While Bitcoin has the potential to totally change the way we make and receive payments, investing in the currency is a bit more complicated than people realise.
You might be intrigued by this 21st-century digital currency, however, it takes time to be sure if you want to invest in it.
In the meanwhile, why not invest around Bitcoins rather than Bitcoins itself.
Here we will discuss some smart techniques of investment and building an indirect connection with Bitcoins through those investments.
What Is Bitcoin?
Bitcoin is a type of Crypto and a worldwide payment system. It is the first decentralised digital currency.
Bitcoins function without a central bank or single administrator. The network is peer-to-peer, and transactions take place between users directly through the use of cryptography.
BTC, like all Cryptocurrencies, does not have any intermediary. All you need to do is use an application like bitcoin era start trading without anyone’s involvement. It’s that easy!
How To Invest In Bitcoin Without Buying Any?
Cryptocurrencies are volatile and extremely risky investments. Therefore, it is better to invest in places you can afford to lose.
Option – 1: Invest In Companies With Crypto Interest.
Think of it as a form of stock market trading. Thanks to the sudden surge of Cryptocurrency, a bunch of publicly-traded organisations have a decent amount of BTC holdings. And, as they are betting on its success, you can do so too.
Just buy a stock or invest your money in another way and let the company act as a buffer for you. Remember, you can only purchase that portion of the corporation, which comes with the required digital asset. But, if the price of the same increases, your stock value will boost too.
Option – 2: Opt For A Crypto Infrastructure.
Apart from the aforesaid, you can also gain exposure to Cryptocurrency by investing in a Crypto infrastructure. For example, Coinbase is a Crypto-based platform where you can buy or sell Cryptocurrency without anyone’s involvement at all.
There’s another organisation, known as Riot Blockchain, which operates solely on the Crypto segment. In addition to it, the company also helps in building a proper Cryptocurrency-based infrastructure as a whole.
Therefore, if you don’t want to put your money into Crypto directly, you can buy a stake or two of the corporation.
Option – 3: SMAs Or Separately Managed Accounts
In case you’re more of a sophisticated investor, you can opt for an SMA as well.
This one is almost like a mutual fund where a professional manager makes all of your investment-related decisions. But, unlike the former, here, you can request them to avoid a coin or put a cap to your invested amount.
Of course, professional assistance comes with a cost. For example, if you’re thinking about working with an SMA firm, you have to offer a certain amount of money to get started.
In addition, the fees for their attention can also be pretty high, depending on the company you are working with. For example, they might ask for 2% of your total earnings.
Should You Really Invest In Bitcoin?
Why not?
Yes, we know, the price of Bitcoin is currently pretty low. And, it’s quite likely that the value will stay the same way for a while. However, that’s where the catch lies, you know.
Usually, whenever Bitcoin suffers such a massive price fall, it tends to rise up again within a year or two. And, when it does, it reaches the sky.
Check out the price of BTC in 2019 and then compare it to Octorber, 2021 – and you’ll know what we’re trying to say. In addition to this, you should also invest BTC, because –
- High risk but, the return will be pretty high as well.
- It has a high liquidity and accessibility too.
- There’s no need to go through government regulations.
- The transactions are irreversible. Thus, there’ll be no risk of losing your record.
In addition to these, the transaction speed and efficiency of the same tends to be pretty high, compared to the conventional procedure. Besides, it’s also protected from inflation to some extent. Therefore, even if something falls, its price won’t go down that easily.
Due to this reason, many people tend to opt for this currency over anything else. Thus, if you, too, want the same, don’t forget to get started today!