Investing in Bitcoins by buying shares of companies directly or indirectly connected to this "revolution" is an open opportunity for everyone.
Three of the world's most important stock exchanges, Cboe, CME and Nasdaq are starting trading Bitcoin Futures. However, most investors are uncomfortable trading this financial instrument because the risks are extremely high.
What you need to know about Bitcoin stocks and shares:
Bearing this in mind, a positive alternative is to buy shares of companies that are linked to the blockchain technology, which, will undoubtedly revolutionise commerce. This is still a technology in its early days, and investors who made the move at the beginning have already made a fortune.
Buying Bitcoin shares is an investment both in the short and long term. Investing in the short term is possible through a CFD account, which allows you to buy now and sell even in just a few minutes. In the medium/long term, on the other hand, it is necessary to contact an authorised intermediary who operates on the stock exchange and, in this case, buy today to sell in a few years' time.
Samsung will start producing ASIC chips for Halong Mining's Bitcoin miner, one of the most functional in circulation. In addition, some Samsung stores have begun to accept cryptocurrencies as a payment method. These are the shops in Estonia (Tallin), Latvia (Riga) and Lithuania (Vilnius and Kaunas). As one of the leading companies in the world of new technologies and considering the interest in Blockchain and crypto, Samsung shares could be really interesting to buy today.
AMD and NVIDIA are companies that produce the microchips to mine Bitcoins. It is worth investing in these companies when there is new information on the market.
In general, investors tend to focus on lesser-known securities.
Digital Power is a traditional manufacturer of electrical products and the company is clearly aimed at cryptocurrencies. Its share price soared when the rumour surfaced that Amazon had ordered a lot of hardware from this company. The rumour turned out to be false and the share price consequently lost ground. This demonstrates once again the need to be fast.
Overstock.com is an online retailer that accepts bitcoins. It is entering the world of cryptocurrencies stylishly with its tZERO subsidiary.
Riot Blockchain is the classic example of a company that has completely transformed itself focusing on technologies and investments in blockchains. The company's former name was Bioptix and it provided diagnostic equipment for the biotech industries. The change came after the investment in Verady and today the company provides accounting and verification services for blockchain-based assets.
The Marathon Patent Group acquired Global Bit Ventures, a bitcoin mining company.
This investment fund is focused on the world's first cryptocurrency, and trades as an ETF.
Undoubtedly, this is another way of investing in the world’s most famous and most capitalised cryptocurrency.
Buying shares of companies linked to the blockchain guarantee investment diversification, which is essential to protect your capital.
Your choice, however, must be made carefully, and the greater the link between the company and the cryptocurrency, the more time and effort you need to dedicate before such decision.
Furthermore, an additional diversification between short-term and medium/long-term investments allows risks to be reduced again, given that in the short term with a CFD trading account it is possible to earn on the peaks of increase in value, while in the medium/long term (when the technology of the blockchain should have been more globally accepted and used in practice) one could have substantial returns for having made the right choices.
Obviously, risk management remains fundamental.