The Smart Way to Invest: Why Bitcoin Isn't the Only Game in Town
Bitcoin has been a hot topic, but it's not the only way to invest. In fact, it might not even be the best way. Bitcoin doesn't pay dividends, and it's super volatile. That's why many investors are looking elsewhere for steady income and growth.
The Appeal of Closed-End Funds (CEFs)
Instead of putting all their money into crypto, some investors are turning to closed-end funds (CEFs) that focus on tech stocks. These funds not only invest in big-name tech companies like NVIDIA, Apple, Alphabet, and Microsoft but also pay out high dividends. Two such funds are:
- BlackRock Science and Technology Trust - Yield: 7.7%
- BlackRock Science and Technology Term Trust - Yield: 9%
Bitcoin's Struggles in 2025
Bitcoin had a rough year in 2025, despite some positive news from the US President and the Trump family's crypto investments. While Bitcoin struggled, the S&P 500 index fund saw gains. This shows that investing in Bitcoin can be risky, with big swings and potential losses if you're not lucky or well-timed.
The Advantage of Tech CEFs
On the other hand, the two tech CEFs mentioned earlier have been performing well. They've been tracking the S&P 500 and providing strong income. However, they're currently trading at a discount to their net asset value, which means you can buy them for less than they're worth. This is a great opportunity for investors to:
- Buy more shares
- Collect dividends
- Wait for the funds to bounce back
A Disciplined Investment Strategy
Investing in CEFs is a disciplined strategy. It's not about timing the market or getting lucky like in crypto. It's about:
- Buying quality funds at a discount
- Collecting income
- Selling when the time is right
This approach offers a balance of growth and income, making it a smart choice for many investors.
