Does the thought of buying crypto give you anxiety? A lot of people panic when they first hear about cryptocurrency. It’s normal to feel intimidated, especially if you’re a newbie to the crypto world, or if you have had a bad experience with a crypto platform. The good news is that you don’t have to rush to buy crypto to reap the benefits of crypto trading.
Giving up on (or not even trying out) crypto means you will miss out on financial opportunities that you most likely would not receive through real-world assets. If the thought of diving in and buying crypto scares you, there are alternative ways in which you can dip your toes into the profit pool. We explore these ways to invest in crypto without having to buy crypto. If you follow the tips below, you’ll soon gain enough knowledge and profit to easily buy and trade crypto without fear.
How to invest in crypto without buying coins
Buying coins is the best way to profit in the crypto world but if you don’t want to do this just yet, these tips will help you until you are ready.
Buy stock related to crypto
Forget stocks from banks. You can now buy stock that is related to crypto or blockchain technology. Look for a crypto market or a company that has stock relating to blockchain technology or crypto mining.
Blockchain technology is the future of the digital world. It has an increasingly high market as companies investigate more open and accessible ways to do business. You can either invest in individual stocks, diversified index funds or ETFs. Individual stocks have similar volatility to buying crypto coins. You’ll invest in a company that works with blockchain technology but isn’t specifically a crypto company. Basically, you’ll profit when the company does well.
Diversified Index Funds
If this isn’t your thing, or you’re just working your way up, focus more on diversified index funds or ETFs, which both have a more stable long-term growth. The approach is like investing in bank stocks and bonds. Do you already have stock from a financial institution such as a retirement fund? Or have you invested in stock at some point? With so many companies involved in crypto, chances are you have probably already invested in crypto-related stock without realizing it.
The issue with purchasing stocks related to crypto, however, is that even digital stocks can take a long time to see a substantial amount of growth. There’s also risk involved as stocks plummet. Some experts claim that keeping stock investments under 5% of your total portfolio is the best way to go.
Invest in companies that have a stake in the future of crypto
Tried your luck investing in crypto-related markets? Take it one step further by directly investing in companies with a stake in the future of crypto. These crypto companies are growing, and they are competing to hold the most shares in the digital world. The best time to invest in a company that has a stake in the future of crypto is now.
How to find these companies? Look for companies not just involved in blockchain technology, but those that help to fund it and create crypto exchange platforms. If you find a company that gets its profits mostly using Bitcoin, for example, that company will prosper as Bitcoin grows and so will your investment.
Find companies that are involved in crypto and put money into funds that are included in their index or mutual fund. To do this try looking for investing platforms that let you search through the index and mutual funds that a company has.
These platforms can, however, come with high fees. You must be careful to ensure that your fees are not impacting your investments. Other times fees are unavoidable, so you’ll have to first have a good financial standing to get involved in these companies.
Is investing better than buying crypto?
Even though investing in crypto stocks and crypto companies will help you to gain some profit, it is merely there for you to dip your toes in crypto and give you confidence. Once you’ve got the hang of it, it’s best to try your hand at buying and trading crypto directly on a trusted exchange like IXFI.
Here’s why we recommend buying crypto:
- Investing in stock and in companies won’t provide much profit unless you’re in it for the long run You can use crypto coins and NFT tokens, however, to help you to get income in the short term, as well as the long term.
- Crypto stock investments come with the same risk as other speculative investments. If you’re going to take a risk, it is best to do it in a market that will make you the most profit. Mining crypto will provide you with the same risks but possibly better profit.
- You don’t experience the thrill of living in a virtual metaverse through investing in stocks. When you buy or earn NFT game tokens, you can directly enter the Metaverse and experience the adventure that goes with it. Think avatars, digital real estate, and unlimited digital interaction.
To sum it up
Investing in stocks and in companies will help you gain the knowledge you need to dip your toes into the crypto world. There are plenty of companies looking to get involved in blockchain technology and a variety of crypto stocks to invest in. There are also companies directly involved in the future of crypto.
Once you open yourself to crypto investing and diversify your portfolio, you can slowly dive into buying and trading crypto. Not to mention, it is just more fun than sitting on the sidelines. If you need a little extra help, our Crypto Fundamentals series can get you up to date with the basics.
Register on Your Friendly Crypto Exchange for a seamless experience. IXFI takes security, ease of use and performance to the next level. See for yourself.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
