Last November, the world’s largest cryptocurrency, bitcoin, soared to $68,990 and is now around $29,000, a staggering 58% retracement from its peak.
American investor and author of the book on investing “Rich Dad Poor Dad” (Rich Dad Poor Dad) Robert Kiyosaki believes, paradoxically, that the crisis is the best time to buy. According to him, if the downtrend continues, he is ready to start buying.
Kiyosaki added that bitcoin is “the future of money” and that its bottom could be as low as $11,000. If there are investors who share Kiyosaki’s point of view, here are 3 easy ways to capitalize on a potential Bitcoin recovery. The first option is also the easiest: if you want to buy bitcoin, just buy it. To do this, you can use the services of many platforms that allow individual investors to buy and sell cryptocurrency or part of it. Just be aware that some exchanges charge fees up to 4% for every transaction. So you need to look for applications with low commission or no commission at all.
Although bitcoin has a 5-figure price today, there is no need to buy it in its entirety: most exchanges allow you to start with as much money as an investor is willing to spend. The second option is to invest in bitcoin ETFs, as exchange-traded funds have grown in popularity in recent years. For example, the ProShares Bitcoin Strategy ETF (BITO) began trading on the New York Stock Exchange in October 2021, becoming the first U.S. ETF linked to bitcoin. There is also the Valkyrie Bitcoin Strategy (BTF) ETF, which debuted a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures contracts.
And finally, the third option is bitcoin stocks. When companies tie part of their growth to the cryptocurrency market, their stocks can often move with that currency. This includes bitcoin miners. Computing power is expensive, and energy costs can be significant. But if the price of bitcoin rises, miners like Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are likely to catch the attention of investors.
In addition, there are intermediaries such as Coinbase Global (NASDAQ: COIN) and Paypal (NASDAQ: PYPL). As more people buy, sell, and use cryptocurrencies, these platforms will only benefit. Finally, there are companies that simply hold a lot of cryptocurrencies on their balance sheets. For example, MicroStrategy (MSTR). Its market capitalization is $2.3 billion. However, at the end of March, the number of its bitcoins reached 129,218, which is about $3.8 billion.