3 Nonbank Ways of Bitcoin Investment
September 17, 2017
It is known far and wide there are people who don’t want to follow and use standard investment methods in both common financial and cryptocurrency markets. There are three alternatives to simply buying into Bitcoin.
1. Bitcoin futures
The Chicago Board Options Exchange promised to start trading in cryptocurrency derivatives, first of all, it planned that it would offer "Bitcoin futures" in the near future. More than that, CFTC allowed operator of cryptocurrency platform LedgerX to begin work as exchanging and clearing contractualservices based on cryptocurrencies. It will offer options on Bitcoin and other cryptocurrencies.
2. Investments in Bitcoin companies
One of the most interesting ways to play cryptocurrency world is to make investments not in digital currency, but in companies that are closely related to cryptocurrencies. For example, share purchase Nvidia and AMD, a chipmaker and famous graphics card manufacturer, shares of Nvidia and AMD are raising thanks to demand for mining equipment. Of course, there are other interesting and popular Bitcoin invest companies, for example, Grayscale, Bitcoin Shop, Overstock.com, SmartMetric, WPCS International.
3. Two-way price discovery
Nowadays cryptocurrency trading is a high-priced and one-way process. Traders buy it and hope that its price will rise. However, some market analysts think, that changing of this situation will steady the market.
Alistair Milne, a portfolio manager at the Altana Digital Currency Fund, a cryptocurrency-focused hedge fund, has said, " Ultimately the more liquidity there is, the more volatility will fall, reducing costs all round. "
It is reasonable that some analysts criticize this opinion. Nevertheless, two-way price discovery may be a good alternative for some people.