• Sun. Aug 14th, 2022

4 ways to invest in Bitcoin WITHOUT buying Bitcoin!

ByHazel R. Lang

Jul 10, 2022

Bitcoin has seen a sharp drop in price in recent months. Although this scares off inexperienced investors, experienced investors realize that the current low prices make Bitcoin a very good place to invest right now. What are the means and methods to invest in Bitcoin?

In this article, we are going to introduce you to 4 different ways to invest in Bitcoin. We will also review the advantages and benefits of the different methods.

What is bitcoin?

Bitcoin is the first and most important cryptocurrency. It had been around since 2008 and was based on a white paper by Satoshi Nakamoto. Bitcoin is based on blockchain technology. The blockchain offers a decentralized reservation system in which transactions are carried out peer-to-peer without an intermediary third party.

How is bitcoin

With Bitcoin, a decentralized currency has been created over which no higher authority such as banks or states has control. Over the years, Bitcoin has evolved from a pure currency to a popular object of investment in which many small investors want to invest. The price of Bitcoin has gone from less than $1 to a five-digit value in recent years.

How Bitcoin Price Perform Recently?

The Bitcoin price has risen massively over a long period of time in recent years. Bitcoin has risen in value over the years. In November 2021, the price of Bitcoin was at an all-time high of over $68,000. Since this value, the price of Bitcoin has been steadily falling.

BTC course 1 year
Bitcoin price over the last 12 months, source: Coinmarketcap

From early November to the start of the year, the price of Bitcoin fell by around 30%. This decline continued in January and partially in February. In March and April, the Bitcoin price was able to stabilize slightly again. Then, in May and June, there were more serious accidents. Bitcoin fell below $20,000 in June. Since then, the price of Bitcoin has stabilized again.

Why should I invest in Bitcoin today?

Right now, the price of Bitcoin is extremely low if you compare the prices with the prices of a few months ago. The crypto market is in a bear market. This means that prices are generally falling. However, this also means that another bull market is imminent in the future.

In the long term, it is worth investing in Bitcoin now. If another bull market occurs, you as a bear market investor have bought at comparatively extremely cheap prices. However, one should think long-term and not hope for short-term gains as the bear market may last longer.

How can I invest in Bitcoin?

Bitcoin can be acquired in different ways. On the one hand, you can invest in the cryptocurrency itself. Then there are various financial products that represent the value of Bitcoin. There are also stocks that rise in value with the value of Bitcoin that you can invest in.

In the following, we present 4 ways to invest in Bitcoin:

1. Acquire Bitcoin as a cryptocurrency

You can buy Bitcoin as cryptocurrency on various platforms. You can either use crypto exchanges or crypto brokers. Cryptocurrency itself has enormous growth potential. However, Bitcoin is also a risky investment, which can vary greatly depending on who.

When you invest in Bitcoin, you acquire digital money in the form of data. The ownership structure is registered on the blockchain. Blockchain access data is stored in so-called wallets. In this article, you will learn more about the forms of wallets available for cryptocurrencies.

Crypto exchanges specialize in cryptocurrencies. You can use a wide range of different exchanges. Well-known investment exchanges are Bitfinex, Binance, Coinbase and Kraken.


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2. Invest in Bitcoin Derivatives

Derivatives offer investors the opportunity to invest in Bitcoin with relatively little capital. You don’t need a wallet. An investment in Bitcoin derivatives is flexible and speculative. For example, you can also bet on a fall in the price of Bitcoin.

Bitcoin CFDs are particularly popular. These are contracts for difference, a security that replicates the value of Bitcoin. You can bet on rising and falling prices, as well as with or without leverage on Bitcoin. Bitcoin CFDs are offered online through various brokers.


3.Bitcoin ETFs

ETFs (Exchange Traded Funds) are a representation of the Bitcoin price in the form of a fund. ETFs allow investors to invest in Bitcoin without buying Bitcoin itself. These are a good alternative to derivatives because the latter are extremely speculative.

Bitcoin ETFs

4. “Bitcoin Shares”

“Bitcoin stocks” are stocks of companies that benefit from the growth and appreciation of Bitcoin. This includes shares in crypto exchanges such as Coinbase, shares in companies whose strategy focuses on acquiring cryptocurrencies (Microstrategy) or manufacturers of the hardware needed to create Bitcoins (NVIDIA).

You can buy many of these stocks through online brokers. With these stocks, it is important to note that depending on the company, there are many other factors that affect the growth of the stock’s value. In this article, you will get more information about Bitcoin stocks.

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