By Richard Davis
Interested in the world of cryptocurrency but not keen on buying digital coins? There’s another way in – investing in companies involved in the cryptocurrency or blockchain space. This means you can be part of this exciting new world without needing to own cryptocurrencies like Bitcoin.
Imagine owning shares in companies that are deeply rooted in cryptocurrency and blockchain technology. This isn’t about buying digital coins; it’s about investing in the companies that are leading the charge in these innovative technologies. If you’re already comfortable with how stock trading works, this could be a straightforward step for you.
There are plenty of options available. The variety of cryptocurrency-related stocks is as wide as the range of companies behind them. Every investor, regardless of their preferences or risk tolerance, can likely find a suitable option. But remember, choosing wisely is key. It’s crucial to thoroughly research each potential investment to ensure it aligns with your financial goals and risk tolerance.
So, if you’re ready to dive into the digital currency space without dealing with the coins themselves, keep reading. We’re about to explore the diverse ways to invest in cryptocurrency stocks and highlight some companies leading the way in blockchain technology.
Investing in Cryptocurrency Companies
Entering the cryptocurrency world doesn’t necessarily mean buying Bitcoin or altcoins directly. Investors can explore a variety of paths, including investing in stocks of companies that are deeply integrated with cryptocurrencies or blockchain technology. These organizations provide a gateway to the crypto universe while mitigating the direct exposure to digital currency volatility.
Coinbase Global
Coinbase Global spearheaded its presence in the crypto space as a premier trading platform, further magnifying its influence by diversifying into asset loans and blockchain analytics. These innovations underscore the company’s adaptability and vision in a rapidly evolving market.
CME Group
CME Group, with a market cap of $72 billion and a forward P/E ratio of 21.8, boasts a 5-year average annualized return of 6.32%. As a titan in futures markets, it integrates Bitcoin and Ether futures and options, aligning traditional financial instruments with the emergent crypto wave.
Canaan and Hut 8 Mining
In the cryptomining domain, Canaan and Hut 8 Mining stand prominent. Canaan’s innovative mining machines and Hut 8’s eco-friendly and yield-generating mining strategies mark them as pivotal players engineering the crypto mining evolution.
Meta Platforms
Meta Platforms and Shopify weave cryptocurrency into the mainstream business tapestry, with Meta’s anticipated re-entry into the crypto space after its iconic metaverse break in 2021 and Shopify’s merchant-centric crypto payment integrations amplifying the digital currency’s commercial viability.
Robinhood
Robinhood Markets pivots the trading experience to a commission-free model, accommodating an extensive range of cryptocurrencies. It’s a gateway for novice and seasoned traders alike, blending simplicity with diversity in the dynamic crypto trading arena.
PayPal
PayPal Holdings, valued at $65 billion and a forward P/E of 10.8, made its assertive stride into the cryptocurrency ecosystem via Venmo. The app not only democratizes crypto trading but infuses agility and flexibility into digital transactions.
Block Inc.
Block Inc. emerges with a $26 billion market cap and a forward P/E of 17.3. Its innovative integration of Bitcoin into the Cash App illustrates a resilient strategy to embed cryptocurrencies in everyday financial exchanges, underscoring a commitment to evolving with the dynamic crypto landscape.
Investing in Reputable Crypto Funds
Consider diversifying your investment by buying shares in credible cryptocurrency funds, such as ETFs and mutual funds, which are sponsored by trusted institutions. Options include ETFs like the Fidelity Advantage Bitcoin ETF (FBTC) that holds cryptocurrency directly, or the Schwab Crypto Thematic ETF (STCE) which comprises a portfolio of crypto stocks.
Alternatively, mutual funds like Fidelity’s Bitcoin Strategy ProFund Investor Class fund (BTCFX) offer professional management and varied crypto investment strategies. Choose based on your risk tolerance and investment preference.
Final thoughts
Diversifying into the world of cryptocurrencies doesn’t require direct purchase of the digital assets. Options abound in investing in stocks of companies that are integral in the crypto space or choosing established crypto funds.