Bitcoin is coming of age: make sure you own some
Bitcoin has consistently been underestimated by its critics. Yet now it’s on the verge of being adopted by institutional investors and corporations. Dominic Frisby explains why you should have a little in your portfolio.


If you are new to bitcoin and blockchain technology, I urge you to research as much as you can: read about it, listen to podcasts and, above all, try out the technology. Buy small amounts of bitcoin, practise transacting in it with a friend, practise storing it. Get on top of the tech before you risk any significant capital. It will take you a few days, but it’s worth allocating the time. An easy place to get your first wallet is blockchain.com.
The most difficult aspect of bitcoin is the point of transfer between “fiat” money (eg the pound in your pocket) and bitcoin. The easiest place to buy it is on an exchange. Options include Gemini, Kraken, CEX.Io, Binance, SFOX, Crypto.com and eToro. Generally, the more you want to buy, the more paperwork you have to fill in. I’ve also found that in many cases it’s easier to set up an account on your smartphone than it is on your computer, especially with Binance and Crypto.com.
Then, once you’re set up, you’ll experience the delights of sending money to your exchange via a bank. You might end up having to make a phone call at this point. Easier options for small amounts include Bittylicious and LocalBitcoins, or even bitcoin ATMs. Revolut makes it easy, but you can’t then move your bitcoins elsewhere. You can only sell back to Revolut, which is somewhat besides the point.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
You can keep your bitcoins at an exchange – some offer cold storage, similar to the way that bullion dealers often offer gold storage. But longer term (and unlike with bullion dealers) I advise against this, as if the exchange goes out of business, you’ll be in trouble. Other long-term storage options include electrum plus a multisig (multi-signature) hardware wallet or – a slightly more user-friendly option – is bitcoin storage specialist keys.casa. This will all start making sense once you start playing around with the tech.
The Financial Conduct Authority recently banned the sale of crypto derivatives to retail investors, which means that getting exposure to crypto via traditional markets has become very difficult. So my advice is to go down the rabbit hole, and buy and hold actual bitcoin as it was meant to be bought, and hold.
If you’d still prefer some sort of listed option, then you could buy Microstrategy (Nasdaq: MSTR), which has become something of a proxy for bitcoin. Or there is London-listed bitcoin miner Argo Blockchain (LSE: ARB), though its share price has lost touch with reality. Alternatively, as more institutions follow the likes of Ruffer, you might well be able to get some exposure to bitcoin in the longer run via more and more investment trusts, so keep your eyes open.
Dominic Frisby (“mercurially witty” – the Spectator) is the world’s only financial writer and comedian. He is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He is the author of the books Bitcoin: the Future of Money? and Life After The State. He also co-wrote the documentary Four Horsemen, and presents the chat show, Stuff That Interests Me.
His show 2016 Let’s Talk About Tax was a huge hit at the Edinburgh Festival and Penguin Random House have since commissioned him to write a book on the subject – Daylight Robbery – the past, present and future of tax will be published later this year. His 2018 Edinburgh Festival show, Dominic Frisby's Financial Gameshow, won rave reviews. Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art.
You can follow him on Twitter @dominicfrisby
-
December 2023 NS&I Premium Bond winners - check now to see what you’ve won
If you hold money in NS&I Premium Bonds, you can check from today (2 December) to see if you have won in the December prize draw. Here’s how to check.
By Vaishali Varu Published
-
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
By Dr Matthew Partridge Published
-
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
By Dr Matthew Partridge Published
-
Can Lidiane Jones be Bumble's perfect match?
Dating app Bumble is taking on Lidiane Jones, a well-regarded leader in tech, as its new boss. Can she work her magic in a new arena?
By Jane Lewis Published
-
Are corporate bonds a good bet?
Corporate bonds pay a slightly higher yield than governments, but spreads aren’t generous by past standards.
By Cris Sholto Heaton Published
-
SoftBank’s shares slump on quarterly loss
Japanese investment group SoftBank’s technology funds have struggled, not least because of an investment in WeWork.
By Dr Matthew Partridge Published
-
M&S shares shift from frumpy to fabulous as pre-tax profits are up by 56%
M&S is performing strongly and has announced it will pay a dividend for the first time since the pandemic.
By Dr Matthew Partridge Published
-
The rise and fall of Sam Bankman-Fried – the “boy wonder of crypto”
Why the fate of Sam Bankman-Fried reminds us to be wary of digital tokens and unregulated financial intermediaries.
By Jane Lewis Published
-
Three defence stocks set to flourish in an era of instability
A professional investor tells MoneyWeek where he’d put his money. Tom Bailey highlights three defence stocks that look promising.
By Tom Bailey Published
-
EasyJet shares rise after record results
The EasyJet group has shrugged off the cost-of-living crisis, restarted dividends and shares look good value.
By Dr Matthew Partridge Last updated