increases risk for retail investors who try to time the market.
It's important to put the same level of thought and care into how and when you'll sell as you do into whether you should invest in bitcoin in the first place.
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Coryanne Hicks is an investing and personal finance journalist specializing in women and millennial investors. Previously, she was a fully licensed financial professional at Fidelity Investments where she helped clients make more informed financial decisions every day. She has ghostwritten financial guidebooks for industry professionals and even a personal memoir. She is passionate about improving financial literacy and believes a little education can go a long way. You can connect with her on Twitter, Instagram or her website, CoryanneHicks.com.
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