Types of Bitcoin Investments

Since the creation of Bitcoin, it has significantly impacted the world. Bitcoin is continuing to grow and seems to continue for a while. Either way, you can trade, buy or sell this electronic currency via a reputable exchange like The News Spy. This virtual asset is an innovative currency that people can trade globally. 

Many early Bitcoin adopters who did not view Bitcoin as a scam are now millionaires and billionaires. In simpler terms, this electronic asset has a higher return potential. The price of this digital money hit new highs in 2017 and 2018, bringing huge profits to Bitcoin’s early adopters. Moreover, this virtual money paved the way for other cryptocurrencies, creating a larger cryptocurrency market. Here’s a list of different categories of Bitcoin investments

Bitcoin Futures

Bitcoin futures contracts are agreements to buy and sell a specific amount of this digital money at a specified price on a particular future date. Bitcoin futures provide a unique way to speculate in the Bitcoin market and hedge against their Bitcoin holdings. 

In essence, Bitcoin futures involve two parties who make a bet. One party believes the value of this digital asset will increase in the future, while another feels its value will drop. The person who gets it wrong pays the other party a cash settlement. 

Currently, this virtual money futures trade is on the Chicago Mercantile Exchange. This exchange introduces new monthly contracts for cash settlements. Moreover, each future agreement represents five Bitcoins. Mostly, futures expire on the last Friday of each month. 

Bitcoin ETFs

These digital money ETFs are exchange-traded funds tracking the value of this digital money and trading on traditional market brokerages rather than cryptocurrency exchanges. These digital money ETFs allow investors to invest in this electronic currency without going through the problem of using a Bitcoin exchange. Moreover, Bitcoin ETFs provide leverage to the price of this electronic money. 

A Bitcoin ETF works the same way as a standard ETF. The price of one share of the exchange-traded fund would fluctuate with the cost of this electronic currency. If this virtual money increases in value, so do the ETF and vice versa. A Bitcoin ETF has many benefits, including convenience and portfolio diversification. 

Bitcoin NFTs

NFTs are currently taking the world and digital space by storm. These NFTs creators create them using the same type of programming used for this electronic currency. No one can change or replace the Non-fungible tokens because of their unique properties. Also, no one can manipulate or forge these NFTs.

Moreover, these Non-fungible tokens are digital assets representing internet collectibles like art, music, pictures, and games.

Bitcoin Coin Trusts

These digital money coin trusts are an easy and quick way for investors to access the underlying Bitcoin without buying the currency directly. However, while these digital money trusts may offer a more straightforward way to invest in this electronic money, there are also some risks involved in the trusts. 

This virtual money trust operates differently than a mutual fund or exchange-traded fund. Bitcoin trusts periodically sell only a limited number of private shares to accredited investors that meet strict income, net worth, and experience requirements. Later, those accredited investors might sell their shares through public markets. 

In other words, these virtual money trusts allow investors to purchase exposure to this digital currency through a brokerage or a retirement account. 

Final Thoughts

There are tons of various Bitcoin investments, as listed above in this article. Each type of investment has its risks and benefits. So, before starting any investment, research the risks and benefits associated with the investment. Then go ahead and invest in this digital money.