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Yet for many retail investors, it can be a complicated investment – it’s historically expensive, volatile, can’t be purchased through a brokerage account and isn’t backed by a financial institution.
“There are things that you can do for indirect exposure,” said Tyrone Ross, an investment advisor and CEO of Onramp Invest, a digital investing platform. “If people do that, I think it’s better and it’s safer before they actually start to delve into the [bitcoin] rabbit hole.”
There are a few ways that people can invest in cryptocurrency and even bitcoin, or the technology behind it, without holding any coins themselves. While it might not completely shield investors from cryptocurrency’s trademark volatility, it can give them some protection from loss.
Invest in companies that hold bitcoin or another cryptocurrency
One way to have exposure to bitcoin without holding it is to invest in the stocks of companies that have cryptocurrency related services or hold coins themselves, said Ross.
That includes a wide group of publicly traded businesses throughout different sectors that have either added bitcoin to their balance sheet or have services for storing or paying with cryptocurrency.