The first enthusiasts who bought bitcoins earned a fortune, but many still do not like the idea of buying directly the crypto currency and the need to rely on far from the most reliable exchanges. Here are alternative ways how to capitalize on the distribution of crypto currency. In some cases, the profit may even be higher than when buying bitcoins.
Bitcoin futures
In December last year, the two largest US exchanges began offering bitcoin (Bitcoin) futures contracts. The Chicago Stock Exchange first futures, followed by the Chicago Mercantile Exchange with its version of the contract.
Contracts have small differences, but both versions allow investors to play at changing the cost of bitcoin. The futures buyer makes a profit if the price of the crypto currency has grown up to the expiration date, the seller - if the bitcoin price has decreased.
The advantage of futures is that you do not need to buy crypto currency to make money on changing its price. Unlike some commodity contracts, when the underlying asset is delivered after expiration, bitcoin futures are financial - settlements between the parties are made in dollars.
Manufacturers of graphic cards
Another way to make money with the bitcoins is to invest in companies that manufacture equipment for mining. Graphic cards that can effectively solve complex mathematical problems for obtaining new coins remain the most popular means of extraction.
Last year, prices for NVIDIA graphics processors (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) jumped because of the high demand of the miners. From this process, other categories of buyers have suffered - for example, gamers. The sales growth was so strong that some owners of NVIDIA and AMD shares were nervous, fearing that companies rely too much on miners in conditions of significant fluctuations in bitcoin prices and, accordingly, low predictability of demand.
In turn, AMD and NVIDIA should do everything possible to protect the interests of their main customers - gamers - and at the same time make the most of the advantages associated with crypto currency fever.
Partners of the largest players in the crypto-currency market
Finally, if you believe in the prospects of blocking technology, but doubt the future of the crypto currency, you can pay attention to companies that will benefit from its specific applications.
For example, Ripple is a network that allows financial institutions to transfer money around the world with minimal delays. XRP tokens (XRP / USD) can be used to accelerate transactions, but the network also allows work without their participation.
Several large corporations have already invested in Ripple Labs, the company that developed Ripple. These include the Chicago Mercantile Exchange, Banco Santander and an expert in the production of Seagate Technology drives. All of them (and their shares) will benefit from the growth in the number of clients of Ripple Labs and the success in promoting crypto currency.
You are not alone if you are worried about buying digital tokens, which in one day may cease to exist. The above alternative ways to earn on crypto-currencies have their risks, but they are familiar and comfortable for ordinary investors. If digital currencies continue to grow, in the future they can bring a good profit.
