Why You Shouldn’t Ignore Stocks in Digital Currency Spaces
Scroll DownHere's something that not many investors are aware of: You can actually take market positions on stocks listed on Wall Street that have a direct operational exposure to Bitcoin and other cryptocurrency tokens. Similar to investors who prefer to put their money in gold mining companies and funds instead of directly investing in the precious metal, traders are paying attention to stocks of firms that operate in the digital currencies space.
MicroStrategy is one company that is heavily investment in Bitcoin. If you follow shares of this investment banking firm, you would see that they have appreciated by 65% ever since Bitcoin started to recover from its recent slump.
Riot Blockchain and Marathon Digital Holdings are two cryptocurrency mining companies that have also seen stock growth correlated to the movements of Bitcoin in the cryptocurrency exchange markets. Institutional investors who usually shun the volatile nature of the cryptocurrency markets have no problem taking market positions on these ancillary stocks.
While many might be tempted to see cryptocurrencies and cryptocurrencies alone as the future of finance, the current state of the investment scene is more complex. Cryptocurrency tokens are not alone in their appeal to investors. Investors can also put their money into the cryptocurrency mining industry that aims to facilitate the mining of cryptocurrencies using special equipment and digital technology. Bitcoin alone is just a fraction of the cryptocurrency industry and includes more than 1,800 different alt-coins that are used as a medium of exchange and value storage. Investors can get in on the cryptocurrency industry by buying stocks of firms that are active in the blockchain space or investing in crypto-mining firms.
The above analysis shows how investing in stocks of companies that have direct operational exposure to Bitcoin and the cryptocurrency space can be lucrative for investors who are ready to bet on the long-term growth of the cryptocurrency industry. There will be other opportunities in the near future; we already have Bitcoin exchange-traded funds in the Toronto Stock Exchange, which means that they may soon start trading on Wall Street as well. Diversification and risk management are gradually entering the cryptocurrency picture.
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