6 Ways You Can Invest In Cryptocurrency

Since Bitcoin’s launch in 2009, cryptocurrency has been described as groundbreaking and disruptive by users, as well as doomed to fail and even a scam by its opponents. It is still in its infancy, but cryptocurrency has found a market. As well as having made early investors a lot of money, it continues to be used as a form of investment with a lot of potential upside. It is highly volatile, however, which means there is a lot of risk involved, so potential investors do need to exercise caution.

Practical Uses For Cryptocurrency

Although it has gained in popularity, cryptocurrency hasn’t yet hit mainstream adoption. It’s unlikely you can pay your rent or mortgage using Bitcoin, but Bitcoin ATMs are available in a lot of cities and thousands of businesses now directly accept crypto has also spread into the gaming world, with the introduction of play-to-earn tokens, as well as online shopping, with sites like NewEgg taking Bitcoin payments.

Because it offers greater anonymity, it is also a popular choice with players on online casino sites. Because online gambling is not regulated in some jurisdictions, it has become especially popular with offshore sites, including popular California gambling sites. According to sports betting writer Jonathan Askew, cryptocurrency options have replaced the likes of PayPal and Skrill at most online casinos.

Ways To Invest In Crypto

For many, the potential to make significant gains remains the most popular use of cryptocurrency, though, with methods to invest including the following:

1. Invest Directly

Investing directly generally means signing up for an account with a major crypto exchange, buying your crypto of choice using fiat money, and then holding those funds in a secure wallet. Experienced traders can try their hand at day trading, or, if you believe Bitcoin still has room to grow, invest and hold the currency until it has posted gains.

2. Buy ETFs

In January this year, the SEC gave the green light to the trading of Bitcoin spot ETFs and, in May, they also greenlit Ethereum spot ETFs. ETFs track designated markets, and in the case of crypto exchange-traded funds, they can be bought and sold without the need to use crypto exchanges or wallets. Analysts expect Solana to be the next cryptocurrency to get its own funds.

3. Invest In Presales

Presales occur before a coin or token even goes on exchanges. Investors agree to buy the tokens, typically using the native crypto for the network the token is being developed on. Discounts and other bonuses are given as rewards to early investors, and when the tokens do make it to exchanges, their prices may increase significantly, with speculators aiming to find the next 100x cryptocurrency.

Bitcoin and major Altcoins represent something of a gamble. Presales are significantly riskier, so are not for the risk-averse investor.  

4. Mine Bitcoin

New Bitcoins are created by computers performing complex mathematical problems. When a problem is solved and verified, new Bitcoin is produced, and the computer, or its owner, receives a share of the mined Bitcoin.

It is possible to mine Bitcoin at home, but you will want a computer, or several computers, with powerful processors. You will also need to check that it is profitable, taking into account the amount of energy and time it takes to mine the cryptocurrency. You can look into joining a mining pool to help improve your chances of making profits.

5. Buy Shares In Bitcoin Mining Companies

Mining is energy-intensive and while it can theoretically be performed using any computer in any location, a home computer on a residential energy contract is unlikely to turn a profit. That’s where Bitcoin mining companies in.

Mining companies have huge banks of computers, preferential energy contracts, or alternative sources of energy, and they can make massive profits. Rather than mining Bitcoin yourself, you can invest in Bitcoin mining companies.

6. Launch Your Own Token

Networks like Ethereum and Solana allow others to create their own cryptocurrencies on their blockchains. There has been a recent spate of so-called meme coins launched in this way, and some have gone on to be very profitable.

However, the meme coins that tend to perform best are those belonging to people with a considerable online following or who are part of very active online groups. Alternatively, if you can create your own protocols, you could create a layer-2 network that speeds up or reduces the cost of using one of the big networks.

Conclusion

Cryptocurrency is risky because of the volatility in the market, even though Bitcoin and other major cryptos have shown signs of maturity as an investment vehicle. Determine your level of risk aversion, and your technical know-how, and use this information to help find the best crypto investment form for your money. And only ever risk money that you can reasonably afford to lose.