Investing in Crypto as a Business: Common Ways Companies Engage in the Crypto Market
Investing in cryptocurrency has become a popular strategic move for businesses seeking to diversify their investment portfolios and benefit from the growth potential of the digital economy. This article explores how companies invest in crypto and the most popular assets in institutional crypto trading.
How Can You Invest in Blockchain?
Here are some common ways to invest in blockchain:
- Investing in crypto. That may be directly buying cryptocurrencies through large and regulated exchanges (e.g., the WhiteBIT institutional crypto exchange) or entering the market with crypto funds and ETFs. That is a more “managed” way to invest without the need to buy and manage assets directly.
- Active participation in trading and market-making on a crypto exchange. What is a market maker in crypto? It is the process of supplying liquidity to traded pairs by placing buy and sell orders on a trading platform. In return, a trader profits from the buy/sell price difference and pays low or zero fees on the platform.
- Blockchain companies. That includes investing in public companies that provide blockchain infrastructure services or are heavy users of blockchain technology. Or that may be investing in startups and venture capital funds focusing on blockchain technology.
- Initial coin offerings (ICOs). Participating in ICOs provides access to a future service or product being developed by blockchain startups.
- Decentralized finance (DeFi). Providing liquidity to DeFi platforms can earn investors interest or rewards in the form of additional tokens. Participating in staking on specific blockchain networks can earn rewards. DeFi also includes such tools as loans and insurance.
- Blockchain ETFs and mutual funds. Those preferring traditional investment vehicles may use ETFs and mutual funds that focus on companies involved in developing and applying blockchain technology.
Investing in Cryptocurrency: Most Popular Assets
The most popular cryptos to invest in include Bitcoin and Ethereum. Many investors view Bitcoin as a digital gold and a hedge against inflation. Its capped supply of 21 million coins contrasts with potential currency devaluation caused by excessive fiat money printing. Bitcoin’s widespread adoption and high liquidity make it an attractive investment.
Ethereum has become an incredibly popular investment asset. It is also called “the world’s decentralized computer.” Based on the Ethereum blockchain, new projects develop new decentralized applications and products. The Ethereum Foundation is the world’s largest organization by number of developers.
Investing in cryptocurrency can be a profitable and exciting venture for businesses and individuals. With the proper knowledge and strategy, investors can benefit from the growth potential of the digital economy and the most popular assets in institutional crypto trading.
