Investing in Bitcoin and Cryptocurrency Without Buying – Beginners Guide

Bitcoin has hit a new high of $94,000, inching closer to the long-awaited milestone of $100,000. This surge in price, post Trump’s election victory, has sparked renewed excitement among investors who may have been hesitant to dip their toes in the cryptocurrency market before. Many people feel uncertain about how to invest in Bitcoin and worry about the risks involved.

If you’re among those who feel unsure about directly owning Bitcoin, there are other options to get involved in this exciting asset class without the complexities of handling digital wallets or dealing with crypto exchanges. One approach is to consider Exchange-traded funds (ETFs), which are like baskets of different investment products bundled together. ETFs allow you to spread your risk across various assets rather than focusing on just one, and they trade on major stock exchanges, making them easily accessible for investors.

Bitcoin ETFs and Ether ETFs have been gaining popularity this year, and there are even upcoming Solana ETFs and XRP ETFs seeking approval from the Securities and Exchange Commission. Some experts believe that investing in Bitcoin ETFs may be even better than gold ETFs, given the impressive growth of the crypto market in recent years.

Options trading is another way to speculate on the value of assets like Bitcoin. Options contracts give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price by a specific date. The recent approval from the SEC for options on spot Bitcoin ETFs by NYSE American LLC and CBOE is an important step in making Bitcoin more accessible to institutional investors.

Investing in companies involved in cryptocurrency-related services or with significant Bitcoin holdings is yet another way to indirectly access the crypto market. Firms like MicroStrategy, Tesla, Coinbase, and Marathon Digital Holdings offer exposure to the crypto market through their operations or investments in digital assets. Trading these stocks on traditional platforms allows investors to benefit from Bitcoin’s growth potential while diversifying their portfolios within the broader cryptocurrency ecosystem.