Launched in 2009, Bitcoin is an open-source source software pertaining to the world’s first cryptocurrency. Presently ranked number one in the cryptocurrency world, Bitcoin is worth more than $1.6 trillion.
4 Ways To Invest In Bitcoin Without Holding The Cryptocurrency
After gaining the backing of big, international banks, Bitcoin has garnered the interest of an increasing population. However, owing to the everchanging, volatile rates of Bitcoin, decentralization of the currency, and inability to purchase it through regular financial means, investors are usually wary of investing in and purchasing Bitcoin.
Nevertheless, Bitcoin investors argue that Bitcoin is as secure an investment as cash money is. If rightfully predicted by statistics, the value of Bitcoin is only going to increase, hence, becoming a lucrative investment for investors.
Notwithstanding the pros and cons of Bitcoin arguments, there is a more profitable and less risk-oriented way to invest in Bitcoin.
Invest in Bitcoin technology
Bitcoin is made secure by ‘blockchain,’ a technology to spread Bitcoin code over several computers to shield it against hacker attacks. If a hacker pries into the code, they will have to go through hacking numerous computers, making it virtually impossible to mangle.
There are several companies that are presently investing in technology to secure Bitcoin blockchain and the coin exchange trade. Investors can invest in companies that publicly trade bitcoin technology.
Square and PayPal are leading platforms that allow Bitcoin to trade as a method of payment and invest in blockchain technology.
Apart from these digital wallets, popular companies such as Google, Microsoft, Amazon SAP, IBM, and Riot Blockchain use blockchain technology to guard various aspects of their companies.
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Invest in GPU creators
Another technology that backs up Bitcoin security is GPUs or graphic processing units. As widely known, Bitcoin relies on precise mathematical calculations to hold its worth. These mathematical operations are made possible by GPUs.
Hence, investing in companies creating and dealing with GPUs is a great way of investing in Bitcoin without holding the currency.
The GPUs are used to ‘validate’ bitcoin exchanges marking them true and authentic. Cryptocurrency miners preside over the blockchain network using high-powered computers deployed to secure the network by solving arithmetic problems which only when solved can correlate to a block and permit an exchange.
Businesses make it a point to solve these blockchain problems before everyone else and, hence, earn a block reward of 6.25 bitcoin tokens. High-powered GPUs are the brainers that go behind solving these problems.
NVIDIA, the popular gaming industry leader, makes one-third of its revenue from selling GPUs to cryptocurrency miners adamant about solving blockchain problems. Investing with these crypto miners is, therefore, a great way to invest in Bitcoin.
Invest in companies that trade in Bitcoin
Today, several companies rely on Bitcoin to make payments and trade in Bitcoin for the exchange of goods and services.
These companies are known as Bitcoin holders. Any investor can make a regular, cash-oriented investment with companies that hold bitcoin without having any direct Bitcoin investment. Companies that trade in Bitcoin can belong to any sector of the business industry.
Investing with BTCC, one of the world’s largest bitcoin futures exchanges can help leverage large profits with the Bitcoin trade.
With more than nine years of secure investment operations and exchanges, the company aims to provide a hundred times more leverage in trading. The total trading reached 98 billion USDT contracts in the last 30 days, especially in South Korea’s market (비트코인 선물거래).
So, any publicly traded company that provides services for storing Bitcoin carries trade of Bitcoin in exchange for providing products or services or has added Bitcoin to their financial ledgers is somewhere you can invest in instead of directly holding Bitcoin.
Multi-billion companies such as Tesla and MicroStrategy are primarily leading in the direct investment of Bitcoin.
While Tesla has more than $1.5 billion of Bitcoin and has started accepting payments in Bitcoin, MicroStrategy has passed the $4.4 billion mark in Bitcoin investment. In fact, MicroStrategy is on its way to invest even more in Bitcoin.
Investing in companies that hold cryptocurrency, trade in it, make, develop blockchain technology, or any other technology pertaining to Bitcoin use is a great way to start an initial investment in Bitcoin without holding the currency.
It is comparatively easy to invest in. The process can be completed through traditional investment methods using a regular brokerage account without the worry of forgetting the Bitcoin wallet key.
The investments are subject to stock deflections and, of course, cannot overcome Bitcoin volatility.
Invest in a cryptocurrency fund
There are several funds available that hold cryptocurrencies like Bitcoin and more. Investing in these funds is another way to leverage profits without holding the cryptocurrency.
Presently Grayscale, a leading digital currency investment management, and Osprey Bitcoin Trust are on the top of cryptocurrency management for fresh investors that are looking for alternative ways to invest in cryptocurrency.
They help browse through options such as Bitcoin trusts and more for secure and safe investments.
Working with a fund management company such as Grayscale is a simpler option for novel investors without much knowledge of the cryptocurrency world. Keeping a hold on the funds, answering questions related to cryptocurrency and fund accounts, tracking profits and losses of the investment, along with filling tax and filing documents, comes under the jurisdiction of the investment management, making it infinitely easier for the investor to invest in a fund.
It is important to notice that the fund trust will charge for its services and less risk involving funds usually pay lesser profits.
Different investment trusts charge costs as they seem fit, and the purchases are not universally equally billed. Any investor should do thorough research about the credibility of a firm before investing in it.
Though highly profitable in the past few years, Bitcoin trade and exchange are subject to market fluctuations just as any other fiat currency. Investing in Bitcoin can produce both great and hazardous results.
However, investing in Bitcoin indirectly through the means of companies, firms, and funds can help soften the blow of Bitcoin volatility. Try these techniques that can help you invest in Bitcoin without holding the currency and practice safe investing!