Swap Tracker
Ruth Kise 5 min read

Blockchain Companies and Stocks: Traditional Finance in the Crypto World

Blockchain Companies and Stocks: Traditional Finance in the Crypto World

2022 is in full swing, and it is already clear to everyone that the cryptocurrency world is alive, will live, and, in general, is still developing. Time has shown that the crypt market is growing, pushing the idea as well as attracting large funds. But how to put your own skin into the game, and where to start to earn money — is still difficult to figure out for many. Actually, there are no clear answers on where you can earn and how to advance (and of course, we don’t give financial or investment advice!), but we tried to convey some information in a concentrated and understandable way.

Direct Investing in Cryptocurrency

One of the most common and understandable strategies for interacting with cryptocurrency includes the purchase and storage of spot cryptocurrency assets. To do this, users can use centralized or decentralized exchanges, but in any case, you will have to go through the exchange of crypto for fiat money and back. Therefore, it is important to monitor the current regulation.

However, if you do not like buying coins, but the crypto world still attracts you, then there are other ways to join the conversation.

Investing in Cryptocurrency Infrastructure

Mark Twain said it best: "During the gold rush, it's a good time to be in the pick and shovel business". In this case, indirect and direct investment is similarly possible.

Direct investments in infrastructure are mining, investing in the creation of trading platforms (crypto exchanges), as well as services and technologies around them. Such investments should be considered long-term, strategic investments.

Investing in publicly traded stocks of the basic technology needed to create a crypto service is also a way to enter the market, especially if you don't want to worry about specific tokens. The Web 3 concept is attracting more and more large investors, so the value of companies whose activities are aimed at developing infrastructure is growing. There are many options for investing here, and you can start with your own vision of the development of the crypto world.

For example, if you are a proponent of the idea of crypto flow regulation and believe that the future lies with centralized exchanges, then the assets of Coinbase, the largest cryptocurrency exchange in the United States by trading volume, are traded publicly on the NASDAQ exchange. The platform held an IPO in April 2021 and its COIN shares are openly traded.

If you are interested in the blockchain technologies themselves, then the next option is the shares of ConsenSys, Ethereum blockchain software technology company. Let's recall that ConsenSys, which was valued at $3.2 billion in the last round of funding in November, joins a growing list of crypto companies whose estimates have jumped in recent months due to an explosion of interest in Web3.

Investing in Companies with Cryptocurrency Assets

Alternatively, you can use indirect investment strategies. Since some publicly traded companies have cryptocurrency assets, it is possible to buy publicly traded stocks of these companies, thereby taking advantage of cryptocurrency without necessarily owning it.

For example, MicroStrategy is a company engaged in the development of software and mobile applications. In August 2020, MicroStrategy invested $250 million in Bitcoin as a reserve asset. Later, the company made several more additional large purchases of Bitcoin, totaling more than $2 billion. After Bitcoin's price fell to about $20,800 in June 2022, the company said it had not received a margin call and that it had enough capital to withstand further volatility.

Also, you can turn your attention to Block (Square Inc until 2021), an American technology company that develops solutions for accepting and processing electronic payments. In October 2020, the company placed about 1% of its total assets ($50 million) in Bitcoin (4,709 bitcoins), citing Bitcoin's "potential to become a more ubiquitous currency in the future" as the main reason. In February 2021, the company acquired another $170 million in Bitcoin (roughly 3,318 bitcoins), bringing Square's total assets to nearly $500 million in BTC (roughly 8,027 BTC in total).

On December 1, 2021, Square announced its rebranding: the company was named Block. The new name is associated with the desire to reflect the growth of the company in the field of blockchain technology.

Investing in a Cryptocurrency ETF

Cryptocurrency ETFs are gradually being implemented, providing ETF shareholders with the possibility of indirect investments in cryptocurrency. For example, ProShares has launched a BITO — a bitcoin ETF that does not directly invest in bitcoin. Instead, it is based on futures contracts tied to the asset. The BITO ETF allows users to invest directly from their brokerage accounts instead of opening a wallet.

Copy Trading: Passive Investing

Next, we want to mention another way to increase capital copying. The essence of the method is to copy the transactions of another trader. This means that many small or not very experienced traders willingly invest in new projects supported by the industry's largest and most successful investors. This way you can start trading in stock markets, even without knowledge of how it all works. You can choose a "role model" on a special platform using filters, or seek help from Quantum AI artificial intelligence, which analyzes the market and offers the best deal options.

P.S. Goes Without Saying — But Don't Get Scammed

Attention! No matter which way of earning money you choose, always double-check the platforms on which you plan to earn extra money. Sites must be reliable and, all about, genuine!


Related Posts

Cryptocurrency Wallet Types: Pros And Cons

Cryptocurrency Wallet Types: Pros And Cons

June Katz 7 min read
In order to store crypto and increase the security level of your funds, you can use a cryptocurrency wallet. They have a higher level of protection in comparison with the crypto exchanges. In this article, you will get to know about the advantages and disadvantages of crypto wallets and get acquainted with their varieties and the most popular ex
Read more ❯
The Biggest Cryptocurrency Thefts in the Last 10 Years

The Biggest Cryptocurrency Thefts in the Last 10 Years

June Katz 11 min read
In this article, we will try to remember all the major cryptocurrency thefts over the past 10 years. 1. Bitstamp hack , $5.3 mln ( BTC ), January 4th, 2015 On January 4, 2015, the operational hot wallet of Bitstamp announced that it was hacked by an anonymous hacker and 19,000 Bitcoins (worth of $5 million) were lost. The initiatio
Read more ❯
Public And Private Keys

Public And Private Keys

June Katz 2 min read
As well as fiat, cryptocurrencies need to be stored securely. That’s what we need these keys for. In this article, we will tell you what private and public keys are and how they are used. What are private keys? A private key is a number that is encoded in different formats depending on which wallet you are using. In each format, the private
Read more ❯
Blockchain Consensus Algorithms and Their Varieties

Blockchain Consensus Algorithms and Their Varieties

June Katz 5 min read
This article is written for beginners who are just starting to learn the crypto world. We want to help you a little. As you might have guessed, this article will be about blockchain consensus algorithms . On the blockchain market, there are a lot of consensus algorithms allowing us to choose what is the most relevant node for signing
Read more ❯

Where all instant exchangers met for your smoothest experience

Maximize profits, minimize search

Tags

markets

Recent Posts

Cryptocurrency Wallet Types: Pros And Cons
Cryptocurrency Wallet Types: Pros And Cons

Cryptocurrency Wallet Types: Pros And Cons

June Katz 7 min read
In order to store crypto and increase the security level of your funds, you can use a cryptocurrency wallet. They have a higher level of protection in comparison with the crypto exchanges. In this article, you will get to know about the advantages and disadvantages of crypto wallets and get acquainted with their varieties and the most popular ex
Read more ❯
The Biggest Cryptocurrency Thefts in the Last 10 Years
The Biggest Cryptocurrency Thefts in the Last 10 Years

The Biggest Cryptocurrency Thefts in the Last 10 Years

June Katz 11 min read
In this article, we will try to remember all the major cryptocurrency thefts over the past 10 years. 1. Bitstamp hack , $5.3 mln ( BTC ), January 4th, 2015 On January 4, 2015, the operational hot wallet of Bitstamp announced that it was hacked by an anonymous hacker and 19,000 Bitcoins (worth of $5 million) were lost. The initiatio
Read more ❯
Public And Private Keys
Public And Private Keys

Public And Private Keys

June Katz 2 min read
As well as fiat, cryptocurrencies need to be stored securely. That’s what we need these keys for. In this article, we will tell you what private and public keys are and how they are used. What are private keys? A private key is a number that is encoded in different formats depending on which wallet you are using. In each format, the private
Read more ❯
Blockchain Consensus Algorithms and Their Varieties
Blockchain Consensus Algorithms and Their Varieties

Blockchain Consensus Algorithms and Their Varieties

June Katz 5 min read
This article is written for beginners who are just starting to learn the crypto world. We want to help you a little. As you might have guessed, this article will be about blockchain consensus algorithms . On the blockchain market, there are a lot of consensus algorithms allowing us to choose what is the most relevant node for signing
Read more ❯
Exchanges and Exchangers
Exchanges and Exchangers

Exchanges and Exchangers

June Katz 3 min read
There are several ways to swap digital currency in the cryptocurrency market. The choice is between the exchanges and swap services, or exchangers. Both offer a wide range of digital currencies , a lot of altcoins at an affordable cost. So what is the difference? Where it’s better to exchange Bitcoin – on crypto exchange or the excha
Read more ❯