Accessing Blockchain Technology & Digital Asset Trading

  • Invest directly in crypto — One of the most common exposure strategies to cryptocurrencies include buying and holding crypto assets. In order to do so, users can use centralized exchanges or decentralized exchanges, but at some point will have to go through on-off ramps to move funds between fiat and crypto. On-off ramps allow users to funnel their fiat currencies to their crypto alternative. USD can be transacted for USDT or many other USD crypto counterparts. It is important for holders to watch out for applicable regulations, as fiat currency movements are regulated by government agencies, and failing to adhere to regulations can result in severe sanctions.
  • Invest in companies with cryptocurrency holdings — Alternatively, users can adopt some indirect exposure strategies. As some publicly traded companies have cryptocurrency holdings — such as MicroStrategy, SquareInc, etc., it is possible to buy these companies’ publicly traded stocks, thereby enjoying the benefits without necessarily having to hold the crypto. Updated list available here.
  • Invest in cryptocurrency infrastructure — Mark Twain said it best: “During the gold rush it’s a good time to be in the pick and shovel business”. Investing in the publicly-traded stock of the underlying technology needed to produce a crypto service is another way to invest in the industry and be exposed to the sector without having to worry about specific tokens. Coinbase for example — a platform where investors can buy and sell cryptocurrency — carried out its IPO on April 2021, and its stock (COIN) is publicly traded on the NASDAQ exchange.
  • Invest in a cryptocurrency ETF — Cryptocurrency ETFs are slowly being adopted, providing ETF shareholders with indirect crypto exposure. In their most basic form, cryptocurrency ETFs are the bridge between the traditional world and crypto. By holding cryptoassets and issuing traditional stocks in return, crypto ETFs allow for a more secure exposure. ProShares, for example, launched the Bitcoin ‘BITO’ ETF, which doesn’t invest directly in bitcoin. Instead, it’s based on futures contracts tied to the asset. BITO ETF allows users to directly invest from their brokerage accounts instead of having to open a wallet.

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