Invest in Crypto: Cryptocurrency is a buzzword that was constantly heard on social media, mainstream media, and personal discussions all-around 2021. Thanks to global personalities like Elon Musk who kept tweeting about the cryptocurrency market and influencing the trends.
But cryptocurrency is more than just a buzzword. It is an amazing opportunity that investors can avail themselves of to diversify their investment portfolio. But how do you invest in cryptocurrency? What are the best ways to invest in cryptocurrency? Let’s find out.
Five Popular Ways to Invest in Crypto Currency
An investor can buy more than one cryptocurrency coin. They can buy or sell cryptocurrency coins based on the trading strategies and opportunities. Here are five popular ways to invest in cryptocurrency.
- Buy Cryptocurrency Directly
This is one of the most common and easiest ways to invest in cryptocurrency. You can buy more than one cryptocurrency. You can choose from more than 100s of cryptocurrencies such as bitcoin and Ethereum (popular ones) to unknown cryptocurrencies released during Initial Coin Offerings (ICOs).
- Cryptocurrency-Focused Funds
If you don’t want to buy individual cryptocurrencies, you can always choose from different cryptocurrency-focused funds for investment. You can choose from ETFs (future funds or index funds) or investment trusts that are cryptocurrency-focused.
When you invest in cryptocurrency-focused funds, your investment will either go into individual cryptocurrency coins directly or in derivative securities or cryptocurrency companies.
- Cryptocurrency Companies
If you directly want to invest in cryptocurrency companies, you can do so quite easily. Several companies have a partial or total focus on cryptocurrency. For example, PayPal Holdings, Inc., cryptocurrency mining and hardware maker companies, and more.
- Become a Crypto Validator or Miner
If you want easy access to cryptocurrency investment, you can become a crypto validator or miner. When you mine or validate a cryptocurrency, you will be paid in crypto coins. Now, you can either hold these crypto coins as investments or use them to buy other high-profit coins from the market.
- Cryptocurrency IRA
When you want to get the tax benefits and secure storage of your cryptocurrency, you can invest in a cryptocurrency IRA (individual retirement account). Investing through a cryptocurrency IRA provider gives you the benefit of secure investment.
These are the five most popular ways to invest in cryptocurrency. Although the market is highly volatile and price fluctuations are high, investors are highly attracted to the market.
If you have been thinking of investing in cryptocurrency, now is the time! The market is hot and you will certainly get profits in the long run.
For more insights, information, guides, news, and strategies of cryptocurrency, keep reading Coin Informer!