We covered cryptocurrency basics in our “Crypto 101 Guide” article, where we outlined what cryptocurrency is, how it works, and how it incorporates blockchain technology.
👀 In this article, we’ll take a closer look at the best ways to invest in cryptocurrency and the different methods for making cryptocurrency investments. Read on to find out more about how you can invest in one of the newest and most inventive asset classes available.
💫 BUY CRYPTOCURRENCY DIRECTLY
Buying cryptocurrency directly is probably the most common way to add crypto exposure to your portfolio. You can choose to directly purchase and store one or several cryptocurrencies and keep them safe in a crypto wallet.
₿ Your options range from the popular cryptocurrencies like Bitcoin and Ethereum, or the vast array of altcoins in the crypto market. Newly released and unknown coins are launched onto the market regularly via Initial Coin Offerings, or ICOs. You could also opt to buy other digital assets such as tokens and NFTs, which may offer more than just a gain in capital value.
👔 INVEST IN CRYPTO-RELATED COMPANIES & SHARES
Another option is to invest in companies that have a partial or total focus on cryptocurrency. These options include cryptocurrency mining companies, mining hardware manufacturers and companies who work in and around blockchain.
Crypto-related shares provide indirect exposure to cryptocurrency due to a particular company's relationship to digital assets. Some high profile examples that support crypto include Coinbase, PayPal, Overstock and MicroStrategy, which hold large amounts of cryptocurrency on their balance sheets.
📊 INVEST IN CRYPTO-FOCUSSED FUNDS & ETFs
Cryptocurrency-focussed funds and exchange-traded funds, or ETFs, offer another alternative way of investing in cryptocurrencies without requiring to choose among individual companies.
Some crypto-focused funds invest in cryptocurrency directly, while others invest in crypto-focused companies or derivative securities such as futures contracts.
Crypto ETFs, such as index funds and futures funds, provide exposure to companies that are focused on servicing the cryptocurrency market.
💲 INVEST IN A CRYPTOCURRENCY ROTH IRA
Cryptocurrency individual retirement accounts, known as Roth IRAs, allow you to invest in cryptocurrency while also garnering tax advantages. Using the services of a crypto IRA provider can also facilitate more secure storage for cryptocurrency holdings.
⛓️ CRYPTOCURRENCY COIN TRUSTS
Crypto investment trusts allow investors to trade shares in trusts holding large pools of a cryptocurrency. These can involve high volatility, hefty fees and other risks. They trade over-the-counter (OTC) and behave like closed-end funds.
📈 BITCOIN FUTURES
Bitcoin futures contracts are agreements to buy or sell a specific quantity of Bitcoin at a specified price on a particular future date. This is a highly speculative method and can be risky given the high volatility that is often prevalent in crypto markets.
⛏️ BECOME A CRYPTO MINER / VALIDATOR
While this trend is slowly starting to go out of fashion given the high amount of investment in complex mining rigs and energy expenditure, crypto mining still offers a direct way to invest in crypto. Crypto mining makes miners the validators in a network. While Ethereum recently moved away from mining by adopting Proof of Stake, there are still many cryptocurrencies, such as Bitcoin, which offer ample mining opportunities.
📲 THE BLOOM APP — AN EASY WAY TO EARN CRYPTO
👉 The Bloom shopper rewards app 📱 is an easy way to earn crypto passively. It allows you to earn crypto such as Bitcoin, Ethereum, NFTs and other altcoins with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card.
💳 You will earn Bloom Coins by simply using your Visa card. The more you use your card, the more Bloom Coins you will earn.
💰 The Bloom Coins you earn can be spent within the app 🎁 and converted into crypto.
🆓 Converting cryptocurrencies on Bloom is free of charge and has no gas fees!
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.