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7 Ways to Play the Crypto Boom

InvestorPlace Logo By Josh Enomoto of InvestorPlace | Slide 1 of 8: Although weakness has recently stymied what has otherwise been a remarkable run in bitcoin (CCC:BTC-USD), that alone won’t stop enthusiasm in the cryptocurrency sector. After breaking above the $20,000 level in December, bitcoin breached $40,000 in a matter of weeks before settling down to the low $30,000 territory. But is now a time to get into crypto assets? Shedding about a quarter of its newfound lofty price gains, the correction invariably attracted critics, calling bitcoin and the virtual currency complex a dangerous asset class. To be fair, I understand the blowback. To the uninitiated, crypto sounds like magic fairy money, like something crafted out of thin air. And if it’s created that easily, it can be destroyed just as quickly. While I don’t want to go into a university thesis as to why people can trust crypto assets, one of the most important factors to keep in mind is double-spending, or the ability to use a digital token in more than one transaction. Of course, such a concept would imply unlimited inflation, which would make bitcoin and other cryptocurrency coins worth as much as a billion-dollar Zimbabwean note during the underlying country’s hyperinflation struggles. And accusations of such sent a shock wave through the crypto community recently, which contributed to the decline of bitcoin and other crypto tokens. However, as Coindesk.com points out, a double-spending incident did not occur. Instead, it was a misunderstanding of the nuances and intricacies of the bitcoin network. However, that didn’t stop the entire cryptocurrency complex from correctly sharply. This has led people to consider diversifying how they are exposed to the blockchain markets. Fortunately, the burgeoning crypto arena offers multiple ways for all investors to participate.  Buy the crypto assets directly  Acquire shares of GPU manufacturers  Get broad exposure through exchange-traded funds  Purchase stock in mining companies or mining-equipment producers  Invest in companies which utilize the underlying blockchain technology  Consider solar energy firms  Regional investments where crypto or mining is popular            8 Cheap Stocks to Buy With Your Next Stimulus Check          Each approach has their distinct pros and cons, which we’ll explore. But the important takeaway here is that you’re not limited to just one methodology. Indeed, the cryptocurrency market is much more diverse than many critics suggest.

Although weakness has recently stymied what has otherwise been a remarkable run in bitcoin (CCC:BTC-USD), that alone won’t stop enthusiasm in the cryptocurrency sector. After breaking above the $20,000 level in December, bitcoin breached $40,000 in a matter of weeks before settling down to the low $30,000 territory. But is now a time to get into crypto assets? Shedding about a quarter of its newfound lofty price gains, the correction invariably attracted critics, calling bitcoin and the virtual currency complex a dangerous asset class. To be fair, I understand the blowback. To the uninitiated, crypto sounds like magic fairy money, like something crafted out of thin air. And if it’s created that easily, it can be destroyed just as quickly. While I don’t want to go into a university thesis as to why people can trust crypto assets, one of the most important factors to keep in mind is double-spending, or the ability to use a digital token in more than one transaction. Of course, such a concept would imply unlimited inflation, which would make bitcoin and other cryptocurrency coins worth as much as a billion-dollar Zimbabwean note during the underlying country’s hyperinflation struggles. And accusations of such sent a shock wave through the crypto community recently, which contributed to the decline of bitcoin and other crypto tokens. However, as Coindesk.com points out, a double-spending incident did not occur. Instead, it was a misunderstanding of the nuances and intricacies of the bitcoin network. However, that didn’t stop the entire cryptocurrency complex from correctly sharply. This has led people to consider diversifying how they are exposed to the blockchain markets. Fortunately, the burgeoning crypto arena offers multiple ways for all investors to participate. Buy the crypto assets directly Acquire shares of GPU manufacturers Get broad exposure through exchange-traded funds Purchase stock in mining companies or mining-equipment producers Invest in companies which utilize the underlying blockchain technology Consider solar energy firms Regional investments where crypto or mining is popular Each approach has their distinct pros and cons, which we’ll explore. But the important takeaway here is that you’re not limited to just one methodology. Indeed, the cryptocurrency market is much more diverse than many critics suggest.
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