Bitcoin and other cryptocurrencies experience rapid price swings that can either increase or decrease their value. News of a significant fall in Bitcoin prices could easily seduce investors into buying the dip. Traders would rush into buying Bitcoin during a crash, hoping that prices would soon stabilize, allowing them to make huge returns in the future. However, not all investors are comfortable taking such risks.
The good news is that a few ways exist for investors to capitalize on the Bitcoin crash without buying the tokens. The most popular strategy today is investing in companies or stocks with ties to the crypto market. You should consider investing money in the following lucrative crypto-related stocks if you do not want to buy Bitcoin bottoms.
Tesla is the world’s leading manufacturer of electric automobiles and one with the most extensive Bitcoin holdings. It currently owns more than 42,000 Bitcoins, worth hundreds of millions of dollars. The company’s stocks took a hit from the recent Bitcoin price falls but it has also accumulated significant profits over the years. For instance, Tesla stocks grew by over 5.7% between August and September when the Bitcoin prices surged by 27.5%.
PayPal and other online payment processors are the most significant competitors to crypto exchanges such as bitlq . Their stocks have also experienced a bull run this year, crossing the $300 threshold twice. However, PayPal’s stocks have also entered into the $240 category thrice. Unlike most online payment processors, PayPal boasts more exposure to the crypto market, unveiling a product that allows US customers to purchase, sell and hold Bitcoin. They have also launched a similar product for the UK market, strengthening their crypto exposure. That creates lucrative opportunities for investors to make money during a crash without buying Bitcoin.
Nvidia is a tech company mainly involved in manufacturing cutting-edge graphics design processing units and video games products. Its GPUs are in high demand among crypto miners. However, it is also one of the largest crypto investment firms, with enormous Bitcoin holdings. Nvidia’s stock prices also feel when Bitcoin’s price recently declined to below $30,000 but, they have recovered the losses with substantial gains. The company’s crypto mining products mean its GPUs sales would not suffer even when the Bitcoin price crashes, ensuring sustainable returns for investors.
Square is a financial service provider, also rivaling crypto exchanges. Similar to Nvidia and PayPal, the company has also enjoyed impressive returns in the last year. However, Square’s profits have more direct links to the crypto industry because of its significant Bitcoin holdings and mobile app that allows people to buy, sell and send money in crypto. The company revealed Bitcoin contributed over half of its $4.68 billion revenue in Q2. That means a future Bitcoin rally would surge the company’s profits to greater heights.
CME Group (CME)
CME is the world’s largest derivatives contracts market. It unveiled the trading of Bitcoin futures contracts in 2017. CME has now expanded the platform also to include additional Bitcoin futures options and contracts for other cryptocurrencies. Their success mainly hinges on the increasing crypto integration into the global economy, and the projected Bitcoin growth would boost the demand for CME’s derivatives market over time. That will significantly increase investors’ chances of profitability.
Overall, crypto is an emerging market with lots of risks and uncertainties. A Bitcoin crash is one of the worst events that could leave investors with huge losses. There are no signs of an imminent Bitcoin crash. However, it is essential to know your options whenever it happens. The above article has outlined ways to benefit from a Bitcoin crash without buying it.