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Not buying cryptocurrencies. 5 Ways to Invest in Cryptocurrencies

1. Cryptocurrency futures ETFs
If you want to invest in cryptocurrencies without actually buying the assets, one of the best ways to do so is to use a futures cryptocurrency exchange traded trust fund (ETF). If you know how futures trading generally works, you know that you can trade futures without having to buy the underlying assets.
You enter into a contract to buy or sell an asset in the future at a set price, regardless of the trading price at the time the trade is executed. This type of investment is more like a bet on the price of a particular asset. Cryptocurrency futures trading works in basically the same way, except this time the underlying asset is a cryptocurrency such as Bitcoin, Ether or any other alternative coin.

Doing so requires some advanced trading skills, so it’s not for everyone. If you think you’re up to the task, you can try it as a way to invest in cryptocurrencies without having to buy them.

2. Blockchain stocks
Another way to participate in cryptocurrencies without holding any cryptocurrency assets is to buy blockchain or cryptocurrency stocks. One of the largest cryptocurrency exchanges in the world, Coinbase, became the first cryptocurrency exchange to go public in 2021, giving investors the opportunity to purchase its stock.

By purchasing Coinbase stock, you are indirectly investing in cryptocurrencies, and every gain in the cryptocurrency industry will be reflected in your investment. Although you don’t own any cryptocurrency, whatever happens in the cryptocurrency market will affect your investment, either positively or negatively.

There are many more such stocks to buy, including Riot Blockchain (RIOT), which belongs to Riot; Canaan (CAN), which belongs to Canaan, an ASIC chip design and research company; HIVE Blockchain Technologies (HIVE), which belongs to cryptocurrency miner Hive ( BITF), which belongs to Bitfarms, a Bitcoin mining company.

3. Cryptocurrency IRAs and 401 Plans
Are you a few years away from retirement? Then you can include cryptocurrencies in your 401(k) plan. This is an option for those who want to invest for the long term as part of their retirement savings account.

The trick is to get your boss to agree to let you save in cryptocurrencies. If your boss is open to this option, you can ask them to deposit a percentage of your monthly payments in Bitcoin or any other cryptocurrency of your choice.

In the United States, the company offering this service to clients is Fidelity, and if you show interest, they will purchase the assets and hold them in an account primarily for cryptocurrency assets on your behalf.

 Cryptocurrency Investment
Cryptocurrency Investment

A cryptocurrency IRA is a similar option to a 401k, except that it does not require your employer’s consent. You can simply swap your 401k account for an IRA and use it to invest in any cryptocurrency of your choice. There are many cryptocurrency IRAs that offer several cryptocurrency investment options.

Cryptocurrency IRAs not only allow you to invest in cryptocurrencies, but they also allow you to trade on the IRA platform. However, IRAs manage these funds on your behalf and usually have insurance in case something goes wrong.

4. Cryptocurrency Mining
If you find that all of the above options are impractical, another option is to mine cryptocurrencies yourself. However, this can be very demanding, especially mining Bitcoin, which has become more complicated over the years.

Alternative currencies may be easier to mine, some of which you can do on your laptop. Essentially, instead of buying an asset, you play the role of a miner, and in return you are rewarded with units of cryptocurrency.

You can then hold it as an investment until you want to exchange it for cash or other assets. This requires you to manage these assets yourself in your own wallet.

5. Credit Card Rewards
You can also use credit cards that have cashback rewards to get cryptocurrency. If you use these cards, you can also benefit from them by getting cryptocurrency cash back. There are many cards that will reward you with cryptocurrency for payments made on these top cryptocurrency cashback sites.

Cryptocurrency startups, such as exchanges, often issue these cards. Some non-cryptocurrency startups, such as Venmo, also issue cashback credit cards. While it doesn’t reward you directly with cryptocurrency, you can choose cryptocurrency as an option to redeem your cashback rewards.

As with cryptocurrency mining, you will end up managing the assets yourself, which is the part most people try to avoid. If you don’t like managing a portfolio, you can still use cryptocurrencies to invest in other ways that don’t require direct portfolio management.

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