Apr 11, · The bitcoin market is the ultimate in high risk, high reward. If you're looking to "invest" in bitcoin, however, you'll also need to know what that can mean. None of the examples mentioned below Author: Steve Fiorillo. Nov 21, · Just like the stock market is volatile, bitcoin investors should expect big ups and downs in the future. Yet investors looking for an alternative to the stock market might not get everything they Author: Dan Caplinger. Oct 14, · If you absolutely want bitcoin exposure, the best way to do that would be to buy fintech stock Square (NYSE:SQ). Square's longest-running operating segment, and .
Bitcoin investment stock marketCan Bitcoin protect your portfolio if the stock market implodes? - AMBCrypto
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As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Follow DanCaplinger. Image source: Getty Images. Look at industries impacted by bitcoin, how the industry works and how bitcoins are discovered.
Adding stocks from relevant, related companies is one possible way to invest in the future of bitcoin, from a distance. Since there is a prevailing thought that the most valuable aspect of bitcoin is the blockchain technology behind it, investing in blockchain is another way of tangentially investing in bitcoin without the worrisome volatility. There are many large companies that have been developing their own blockchain networks for a variety of purposes that may be worth looking into.
That doesn't mean it's risk-free, though. Blockchain technology is an intriguing development that could disrupt a number of huge industries, but at the moment, it's also a fashionable word to throw around.
Long Island Iced Tea, a beverage company, renamed itself Long Blockchain in late , seemingly knowing that the word itself could cause a jump in stock. And for a brief moment, the stock actually did jump just because of that. Don't fall for tricks like that, stay vigilant and avoid cryptocurrency scams like these. Some of the larger companies that have begun incorporating blockchain into their industries include:. There are also ETFs that one can invest in that hold a number of stocks related to blockchain.
The growth of bitcoin mining as an industry has grown rapidly ever since the first bitcoin was mined nearly a decade ago. More powerful computers and hardware are required to give miners a better chance of successfully mining, and some companies have inadvertently become involved as a result.
Where the two most successfully intersect, though, are their graphics processing units. This has meant there's been a larger demand than ever for GPUs, especially in the wake of bitcoin's sudden and massive rise in With the explosion of mining and the steady need for GPUs amongst gamers, Nvidia has been an investment worth looking into in AMD, meanwhile, has been a bit more volatile.
They have proven to be two of the top manufacturers of GPUs in the wake of the bitcoin craze. Bitcoin hasn't just affected other industries; it has essentially created its own. In the wake of bitcoin, hundreds of other cryptocurrencies have popped up and attempted to either dethrone it or provide other uses for it. Many have failed, but some have survived and may have a future. But here, more than anywhere else, is where you need to proceed with caution.
Bitcoin is already incredibly risky, imagine what risks smaller and lesser-known crypto brings. Rounding out a portfolio with other cryptocurrencies may be able to help you evaluate the state and perhaps the future of that market, but many of them can quickly prove to be a flash in the pan.
The sudden rise of initial coin offerings -- a method of crowdfunding new cryptocurrencies in a way that avoids venture capital entirely -- has many people excited for the future but also has many wondering if it's going to create an even more dangerous bitcoin bubble. Some of the more notable cryptocurrencies, though, offer some things that bitcoin does not, making it harder to definitively call them a bitcoin copy. It's natural to be interested in them. Do your proper research, discuss with your financial advisor, and use your common sense -- don't put more of your money into these than you can afford.
They're riskier than usual. The beauty of the Shopify platform is that the company is only scratching the surface , in terms of addressable market, yet is already the second-largest online retailer by GMV. What's more, this is a subscription-driven business model that's highlighted by robust margins and minimal client churn. This is a high-growth company that's still in the early innings, and investors would be wise to choose it over an investment in bitcoin.
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Fool Podcasts. New Ventures. Search Search:. Oct 14, at AM. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.