When it comes to Bitcoin or cryptocurrency, people hesitate before investing in the currency. It is because of the fluctuating market conditions. But developers have created automated bots like the Bitcoin Method to eliminate this problem. But some also don’t have the knowledge or time to give to this commodity. Still, people want to become a part of this virtual realm without investing.
If you research the ways, you will be astonished to see that these methods are as old as Bitcoin’s invention. People didn’t choose these ways because they are less talked about and poorly known. In this post, you will learn in detail about all the methods that will make you a part of the Bitcoin boom without trading or investing in the currency.
5 Ways to Trade Bitcoin Without Investment
Despite the rapidly growing market, cryptocurrency couldn’t draw as many customers as people thought it would. It couldn’t even fix the problem of its fluctuating market. As cryptocurrency has no centralized administration, the prices won’t change according to a particular pattern or criteria. Mostly it depends on supply and demand, but various other factors disrupt its valuation.
So, if you want to be a part of the crypto trade but don’t want to invest directly in the currency, you should read on to find ways to do this.
Bitcoin Exchange Traded Funds
An exchange-traded fund that holds cryptocurrency (much like the ETFs containing precious metals) is the perfect option for investors constantly searching for a simple way of buying cryptocurrency. To the dismay of the financial sector, the SEC has refused to approve this form of investment.
Traders can purchase ETFs with futures contracts connected to the digital currency’s market value, preferably for the time being. Futures are a tool investment professionals use to wager on various upcoming price changes, including those of products and cryptocurrencies. Instead of actual oil, futures contracts get preserved by ETFs that keep an eye on the monetary value of crude. ETFs might be a practical choice for novices in digital currencies as they can get traded and purchased using a standard financial brokerage platform. Those with financial shares on their trading platform can quickly commence their trade with a few dollars.
If putting money into cryptocurrencies doesn’t appeal, consider dealing in businesses profiting from the expanding Bitcoin sector. To acquire specific equities, you may invest money in a few openly traded Bitcoin mining businesses like Riot Technology or Marathon Enterprises or purchase stocks from an openly accessible marketplace. Additionally, an increasing number of cryptocurrency exchange-traded funds are focusing on those businesses responsible for creating new applications for the decentralized ledger platform that powers digital currencies.
There are potential risks with equities, as there always are: The accuracy of producing new coins is being improved by cryptocurrency mining organizations, and China ceased to be a competitor, but these information complexes still use an enormous amount of resources to run, and they will only turn competitive if the value of cryptocurrency increases from where it is now. ETFs also have disadvantages. They impose a fee for management, just like every mutual fund does. And several equities in their investing accounts may have minimal ties to the cryptocurrency industry.
Separately Managed Accounts
Consider an independently controlled profile, a collection of investments built for one shareholder, usually handled by a financial planner who works with the brokerage firms that provide these investments. If you are an increasingly experienced financier eager to tackle a few choices but still seek professional guidance, this is your best option.
SMAs are similar to mutual funds because a seasoned cash supervisor makes investment decisions and executes deals on your behalf. But contrary to a fund, you have some influence over your manager’s decisions. For example, you might tell them to steer clear of a cryptocurrency they dislike or limit the amount of money they would like to put into Bitcoin to 15%. In contrast to holding mutual fund securities, when you invest with SMAs, you directly possess the coins you purchase.
These purchases represent an additional attempt to incorporate cryptocurrency into an investment-like framework. These trusts exchange daily, enabling cryptocurrency betting minus the inconveniences of purchasing, preserving, and maintaining the actual currency or tokens. These are available for purchase in most investment institutions and are SEC-regulated, offering further protection. However, compared to an exchange-traded fund, you could bear a higher cost for this sort of investment. As an example, the investment cost percentage for Grayscale Bitcoin Fund is 2%, which is twice what several well-known futures ETFs cost.
Another problem is that these corporations’ values don’t necessarily correspond to the value of the cryptocurrency they possess. Although cryptocurrency futures investments also experience this issue, it frequently gets worse with over-the-counter agreements. Naturally, if you are a seasoned trader willing to accept some additional risk, you might be capable of profiting by benefitting from the cost discrepancies. Whenever more vendors exist than the trust’s consumers, a price cut is applied—a situation that might ultimately become the opposite.
Credit Card Benefits
Credit card incentives are the last way to add cryptocurrencies to your investment account without revealing your fiat account. You can gain cryptocurrency with some accounts whenever you swipe, click, drop, view, or carry out any other activities when you use your card for transactions. The Brex card, Gemini Credit Card, Unifi Money Visa Credit Card, Nexo Card, and Upgrade Bitcoin Rewards Visa MasterCard are notable individual cryptocurrency credit card offerings. A loyalty card option is also available through several exchanges.
Certain cards, notably the Venmo charge card and the individual SoFi bank card, include a variety of adjustable redeeming possibilities involving cryptocurrencies. You put money into cryptocurrency without purchasing it, as you receive it as a debit card incentive. You weren’t paying for the cryptocurrency, so you still benefit from a monetary gain regardless of how much its value decreases.
We listed some ways to help you become a part of digital currency trading without losing extra money or being influenced by turbulent market conditions. They are easy methods and require the simplest of knowledge to practice them. Whenever you try something new, always start small. Once you understand how the system works, then you can go for more significant investments. Other than that, you can learn more about it through online resources or by sitting down with an experienced trader.
Disclaimer: The article is published as received and facts/information mentioned in this article is not verified by our team at iFinancebox.com. Please DYOR before investing.