How to Purchase Bitcoin...Without Purchasing Bitcoin
Six different ways to include bitcoin in your portfolio
TheDigitalArtist, Pete Linforth, https://pixabay.com
If you're reading this, you're probably interested in bitcoin. You may not have a full-fledged Rachel-and-Rose crush, but you're definitely looking at each other.
Making your first BTC purchase is a big step, so it's understandable if you're hesitant to make it Facebook official. Fortunately, in the modern crypto era, gaining some exposure to bitcoin is easier than ever thanks to an increasing number of companies and financial institutions that have embraced the digital currency.
Here are six alternative ways to include bitcoin in your portfolio without purchasing it outright.
1. Purchase stock in companies that have bitcoin on their balance sheets.
MicroStrategy, a business intelligence firm, became the first publicly traded company to invest a portion of its cash holdings in bitcoin on August 11, 2020. Since then, higher-profile companies, most notably Tesla, have added bitcoin to their balance sheets, creating more opportunities for investors to dip their toes into the crypto pool without fully immersing themselves. It's an excellent way to gain indirect exposure to bitcoin while also profiting from the company that owns it.
The following are the five publicly traded companies that currently own the most bitcoin:
- MicroStrategy ($3.4 billion in BTC ownership)
- Tesla ($1.4 billion)
- Square ($259 million)
- Marathon Digital Holdings ($175.3 million)
- Coinbase ($175.3 million)
* All BTC figures are as of July 28, 2021TheStreet
2. Make an investment in cryptocurrency trading platforms.
As the popularity of cryptocurrencies has grown over the last decade, so has the number of companies that provide a safe and secure way to buy and sell the digital assets.
Many of them are now publicly traded companies in which you can invest. It sounds a little like Inception, but investing in brokerages like Binance and Coinbase, which allow users to buy and sell cryptocurrencies, could be a good proxy for investing in cryptocurrencies themselves. Because brokerages benefit from increased trading volume as the market cap of all cryptocurrencies grows, you'll have more diversified upside that isn't tied to the performance of just one cryptocurrency.
Brokerages that are publicly traded that you should be aware of:
3.Obtain a bitcoin credit card.
For years, credit card companies have been providing customers with cash back, travel points, and rewards galore. As cryptocurrency has grown in popularity, an increasing number of card issuers are beginning to give users cash back in the form of cold, hard BTC. Every time you swipe one of the cards listed below, you will receive a small amount of bitcoin.
Bitcoin credit cards to be aware of:
- Crypto.com Visa Card
- Binance Card
- BlockFi Bitcoin Rewards Credit Card
- Gemini Credit Card
- Unifimoney Visa Credit Card Upgrade
4. Earn bitcoin while shopping
There's nothing like discovering a stray $20 in a coat you haven't worn in a long time. When you use Lolli, you can now have that feeling every time you shop online. Lolli is a Chrome extension that gives you free bitcoin for shopping online at certain retailers. It's probably the simplest way to get a smidgeon of bitcoin without doing anything other than purchasing a comfortable bathrobe. Instagram continues to show you advertisements for.
5.Grayscale Trusts are a good investment.
Grayscale Asset Management is a digital currency asset management firm. It is in charge of two investment trusts (that is, investment vehicles that strategically deploy capital from multiple investors). The first is made up of bitcoin, and the second of ethereum, the two most important cryptocurrencies.
But why invest in a Grayscale Trust rather than simply purchasing the cryptocurrencies themselves? In a nutshell, safety. Grayscale purchases, holds, and protects cryptocurrencies on your behalf. It's a big selling point for investors who are concerned about keeping their crypto stashes safe. Furthermore, the Grayscale Bitcoin Trust (GBTC) is a publicly traded, SEC-reporting company that can be invested in through standard brokerages, making it more accessible to traders who are less comfortable navigating other avenues for acquiring Bitcoin.
Grayscale Trusts to know:
- (BTC) (GBTC) Grayscale Bitcoin Trust.
- (ETHE) Grayscale Ethereum Trust .
6. Invest in blockchain exchange-traded funds (ETFs).
The rise of Exchange Traded Funds (ETFs) that provide exposure to bitcoin and other blockchain-based companies is a relatively new development in the crypto space. ETFs, which can be purchased on a stock exchange, track the performance of a specific industry or sector.
Blockchain exchange-traded funds (ETFs) track the performance of companies that are developing, deploying, or stand to benefit from blockchain technology (the blockchain enables cryptocurrencies like bitcoin to exist). That umbrella includes lesser-known companies like Galaxy Digital Holding and MicroStrategy, as well as blue-chip names like Oracle, IBM, and Nvidia—all of which expose you to the underlying technology that powers Ethereum and bitcoin.
Blockchain ETFs to be aware of:
- (LEGR) First Trust Indxx Innovative Transaction & Process ETF
- (BLOK) Amplify Transformational Data Sharing ETF
- (BLCN) Siren Nasdaq NexGen Economy ETF
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