$Before buying ETFs of #Bitcoin or #Ethereum you must define your objective $BTC $ETH $BTC
Do you want long-term growth, dividend distribution, dividend accumulation?
✅Know your risk tolerance. Hit the investor profile again, because ETFs also have volatility and leverage, aspects that can work against you if you buy the wrong ETF.
✅Investigate stock market indices. Some ETFs were created to follow or replicate the behavior of some of these indices, such as the S&P 500, the NASDAQ, the IPC, the Nikei 225, among others.
✅Check administrative costs. All ETFs have operating expenses and fees that can affect your returns. Even those that follow the same stock index may have different operating costs.
✅Marketability / Liquidity. Although some ETFs appear to do the same thing, some have greater supply and demand than others so it can be more difficult to buy or sell them.
✅Reputation of the administrator. The fact that two or more #Bitcoin ETFs look alike does not mean they are the same, check who manages the ETFs you are interested in, their history and financial health.
✅Historical performance. “Past returns do not guarantee future returns” that is a maxim in investments and it is a reality, but historical performance will help you choose a good time to buy. Remember that there are market cycles.
✅Diversification: There are #Bitcoin ETFs for almost everything. From those that follow indices as we already mentioned, those that focus on fixed income such as bonds, others that focus on sectors such as real estate, electric cars, etc. Try to choose ETFs that allow you to diversify correctly, even geographically.
To choose ETFs there are two things that can be very useful to you.
The website https://www.justetf.com/es/
And the book ETFs by Investor Coach, available on Amazon and Mercado Libre
#bolsadevalores#Educaciónfinanciera
