The global cryptocurrency market is growing rapidly. It is projected to be worth nearly $5 billion by 2030. A lot of factors are playing a role in this growth, including new advances in blockchain and the introduction of new blockchain ETFs.
Blockchain ETFs are among the most popular new ways for everyday investors to diversify their portfolios with blockchain and cryptocurrency investments. However, many are left asking what exactly are blockchain ETFs, and why should I be buying them?
Many Different Ways Now Available to Invest in Blockchain Technology
Today, there are many different ways that investors can incorporate cryptocurrencies into their portfolios. The traditional method has always been the direct buying and selling of specific cryptocurrencies like Bitcoin and Ethereum.
Investors can also incorporate blockchain exposure into their portfolio in smaller degrees by investing in companies that are only partially or tangentially tied to blockchain technology. Major stocks like Microsoft, Visa, PayPal, and Square all have various blockchain involvement that provides exposure while maintaining security through their strong core business operations.
Of course, picking stocks isn’t for everyone. In fact, it’s not a recommended way to invest for anyone but professional traders. Most everyday investors instead rely on various types of funds that group investments based on a number of factors. Among these are blockchain ETFs.
Aside from ETFs, Bitcoin individual retirement account (IRA) is one of the best Bitcoin investments in the market today, allowing investors to diversify their retirement portfolio. A cryptocurrency IRA can help protect their retirement account in the event of a major economic downturn or any other tumultuous and unexpected event.
With a Bitcoin IRA, investors can start trading through the platform as their retirement funds roll over. Their funds remain in their account within the platform, not subject to dividend taxes and capital gains. The money they contribute to the self-IRA account is also tax deductible.
One of the emerging ETF or stock trends right now is combining blockchain tech with cryptocurrency in a social media stock market. With decentralization, social media stock is made possible. Decentralizing social media enables people to gain crypto rewards as monetary incentives. It means that social media users who contribute content in decentralized social media get a form of remuneration, unlike the current centralized social media most people use today.
Stocks involving cryptocurrency and blockchain technology are also rapidly increasing, which include healthcare, manufacturing, retail, and more. The merging of crypto investments with other investments becomes the high-profit generators of the future. Hence, crypto EFTs are investments worth considering to boost your wealth.
Related stories:
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Uses for Blockchain in the Financial Services Industry (Motley Fool)
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8 Potential Contenders to Become the Next Big Crypto King (Nasdaq)
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Blockchain is accelerating the digitization of trade transactions (FintechNews)
