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For a few months now, Bitcoin (CRYPTO: BTC) and the rest of the cryptocurrency industry sold off. While at first it was a slight dip, the cryptocurrency industry has been mirroring the stock market lately. In total, bitcoin is down 36% from its highs, and the total cryptocurrency is down almost 30%.
The biggest reason to sell stocks is the expectation that there will be several interest rates later throughout the year.
Right now, Bitcoin and the rest of the cryptocurrency industry are treated like high-growth stocks, especially tech stocks. And while Bitcoin, in particular, has experienced a tailwind from rising inflation (which higher interest rates may take a toll on), there are much more reasons to invest in both Bitcoin and other high-potential cryptocurrencies.
Therefore, with the opportunities created by cryptocurrencies, this sale is not sustainable, especially as the development in the sector continues to advance rapidly every day. In addition, there are still plenty of high net worth individuals, companies, and institutions looking to gain exposure as well as all individual investors showing interest.
Mike Novogratz, crypto billionaire and CEO Galaxy Digital Holdings, a financial services company serving the cryptocurrency industry, recently gave an interview with CNBC The most recent downward move in the cryptocurrency has been with low trading volume. In addition, he noted, there is a “tremendous amount of institutional margin demand.”
So, if you are looking to take advantage of this huge drop in cryptocurrency prices, here’s how to get exposure for bitcoin.
How to get exposed to bitcoin
Nowadays, due to the popularity of this industry and thanks to all the innovations, there are several ways to gain exposure with Bitcoin.
First, you can buy the currency itself from the Bitcoin blockchain. To do this, you will need to purchase Bitcoin on an in-house cryptocurrency app, or through a cryptocurrency exchange, and then send it to your personal wallet. However, in addition to buying BTC on-chain, you can also get exposure to BTC on the Ethereum (CRYPTO: ETH) blockchain.
The difference is that having Bitcoin on the chain means that you can only use it as a currency to send and receive financial transactions. On the Ethereum blockchain, you can use wrapped bitcoin (CRYPTO: WBTC), which can be exchanged for one with BTC on-chain, for Decentralized Finance (DeFi) purposes. This could be a better use for many investors who want to try to earn a return on their crypto investment and participate in the growth of DeFi.
On top of buying an actual cryptocurrency, there are also many stocks you can buy if you are bullish on Bitcoin. There are bitcoin mining stocks like Hut 8 Mining, but also several ETFs to consider as well.
You can buy an ETF like CI Galaxy Bitcoin ETFs, which is offered by Mike Novogratz’s Galaxy Digital and gives you direct exposure to bitcoin, without having to buy it yourself. Additionally, you can consider the Bitcoin Yield ETF, which uses a covered call strategy to generate a distribution for investors.
Currently, cryptocurrencies such as Bitcoin offer investors a large number of growth potential, but it is necessary to view them as long-term investments.
So, even though these assets can be highly volatile, if you truly believe in the long-term potential of the blockchain industry, buying quality cryptocurrencies while trading them at a huge discount is one of the best opportunities available today.