Apr 11, · The bitcoin market is the ultimate in high risk, high reward. However, you can treat the bitcoins you have as an asset that can be bought and sold, and its value as the bitcoin stock price Author: Steve Fiorillo. GBTC stock is one of the few ways stock market investors can play Bitcoin. As Bitcoin soars to new heights. is Grayscale Bitcoin Trust a buy right now? 2 days ago · If you're a believer in the long-term use cases for bitcoin, another way to play it would be to buy a stock that could make billions if bitcoin does well, but that will be just fine if it doesn't.
Bitcoin stock market playsBest Cryptocurrency Stocks for | The Motley Fool
Finally, there's the Cash App, which offers so much more than bitcoin. The app provides person-to-person payments, the ability to buy and sell stocks, and debit cards. Cash App's user base has quadrupled over the past three years. More than 30 million people actively use the platform, which is still in the relatively early stages of monetization.
In a nutshell, Square's growth story has been impressive so far, but it could still have more room to grow. That's true with or without bitcoin. In the corporate world, there are few people who believe in the long-term potential of bitcoin more than Square CEO Jack Dorsey. There's no denying that Square's non-crypto business growth is extremely impressive, to say the least.
If you believe in the long-term potential of bitcoin as an asset, but don't necessarily want your investment results to be only dependent on bitcoin, Square could be a smart way to go. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. Charles St, Baltimore, MD Investing in cryptocurrency seems profitable and replete with fast profits.
Yet, in mid-March the crypto markets were scared due to the novel coronavirus pandemic and the closing of U. Identifying the market bottom is difficult, if not impossible. Not only is it difficult to pick an investing valley but doing so requires solid confidence during times of uncertainty. Unlike investing in stocks and bonds, which are regulated by the U. There are thousands of distinct cryptocurrencies, while bitcoin and ethereum are the most recognizable.
It is a digital currency that is tracked on a ledger. It is decentralized and encrypted. Blockchain and cryptocurrency are not a part of any centralized banking system. Cryptocurrency investing is speculative. Prices are extremely volatile, and the risks are distinct from investing in conventional assets. For example, the currency is typically stored in a digital wallet — and that means it may be stolen by savvy hackers.
At present, Robinhood is the only broad investment app that offer users the opportunity to invest in cryptocurrency. Most states, although not all, allow commission-free investing in crypto with the Robinhood app. This lets users buy and sell:. Robinhood is appropriate for investing in specific crypto assets, but not for using the digital currency to buy goods and services.
But, unlike Robinhood, these apps trade crypto only, not other types of investments. If you're looking to "invest" in bitcoin, however, you'll also need to know what that can mean. None of the examples mentioned below are recommendations of investments, just examples of bitcoin-related investments. Each of these comes with unique sets of risks and should be seen as risks; make sure to do your due diligence with research before making a risky investment.
In case you forgot what bitcoin is , it's not a physical form of currency, nor is it a company or corporation that can go public. So there isn't exactly a stock for it, per se. However, you can treat the bitcoins you have as an asset that can be bought and sold, and its value as the bitcoin stock price. The fluctuation in price can be tracked in the same way you can track any other stock in your portfolio.
There are other ways you can incorporate "bitcoin stock" into your portfolio as well. It is a trust that owns bitcoins it is holding, and by buying shares of it, you can essentially bet on bitcoin value without actually owning any of your own their bitcoins are secured using Xapo, Inc. This can be an interesting way to gauge the bitcoin market without all the work of getting bitcoins, but it comes at a price.
Literally, you'll be paying very high premiums. The stock recently split to make things more affordable, but the premium remains steep. As of this writing, one share from GBTC is worth 0. You'll also need to factor in management fees as well. As a result, some think it's more worth it to just own the bitcoins yourself. Another possible attempt at investing in bitcoin's value without buying bitcoins is with bitcoin futures.
Bitcoin futures allow you to essentially bet on the cryptocurrency's value in the future; if you think the price of bitcoin will go up in the future, you could buy a futures contract. Should your instinct be right, and the price goes up when the contract expires, you're owed an equal amount to the gains.
Bitcoin futures have fairly extreme pros and cons to them. Contracts are leveraged in that you're paying a fraction of bitcoin's actual price when you buy futures, giving you a chance to profit off them.
However, the contract has an expiration date in the near future. If the price is down when it expires, you can't simply hold and wait to see if it bounces back; you just lose. There are other, somewhat more tangential ways of approaching bitcoin investments. Look at industries impacted by bitcoin, how the industry works and how bitcoins are discovered. Adding stocks from relevant, related companies is one possible way to invest in the future of bitcoin, from a distance.
Since there is a prevailing thought that the most valuable aspect of bitcoin is the blockchain technology behind it, investing in blockchain is another way of tangentially investing in bitcoin without the worrisome volatility. There are many large companies that have been developing their own blockchain networks for a variety of purposes that may be worth looking into. That doesn't mean it's risk-free, though.
Blockchain technology is an intriguing development that could disrupt a number of huge industries, but at the moment, it's also a fashionable word to throw around. Long Island Iced Tea, a beverage company, renamed itself Long Blockchain in late , seemingly knowing that the word itself could cause a jump in stock.