The easiest way and an alternative to the direct purchase of cryptocurrencies is to invest in companies that have extensive crypto exposure (e.g. Microstrategy (MSTR), Coinbase (COIN), Square (SQ), Marathon Digital Holdings (MARA), Hut 8 Mining (HUT)), or to invest in ETFs that hold such companies (e.g. Siren Nasdaq NexGen Economy (BLCN) or Bitwise Crypto Industry Innovators (BITQ)).

The U.S. Securities and Exchange Commission (SEC) received many applications from investment companies to launch cryptocurrency funds. At this point however, none of them are approved, and only accredited investors and entities are able to invest in cryptocurrency funds (e.g. the Bitwise 10 Crypto Index Fund).

In order to buy cryptocurrencies directly, you generally need to sign up with a crypto exchange such as Coinbase, Kraken, or Crypto.com. Other options exists, e.g. you can buy Etherium via a debit card transaction directly in the Metamask Wallet.

Due to U.S. regulations, many non-U.S. based exchanges operate separate websites and entities for U.S. customers. For example, while Binance.com is the largest exchange worldwide, U.S. individuals can only sign up for Binance.us, which offers fewer cryptocurrencies.

Many particularities exist in this developing market, so a gradual entry is advisable. While Robinhood allows you to purchase some cryptocurrencies, you are currently not able to transfer those cryptocurrencies to other wallets, e.g. to purchase NFTs or to swap into other cryptocurrencies. Coinbase Pro offers lower fees than Coinbase. Some exchanges hold your crypto in cold storage (offline and safer) and others in hot storage (online and more vulnerable to hacker attacks), or as a combination of the two.

There are about 12,000 different cryptocurrencies listed on Coinmarketcap. Exchanges that accept U.S. individuals as customers so far offer access to only a fraction of these cryptocurrencies. In order to purchase cryptocurrencies not available via traditional exchanges, you need to establish a software wallet (e.g. Metamask) or better, a hardware wallet (e.g. Trezor). When buying a hardware wallet, buy from the manufacturer website to ensure that you receive an authentic product that has not been tampered with. Many crypto investors recommend to always leave your funds in a hardware wallet unless you need to use an exchange for a transaction. Once you own cryptocurrencies, an alternative to your initial exchange are Uniswap, Pancakeswap, or Sushiswap. 

Before setting up crypto accounts, review your IT safety. Consider setting up a new and separate crypto-only email address and virus scan your computer. 

Note that cryptocurrencies exhibit high price volatility and involve extensive risks including total loss of capital. The top market cap coins and stable coins provide more safety than other alt coins. Diversification matters as prices can be impacted by many factors including regulatory concerns and fraudulent ICOs/coins. Cryptocurrencies are a useful tool to diversify an existing traditional investing portfolio. Before venturing into cryptocurrencies, you should first pay off high interest debt, and establish an emergency fund as well as a diversified traditional investment portfolio. Avoid leveraging crypto positions. This blog post does not represent a recommendation to purchase crypto assets and does not represent financial advice. Make sure to do your own research before investing.