Being a crypto bull has its challenges. Even though bitcoin rallied in 2023, it is still down more than 60% from the peak of $68,789 reached in November 2021.
But a billionaire investor still likes the biggest cryptocurrency in the world: Mark Cuban.
“I want Bitcoin to drop a lot more so I can buy a little more,” Cuban said on a recent episode of Bill Maher’s Club Random podcast.
Maher, who claims to be “very anti-bitcoin”, owns gold. Cuban, by contrast, has no time for yellow metal.
“If you have gold, you’re dumb as fuck,” says the Shark Tank star and owner of the Dallas Mavericks.
Maher argues that gold “is like a hedge against everything else,” but Cuban disagrees.
“Gold is not a protection against anything, right? What is a store of value and you don’t have physical gold, isn’t it… Gold is a store of value and so is Bitcoin”, explains Cuban.
He then points out why gold cannot really protect your wealth in times of crisis.
“You don’t own the gold bar, and if everything went wrong and you had a gold bar, you know what would happen? Someone would beat you up or kill you and take your gold bar.
If you share Cuban’s view, here are some ways to gain exposure to bitcoin.
buy bitcoin directly
The first option is the most straightforward: if you want to buy Bitcoin, just buy Bitcoin.
Currently, many platforms allow individual investors to buy and sell cryptocurrencies. Be aware that some exchanges charge commission fees of up to 4% for each transaction. So look for apps that charge little or even no commission.
Although Bitcoin has a five-figure price today, there is no need to buy an entire coin. Most exchanges allow you to start with as much money as you are willing to spend.
See more information: Here’s How Much Money the Average Middle-Class American Family Makes – How Do You Compare?
Exchange-traded funds have increased in popularity in recent years. They trade on stock exchanges, so buying and selling them is very convenient. And now, investors can also use them to get a piece of bitcoin action.
For example, the ProShares Bitcoin Strategy ETF (BITO) began trading on the NYSE Arca in October 2021, marking the first U.S. bitcoin-linked ETF on the market. The fund holds bitcoin futures contracts traded on the Chicago Mercantile Exchange and has an expense ratio of 0.95%.
Investors can also consider the Valkyrie Bitcoin Strategy ETF (BTF), which debuted a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures contracts and charges an expense fee of 0.95%.
When companies tie part of their growth to the cryptocurrency market, their stocks can often move in tandem with the currencies.
First, there are bitcoin miners. Computing power doesn’t come cheap, and energy costs can be substantial. But if the price of bitcoin rises, miners like Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are likely to receive greater attention from investors.
Then there are intermediaries like Coinbase Global (COIN) and PayPal (PYPL). When more people buy, sell and use cryptocurrencies, these platforms benefit.
Finally, there are companies that simply keep too many cryptocurrencies on their balance sheets.
Case in point: MicroStrategy Enterprise Software Technologist (MSTR). It has a market cap of less than $3 billion. However, his bitcoin count reached approximately 132,500 on December 27, 2022, a stash worth around $3.4 billion.
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This article provides information only and should not be construed as advice. It is provided without any kind of warranty.