Guide: How to expose your portfolio to crypto without buying crypto!

invest-crypto-without-buying-crypto

You can’t buy cryptocurrencies due to your country legislation? Because it’s too complicated? Maybe it’s too volatile for you? Then, you might be thinking, how can I invest in cryptocurrencies without buying any cryptocurrencies?

Well, first. If the issue is that you don’t have the money to buy some cryptocurrencies, good news, I have an article with 20 ways to earn free crypto!

If you can’t because it’s considered haram (for our Arabic friends), no issue, with the many ways that I will present, you will find stocks, ETFs, etc. that are not considered haram. Also, stay tuned because one day I will cover how conceptually the blockchain is interestingly similar to the Quran revelation process.

Investing in the cryptocurrency core technology: the Blockchain!

For a start, just a brief introduction on blockchain and why investing in it. If you are aware of all of that already, you can already jump to the next article of the guide, and see the best stocks and ETFs that I have found! 

I highly recommend using Interactive Broker or Degiro to invest in stocks and EFTs! If you don’t know how to use Interactive Broker or Degiro, stay tuned, tutorials will come.

Structure of the Guide: expose your portfolio to crypto without buying crypto!

This suite of articles will focus on the way to invest in Bitcoin, Ethereum, Altcoins and Blockchain without buying any coins. For ease of readiness instead of doing a very long article, with too much info condensed, I’ve separated the content in different articles as the following.

  • Expose yourself to crypto without buying any crypto (current article).
  • The best Bitcoin and Crypto stocks
  • Outperforming the S&P with Blockchain stocks
  • How to invest in ETF bitcoin and crypto
  • How to use Interactice Brockers and Degiro to invest in crypto stocks and ETFs.

What is the Blockchain?

If you are not that familiar with the Blockchain, you can see it as a database that no one could hack, fake or tamper it. The reason for that is that everyone has access to it, everyone owns a copy of the database, so to hack it you would have to hack every single copy of the database. For a longer explanation see my deeper take on the blockchain technology here

Blockchain is a decentralized database, which allows storing value in digital format, which was never really possible until Bitcoin and the Blockchain. Nowadays, many cryptocurrencies are using variation of the original Bitcoin’s blockchain technology, but for ease of explanation, we will say that cryptocurrencies core technology is the Blockchain Technology.

Why invest in the Blockchain?

Cryptocurrencies may be a joke, but blockchain may not! It may be actually the most significant innovation in finance in the past decades. This peer-to-peer ledger technology may also impact different industries and not just finance.

For example, the traceability capabilities with the blockchain might be useful for supply chains, in agroindustry, pharma. IBM worked with Walmart Nestle and a couple of other companies on the blockchain technology in order to build a system to quickly identify where food poisoning could come from.

A good analogy I like to use regarding investing on blockchain in traditional markets is Amazon. Just like the internet bubble, most of the cryptocurrencies are wayyy overvalued. Most of them basically have little value and yet are valued several billion. Take Shiba or Dogecoin. We are talking about memes having a marketcap higher than Chainlink! 

I know that some people will disagree, and write that meme power has some intrinsic value. Good, keep your meme token. You are just being manipulated by people that made you think that way. After the internet bubble crash, lots of people never managed to retrieve the funds they had invested, because the companies disappeared, or the stocks are basically worthless now. Have a look at Vivendi 20 years later, people who invested at the top are still at -80%.

vivendi-internet-bubble-investement-lost
Investors that entered at the top of the 2000 internet bubble in Vivendi, have suffered a -90% ! 20 years later, the stocks have still a long way to reach back their initial investment level...

For quite some time, it was the same for people that invested on Amazon. They suffered from a -95% for a few years, but ultimately, 10 years later even people that invested at the top of the internet bubble in Amazon, retrieved their initial investment. If they held after these 10 years, they are now hugely in profit.

amazon-internet-bubble-stock-return-investement
Investors that entered at the top of the 2000 internet bubble in Amazon, had to wait 2009 and suffered a -95% before their stocks reached back their initial investment level. Careful, vertical axis is in logarithmic, the post 2009 bull run is much bigger than you can imagine! 3500% since then!

Investing in good blockchain companies could be like investing in Amazon back at that time. It’s a bubble, but the bubble could still go on for a long time (“The market can remain irrational longer than you can remain solvent” by Keynes). But if you invested on the right companies eventually in some years, you will be in profit. Also, FOMO is a real feeling that is hard to fight. But again, think about the example I just gave you, you have time to invest in blockchain companies on traditional markets. You need to be patient, and the best thing to remain patient is not to invest all your money at once, but small parts every month, for example.

Risks

There are now many ways to expose yourself and your portfolio to cryptocurrency or blockchain, without actually purchasing coins. Still, as with any speculative investment, you should do your due diligence before investing in the ways that I will present you. You should also only invest money you don’t need to live if you loose it all.

Next article

This article is part of a larger suite of articles that focus on the way to invest in Bitcoin, Ethereum, Altcoins and Blockchain without buying any coins. For ease of readiness instead of doing a very long article, with too much info condensed, I’ve separated the content in different articles as the following. Please, proceed to the following article that might interest you.

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