Ever wondered if you can bet on crypto without buying the coins? Well, we are here to tell you that it’s possible. Read on to find out how to bet on crypto without buying the actual coins.
Read also: Can You Receive Your Tax Refund in Crypto
How to bet on crypto without buying the coins
With the volatile nature of cryptocurrencies, here are ways you could still be part of the crypto world.
1.Invest in companies associated with crypto
Instead of putting all your money in crypto, how about putting it in a company that has stocks in crypto. You could invest in a company that holds a big number of cryptocurrencies. If the cryptocurrencies increases in value the value of your investment also increases.
Identify companies that have crypto interest at heart and put your money there. You could also diversify your investment by not only investing in one company but multiple companies. That way you have your foot present in a number of companies.
2.Buy stocks in companies with crypto related services
Buying shares in a company affiliated with crypto is a great way to dive into the crypto world. You could choose a company that has a long time plan related to cryptocurrencies and blockchain technologies.
However, it is recommended to diversify your stocks. Investing in an individual stock is similar to investing in specific crypto. It is recommended to bet your money on index funds and ETFs.Index funds have the potential for long-term growth over time.
Index funds such as S&P have stocks in not only blockchain technologies but also have some amount of crypto in their balance sheets. Tesla for example has heavily invested in Bitcoins. In addition, it has been added to the S&P index fund.
Some of the companies you could bet on include;
- Block Inc
- Marathon Digital Holdings
These are some of the best companies where you could buy crypto stocks.