Every investor, especially within the crypto space, has their own path to walk. In 2017, I jumped into the deep end of the pool, barely familiar with what a bitcoin was or how the blockchain functioned. Fortunately for me, I found an honest guide that was able and patient enough to walk me through the process of becoming familiar with cryptocurrencies as well as to coach me through how to go about purchasing some. Today there are a litany of options available for those wanting to get involved in crypto; however, as with most investments, it does come with its share of risks. For those new to the arena, the multitude of alternatives along with the unfamiliarity with the technologies involved may seem a bit overwhelming. With that in mind, I’ve decided to assist those curious in investing in crypto with a few options to help progressively advance your walk.
For starters, I chose to remain within the stock market as this is by far the easiest and most familiar means of investing in the crypto space. The selections mentioned here can be easily added to your stock portfolio through your brokerage or your brokerage’s financial app. All I ask is that you do your due diligence and not only research but learn about these stocks should you decide to put your hard-earned dollars into them. The categories of stocks we will be exploring are cryptocurrency trusts, funds, mining stocks, and, finally, exchanges.
These trusts act as funds in that they hold the cryptocurrencies on the investor’s behalf, allowing individuals to speculate on the assets performance by purchasing shares of the stock. These allow investors the opportunity to invest in the crypto assets without alot of the volatility that normally accompanies an investment in the asset itself. The following are publicly traded stocks and the accompanying asset held in those trusts:
- Grayscale Bitcoin Trust (GBTC)
- Osprey Bitcoin Trust (OBTC)
- Grayscale Bitcoin Cash Trust (BCHG)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Ethereum Classic Trust (ETCG)
- Grayscale Litecoin Trust (LTCN)
These funds track an index of the most highly valued cryptocurrencies (Bitwise the top 10, Grayscale the top five), according to their market capitalization. Amplify Transformational Sharing has investments in multiple companies involved in the blockchain from trading platforms to mining companies and blockchain developers.
- Bitwise Crypto Index Fund (BITW)
- Grayscale Digital Large Cap Fund (GDLC)
- Amplify Transformational Sharing (BLOK)
Another investment avenue is through mining companies. To put it simply, these miners receive cryptocurrencies for solving complex equations through the use of computers. Data as well as transactions in this network are validated through other computers, or nodes, and recorded on a public ledger known as the blockchain. Two of these companies, Riot and Marathon, are based out of the U.S. While Canaan, Hive, and DMG are based out of China and Canada respectively.
- Riot Blockchain, Inc. (RIOT)
- Marathon Digital Holdings, Inc. (MARA)
- Canaan Inc. (CAN)
- Hive Blockchain Technologies, Ltd. (HVBTF)
- DMG Blockchain Solutions, Inc. (DMGGF)
Crypto Asset Exchange
Coinbase (COIN) is the mainstream cryptocurrency exchange in the United States. Its recent debut on the NASDAQ caused quite a stir in the financial world as it is the first crypto exchange to become publicly listed. It is currently valued at $55 billion.
*Disclaimer: I am not a financial advisor and this article is for informative purposes only. Should you choose to invest in any of these stocks, please do so at your own risk.
Stay tuned for Part 2 where we explore online cryptocurrency exchanges.