HOW TO BECOME A CRYPTO INVESTOR WITHOUT PURCHASING CRYPTOCURRENCIES

MicroStrategy (source:bitcoinist.com)

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency and metaverse ecosystems. Investing in cryptocurrencies can be complex and challenging.

Cryptocurrencies must be purchased through crypto exchanges and they must be held or stored in either cold or hot storage. As such, retail investors interested in seeking crypto investment exposure often will choose alternative investment vehicles that do not require the purchase or custody of cryptocurrencies. There are several such alternative investment vehicles.

Companies That Own Cryptocurrencies

One way to invest in crypto without having to purchase or hold digital currencies is to purchase shares of companies that own a fair amount of digital currencies on their balance sheets. The general thought is that as the value of the crypto held by the company increases in value, the company stock price will also increase in value.

Companies that currently own a fair number of cryptocurrencies on their balance sheets include: 

- MicroStrategy (NASDAQ: MSTR) $7B USD 

- Tesla Inca (NSADAQ: TSLA) $1.5B USD 

- Square (NYSE: SQ) $259M USD 

- Marathon Digital Holdings (NASDAQ: MARA) $175.3M USD 

Companies Active in Cryptocurrencies or Blockchain Technologies

Investing in companies that concentrate on blockchain technologies or that engage in cryptocurrency operations (such as digital currency mining) is another option. 

 Exemplary companies include: 

- Bitfarms (NASDAQ: BITF) (blockchain-related company); 

- Coinbase (NASDAQ: COIN) (public cryptocurrency exchange); 

- Galaxy Digital Holdings Ltd (OTCPK: BRPHF) (financial services and investment management, trading, custody, and mining); and 

- Riot Blockbuster Inc. (NASDAQ: RIOT) (Bitcoin mining company). 

Conclusion

Investors seeking crypto investment exposure without its related purchasing and custody challenges have a number of options. These options reduce some of the challenges of holding or maintaining custody of these digital assets. However, before deciding to invest, purchase, and/or trade cryptocurrency, investors should carefully consider their investment objectives, level of experience, adversity to risk, and volatilities. Therefore, with any type of crypto investment, it is always best to investigate before investing. As they say in crypto, DYOR.

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity with which Thomas Wettermann has been, is currently, or will be affiliated.

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment; therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

Thomas Wettermann is not an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as a general market commentary of Thomas Wettermann and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.