The last decade was great for Bitcoin due to its blockbuster growth. This virtual currency had skyrocketing prices that saw many institutions decide to invest in it during this time. However, Bitcoin presents a complex investment for some retail investors. That’s because Bitcoin has been historically volatile and expensive without backing by any financial institution.
However, you can trade or invest in Bitcoin without direct exposure. And this could be safer and better than delving into the crypto rabbit hole. Ideally, you can invest in this virtual currency or blockchain technology without necessarily holding the tokens. Although this may not shield you from the trademark volatility for this digital currency, it provides some protection.
But like with most investments, diversification is the best option. That means you could buy and sell this virtual currency on platforms, for more information you can visit The Official App . Here are effective ways to trade or invest in Bitcoin without holding the tokens.
Invest in a Company that Holds Cryptocurrencies
A great way to trade or invest in this virtual currency without holding the tokens is to spend your money on the stocks of a company that keeps coins or provides crypto-related services. And you have many businesses trading publicly in different sectors. Such companies can have Bitcoin in their balance sheets. Others store cryptocurrencies for customers or offer services that clients pay with Bitcoin.
For instance, companies like MicroStrategy and Tesla have direct Bitcoin investments. Such establishments present outstanding investment opportunities for people that want to invest in this virtual currency without holding the tokens.
Invest in Companies with Bitcoin-Related Technology
Experts argue that blockchain has great potential for use in different economic and social sectors. So, if you know a company that uses blockchain or has technology that people associate with Bitcoin trading, invest in it.
Also, look for companies like PayPal and Square that allow users to purchase Bitcoin on their platforms. Additionally, look for companies that focus on Bitcoin or have underlying technologies that support this virtual currency. Companies like Google, Microsoft, and IBM use blockchain in various ways.
Also, you can invest in underlying hardware without holding the tokens. For instance, you can invest in a company that makes graphical processing units that computers need to solve mathematical puzzles in the blockchain.
Ideally, investing in a firm’s stock is more accessible and safer than purchasing and holding onto Bitcoins. That’s because a regular brokerage account can facilitate the transaction by a financial institution. Thus, you enjoy the ease of use and added security.
Use a Bitcoin Fund
You can also invest in a fund that holds Bitcoin. Currently, some players have Bitcoin trusts that help retail investors. Investing in a cryptocurrency fund is something that most retail investors know. Additionally, working with a Bitcoin fund implies dealing with a fund company for account information or questions. Thus, you won’t be responsible for tracking gains, setting passwords, or gathering documents when filing taxes.
However, funds charge fees for these services. That’s why some due diligence is necessary before investing in a cryptocurrency fund.
Bitcoin and other virtual currencies are relatively new to most people. What’s more, Bitcoin is a volatile digital asset. Consequently, many people don’t want to invest in this digital currency directly. Instead, most people are looking for indirect Bitcoin investment. While these ideas provide good ways to invest in Bitcoin without holding the tokens, they need research. Therefore, take your time to learn about indirect ways to invest in Bitcoin before making any move.