More than 75 percent of crypto investors worry about security and high trading fees on crypto exchanges. Many new investors are crypto cautious. They're hoping to find another way to benefit from this technology.
Do you want to invest in crypto but don't want to buy actual coins? Here are some of the best ways to profit from cryptocurrency indirectly.
Buy Crypto or Blockchain ETFs
People interchange the terms blockchain and crypto, but they refer to different things. You can invest in an exchange-traded fund that holds shares of companies with exposure to blockchain or crypto. A professional investment advisor can help you find the right ETF for your portfolio.
Each exchange-traded fund will have a different strategy to help you diversify your holdings. Most ETFs track an index, and a crypto ETF tracks the future price of one or more digital tokens. These funds don't hold coins.
A blockchain ETF may hold stock in businesses that are developing blockchain tech. A fund may focus on companies using blockchain to streamline their operations. They might support the development of blockchain technology in other ways.
Buy Companies With Exposure to Crypto
When looking at stocks vs. crypto, a traditional investor may be more comfortable buying stocks. One way to invest in the sector without buying any coins is to buy stocks in non-crypto companies. Look for ones that support crypto or use it in their operations.
Companies manufacturing integrated circuits are directly connected to the success of the crypto market. Other companies may hold crypto on their balance sheets as a direct investment. Businesses may support crypto through partnerships or by funding crypto startups.
One sector to consider is payment providers that accept cryptocurrency as a payment method. These payment gateways use their wallets to ease transactions between merchants and customers. Quite a few of the largest companies have adopted it, including Paypal and Shopify.
Look for companies that have venture funds that are funding crypto startups. Many venture capitalists are optimistic investors in this space.
Buy Blockchain Technology Stocks
When comparing indirect vs. direct investment in crypto, find companies researching ways to use the blockchain in their operations. It's a new technology that has the potential to help a company grow.
Two main areas of application are logistics and finance. Decentralized digital ledgers and security are others. It's an exciting frontier that is changing rapidly.
Blockchain could track how food moves through the distribution system. It may improve the traceability of bacteria or other potential foodborne illnesses using a type of virtual registry.
As technology matures, you may find ways to use blockchain in your business. Some companies are setting up partnerships to develop blockchain in innovative ways. These can be great stocks to buy as an indirect investment in crypto.
Invest in Crypto the Indirect Way
If you are looking for a portfolio that lets you invest in crypto without buying the coins directly, we can deliver.
Mercer Street can help you build a personalized financial plan tailored to your unique situation. Contact us today to learn more.