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NFL star Odell Beckham Jr. is taking a victory lap, but not on the field. The Miami Dolphins player took to X to celebrate Bitcoin’s price topping $100,000 last December. It’s currently at around $90,000.
Back in 2021, when he signed with the Los Angeles Rams, Beckham struck a deal with Block Inc.’s Cash App to receive his $750,000 salary in Bitcoin.
At the time, his decision was highly criticized. Bitcoin lost 74% of its value from November 2021 to November 2022. MarketWatch asked, “How much did it end up costing him?”
However, the recent rebound has pushed the pendulum the other way. “Soooo who said taking my Rams salary in Bitcoin was dumb again?” Beckham posted on X in November.
While it is unclear whether the athlete held onto his Bitcoin throughout the three-year period, it seems fair to assume his gamble paid off.
If you have as much faith in Bitcoin as Beckham does, here’s how you can invest successfully.
How to invest in Bitcoin
The first step to buying Bitcoin is choosing a legitimate, registered cryptocurrency exchange. There are plenty of scam trading websites out there, so make sure to do your research.
Interest in cryptocurrency has skyrocketed since Trump’s promise to make the US the “crypto capital of the world.”
According to a report by Security.org, 14% of people who don’t have any portfolio exposure to crypto plan on buying it this year, while 67% of people who own some form of cryptocurrency in their portfolio plan on buying more. Financial experts recommend that Bitcoin account for no more than 5% of your portfolio.
For those interested in owning cryptocurrency, finding a reliable low-fee trading platform is crucial. Robinhood Crypto has the lowest trading costs on average in the US, as it charges no commissions or added spreads on Bitcoin trades.
In fact, you can get up to 3.6% more crypto when you trade through Robinhood. The coins you purchase are held in cold storage disconnected from the internet, ensuring security from scams and malware attacks. Also, purchases on Robinhood Crypto are covered by crime insurance against theft and cybersecurity breaches.
Sign up today to get a 1% deposit match on all crypto deposits and transfers.
How to invest in alternative assets
Sometimes, making long-term bets on assets that are viewed as risky can lead to enormous wealth creation. It can also turn out terribly and be extremely costly, so always take time to determine your own risk tolerance level and maintain a diversified portfolio.
In order to mitigate this risk, you can diversify your portfolio with alternative assets that have stood the test of time.
Real estate is often touted as the pinnacle of wealth creation. According to a 2023 LendingTree survey, 45% of Americans believe that investing in real estate is the best way to build wealth.
However, buying real estate for the purposes of investment typically comes with several added responsibilities and financial burdens, like finding and managing tenants, property taxes, and maintenance costs.
To skip these hassles, accredited investors may consider investing in crowdfunding commercial real estate through First National Realty Partners (FNRP).
FNRP leases institutional quality properties to reputed brands like Walmart, CVS, Kroger, and Whole Foods. The firm handles all the paperwork throughout the lifecycle of the investment and pays out any positive cash flows as dividends at the end of every quarter.
This way, you can reap the benefits of investing in commercial real estate without having to do the legwork.
Another alternative asset that has held its own over the long run is art. Between 1995 and 2023, contemporary art appreciated at a compounded annual growth rate (CAGR) of 11.5%.
You can buy fractional shares of blue chip art by famous artists like Banksy, Picasso, and Basquiat through Masterworks. The platform handles every step — curating, authentication, and acquisition — with no art expertise or large bank account needed.
Masterworks investors have realized representative annualized net returns like 17.6%, 17.8%, and 21.5%.
Get started with Masterworks within minutes with priority access.
A golden alternative
Bitcoin is touted by many as “digital gold” — but fails to offer stable returns, especially during market upheaval. In fact, Bitcoin is four times more volatile than gold, according to Forbes analysis.
You can hedge your portfolio against inflation and market volatility by directly investing in physical gold through a gold IRA. With this form of retirement investment, you can reap the tax advantages of opening an IRA as well as the economic stability that gold provides.
You can check out Moneywise’s top picks for industry-leading companies offering gold IRAs.
Compare offers instantly and get a free information guide to help you understand how a gold IRA can help diversify your portfolio.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
