5 ways to invest in cryptocurrency without buying! Are you interested in investing in cryptocurrencies but do not want to spend money directly on unstable assets? Cryptocurrency is a new favorite in the investment field, and both retail investors and corporate investors have shown great interest in this asset category. However, in this interest, people are worried about the dangers associated with cryptocurrency, and many people prefer not to buy the asset directly. Most investors will invest in it, but it is safer to invest in it than to buy assets directly and be responsible for it. Here are five main ways to invest in crypto assets without purchasing.
1. Cryptographic futures ETF
If you want to invest in cryptocurrency without actually purchasing assets, one of the best ways is to use the futures cryptocurrency exchange trust fund (ETF). If you understand the general operation of futures trading, you will know that you can trade futures without purchasing underlying assets (such as gold).
You enter into a contract to buy and sell assets at a set price in the future, regardless of the transaction price when the transaction is executed. This type of investment is more like a bet on asset prices. Crypto futures trading works in almost the same way, except this time, the underlying asset is cryptocurrency, such as Bitcoin, Ethereum or any other counterfeit currency.
By trading cryptocurrency futures, you can bet on the future price of the underlying asset without owning the underlying cryptocurrency. In this way, changes in asset values due to fluctuations will not affect your results.
This is why the Securities and Exchange Commission (SEC) approved several crypto futures ETFs instead of spot crypto ETFs, which directly let investors access assets.
With crypto futures ETFs such as ProShares Bitcoin Strategy ETF (BITO), you can safely trade futures contracts and avoid the unique volatility of crypto markets.
However, this requires some advanced trading skills and is not suitable for everyone. If you think you are qualified for this task, you can try it as a way to invest in cryptocurrency without purchasing.
2. Blockchain stocks
Another encryption method that does not hold any encryption assets is to purchase blockchain or encryption stocks. Coinbase, one of the largest cryptocurrency exchanges in the world, will become the first cryptocurrency exchange listed in 2021, giving investors the opportunity to buy its shares.
By purchasing shares from Coinbase, you indirectly invested in cryptocurrency, and every gain in the crypto industry will be reflected in your investment. Although you do not own any cryptocurrency, anything that happens in the crypto market will affect your investment, whether positive or negative.
There are many other such stocks available for purchase, including Riot Blockchain (RIOT), a subsidiary of Riot; Jianan Yunzhi (CAN), affiliated to ASIC chip design and research company Jianan Yunzhi; HIVE Blockchain Technologies (HIVE), owned by encryption miner Hive; Bitspears and Bitspears (BITF) are owned by Bitcoin mining company Bitspears.
3. Encrypt IRA and 401ks
How many years do you have to retire? Then you can merge the encryption into your 401 (k). This option is for those who wish to make long-term investments as part of their retirement savings account.
The trick is to get your boss to agree to let you save money in cryptocurrency. If your employer is willing to choose, you can let them save a percentage of your monthly payments in Bitcoin or any other cryptocurrency of your choice.
One company providing this service to American customers is Fidelity. If you show interest, they will purchase the asset and save it on your behalf in an account that is primarily used to encrypt the asset.
Crypto IRAs are similar to 401k options, except they do not require employer approval. You just need to convert your 401k account into an IRA and use it to invest in any cryptocurrency you choose. There are many encryption IRAs that offer a variety of encryption investment options.
Encryption IRA not only allows you to invest in encryption; It also allows you to trade on the IRA platform. However, IRA manages funds on your behalf, usually with insurance in case of problems.
4. Mining cryptocurrency
If you find that none of the above options are practical, another option is to mine cryptocurrencies yourself. However, this may be very demanding, especially the mining of Bitcoin, which has become increasingly complex over the years.
You will need an advanced mining computer called ASIC to successfully mine because it has become much more difficult.
It may be easier to mine counterfeit coins, some of which you can do on your laptop. Essentially, you are not buying assets, but playing the role of a miner. In return, you will be rewarded with cryptocurrency units.
You can then hold it as an investment until you want to exchange it for cash or other assets. This requires you to manage the assets in your wallet yourself.
5. Credit card rewards
You can also use a credit card with a cash back incentive to obtain cryptocurrency. If you use these cards, you can also benefit from the return of cryptocurrency cash. There are many cards that will reward you with cryptocurrencies for making payments on these top-level crypto cash return websites.
Cryptocurrency startups such as exchanges usually issue these cards. Some non encrypted startups, such as Venmo, also issue cash back credit cards. Although it will not reward you directly with cryptocurrency, you can choose cryptocurrency as an option to redeem cash back rewards.
Credit card rewards may seem trivial at first, but if you keep collecting them, they will accumulate quickly and you will soon have a large cryptocurrency portfolio.
Like cryptocurrency mining, you will eventually manage your own assets, which is the part most people try to avoid. If you are not used to managing your portfolio, you can still use cryptocurrency to invest in other ways that do not require direct portfolio management.
In general, these are the ways to invest cryptocurrency without direct purchase. You may find that some methods are more suitable than others. If you don't mind managing your encrypted assets yourself, you can use any of the methods discussed to accumulate encrypted assets. However, if you prefer to let others manage for you, then futures ETF and IRA will be more effective. In the end, the idea is to benefit from the encryption market without paying for assets.