How to Indirectly Invest on Crypto Market Without Buying Cryptocurrency

crypto stocks investing

*This blog post is my personal opinion only and may contain affiliate/referral links.

It’s boom times for cryptocurrency this 2021 with Bitcoin, Ethereum and many altcoins reaching all time highs. The popularity of crypto has influenced many investors, new and old timers, to invest their monies and revive the market for cryptocurrency.

It’s important to note that we are on the revival phase because a year ago the price of Bitcoin is at $8000, then the interest was peaked again and as a result the price is at the $54,000 range as of this writing. The all time high price of Bitcoin reaches at $63,000 at one point.

While many investors and also traders has capitalized on this ascent, some are still weary with investing on the crypto world. For many, crypto is still a big unknown and we can’t blame them. Some still can’t get their head around how blockchain and decentralization works, and let’s admit it one has to be computer-literate to engage on cypto transaction.

Another well known hindrance stopping someone to invest on crypto is the risk and volatility. Cryptocurrency has the propensity to swing wild either ways. To show a glaring example lately, Bitcoin price was at $53K on April 13 then it declined to $40K on April 25.

Traditional stocks are not immune to volatility and massive price drop, but it is less risky when compared to the fluctuations of crypto investing. Some investors also prefer the stock market because of its transparency and would rather invest on stocks associated with cryptocurrency than with Bitcoin and Altcoin themselves.

Look at it as a backdoor for crypto investing, $RIOT and $MARA are two cryptocurrency mining companies that are both listed at the NASDAQ. The entry is considerably lower than Bitcoin and Ethereum and although there is data that shows a correlation between the rise and fall of cryptocurrency with the price of both stocks, it is always good to do your own research.

Cryptos are designed to be accepted as online payments. Digital payments become more practical for consumers who do online shopping because of the pandemic. Paypal and Square recently adopted crypto as an alternative way of accepting payments to cater to customers and merchants who wants to transact in cryptocurrency.

Visa and Mastercard have also been on board with cryptocurrency as they give credit card users a choice to transact with businesses. On the merchant side, companies like Tesla and Overstock began accepting Bitcoin and other recognized cryptos as payment for their products and services.

As cryptocurrency become more mainstream, we can see these crypto-stock companies following suite. It’s a way to adopt to the need of the market and also to present an option for the consumer. For a stock investor, it gives them an exposure to crypto too without so much the worry on volatility.

Thank you for reading.

Jay

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