How to invest in cryptocurrencies without owning any tokens

Cryptocurrencies have become one of the most popular trading assets among investors and traders over the last few years, as they provide an alternative trading vehicle that isn’t really correlated to traditional markets, and can also potentially provide amazing returns, especially compared to classic assets.

While buying crypto-tokens to own coins you can keep and use is a popular way to take advantage of the coins’ rising prices, it isn’t the only way to profit from the cryptocurrency market. A variety of companies are working in the cryptocurrency and blockchain sector, offering unique ways to benefit from the crypto-market indirectly.

Let’s have a look at the various ways you can invest in cryptocurrencies, all without owning any.

Crypto penny stocks

Penny stocks usually describe small companies and start-ups whose stock price is under $5 per share. These stocks are risky and highly volatile in nature, but they can be great tools for traders with limited or small trading capital. While most penny stocks are traded over-the-counter, you can find penny stocks listed on big exchanges, such as the Nasdaq.

Crypto-penny stocks are penny stocks dedicated to the crypto-sphere, which means that by investing in these companies, you can benefit from the cryptocurrency market without owning any coins. If you’re interested in finding out more about the hottest crypto penny stocks, have a look at the best crypto penny stocks to watch now.

Crypto-ETFs and Related Funds

Some countries, like Canada and Brazil, have launched an ETF on Bitcoin and Ether, which means that investors can buy shares of these ETFs without having to go through the complex process of buying and securing tokens. It also helps institutional investors access this market, as they need to comply with stricter rules and standards regarding what they invest in compared to retail investors.

In addition to ETF on tokens or on companies working in the crypto-sphere, dedicated funds have been developed over the last few years, like Greyscale’s and Osprey Funds’ single-asset investment trusts, to help investors to take advantage of this market indirectly.

Companies offering cryptocurrencies mining products

You can also turn to companies offering cryptocurrency mining machines. With the growing number of mining farms around the world and the search for greener mining solutions, companies creating mining machines may be a wise investment to get exposure to the crypto-market.

Companies dealing with crypto-related technology

Similarly to companies producing graphics processing units used by miners to mine crypto, other companies are focusing on crypto-related technologies, mainly blockchain technology. Investing in companies that focus on a more integrated implementation of blockchain and cryptocurrencies among businesses can also be a good way to take advantage of this market. 

Cryptocurrency-holding companies

You can gain indirect exposure to Bitcoin and other tokens by investing in companies that have decided to either accept cryptocurrencies or to have them in their balance sheet. There are a variety of publicly traded companies that currently meet this criterion, such as MicroStrategy, Tesla, Square, Coinbase, as well as PayPal.

Final word

Investing in cryptocurrencies without owning any tokens with the alternative methods mentioned here may be a safer and simpler way to take advantage of this market, without being directly exposed to it. You can also use safe and regulated traditional brokerage accounts to gain access to most of these stocks.