Bitcoin has steadily risen from a speculative asset to one of the most lucrative investments today, attracting institutional and retail investors. While most crypto investors usually invest by purchasing the tokens directly, doing so may come with various potential risks. Thus, consider alternative ways to gain Bitcoin exposure without holding the coins. Here are the best ways to invest in Bitcoin without buying it directly. You can also diversify your crypto portfolio on the Immediate Trade Pro where you get access to trading other cryptocurrencies.
Bitcoin ETFs and Mutual Funds
Investment funds such as Bitcoin Exchange Traded Funds are among the best instruments to acquire if you want to invest in Bitcoin without holding the tokens. The Grayscale Bitcoin Trust (GBTC) is an excellent example of a Bitcoin investment fund to consider. Investing in GBTC will enable you to access Bitcoin without buying the coins directly. Like other investment funds, the value of the investments will fluctuate based on Bitcoin’s market price.
However, investing in GBTC comes with an expense ratio of 2%. That is a transaction fee for buying and holding the investments in a digital wallet under your name. However, you can also avoid paying the costs by doing the transactions independently and keeping the assets in your wallet.
Other Bitcoin funds that you can also invest in include the Global X Blockchain & Bitcoin Strategy ETF (BTF), ProShares Bitcoin Strategy ETF (BITO), Bitwise 10 Crypto Index Fund (BITW), and Valkyrie Bitcoin Strategy ETF (BTF). However, the underlying investments and fees vary from instrument to instrument, so do proper due diligence before investing.
Bitcoin and Blockchain Stocks
Investing in companies that work on blockchain projects and invest in or have Bitcoin holdings in their portfolios is also a great way to gain exposure to crypto without buying the tokens directly. Companies interested in blockchain may engage in crypto mining, software development, and other related services. Coinbase (COIN) is a renowned crypto exchange and stock. Other examples of blockchain stocks include Canaan (CAN), Riot Blockchain (RIOT), and Bitfarms (BITF).
Nevertheless, those stock prices also rise and fall according to Bitcoin prices. That implies the value of your stocks will appreciate and depreciate whenever Bitcoin market prices fluctuate. You may ask a professional to help you choose the right investment plans that will work for you.
Credit Card Rewards
Many credit cards allow users to earn Bitcoin and other cryptocurrencies whenever they swipe, dip, tap, or perform payment transactions. Some of the best options to consider when investing in Bitcoin through a credit card rewards program include the BlockFi Rewards Visa Signature card, Upgrade Bitcoin Rewards Visa Card, and Gemini Credit Card.
Crypto exchange platforms such as Coinbase and Crypto.com also provide rewards credit cards. The personal SoFi credit card also provides options for redeeming your rewards in Bitcoin and other selected cryptocurrencies. Like Bitcoin ETFs, mutual funds, and stocks, credit card rewards allow you direct exposure to Bitcoin without buying it directly. The upside of credit card rewards is that you do not pay for the earned Bitcoin, so you will still be profitable even if prices tumble.
Many people have hailed Bitcoin as a revolutionary technology that will transform the world in various ways. Although you can still invest in Bitcoin by purchasing the coins directly, indirect investing is an excellent option for those investors who wish to participate in this new revolution but with caution. Besides, a direct Bitcoin investment will also enable you to diversify your portfolio and spread risks evenly.
No comments:
Post a Comment