---
title: "Convenient, Limited and Risky"
url: "https://library.beyond-the-market.com/2/the-crypto-investor-safety-protocol/31/convenient-limited-and-risky"
---

### Convenient, Limited and Risky

Once you decide to invest in crypto, the first practical question is simple.
How do you actually buy it?

There are two common entry points most investors start with.
Both are convenient.
Both have clear trade offs.

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### Option 1: Buying Crypto Through ETFs

Examples include IBIT, FBTC, or GBTC for Bitcoin, ETHA for Ethereum, and BSOL or FSOL for Solana.
These products can usually be accessed directly through your existing stock broker and are designed to track the price of the underlying asset.

**Benefits**

* No need to open a crypto account
* Familiar setup through your stock broker
* Simple price exposure to Bitcoin, Ethereum, or Solana
* Ongoing annual fees are small, typically around 0.3%

**Drawbacks**

* Limited selection of assets, currently only a few cryptocurrencies
* Not available in all countries
* Potential tracking errors between ETF price and the underlying asset
* No direct ownership of the crypto
* Custodial and counterparty risk
* In many jurisdictions, less favourable tax treatment compared to holding crypto directly

ETFs are easy and familiar, but they are a financial wrapper, not the asset itself.

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### Option 2: Buying on a Centralised Exchange

This involves creating an account on a crypto exchange and purchasing assets directly through an app.
It feels fast and accessible, especially for first time buyers.

**Benefits**

* You own the crypto directly
* Often better tax treatment than ETFs
* Instant access to a wider range of assets

**Drawbacks**

* High transaction fees and wide spreads
* Costs typically range from 2.5% to 5% per purchase
* On a 10,000 USD investment, this can mean 300 to 500 USD in fees
* On a 100,000 USD investment, fees can exceed 3,000 USD
* Custodial risk if assets are left on the exchange

Both options lower the barrier to entry.
They make getting started easy.

But they are rarely the most efficient or secure long term solution.

In the next section, you will learn how to buy and hold crypto with full ownership, lower fees of under 0.2%, and a setup that can save you thousands of dollars in costs over time, while giving you complete control over your assets.