parts in this article
Forex in this article
• Cryptocurrencies are finding their way into the mainstream
• Barriers to entry continue to fall
• Three easy ways to take advantage of the crypto boom
So for those who have not yet jumped on the crypto bandwagon, barriers to entry continue to fall and there are several opportunities to invest in cryptocurrencies. The following are without a doubt the three easiest ways to exploit the crypto boom.
The barriers to the direct purchase of cryptocurrencies have more or less disappeared to this day: For example, the payment service provider PayPal offers its customers the opportunity to buy, sell or hold Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The online payment provider Block (formerly Square) is also increasingly focusing – as the name change already indicated – on blockchain technology and with the Cash App expanded its offering to also include peer-to-peer payments and trading in stocks and shares cryptocurrencies. In addition, for example, the trading app Robinhood, which came under criticism after market turbulence around meme stocks such as GameStop and AMC, also offers trading in cryptocurrencies.
According to Yahoo Finance, a major benefit of direct investing is that the cryptocurrencies are in your own custody and that investors do not have to pay any administration fees – however, investors should be very careful when investing in the crypto market this way. There are ways to protect your own digital assets, such as a hardware wallet, cybersecurity tools, or a password manager.
Crypto mining stocks
Institutional investors used to regard cryptocurrency companies as largely uninvestable, Yahoo Finance reports. The only way for cryptocurrencies to fund more growth assets was to sell the bitcoins they extracted, but IPOs have begun to give them access to equity financing. As a result, cryptocurrency companies now have the opportunity to hold more of their digital assets in reserve and, as a result, benefit significantly from rising cryptocurrencies. For example, Marathon Digital Holdings recently increased its reserves to $ 8,027 million to $ 244 million, currently bringing its bitcoin reserve to just over a quarter of the company’s current market value of $ 906.81 million. coming (as of June 9, 2022).
As an advantage of investing in mining stocks, Yahoo Finance emphasizes that the securities are easy to buy and sell, while exploiting the upside potential of their underlying cryptocurrencies. The downside is that the cryptocurrency industry is very competitive and there is a risk that margins may come under pressure in the future.
Crypto service providers
Another way to take advantage of the crypto boom is to invest in crypto service providers, such as the Coinbase crypto exchange. The cryptocurrency exchange is probably the most popular place for newcomers to go, according to Yahoo Finance. According to its own statements, the popular crypto exchange enables the purchase, sale, storage or transfer of cryptocurrencies in over 100 countries and now has more than 98 million verified users. Quarterly trading volume is $ 309 billion.
The advantage of investing in a service provider like Coinbase, Yahoo Finance reports, is that they generate revenue from a wide range of cryptocurrencies that provide access to the entire sector. On the other hand, such service providers are often confronted with competition, regulatory uncertainties and the threat of cyber attacks.
Which strategy for a crypto investment is ultimately best suited for whom depends on various factors such as risk tolerance and investment objectives and must therefore be decided individually.
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claim for recourse.
Gearing must be between 2 and 20
Image sources: Parilov / Shutterstock.com, Photo Spirit / Shutterstock.com