The most straightforward approach to investing in cryptocurrencies without actually purchasing any of them is to buy shares in a firm with a financial interest in developing cryptocurrencies or blockchain technology. Utilizing conventional strategies, such as equities, and exchange-traded funds, indirect investment is made (ETFs). A small portion of your portfolio can be chosen to be allocated to specific businesses, more specialized index funds, or mutual funds if you have some extra money and are risk-tolerant. Consider the benefits and drawbacks of security, costs, and loss risk. When determining whether to buy cryptocurrencies through an indirect investment, you should keep in mind that the third party you use to do so will inevitably gain money in some way.
Best Options To Invest In Crypto Without Buying Crypto
Bitcoin futures ETFs
Futures are a betting tool used by professional investors to wager on, among other things, the future price fluctuations of commodities and currencies. Futures contracts, rather than actual oil, are held by oil-tracking ETFs. ETFs can be a practical choice for crypto newbies since they can be purchased and traded through a standard stock-market brokerage account. If your trading account allows for fractional shares, you might be able to start with as little as a few dollars. Deficiencies exist. ETFs, come with a management fee since they are mutual funds. Futures-owning exchange-traded funds (ETFs) don’t always provide returns that are in line with those of the market they are trying to track. While oil futures ETFs, which have a far longer track record, have caused controversy when their values diverged greatly from the price of the underlying crude, bitcoin futures ETFs have so far done pretty well compared to their oil counterparts.
Elon Musk, the inventor of Tesla, is an advocate for cryptocurrencies, and the business has more than $1 billion worth of Bitcoin in its possession. In early 2021, it briefly allowed Bitcoin payments before discontinuing the initiative. Dogecoin is the only cryptocurrency that Tesla currently accepts for payments.
In addition to providing cloud and business analytics services, MicroStrategy also invests in Bitcoin. Although the corporation provides cloud and business intelligence services, it also has a $5 billion Bitcoin holding.
Many retirees may have another cryptocurrency choice. The biggest 401(k) provider, Fidelity Investments, unveiled a scheme in April that will allow people to start holding some of their money in bitcoin later this year.
Marathon Digital Holdings (MARA)
A company that specializes in processing, mining, and verifying bitcoin transactions is called Marathon. The payment is sent in bitcoin, which the business may then sell to make money. The mission of Marathon Digital Holdings is to operate the biggest bitcoin mining facility in North America.
Recently, Square declared its intention to enter the decentralized finance market. Bitcoin is held on the company’s balance sheet, and Cash App users can deal in cryptocurrencies. It is extending into cryptocurrencies and digital wallets, putting it one step closer to enabling bitcoin transactions between companies and clients around the world
Credit Card Rewards
Use credit card rewards to increase your bitcoin holdings without having to access your fiat wallet. Several cards let you earn cryptocurrency. Some cards, including the Venmo credit card and the personal SoFi credit card, include a variety of flexible redemption possibilities, including cryptocurrencies. You invest in cryptocurrency without really purchasing it when you receive it as a credit card incentive. You didn’t pay for the cryptocurrency, so even if its value decreases, you still walk away with a profit.
There are methods to expose your investment to cryptocurrencies without actually buying any, but you must proceed carefully and exercise the same due research. Those who want to participate in the new technologies should exercise prudence while investing indirectly in cryptocurrencies. As an outcome, the danger will be more evenly distributed throughout the portfolio.