If you want to invest in crypto without investing in crypto, consider these low risk options
Investors interested in cryptocurrency are probably aware of the huge price swings of Bitcoin and its peers in recent weeks. The price of Bitcoin dropped to around $ 31,000 over the weekend, The New York Times reported, which represented more than half a drop from last month’s high. But on Monday, the price rebounded above $ 37,000.
Given its volatility, cryptocurrency is not for the faint of heart. It not only tends to fluctuate in prices, but it is also expensive, cannot be purchased through traditional brokerage accounts, and does not have the backing of financial institutions, CNBC reported.
So what’s the best way for investors to get a cryptocurrency coin without actually buying the coins? An alternative is to invest in companies that offer crypto-related services or own the coins themselves..
If you want to get exposed to cryptocurrency without direct risk, here are a few options:
Invest in companies with crypto technology: These include Square and PayPal, which allow users to trade cryptocurrencies on their platforms. Even big tech companies like Amazon, Google, Microsoft, IBM, and SAP use blockchain in different parts of their business.
Search for cryptocurrency funds: Some funds hold Bitcoin and other cryptocurrencies. For example, Grayscale and Osprey created Bitcoin trusts, Doug Boneparth, CFP and president of Bone Fide Wealth in New York City, told CNBC. And funds exposed to cryptocurrencies and blockchain technology include the internet-based exchange-traded fund Ark Next Generation. Just keep in mind that funds can incur fees.
Buy Tesla shares. In February, the electric vehicle maker bought $ 1.5 billion worth of Bitcoin and said it would accept it as a payment soon, although Tesla recently suspended the latter option after CEO Elon Musk had expressed environmental concerns related to cryptography.
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This article originally appeared on GOBankingRates.com: If you want to invest in crypto without investing in crypto, consider these low risk options