Accumulating cryptocurrency was a trending phenomenon until a few years ago. A little amount of money spent on Bitcoin or its alternatives could yield high returns on investment later on.
According to analysts like Jay Caspian Kang of Coin Talk, the hype around cryptocurrencies is degenerating. It isn’t the shortcut-to-greens phenomenon anymore; on the contrary, many risks are associated with expectations about immediate, short-term gains.
In the current phase, investing in cryptocurrency through stocks ownership is more prudent than actually owning them. The most obvious benefits of this strategy is that you won’t have to go into the hassle of remembering the access key to your digital wallet and you can store your currency easily. Investing in crypto stocks is an indirect yet beneficial means to reap the benefits from the fluctuating profits associated with cryptocurrency values.
Recently, Overstock.com Incorporated, Nvidia Corporation and Hut 8 Mining Corporation were touted as popular crypto stocks.
The uncertainly still exists though; crypto stocks fell rapidly after the crypto market crash of 2018. While Overstock.com and Hut 8 Mining have regained lost value, they’re still far from optimal performance.
Overstock.com is an e-commerce retailer which also runs a blockchain affiliate ‘tZero‘. The company plans to introduce its own cryptocurrency in 2020. Other noteworthy competititors include Microsoft, Visa, Paypal and Goldman Sachs.
Riley Adams of Young and The Invested, while commenting on the trend of investing in crypto stocks, said that this option “dramatically reduces the risk of any one currency going bust after heavily investing in it“.
Adams has advised that investors focus on companies facilitating blockchain infrastructure instead of a specific cryptocurrency.
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