Being a crypto bull has its challenges. Although bitcoin has risen in 2023, it is still down more than 60% from its November 2021 high of $68,789.
But one billionaire investor still loves the world’s largest cryptocurrency: Mark Cuban.
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“I want Bitcoin to drop a lot more so I can buy some more,” Cuban said on a recent episode of Bill Maher’s Club Random podcast.
Maher, who claims to be “very anti-bitcoin” himself, instead owns gold. Cuban, on the other hand, has no time for the yellow metal.
“If you’ve got gold, you’re dumb as f—” says the Shark Tank star and owner of the Dallas Mavericks.
Maher states that gold is “like a hedge against everything else”, but Cuban disagrees.
“Gold is no protection against anything, is it? What it is is a store of value and you don’t own the physical gold, do you… Gold is a store of value and so is Bitcoin,” explains Cuban.
He then explains why gold cannot really protect your wealth in times of crisis.
“You don’t own the gold bar, and if everything in a handbasket went to hell and you had a gold bar, do you know what would happen? Someone would beat you up or kill you and take your gold bar.’
If you share Cuba’s view, here are a few ways to gain exposure to bitcoin.
Buy bitcoin instantly
The first option is the most obvious: if you want to buy Bitcoin, just buy Bitcoin.
Today, individual investors can buy and sell crypto on many platforms. Please note that some exchanges charge up to 4% commission on each trade. So look for apps that charge little or even no commission.
Although Bitcoin has a five-figure price tag these days, it is not necessary to buy an entire coin. Most exchanges allow you to start with as much money as you are willing to spend.
Read more: Here’s how much money the average middle-class American household makes – where are you doing?
Exchange-traded funds have grown in popularity in recent years. They trade on exchanges, so buying and selling is very convenient. And now investors can also use them to get a piece of the bitcoin action.
For example, ProShares Bitcoin Strategy ETF (BITO) began trading on NYSE Arca in October 2021, marking the first US 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 may also want to consider the Valkyrie Bitcoin Strategy ETF (BTF), which debuted a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures contracts and calculates an expense ratio of 0.95%.
When companies tie some of their growth to the crypto market, their stocks can often move along with the coins.
First, there are bitcoin miners. The computing power is not cheap and the energy costs can be considerable. But as the price of bitcoin rises, miners like Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are likely to get more attention from investors.
Then there are intermediaries such as Coinbase Global (COIN) and PayPal (PYPL). When more people buy, sell and use crypto, these platforms will benefit.
Finally, there are companies that simply have a lot of crypto on their balance sheet.
Example: Enterprise software technologist MicroStrategy (MSTR). It has a market cap of less than $3 billion. Still, the number of bitcoins reached about 132,500 on December 27, 2022, a supply worth about $3.4 billion.
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This article provides information only and should not be taken as advice. It comes without any kind of warranty.