Are you curious about cryptocurrency investing, but don’t want to own Bitcoin or any other token? What about investing in a cryptocurrency or blockchain company?
Cryptocurrency stocks are shares in publicly traded funds or companies that have significant exposure to cryptocurrency or another application of blockchain technology. If you’re familiar with the stock market and how it works, there are several ways to participate in the so-called crypto revolution without opening a cryptocurrency account.
Cryptocurrency stocks vary as much as the companies underlying them, meaning that investors have plenty of investment choices. Let’s take a look at the four main ways to invest in cryptocurrency stocks and identify some of the publicly traded companies and funds that are leading the blockchain revolution.
But remember: Crypto markets have been quite volatile—pretty much from day one. The more a company’s fortunes are tied to crypto, the more volatile it will likely be.
One major way to gain crypto and blockchain exposure as an investor—without owning any cryptocurrency—is to invest in publicly traded companies that are directly engaged with the cryptocurrency sector. Companies that fit this description include cryptocurrency exchanges, cryptocurrency mining companies, and mining hardware manufacturers:
Some publicly traded companies in a variety of sectors—related and sometimes unrelated to cryptocurrency—own substantial portfolios of cryptocurrency on their corporate balance sheets. You could get indirect exposure to crypto by buying shares in these companies. Share prices of companies with large cryptocurrency holdings are more likely to correlate with cryptocurrency prices than those of companies that don’t hold any crypto.
Here are some publicly traded companies that own substantial cryptocurrency assets:
Another way to gain investment exposure to cryptocurrency is by owning companies that are using blockchain technology to innovate. Blockchain tech is relevant to a diverse range of use cases, with cryptocurrency being only one application of the decentralized technology.
You may be surprised to learn about the many ways that companies are leveraging blockchain tech across industries:
Many crypto funds exist in the marketplace—exchange-traded funds (ETFs) as well as mutual funds. Investors can mitigate the risk of encountering a fraudulent investment opportunity by investing only in cryptocurrency funds that are sponsored by credible institutions with proven track records.
If you don’t want to buy any crypto, then don’t. Avoid the stress! Cryptocurrency and blockchain investors have plenty of alternatives to gain portfolio exposure to cryptocurrency—without directly purchasing any digital assets.
Before making a cryptocurrency stock investment—or any investment, for that matter—be sure to do your homework. Consider carefully which, if any, crypto stocks or funds fit your objectives and risk tolerance. If history is a guide, you’ll need to withstand quite a bit of risk.
Specific companies and funds are mentioned in this article for educational purposes only and not as an endorsement.
4 ways to invest in cryptocurrency stocks – Britannica
