Buying cryptocurrency is a volatile and risky investment. If investing directly in crypto on an exchange or via a broker doesn’t feel like the right choice for you, here’s are a few options to indirectly invest in Bitcoin and other cryptocurrencies:
1. Wait for Crypto Exchange-Traded Funds (ETFs)
Exchange traded funds are popular investments that let you buy exposure to hundreds of individual holdings in one fund. There is immediate diversification and therefore less risky than investing directly in one individual investments. There is a huge appetite for cryptocurrency ETFs, which allow you to invest in many cryptocurrencies at once. The first cryptocurrency ETFs started to be rolled out to private investors in 2021.
2. Invest in companies connected to cryptocurrency
If you’d rather invest in companies with tangible products or services and that are subject to regulatory oversight but still want exposure to the cryptocurrency market, you can buy shares in companies that use or own cryptocurrencies and the blockchain that powers them.
You can buy shares in publicly-listed companies such as:
Nvidia (NVDA), a technology company that designs and sells graphics processing units, which are at the heart of the systems used to mine cryptocurrency.
PayPal (PYPL) , this payments platform recently expanded to allow customers to buy and sell selected cryptocurrencies with their PayPal and Venmo accounts.
Square (SQ), a payment services provider for small businesses that has purchased Bitcoin worth millions of dollars since October 2020. In February 2021, the firm disclosed that Bitcoin made up around 5% of the cash on its balance sheet. Plus, Square’s Cash App allows people to buy, sell and store cryptocurrency.
Sven Franssen