While 2018 hasn’t been a good year for cryptos, it still hasn’t stopped people’s interest and enthusiasm for the market. Many people are looking for ways to partake in the “boon” when it comes back without directly trading, investing or buying cryptos themselves.
This can be a pretty decent and low risk way to profit from the market without direct and active participation.
So, even with the prices of popular cryptocurrencies bottoming out in some cases, we’ve seen an uptick in the number of queries for alternative investing opportunities in the same market.
The good news is that there are multiple options available to all intending investors, and capable of helping you make money indirectly from cryptos. Let’s explore them, shall we.
Buy Stocks of Companies that Dabble in the Industry
Instead of buying these tokens directly, all you have to do is simply look for companies that are directly involved in the market. Companies that provide GPUs, ASIC miners, and investment consulting can serve as a starting point.
Some examples of these companies include AMD, NVIDIA, TSMC, Oracle, Microsoft and IBM. For instance, NVIDIA is one of the world’s leading makers of graphics cards which are used in cryptocurrency mining rigs.
AMD is a world leading chip manufacturer looking to produce even more powerful computing chips for mining hardware. There are so many smaller sub-sectors in the cryptocurrency and blockchain industry.
Look for publicly listed companies filling a need in this market, and buy their stocks. That’s a good way to partake. A good example of a company that made money for investors is AMD.
At the end of its 2017 fiscal year, AMD enjoyed a 50 percent increase in the value of its shares. So, if you had invested $100,000 at the beginning of their fiscal year, you would have made an extra $50,000 from that investment.
Lookout for Traditional Companies Interested in STOs
Short for securities token offerings, STOs are the new digital form of IPOs and are often done by established companies. In fact, there are a few companies that are thinking of raising more funding for their projects through the issuing of STOs.
You can identify these companies –mostly companies in the tech space- and buy their stocks. If their STOs are successful, you can often expect to profit from that investment. The same goes for any traditional company that wants to go into the sector.
For instance, some financial services firms are looking to or have already partnered with blockchain startups and companies to invest in. if their stocks are available, you can easily buy their stock -doesn’t have to be through STOs alone.
Investing in Institutional Investors
With Wall Street’s increased openness to blockchain and cryptocurrencies, we’re seeing the beginnings of Wall Street money flowing into cryptocurrency trading. These institutional investors intend to invest through funds setup specifically for this.
In fact, portfolio managers are now creating a separate retirement fund for workers called digital retirement portfolios. These are portfolios that are solely meant for cryptocurrency investments.
So, you can look up any of these institutional investors –Fidelity, Goldman Sachs, Intercontinental Exchange (the parent company of the NYSE) and NASDAQ come to mind- see what the extent of their investments in the crypto sectors will be, and then invest in them accordingly.
While some of these like Fidelity and Intercontinental are only going in as institutional investors, others like NASDAQ actually have their own blockchain based private share market. The bottom line is if their shares go up, you can be sure that you will profit too.
Buy Shares of Publicly Listed Blockchain Companies
DigitalX is an Australia based blockchain company, while BTL and HIVE are based in Canada. These stocks are obviously international, which makes them excellent for those looking to build their portfolios with more offshore based assets.
Invest in Digital Asset Funds
These are funds run by investment companies comprising of cryptocurrencies. So, it’s basically investing in companies that are directly invested in cryptocurrencies. With this, investors get to purchase equity stakes in a usually diversified crypto portfolio.
Investing in these instruments completely eliminates the need for you to buy from the market directly. When you invest in these, you’re essentially investing in the company’s judgment, expertise, insight, research and risk.
These can either be in the form of investment companies or venture capital funds that are directly tapped into the market.
Then, there’s the alternative option of investing in exchange-traded funds like Bitcoin Tracker One ETN or Bitcoin ETI which are directly trading in various stock markets –the former in Nasdaq Stockholm, the latter in Frankfurt and Gibraltar base stock markets.
While this list is by no means exhaustive, these are excellent ways to get started on your quest to indirectly invest in the crypto market. All of these work, but will require considerable work on your part –mostly research, seeking advice and making decisions.
You may need to investigate their market participation as well as investment type. Blue chip tech companies manufacturing devices for the industry are usually lower risk than investment companies, hedge funds and venture capitalist companies directly investing in the projects or blockchain startups.