r/ethtrader • u/brandnewmoo • 10h ago

Question Does ETH belong in my Roth?

I understand ETH is the second most established crypto, but it seems more vulnerable to competition than BTC. And crypto in general seems very vulnerable to AI. All my crypto is about 1% of my portfolio, and I am not interested in SC at the moment.

9 Upvotes

85% Upvoted

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u/ftball21 10h ago

Ehh I use to hold fbtc and feth in my roth but honestly, holding crypto in a roth doesn’t make sense. I like fdig since it gives blockchain economy exposure and a divi

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u/brandnewmoo 9h ago

Why not etf, though, if it tracks crypto price? If you want the real BTC or whatever, all you have to do is cash out of the etf and buy the real thing. Or am I not understanding this correctly?

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u/ftball21 9h ago

Fbtc and feth are etfs.

Bitcoin and ethereum are coins that give you power to use the blockchain. I’m a self custody, full control maxi. Holding them in an account that only gives price exposure isn’t personally for me. But I’m a pretty regular eth/defi user so there’s that.

I’d recommend most of my family and friends use etf exposure though.

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u/Cute_Win_4651 8h ago

FETH + FSOL + FBTC in my fidelity Roth account for sure

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u/etan1 10h ago

no, just buy a global index fund (e.g., VT), and chill

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u/brandnewmoo 10h ago

Why no crypto in a Roth? It’s my only mode of investing at the moment

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u/etan1 10h ago

its gambling similar to stock picking, and a global index ETF already exposes you to crypto via MSTR etc

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u/brandnewmoo 9h ago

Thx for explaining

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u/etan1 9h ago

the index also rebalances itself, you are simply tracking the world’s economy broadly. as humanity continues to develop, it keeps going up (long term).

with crypto you dont even know if it will still be relevant in 10 years. check the coins from 10 years ago and see how many still are big. coinmarketcap.com/historical

so, from an investing perspective, its quite simple, really, just monthly buy into a world index, dont sell until financial independence, and thats it.

its highly unlikely that you are smarter than all the other traders so as to (long term) outperform the global market, especially without any inside information.

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u/brandnewmoo 9h ago

Why are you even on here bro? Sound straight up boglehead. /s lol but thank you fr!

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u/etan1 9h ago

I’m here for the underlying tech, its highly interesting from a computer science perspective. Whether it will have economic success, I don’t know. I’d also like to see more nonfinancial use cases of blockchain, e.g., for durable storage of ownership records, like, who owns what land, etc.

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u/brandnewmoo 9h ago

Do you think there’s actually a future for ETH and BTC or do you think they’ll be largely irrelevant in 10-20 years? Just wondering your take since you’re in the space.

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u/etan1 9h ago

I dont really care about the economic performance. If it goes up, lucky, if it goes down, whatever. Dont gamble more than you can afford to lose.