What is the way to invest in cryptocurrency without investing

09-05-2022 Pankaj Gupta
What is the way to invest in cryptocurrency without investing

Easy ways to increase exposure to investments in

The simplest approach to gain investment exposure to

cryptocurrencies without purchasing them is to buy stock in a firm that has a financial stake in the future of cryptocurrency or blockchain technology.

However, investing in individual equities might have the same dangers as investing in cryptocurrency.

Sometimes rather than buying shares in any single crypto-forward company, it’s better to maintain a balanced portfolio by identifying companies with crypto interests and making sure their shares are included in any index or mutual funds you put money into. Not only does that allow you to invest in the companies where you see potential, but it also helps you keep your investments diversified within a broader fund. 

Afford to spend on Crypto-assets infrastructure.

Investing in firms with a stake in the cryptocurrency sector is another approach to obtaining exposure.

Just as with gold, you may invest in the commodity itself or the infrastructure that surrounds it, the miners, the materials needed for mining, and the same are true for energy and oil," There are public firms that specialize in the blockchain field, but there aren't many of them.

RiotBlockchain Inc. is one of the few publicly listed firms specializing in bitcoin mining. Riot Blockchain, among others, contributes to the development of bitcoin infrastructure and offers another cryptocurrency-related investment possibility.

Invest in a cryptocurrency exchange-traded fund (ETF)

One can look at this Cryptocurrency exchange-traded fund, or simply ETF. This bitcoin ETF launched by Pro Shares doesn't invest directly in bitcoin. Instead, it’s based on futures contracts tied to the cryptocurrency more like trading in shares. Because it’s an ETF, investors can likely invest directly from their brokerage accounts instead of having to open a crypto wallet.

ETFs, or exchange-traded funds, are a cross between mutual funds and equities. An ETF is a collection of stocks, bonds, or other assets. When you purchase an ETF share, you are purchasing a stake in the fund's portfolio of investments.

There are ways you can expose your portfolio to cryptocurrency without actually purchasing coins, but proceed with caution and use all of the same diligence as you would with any other speculative investment. 

None of these stocks or specialized ETFs are guaranteed to go up at all, and may actually experience increased volatility, similar to what is found in crypto markets themselves. Just like any crypto investment, you should be willing to accept the risks associated with it. If you can’t, sticking to mutual or crypto-index funds is probably a better bet. 

There are methods to expose your portfolio to cryptocurrencies without acquiring coins, but approach with caution and conduct the same due diligence as you would with any other risky investment.

None of these equities or specialized ETFs are guaranteed to rise in value, and they may actually face increasing volatility, similar to what is seen in cryptocurrency markets. You should be prepared to face the dangers involved with it, just like you would with any other cryptocurrency investment.

Disclaimer

Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.


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