Strategies For Crypto Investment Without Coin Purchase

Investing in cryptocurrency without buying coins is possible and can be done in several ways. One way is to invest in companies that hold cryptocurrency or have services or technology related to blockchain or trading coins. For example, companies like Tesla, MicroStrategy, Square, and Paypal. Another way is to invest in funds that hold cryptocurrencies, such as the Grayscale Bitcoin Trust or Osprey. Additionally, some platforms offer interest-bearing accounts or savings accounts that allow users to earn interest on their cryptocurrency holdings. Crypto savings accounts can offer higher interest rates than traditional banking accounts. It is also possible to earn free cryptocurrency through surveys, games, or other online tasks on platforms like Freecash and Coinbase Earn. Finally, it is worth noting that investing in cryptocurrency carries high risks and individuals should be cautious and aware of potential scams.

Invest in companies with crypto-related services

Investing in companies with crypto-related services is a great way to gain exposure to the crypto market without directly purchasing coins. Here are some options to consider:

Payment Processors and Fintech Companies

Some payment processors and fintech companies have integrated cryptocurrency into their platforms, allowing users to buy, sell, and transfer digital assets. Examples include:

• PayPal Holdings, Inc. (PYPL): PayPal allows users to buy, sell, and transfer cryptocurrencies through its platform and mobile wallet, Venmo.
• Block (formerly Square): Block's Cash App platform enables users to buy, sell, send, and receive Bitcoin.
• SoFi Technologies Inc. (SOFI): SoFi offers a secure platform for trading cryptocurrencies, along with other financial services such as private loans, mortgages, credit cards, and banking.

Crypto Exchanges

Crypto exchanges provide a platform for users to trade cryptocurrencies. Some of the well-known exchanges include:

• Coinbase Global Inc. (COIN): Coinbase is one of the largest cryptocurrency exchanges with over 110 million verified users. It offers a wide range of digital assets for trading and has launched a derivatives platform for futures contracts.
• Binance: Binance is a robust trading platform that offers a large number of supported coins and tokens. However, the U.S. version, Binance.us, has limited options compared to the international version.
• Kraken: Kraken is one of the original crypto trading platforms, offering a good selection of coins and tokens, including some riskier options like DOGE.
• Gemini: Gemini is one of the largest and most popular crypto exchanges, supporting most major cryptocurrencies.

Crypto Mining Companies

Crypto mining companies are involved in verifying transactions, securing the blockchain, and adding new coins to the market. Examples include:

• Marathon Digital Holdings Inc. (MARA): Marathon Digital is one of the largest Bitcoin mining companies in the U.S., focusing on sustainability and efficiency in its operations.
• Riot Blockchain Inc. (RIOT): Riot Blockchain is another large Bitcoin mining company that aims to expand its operations and increase its Bitcoin mining hash rate and infrastructure capacity.

Companies with Crypto Holdings

Some companies have made significant investments in cryptocurrencies, particularly Bitcoin. These companies hold large amounts of Bitcoin and other digital assets on their balance sheets:

• MicroStrategy Incorporated (MSTR): MicroStrategy, led by the Bitcoin advocate Michael Saylor, holds over 200,000 bitcoins as of April 2024.
• Block (formerly Square): In addition to its payment platform, Block holds around $235 million in Bitcoin on its balance sheet.
• CME Group Inc. (CME): CME Group established a market for "micro" bitcoin futures options in 2017 and now offers Bitcoin and Ether futures, as well as micro futures and options.

Graphics Processing Unit (GPU) Manufacturers

GPU manufacturers produce chips and graphics cards that are used in crypto mining. Investing in these companies can provide indirect exposure to the crypto market:

• NVIDIA Corporation (NVDA): NVIDIA's CMP HX card is designed specifically for professional cryptocurrency mining.
• Advanced Micro Devices Inc. (AMD): AMD's graphics cards are known to be profitable for mining certain alt-coins.

Invest in companies with blockchain technology

Blockchain technology has a wide range of applications outside of cryptocurrency, including decentralized finance, international payments, auditing, and regulatory compliance. Many companies are integrating blockchain technology into their operations or benefiting directly from the use of cryptocurrencies.

• Nvidia (NVDA): A leader in high-end graphics and mobile processors with exposure to artificial intelligence, cloud computing, and autonomous vehicles. Crypto miners use Nvidia's graphics cards to mine cryptocurrencies.
• Mastercard (MA): A credit card company that provides crypto consulting services and is developing blockchain technology for more efficient payment systems.
• International Business Machines (IBM): IBM Blockchain improves security and transparency in supply chains, international payments, and global trade and food supplies.
• PayPal Holdings (PYPL): A digital payments specialist that allows customers to send, receive, trade, hold, and spend cryptocurrency through their PayPal accounts.
• CME Group (CME): The world's largest futures exchange, offering unique ways to invest in cryptocurrencies, such as Bitcoin and Ethereum futures and options contracts.
• Block: A financial services and digital payments company that owns the Square payments platform and the Cash App digital payments app. It allows Bitcoin trading through Cash App and holds Bitcoin as an alternative to cash.
• Amazon (AMZN): Amazon Web Services offers Amazon Managed Blockchain, allowing customers to create and manage blockchain networks.
• Coinbase (COIN): The world's largest cryptocurrency exchange, with over 100 digital assets available and approximately $1.2 trillion in annualized cryptocurrency trading volume.
• Global X Blockchain ETF (BKCH): A passively managed fund that invests in companies expected to benefit from blockchain technology adoption, including crypto mining companies, crypto exchanges, and developers of new blockchain applications.
• Accenture (ACN): A global systems integrator providing consulting and technology services. Accenture helps customers apply and integrate blockchain technology into their business models.
• Robinhood Markets (HOOD): A popular online brokerage platform that offers commission-free trading, including cryptocurrencies.
• Marathon Digital Holdings (MARA): A company focused on mining cryptocurrencies, particularly Bitcoin.
• Riot Platforms (RIOT): A company involved in cryptocurrency mining and supporting various blockchain technologies.
• Visa (V): A digital payments company partnering with cryptocurrency and blockchain start-ups to keep its payment networks relevant.

Please note that investing in companies associated with blockchain technology and cryptocurrencies can be risky due to the volatile nature of the cryptocurrency market.

Crypto savings accounts

Despite these risks, crypto savings accounts can offer much higher rates of return than regular savings accounts, making them an attractive option for crypto investors. For example, BlockFi lets account holders earn up to 8.6% APY on their crypto deposits, with the highest rate currently applying to stablecoins like the Gemini Dollar and the Paxos Standard Token. Crypto.com also advertises some of the highest interest rates on the market, although investors with smaller amounts of cryptocurrency may find better yields elsewhere.

Other platforms that offer crypto savings accounts include Coinbase, Nexo, KuCoin, Uphold, and Ledn. These accounts vary in terms of the cryptocurrencies they support, the APY offered, withdrawal restrictions, and other features.

Overall, while crypto savings accounts can provide a way to boost your investment yield, it's important to carefully evaluate the risks and understand that these accounts are not as safe as traditional savings accounts.

Crypto credit cards

Another example is the Brex Card, which is targeted towards startups and offers a crypto rewards program. Cardholders can redeem their Brex rewards for Bitcoin and Ethereum at a ratio of 100 points for 70 cents worth of crypto. Additionally, the Venmo Credit Card provides a feature called Cash Back to Crypto, which allows users to automatically purchase cryptocurrency using their cash-back rewards.

It is important to note that the availability of crypto credit cards and their specific features may vary based on local regulations and the card provider. Some cards may have restrictions or limitations, so it is essential to review the terms and conditions before applying.

Crypto exchange-traded funds

Crypto ETFs allow retail traders to speculate on cryptocurrency prices without directly owning the assets or dealing with the complexities and costs of directly owning digital assets. They are also a more secure way to invest in cryptocurrencies, as cryptocurrency exchanges, storage devices, wallets, and some poorly designed blockchains have been hacked.

Crypto ETFs have advantages and disadvantages. On the one hand, they provide exposure to crypto without the additional ownership expenses or the risk of owning and holding cryptocurrencies in a wallet. They also lower the learning curve for investors who may find the technological jargon of cryptocurrencies difficult to understand. On the other hand, crypto ETFs do not always duplicate the price moves of the underlying digital token, and they have higher fees and expenses than other ETFs. Additionally, investors in crypto ETFs do not have direct ownership or control over the underlying cryptocurrency.

• IShares Bitcoin Trust (IBIT)
• Bitwise Bitcoin ETF (BITB)
• Grayscale Bitcoin Trust ETF (GBTC)
• VanEck Ethereum Strategy ETF (EFUT)
• Global X Blockchain ETF (BKCH)
• Amplify Transformational Data Sharing ETF (BLOK)
• ProShares Ultra Bitcoin ETF (BITU)

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