The first thing that we would probably need to ask ourselves is if there is in fact a right way to invest in Crypto stocks. There are actually plenty of options to choose from if you want to become a crypto stock investor. One of the problems that many of the new investors that want to get into crypto stocks run into is that they’re not using the right marketplaces or platforms to be profitable crypto stock brokers.
Many of the new investors head to well known brokers that advertise the possibility of investing in crypto stocks through their platform. If you decide to go with eToro, FX Pro, or any of the big names, understand that you’re not getting crypto stock per se. What you’re buying is a CFD that has no real value or usage outside of that platform. If you’re buying Bitcoin you won’t be able to take those Bitcoin and put them into a digital wallet. On top of that the spread that a lot of these brokers have on crypto stocks, particularly for investors with lower funding, are insane. The spread itself makes it hardly impossible to turn a profit with these stocks through day trading. If you’re in it for the long haul their fees are going to eat you up as well.
What Other Ways Are There To Invest In Crypto Stocks?
The other main option that you’re going to have is to head to a decentralized exchange or an automated market maker, and buy crypto stocks there. There are a couple of things that you’re going to be able to essentially access through this method that you wouldn’t get through other options. When buying for example Solana from a Solana AMM, the price is set by the platform. No negotiation is required and you’ll be able to put that token in a crypto wallet. From here, you can hold the token and sell it when the price of the cryptocurrency has increased or you can put it to work for you.
Take those tokens and put them in a single sided liquidity pool. This is going to allow you to earn dividends on the tokens that are taken from the pool by the platform to fund its transactions. It’s certainly an alternative that may be worth looking into. Particularly if you’re not keen on doing a lot of trades that could be a bit more risky.
Can Crypto Stocks Really Be Profitable?
As we’ve been discussing, there are actually multiple ways that crypto stocks can be profitable. It is certainly important, though to pick the right strategy and even the right asset. A lot of people talk about diversifying your portfolio as an investor, and that’s certainly a good idea. With crypto stocks you want to make sure that you’re able to keep tabs on the movement of the prices on the stocks that you’re following. A lot of times that leads to limiting the number of assets that you’re actually going to be involved in.