8 Ways to Get Bitcoin Exposure

Bitcoin has become a popular investment option for many people. Its value has gone up a lot over time, making it attractive to investors.

BUT……

There are ways to invest in Bitcoin and not just buying it directly. This can be helpful for those who want to avoid the risks of owning and storing digital coins. Some methods allow investors to gain from Bitcoin’s price changes without dealing with the technical aspects of cryptocurrency.

We will even pinpoint idea entry points for you to help maximize gains. We’ve had moves of 50% – 500% just in this past year and good news:

Watch for Black Friday offers coming soon on the NetPicks Crypto Currency Trader, featuring our enhanced Elite 7 Portfolio (Intelligent Doll Cost Averaging) and our CryptoRockets—perfect times for “alt-season” right around the corner.   Check-out a few of our current trades (with new trades setting up every week!)

1. Buy Bitcoin ETFs

Bitcoin ETFs offer a way to get exposure to Bitcoin without directly owning the cryptocurrency. These funds trade on stock exchanges, making them easy to buy and sell through regular brokerage accounts.

Several Bitcoin ETFs are now available, including spot Bitcoin ETFs that directly hold Bitcoin and futures-based ETFs that use Bitcoin futures contracts.

Some popular Bitcoin ETFs include IBIT, BTCO, and BITB. These funds aim to track the price of Bitcoin closely, with annual fees typically ranging from 0.20% to 0.39%.

IBIT already has over $40 Billion invested and growing everyday. You can trade any of these at any stockbroker that trades ETFs (which is about everyone)

Bitcoin ETFs can be a good option for investors who want Bitcoin exposure in their traditional investment accounts. They don’t require setting up a crypto wallet or dealing with cryptocurrency exchanges.

2. Invest in Leveraged Bitcoin ETFs

Leveraged Bitcoin ETFs are also available for more advanced investors. These funds aim to provide multiples of Bitcoin’s daily returns, both positive and negative.

BTCL: T-REX 2X Long Bitcoin Daily Target ETF – Aims for 200% of the daily return of Bitcoin.

BTCZ: T-REX 2X Inverse Bitcoin Daily Target ETF – Aims for 200% of the inverse of Bitcoin’s daily return.

BITU: ProShares Ultra Bitcoin ETF – Seeks daily investment results that correspond to twice the daily performance of Bitcoin.

Pros: Potential for magnified gains.

Cons: Higher risk due to leverage, potential for magnified losses.

Be careful of the Inverse ETF and also realize that Bitcoin corrects at an extreme rate at times. Using 2:1 leverage on a 35% correction (which is common) could prove quite painful. Use leverage only in very specific situations and personally never use it.

3. Invest in Covered Call Bitcoin ETFs

There are also Bitcoin ETFs with covered call strategies. These funds aim to generate income from option premiums while still providing some Bitcoin exposure.

You will cap your upside but you’ll also generate regular cash-flow, even monthly.

WBTC: Invesco Bitcoin Strategy ETF – This ETF has a covered call strategy overlay.

YBTC: Roundhill Bitcoin Covered Call Strategy ETF – Uses a synthetic covered call strategy by holding options on Bitcoin futures.

YBIT: YieldMax Bitcoin Option Income ETF – Employs a covered call strategy on Bitcoin futures

When considering Bitcoin ETFs, it’s important to compare expense ratios, trading volumes, and how closely each fund tracks Bitcoin’s price. As with any investment, potential risks and your overall financial goals should be carefully considered.

4. Acquire Bitcoin Mining Stocks

Buying Bitcoin mining stocks offers a way to gain exposure to Bitcoin’s performance without directly owning the cryptocurrency. These stocks represent companies that operate large-scale Bitcoin mining operations.

Bitcoin mining stocks are publicly traded companies whose primary business involves mining Bitcoin. Their stock prices often correlate with Bitcoin’s value, providing indirect exposure to the cryptocurrency market.

Investors can purchase these stocks through traditional brokerage accounts. This approach may be more familiar and comfortable for those accustomed to traditional stock market investing.

Some popular Bitcoin mining stocks include CleanSpark, Riot Platforms, and Marathon Digital Holdings. These companies focus on expanding their mining operations and increasing efficiency.

Mining stocks can be volatile, as they are influenced by both Bitcoin’s price and the company’s operational performance. They may offer higher potential returns but also come with increased risk compared to direct Bitcoin ownership.

Investing in mining stocks can provide exposure to Bitcoin’s price movements while also benefiting from potential company growth and dividends. This diversification can be attractive to some investors seeking a balanced approach.

5. Purchase Bitcoin Futures

Bitcoin futures offer a way to gain exposure to Bitcoin’s price movements without owning the cryptocurrency directly. These contracts allow investors to speculate on the future price of Bitcoin.

Bitcoin futures contracts are agreements between two parties to buy or sell a specific amount of Bitcoin at a predetermined price on a set date. They’re traded on regulated exchanges, providing a level of oversight and security.

Investors can use futures to potentially profit from both rising and falling Bitcoin prices. This flexibility makes them attractive for those looking to hedge their positions or take on speculative bets.

One popular way to access Bitcoin futures is through exchange-traded funds (ETFs). The ProShares Bitcoin Strategy ETF (BITO) was the first Bitcoin futures ETF approved in the United States.

It’s important to note that futures contracts have expiration dates. Investors must be prepared to roll over their positions or settle the contracts when they expire.

Bitcoin futures can be complex and carry risks. They often involve leverage, which can amplify both gains and losses. Investors should carefully consider their risk tolerance before trading futures.

6. Invest in MicroStrategy Stock

MicroStrategy offers investors an indirect way to gain Bitcoin exposure. The company has made significant investments in Bitcoin, making it a proxy for Bitcoin in the stock market.

Buying MicroStrategy stock provides exposure to both the company’s business operations and its Bitcoin holdings. This can be appealing for investors who want Bitcoin exposure through traditional brokerage accounts.

MicroStrategy’s stock price tends to move in correlation with Bitcoin. The stock often shows more volatility than Bitcoin itself, potentially amplifying gains and losses.

Investors should be aware that MicroStrategy’s performance is not solely tied to Bitcoin. The company’s core business and other factors also influence its stock price.

While MicroStrategy stock can offer Bitcoin exposure, it’s important to note that buying Bitcoin directly may be a more straightforward option for those solely interested in cryptocurrency investment.

Potential investors should carefully consider their goals and risk tolerance before choosing MicroStrategy stock as a means of Bitcoin exposure.

7. Trade on Crypto Exchanges – One of Our Favorite Methods

Trading on crypto exchanges is a direct way to get Bitcoin exposure. These platforms allow users to buy, sell, and trade Bitcoin and other cryptocurrencies.

Popular exchanges include Coinbase, Binance, and Kraken. They offer user-friendly interfaces for beginners and advanced trading features for experienced users.

To start trading, users need to create an account and complete identity verification. This process helps exchanges comply with regulations and prevent fraud.

Once verified, users can deposit funds via bank transfer, credit card, or other payment methods. They can then use these funds to purchase Bitcoin at current market prices.

Crypto exchanges also offer different order types. Market orders buy or sell immediately at the best available price. Limit orders let users set specific price points for transactions.

Some exchanges provide additional features like margin trading and futures contracts. These options can increase potential returns but also carry higher risks.

Security is crucial when using crypto exchanges. Users should enable two-factor authentication and use strong, unique passwords to protect their accounts.

It’s important to research and compare different exchanges before choosing one. Factors to consider include fees, available trading pairs, liquidity, and regulatory compliance.

Coinbase.com is typically our go-to for most new crypto investors.

8. Invest in Coinbase Stock

Coinbase is a major cryptocurrency exchange platform. Buying shares in Coinbase offers a way to gain Bitcoin exposure without directly owning the cryptocurrency.

Coinbase went public in April 2021. Its stock price often moves in tandem with Bitcoin’s value, but with less volatility.

Investing in Coinbase stock provides exposure to cryptocurrency-related services. The company makes money from transaction fees when users buy or sell crypto on its platform.

Before investing, it’s important to research Coinbase’s financials and business model. Potential investors should also consider the company’s growth prospects and competitive position in the crypto industry.

Coinbase stock can be bought through most brokerages. Investors may want to start small and gradually build their position over time.

Keep in mind that Coinbase stock comes with its own risks. These include regulatory uncertainties and the volatile nature of the crypto market.

Understanding Bitcoin Exposure

Bitcoin exposure refers to ways investors can gain financial stakes in the cryptocurrency without directly owning it. It allows people to benefit from Bitcoin’s price movements through various investment vehicles.

Benefits of Bitcoin in Investment Portfolios

Adding Bitcoin to an investment mix can offer several advantages. One key benefit is portfolio diversification. Bitcoin often moves differently from stocks and bonds.

This low correlation can help spread risk. When stocks fall, Bitcoin might rise, balancing out losses.

Bitcoin also offers potential for high returns. Its price can increase rapidly, though it’s very volatile.

Some see Bitcoin as a hedge against inflation. Unlike regular money, Bitcoin has a fixed supply. This could protect wealth if currencies lose value.

Investing in Bitcoin can also provide exposure to blockchain technology. This emerging field might shape future finance and tech industries.

Frequently Asked Questions

How can one instantly purchase Bitcoin with a credit card?

Several exchanges offer instant Bitcoin purchases with credit cards. Coinbase, Binance, and Coinmama are popular choices. Fees are often higher for this convenience. Given the high volatility of cryptocurrency we’d only suggest this option if you an pay-off the balance in full monthly on the credit card. Borrowing to buy crypto has not been a safe way to invest in prior cycles.

What is the smallest amount of Bitcoin one can purchase?

Bitcoin is divisible to eight decimal places. The smallest unit, called a satoshi, is 0.00000001 BTC. Many exchanges allow purchases as small as $1-$10 worth of Bitcoin.

What are the simplest ways to buy Bitcoin?

We’d suggest opening an account with Coinbase.com and buying it there so you can actually own your own Bitcoin. Or, you can also buy the IBIT ETF (or others mentioned) at any stockbroker such as Schwab, Fidelity, Etrade, Robinhood, Interactive Brokers and many more.

What are the best levels and prices to buy Bitcoin and other top crypto markets?

NetPicks has offered our Crypto Currency Trader service for years which focuses on our Elite 7 portfolio, plus our enhanced markets. We issue exact buy levels for the top crypto including Bitcoin, Solana, Ethereum and 10 others. Good news:

Watch for Black Friday offers coming soon on the NetPicks Crypto Currency Trader, featuring our enhanced Elite 7 Portfolio (Intelligent Doll Cost Averaging) and our CryptoRockets—perfect times for “alt-season” right around the corner.   Check-out a few of our current trades (with new trades setting up every week!)