Thinking of buying shares in crypto companies? Well, you’re not the only one. According to reports, cryptocurrency stocks seem to be quite appealing at the moment. This may be due to the advent of online trading and the new wave of interest in investment options such as forex, stocks, and crypto. With the world adopting more digital operations and technology making life that much easier and convenient, it is no wonder that many are exploring ways of making money with minimal labor and through digital means. Arguably one of the main reasons for the growing interest in crypto stocks currently is how well Bitcoin has been performing. Bitcoin, which was reportedly created in January 2009, reached its three-month high in late August 2021. Bitcoin crossed the $50,000 mark on Monday, 23 August 2021, and continued to remain steadfast in a somewhat challenging environment and unstable global conditions.
Some of the advantages of trading crypto include swifter and cheaper transactions, secure and confidential dealings, financial freedom for those without a bank account, the ability to conduct international trade, and endless potential earnings and investment opportunities. The appeal of crypto has prompted several fintech companies to provide access to crypto facilities and related services, as a way to meet the growing demand from customers. Companies such as PayPal and Mastercard are amongst those that have made the move recently. Currently, the top crypto stocks to invest in are said to be Marathon Digital Holdings Inc., Robinhood Markets Inc., MicroStrategy Inc., Square Inc., and Coinbase Global Inc.
Tips for Investors 2021
For those who are considering tapping into the crypto stocks market, there are fundamental tips and tricks that you should know that may just put you a step ahead of the others in the industry. Below are just some of the ones worth noting:
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Identify Credible News Sources
In a world full of fake news and multiple sources of information, it is important to be able to filter out the noise and select credible and reputable sources to rely on. This is particularly important because there are naysayers and people who have dismissed crypto as just another fad. However, with the right news sources and market information, you could find yourself amongst those who are truly benefiting from investing in crypto.
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Anticipate Volatility
Much like forex trading and stock trading, there is volatility to be expected when investing in crypto. This is partially due to the instability of financial markets and global conditions. Even some of the most experienced and well-versed investors are said to still fall victim to some unprecedented trends in the market, so it should be anticipated by all.
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Diversify
Any investor would tell you that it is important to diversify your portfolio in order to reduce risk. While Bitcoin is doing wonders in the market of late, there’s also the opportunity of investing in other digital currencies, such as Ethereum, or even have another investment stream to be prepared for conditions that may lead to losses in one and profits in another.
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Be Vigilant
Although crypto reportedly has a higher safety rating than traditional money, there’s nothing to lose in being vigilant and cautious in your dealings. Given the sensitivity of investing and putting your financial resources on the line, it is advised to consistently look for ways to protect and guard your assets.
Investing in Companies with Crypto Interests
Suze Orman, a personal finance guru, began by doing things this way. The CEO of MicroStrategy, a cloud computing business that owns billions in Bitcoin, recently told NextAdvisor that the company’s operating capital was being invested entirely in Bitcoin. She reasoned that as the value of Bitcoin rose, so would the stock price of Microstrategy.
Blockchain ETFs
ETFs (exchange-traded funds) are a cross between mutual funds and equities. They are exchanged on the stock exchange. An ETF is a collection of securities, such as stocks or bonds. When you invest in an ETF, you get a piece of the fund’s overall portfolio.
When it comes to cryptocurrencies, many people who believe in the “transformative” nature of the blockchain technology underpinning it chooses to invest in blockchain ETFs.
Bottom Line
However, there are methods to get your portfolio exposed to cryptocurrencies without buying any actual coins. Just be cautious and do your research as you would with any other speculative investment.
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