Investing in Cryptocurrency Assets for Long-Term Growth
Table of Contents
Cryptocurrency emerged over a decade ago as a digital frenzy. In its early days, it had a small market cap, making it of little interest to many. Today, the situation has drastically changed. Investing in cryptocurrency assets has become common for many. However, cryptocurrency is still not for everyone. The fact is, it has reached all-time highs in circulation and investment. It’s hard to believe that Bitcoin, once a niche market, has grown so quickly. In just one year, its value surged from $6,000 to $60,000.
It is an obvious fact that not many understand how to actually invest into cryptocurrency, and that is what is physically stopping them joining the bandwagon. For those that are sceptical on how to move forward with their interest, there is actually a way to gain exposure without physically buying it. Sure, cryptocurrency has taken over the global markets, from tech to gambling, there is not a day goes by where markets don’t try to integrate the crypto experience within reach of consumers. Take the gambling market for example, many today are using betting offers and promotions with digital crypto wallets, as a way for members to join and maintain their complete anonymity. Allowing gamblers to evade taxes, legislations of gambling and so much more. The decentralised system of crypto, has become the future, and knowing how to get involved sooner, rather than later is vital.
Invest in the companies with crypto holdings
If you are still educating yourself on the workings of cryptocurrency, understanding which currencies hold the largest cap in the market, will help you understand which are more invested in on a regional level. However, did you know that many companies that are publicly traded, also have cryptocurrency holdings? The easiest way of minimising risk, is by using the success of publicly traded companies as a buffer. Of course, what will really matter is how much these traded companies carry crypto on their balance sheets.
For example, as of June 30, 2021, Tesla had over $1.3 billion in digital assets. This was only 2.45 of the overall total assets of Tesla. Meaning, should the assets increase on the market and trading value, this is predominantly stock value rather than stocks. Therefore, investing within companies that have a predominant crypto portfolio in assets, makes greater sense to find value overall.
Cryptocurrency infrastructure investment
An alternative way to gain exposure to the cryptocurrency market is by investing in companies tied to the crypto industry. Many Asian institutions now operate primarily in cryptocurrency. With the right research, investors can buy and sell cryptocurrency publicly.
This process is similar to investing in gold. You can invest in both the commodity and its infrastructure. Investing in cryptocurrency assets is becoming more accessible. Riot Blockchain Inc. is a prime example, focusing on cryptocurrency mining and creating investment opportunities. Coinbase is a great platform to explore this further.
ETF cryptocurrency
The last thing worth mentioning, is the gearing up towards exchange-traded funds. While there are no approved ETFs at the moment, we know that the demand is there, meaning it certainly could be a very promising opening to many. While there have been many failed attempts in ETFs making actual solid ground, it is just a matter of time for regulation in this niche to make itself known and possible.
This option would allow those who are not massively comfortable with the idea of investing into cryptocurrency, to invest alternatively into digital assets that get exposed to bitcoin and other predominant cryptocurrencies.
Be cautious with investing
Of course, one must always be cautious when investing in cryptocurrency directly. The methods we listed will help mitigate risks and support long-term growth. Gaining physical confidence is key to exploring further. Direct investments in digital currency can be volatile, especially with coins that have minimal market cap compared to larger assets. The most important thing is to navigate with ease. Educate yourself on the industry’s momentum and rationally find your footing.